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LRB-0763/2
MES:kjf
2017 Special Session
2017 - 2018 LEGISLATURE
DOR tax incremental district "clean up" bill
Preliminary Draft - Not Ready For Introduction
February 21, 2017 - Introduced by Senators Stroebel and Olsen, cosponsored by
Representatives Steffen, Loudenbeck, Skowronski, R. Brooks, Spiros and
Kerkman. Referred to Committee on Government Operations, Technology and
Consumer Protection.
SB51,1,6 1An Act to repeal 60.85 (3) (L), 60.85 (5) (c), 60.85 (6) (f) 3., 66.1105 (5) (be),
266.1105 (6m) (d) 3. and 66.1106 (10m) (c); and to amend 60.85 (5) (b), 60.85 (5)
3(d) 1., 60.85 (5) (f), 60.85 (6) (am), 60.85 (6) (f) 4., 60.85 (10) (b), 66.1105 (4) (gm)
44. bm., 66.1105 (5) (cm), 66.1105 (6) (ae), 66.1105 (6m) (d) 4., 66.1105 (8) (b),
566.1106 (7) (am), 66.1106 (7) (c) and 66.1106 (10m) (d) of the statutes; relating
6to:
technical changes to the tax incremental financing statutes.
Analysis by the Legislative Reference Bureau
This bill makes a number of technical changes to the statutes affecting city,
village, and town tax incremental financing districts. The bill does the following:
1. Limits penalties to $6,000 per report that the Department of Revenue may
assess against municipalities that fail to file with DOR certain required reports.
2. Modifies certain administrative payment and certification request due
dates, changing the dues dates from May 15 to April 15.
3. Repeals a requirement for municipalities to provide DOR with preliminary
project plan amendment notifications.
4. Adds mixed-use development to the list of eligible project costs for
mixed-use tax incremental districts.

5. Excludes municipal property from base values for town TIDs.
6. Repeals an obsolete special provision that applied only to a TID in the city
of Hayward; the TID terminated in 2011.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB51,1 1Section 1. 60.85 (3) (L) of the statutes is repealed.
SB51,2 2Section 2. 60.85 (5) (b) of the statutes is amended to read:
SB51,2,143 60.85 (5) (b) Upon application in writing by the town clerk, in a form prescribed
4by the department of revenue, the department shall determine according to its best
5judgment from all sources available to it the full aggregate value of the taxable
6property and, except as provided in par. (c), of the town-owned property in the tax
7incremental district. Subject to sub. (10) (d), the department shall certify this
8aggregate valuation to the town clerk, and the aggregate valuation constitutes the
9tax incremental base of the tax incremental district. The town clerk shall complete
10these forms upon the creation of a tax incremental district or upon the amendment
11of a district's project plan and shall submit the application on or before December 31
12of the year the tax incremental district is created, as defined in sub. (3) (h) 2. or, in
13the case of an amendment, on or before December 31 of the year in which the changes
14to the project plan take effect.
SB51,3 15Section 3. 60.85 (5) (c) of the statutes is repealed.
SB51,4 16Section 4. 60.85 (5) (d) 1. of the statutes is amended to read:
SB51,3,817 60.85 (5) (d) 1. If the town adopts an amendment to the original project plan
18under sub. (3) (j) for any district which includes additional project costs at least part
19of which will be incurred after the period specified in sub. (6) (b) 1., the tax

1incremental base for the district shall be redetermined by adding to the tax
2incremental base the value of the taxable property, and, except as provided in par.
3(c), of the town-owned property,
that is added to the existing district as of the
4January 1 of the same calendar year for a resolution adopted before October 1 or as
5of January 1 of the next subsequent calendar year for a resolution adopted after
6September 30. The tax incremental base as redetermined under this subdivision is
7effective for the purposes of this section only if it exceeds the original tax incremental
8base determined under par. (b).
SB51,5 9Section 5. 60.85 (5) (f) of the statutes is amended to read:
SB51,3,1510 60.85 (5) (f) The town clerk shall annually, after May 1 but before May 21, by
11written notice, inform the department of revenue of any amendment to the project
12plan which has been adopted.
The town clerk shall also give written notice of the
13adoption of an amendment to the department of revenue within 60 days after its
14adoption. The department of revenue may prescribe forms to be used by the town
15clerk when giving notice as required by this paragraph.
SB51,6 16Section 6. 60.85 (6) (am) of the statutes is amended to read:
SB51,3,2317 60.85 (6) (am) With regard to each district for which the department of revenue
18authorizes the allocation of a tax increment under par. (a), the department shall
19charge the town that created the district an annual administrative fee of $150 that
20the town shall pay to the department no later than May April 15. If the town does
21not pay the fee that is required under this paragraph, by May April 15, the
22department may not authorize the allocation of a tax increment under par. (a) for
23that town.
SB51,7 24Section 7. 60.85 (6) (f) 3. of the statutes is repealed.
SB51,8 25Section 8. 60.85 (6) (f) 4. of the statutes is amended to read:
SB51,4,8
160.85 (6) (f) 4. If an annual report is not timely filed under subd. 3. or sub. (8)
2(c), the department of revenue shall notify the town that the report is past due. If
3the town does not file the report within 60 days of the date on the notice, the
4department shall charge the town a fee of $100 per day for each day that the report
5is past due, up to a maximum penalty of $6,000 per report. If the town does not pay
6within 30 days of issuance, the department of revenue shall reduce and withhold the
7amount of the shared revenue payments to the town under subch. I of ch. 79, in the
8following year, by an amount equal to the unpaid penalty
.
SB51,9 9Section 9. 60.85 (10) (b) of the statutes is amended to read:
SB51,4,1410 60.85 (10) (b) If the department of revenue receives a notice under par. (a)
11during the period from January 1 to May April 15, the effective date of the notice is
12the date the notice is received. If the notice is received during the period from May
13April 16 to December 31, the effective date of the notice is the first January 1 after
14the department of revenue receives the notice.
SB51,10 15Section 10. 66.1105 (4) (gm) 4. bm. of the statutes is amended to read:
SB51,4,1916 66.1105 (4) (gm) 4. bm. The project costs relate directly to eliminating blight,
17directly serve to rehabilitate or conserve the area or directly serve to promote
18industrial or mixed-use development, consistent with the purpose for which the tax
19incremental district is created under subd. 4. a.; and
SB51,11 20Section 11. 66.1105 (5) (be) of the statutes is repealed.
SB51,12 21Section 12. 66.1105 (5) (cm) of the statutes is amended to read:
SB51,5,222 66.1105 (5) (cm) The city clerk shall annually, after May 1 but before May 21,
23by written notice, inform the department of revenue of any amendment to the project
24plan which has been adopted.
The city clerk shall also give written notice of the
25adoption of an amendment to the department of revenue within 60 days after its

1adoption. The department of revenue may prescribe forms to be used by the city clerk
2when giving notice as required by this paragraph.
SB51,13 3Section 13. 66.1105 (6) (ae) of the statutes is amended to read:
SB51,5,104 66.1105 (6) (ae) With regard to each district for which the department of
5revenue authorizes the allocation of a tax increment under par. (a), the department
6shall charge the city that created the district an annual administrative fee of $150
7that the city shall pay to the department no later than May April 15. If the city does
8not pay the fee that is required under this paragraph, by May April 15, the
9department may not authorize the allocation of a tax increment under par. (a) for
10that city.
SB51,14 11Section 14. 66.1105 (6m) (d) 3. of the statutes is repealed.
SB51,15 12Section 15. 66.1105 (6m) (d) 4. of the statutes is amended to read:
SB51,5,2013 66.1105 (6m) (d) 4. If an annual report is not timely filed under subd. 3. or par.
14(c), the department of revenue shall notify the city that the report is past due. If the
15city does not file the report within 60 days of the date on the notice, except as provided
16in this subdivision, the department shall charge the city a fee of $100 per day for each
17day that the report is past due, up to a maximum penalty of $6,000 per report. If the
18city does not pay within 30 days of issuance, the department of revenue shall reduce
19and withhold the amount of the shared revenue payments to the city under subch.
20I of ch. 79, in the following year, by an amount equal to the unpaid penalty
.
SB51,16 21Section 16. 66.1105 (8) (b) of the statutes is amended to read:
SB51,6,222 66.1105 (8) (b) If the department of revenue receives a notice under par. (a)
23during the period from January 1 to May April 15, the effective date of the notice is
24the date the notice is received. If the notice is received during the period from May

1April 16 to December 31, the effective date of the notice is the first January 1 after
2the department of revenue receives the notice.
SB51,17 3Section 17. 66.1106 (7) (am) of the statutes is amended to read:
SB51,6,104 66.1106 (7) (am) With regard to each district for which the department
5authorizes the allocation of a tax increment under par. (a), the department shall
6charge the political subdivision that created the district an annual administrative
7fee of $150 that the political subdivision shall pay to the department no later than
8May April 15. If the political subdivision does not pay the fee that is required under
9this paragraph, by May April 15, the department may not authorize the allocation
10of a tax increment under par. (a) for that political subdivision.
SB51,18 11Section 18. 66.1106 (7) (c) of the statutes is amended to read:
SB51,6,1712 66.1106 (7) (c) If the department receives the notice described under sub. (10)
13(b) during the period from January 1 to May April 15, the effective date of the notice
14is the date on which the notice is received. If the department receives the notice
15described under sub. (10) (b) during the period from May April 16 to December 31,
16the effective date of the notice is the first January 1 after the date on which the notice
17is received.
SB51,19 18Section 19. 66.1106 (10m) (c) of the statutes is repealed.
SB51,20 19Section 20. 66.1106 (10m) (d) of the statutes is amended to read:
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