In general and in brief, a city or village makes use of TIF using the following
procedure:
1. The city or village designates an area as a TID and creates a project plan
laying out the expenditures that the city or village will make within the TID.
2. DOR establishes the base value of the TID. This value is the equalized value
of all taxable property within the TID at the time of its creation.
3. Each year thereafter, the value increment of the property within the TID is
determined by subtracting the base value from the current value of property within
the TID. The portion of taxes collected on any positive value increment is collected
by the city or village for use solely for the project costs of the TID. The taxes collected
by the city or village on positive value increments include taxes that would have been
collected by other taxing jurisdictions, such as counties or school districts, were the
TID not created.
4. Tax increments are collected until the city or village has recovered all of its
project costs or until the TID reaches its statutory termination date.
Workforce housing initiatives
The bill authorizes workforce housing initiatives and makes changes that affect
TIDs and state housing grants. The bill creates a definition for “workforce housing,”
changes the definition of a “mixed-use development” TID, increases the maximum
number of years a city or village may extend the life of a TID to improve its affordable
and workforce housing, requires a TID's project plan to contain alternative economic
projections, and changes the method of imposing certain impact fees.
Under the bill, a political subdivision may put into effect a workforce housing
initiative by taking one of several specified actions and posting on its website an
explanation of the initiative. Workforce housing initiatives include the following:
reducing permit processing times or impact fees for workforce housing; increasing
zoning density for a workforce housing development; rehabilitating existing
uninhabitable housing stock into habitable workforce housing; or implementing any
other initiative to address workforce housing needs. Once an initiative takes effect,
it remains in effect for five years. After June 30, 2024, if a political subdivision has
in effect at least three initiatives at the same time, DOA must give priority to housing
grant applications from, or related to a project in, the political subdivision.
The bill defines “workforce housing” to mean the following, subject to the
five-year average median costs as determined by the U.S. Bureau of the Census:
1. Housing that costs a household no more than 30 percent of the household's
gross median income.
2. Housing that is comprised of residential units for initial occupancy by
individuals whose household median income is no more than 120 percent of the
county's gross median income.
Under current law, a mixed-use development TID contains a combination of
industrial, commercial, or residential uses, although newly platted residential areas
may not exceed more than 35 percent of the real property within the TID. Under the
bill, newly platted residential areas may not exceed either the 35 percent limit or 60
percent of the real property within the TID if the newly platted residential use that
exceeds 35 percent is used solely for workforce housing.
The bill also requires a TID's project plan to include alternative projections of
the TID's finances and feasibility under different economic situations, including a
slower pace of development and lower rate of property value growth than expected
in the TID.
Currently, a city or village may extend the life of a TID for up to one year for
housing stock improvement if all of the following occurs:
1. The city or village pays off all of the TID's project costs.
2. The city or village adopts a resolution stating that it intends to extend the
life of the TID, the number of months it intends to do so, and how it intends to improve
housing stock.
3. The city or village notifies DOR.
Current law requires the city or village to use 75 percent of the tax increments
received during the period specified in the resolution to benefit affordable housing
in the city or village and 25 percent to improve the city's or village's housing stock.
Under the bill, a city or village may extend the life of a TID for up to three years
to improve its housing stock or increase the number of affordable and workforce
housing improvements, with at least 50 percent of the funds supporting units for
families with incomes of up to 60 percent of the county's median income. Also, for any
extension of more than one year, the other taxing jurisdictions must approve of the
extension.
Under current law, if a city, village, or town imposes an impact fee on a
developer to pay for certain capital costs to accommodate land development, the city,
village, or town may provide in the ordinance an exemption from, or a reduction in
the amount of, impact fees on land development that provides low-cost housing.
Under the bill, the impact fee exemption or reduction provisions also apply to
workforce housing. Current law prevents the shifting of an exemption from or
reduction in impact fees to any other development in the land development in which
the low-cost housing is located. The bill applies this provision to workforce housing
as well.
TIF 12 percent rule exception
Under current law, when creating a new TID or amending a TID, a city or
village must make a finding that the equalized value of taxable property of the new
or amended TID plus the value increment of all existing TIDs in the city or village
does not exceed 12 percent of the total equalized value of taxable property in the city
or village. Under the bill, in lieu of making the 12 percent finding, a city or village
may certify to DOR that 1) TIDs with sufficient value increments will close within
one year after certification so that the municipality will no longer exceed the 12
percent limit and 2) the city or village will not take any actions that would extend
the life of any TID under item 1.
General local government
Regional transit authorities
The bill creates, or authorizes the creation of, a southeast regional transit
authority (SE RTA), a Dane County regional transit authority (DC RTA), a Fox Cities
regional transit authority (FC RTA), and a regional transit authority in any other
metropolitan statistical area in which qualifying political subdivisions agree to
create one (statewide RTA). Upon creation, each transit authority is a public body
corporate and politic and a separate governmental entity.
The SE RTA is created if the governing body of Milwaukee County or Kenosha
County, or of any municipality located within that portion of Racine County east of
I 94, adopts a resolution authorizing the county or municipality to become a member
of the SE RTA. If any of these counties or municipalities fails to adopt a resolution
creating the SE RTA, these counties and municipalities, as well as Racine County,
may also join the SE RTA after it has been created by one or more other counties or
municipalities. If Milwaukee County or Kenosha County joins the SE RTA, all
municipalities located within Milwaukee County or Kenosha County, respectively,
become members of the SE RTA. Any of the counties of Waukesha, Ozaukee, and
Washington may join the SE RTA upon adoption of a resolution by the county's
governing body, and any municipality located within the county may join the SE RTA
upon adoption of a resolution by the municipality's governing body and approval of
the SE RTA's board of directors. The jurisdictional area of the SE RTA is the
geographic area formed by the combined territorial boundaries of counties and
municipalities that are members of the SE RTA.
The DC RTA is created if the governing body of Dane County adopts a resolution
authorizing the county to become a member of the DC RTA. Once created, the
members of the DC RTA consist of Dane County and all municipalities located within
the Madison metropolitan planning area (MMPA). Any municipality located within
Dane County but not within the MMPA may join the DC RTA upon adoption of a
resolution by the municipality's governing body and approval of the DC RTA's board
of directors. The jurisdictional area of the DC RTA is the geographic area formed by
the MMPA combined with the territorial boundaries of all municipalities outside the
MMPA that join the DC RTA.
The members of the FC RTA consist of Outagamie County, Calumet County, and
Winnebago County and all municipalities located within the urbanized area of the
Fox Cities metropolitan planning area (UFCMPA). Any municipality located within
Outagamie County, Calumet County, or Winnebago County but not within the
UFCMPA may join the FC RTA upon adoption of a resolution by the municipality's
governing body and approval of the FC RTA's board of directors. The jurisdictional
area of the FC RTA is the geographic area formed by UFCMPA combined with the
territorial boundaries of all municipalities outside the UFCMPA that join the FC
RTA.
A statewide RTA is created if any two or more political subdivisions located
within a metropolitan statistical area adopt resolutions authorizing the political
subdivision to become members of the RTA. Once created, the members of a
statewide RTA consist of all political subdivisions that adopt resolutions authorizing
participation. Any political subdivision located in whole or in part within a
metropolitan statistical area located in whole or in part within a statewide RTA's
jurisdiction may join the statewide RTA. The jurisdictional area of an authority
created under this paragraph is the geographic area formed by the combined
territorial boundaries of all participating political subdivisions.
An RTA's authority is vested in its board of directors. Directors serve four-year
terms. An RTA's bylaws govern its management, operations, and administration and
must include provisions specifying all of the following:
1. The functions or services to be provided by the RTA.
2. The powers, duties, and limitations of the RTA.
3. The maximum rate of the sales and use tax, not exceeding the statutory limit,
that may be imposed by the RTA.
An RTA may do all of the following:
1. Establish or acquire a comprehensive unified local transportation system,
which is a transportation system comprised of bus lines and other public
transportation facilities generally within the jurisdictional area of the RTA.
“Transportation system" is defined to include land, structures, equipment, and other
property for transportation of passengers, including by bus, rail, or other form of
mass transportation. The RTA may operate this transportation system or provide
for its operation by another. The RTA may contract with a public or private
organization to provide transportation services in lieu of directly providing these
services and may purchase and lease transportation facilities to public or private
transit companies. With two exceptions, an RTA may not directly or by contract
provide services outside the RTA's jurisdictional area.
2. Coordinate specialized transportation services for persons who are disabled
or aged 60 or older.
3. Own or lease real or personal property.
4. Acquire property by condemnation.
5. Enter upon highways to install, maintain, and operate the RTA's facilities.
6. Impose, by the adoption of a resolution by the RTA's board of directors, a sales
and use tax in the RTA's jurisdictional area at a rate of not more than 0.5 percent of
the sales price.
7. Impose a fee of $2 per transaction on the rental of passenger cars without
drivers.
8. Incur debts and obligations. An RTA may issue tax-exempt revenue bonds,
secured by a pledge of any income or revenues from any operations or other source
of moneys for the RTA. The bonds of an RTA are not a debt of its member political
subdivisions and neither the member political subdivisions nor the state are liable
for the payment of the bonds.
9. Set fees and charges for functions, facilities, and services provided by the
RTA.
10. Adopt bylaws and rules to carry out the powers and purposes of the RTA.
11. Sue and be sued in its own name.
12. Employ agents, consultants, and employees; engage professional services;
and purchase furniture, supplies, and materials reasonably necessary to perform its
duties and exercise its powers.
13. Invest funds not required for immediate disbursement.
14. Do and perform any authorized acts by means of an agent or by contracts
with any person.
15. Exercise any other powers that the board of directors considers necessary
and convenient to effectuate the purposes of the RTA, including providing for
passenger safety.
The board of directors of an RTA must annually prepare a budget for the RTA.
Rates and other charges received by the RTA must be used only for the general
expenses and capital expenditures of the RTA, to pay interest, amortization, and
retirement charges on the RTA's revenue bonds, and for specific purposes of the RTA
and may not be transferred to any political subdivision. The RTA must maintain an
accounting system in accordance with generally accepted accounting principles and
must have its financial statements and debt covenants audited annually by an
independent certified public accountant.
An RTA must provide, or contract for the provision of, transit service within the
RTA's jurisdictional area. An RTA that acquires a transportation system for the
purpose of operating the system must assume all of the employer's obligations under
any contract between the employees and management of the system to the extent
allowed by law. An RTA that acquires, constructs, or operates a transportation
system must negotiate an agreement with the representative of the labor
organization that covers the employees affected by the acquisition, construction, or
operation to protect the interests of employees affected, and that agreement must
include specified provisions. Employees of the RTA are participatory employees
under the Wisconsin Retirement System (WRS) if the RTA elects to join the WRS.
A member political subdivision for which joinder into an RTA is optional may
withdraw from an RTA if the governing body of the political subdivision adopts a
resolution requesting withdrawal from the RTA and the political subdivision has
paid, or made provision for the payment of, all obligations of the political subdivision
to the RTA. A member of the SE RTA that must become a member as a result of the
membership of the county in which the municipality is located must withdraw from
the SE RTA if the county in which the municipality is located withdraws from the SE
RTA.
Current law provides limited immunity for cities, villages, towns, counties, and
other political corporations and governmental subdivisions, and for officers, officials,
agents, and employees of these entities, for acts done in an official capacity or in the
course of employment. Claimants must generally follow a specified claims
procedure, and liability for damages is generally limited to $50,000, except that no
liability may be imposed for performance of a discretionary duty or for punitive
damages. If a person suffers damage resulting from the negligent operation of a
motor vehicle owned and operated by a county, city, village, town, school district,
sewer district, or other political subdivision of the state in the course of its business,
the person may file a claim for damages following this claims procedure, and the
amount of damages recoverable is limited to $250,000. The bill specifies that this
provision related to claims and liability for negligent operation of a motor vehicle by
a political subdivision applies to an RTA.
The bill also allows RTAs to participate in organizing municipal insurance
mutuals to provide insurance and risk management services.
Professional baseball park districts
Under current law, a professional baseball park district is created in each
county with a population of at least 600,000 (presently, only Milwaukee County) and
all counties that are contiguous to that county (in relation to Milwaukee County,
these counties are Ozaukee County, Racine County, Washington County, and
Waukesha County). A district has a variety of powers. Among these, a district may
acquire, construct, equip, maintain, improve, operate, and manage baseball park
facilities and may set standards governing the use of, and the conduct within,
baseball park facilities. A district is authorized to impose a sales tax and a use tax
at a rate of no more than 0.1 percent. Also, a district may issue bonds for the purpose
of purchasing, acquiring, leasing, constructing, extending, adding to, improving,
conducting, controlling, operating, or managing baseball park facilities. Bonds
issued by the district must be secured only by the district's interest in any baseball
park facilities, by income from these facilities, and by the sales tax and use tax that
the district is authorized to levy. The district may not collect sales taxes after the
calendar quarter in which the district certifies to DOR that the district has retired
all of its bonds. The sales tax ended on March 31, 2020. The district continues to have
outstanding bonds, but these bonds are fully defeased.
The bill eliminates a district's authority to impose a sales tax as of April 30,
2024. The bill also requires the district to establish a facilities enhancement fund
into which it must deposit certain grant payments received from DOA. Moneys from
this fund may be used only for purposes related to the development, construction,
improvement, repair, and maintenance of baseball park facilities, and specifically
may not be used for the securitization or retirement of bonds.
The bill also does the following:
1. Authorizes a district to acquire and manage property related to “baseball
park development,” which is defined as “property, other than baseball park facilities,
tangible or intangible, operated by a professional baseball team on real estate leased
or subleased from a district that is part of the operations of the professional baseball
team for any legally permissible use, including retail facilities, hospitality facilities,
commercial and residential facilities, health care facilities, and any other
functionally related or auxiliary facilities or structures.”
2. Defines what constitutes a “professional baseball team” and limits the
establishment of new professional baseball park districts to counties with
populations over 600,000 that are the site of baseball park facilities that are home
to a professional baseball team.
3. Alters the district termination procedure. Currently, if a district is
terminated, the property of the district is transferred to the counties within the
jurisdiction of the district. Under the bill, upon termination all district property is
transferred to the state. The state then apportions the properties to the constituent
counties and the state based on a statutory formula.
Local government civil service system and grievance procedure
requirements
The bill modifies the requirements for any grievance system established by
local governmental units, including adding a requirement for any civil service
system or grievance procedure to include a just cause standard of review for
employee terminations. Under current law, a local governmental unit that did not
have a civil service system before June 29, 2011, must have established a grievance
system. In order to comply with the requirement to have established a grievance
system, a local governmental unit may establish either 1) a civil service system under
any provision authorized by law, to the greatest extent practicable, if no specific
provision for creation of a civil service system applies to the governmental unit or 2)
a grievance procedure as set forth in the statutes. Current law requires that any civil
service system established or grievance procedure created must contain a grievance
procedure that addresses employee terminations, employee discipline, and
workplace safety. The bill does not eliminate the requirement for these provisions
but instead adds a requirement for a provision relating to a just cause standard of
review for employee terminations, including a refusal to renew a teaching contract.
Current law also requires that if a local governmental unit creates a grievance
procedure, the procedure must contain certain elements, including a written
document specifying the process that a grievant and an employer must follow; a
hearing before an impartial hearing officer; and an appeal process in which the
highest level of appeal is the governing body of the local governmental unit. The bill
provides that the hearing officer must be from the Wisconsin Employment Relations
Commission and adds the following two required elements in the grievance
procedure: 1) a provision indicating the grievant is entitled to representation
throughout the grievance process and 2) a provision indicating that the employer
must bear all fees and costs related to the grievance process, except the grievant's
representational fees and costs.
Employment regulations
The bill repeals the preemptions of local governments from enacting or
enforcing ordinances related to the following:
1. Regulations related to wage claims and collections.
2. Regulation of employee hours and overtime, including scheduling of
employee work hours or shifts.
3. The employment benefits an employer may be required to provide to its
employees.
4. An employer's right to solicit information regarding the salary history of
prospective employees.
5. Regulations related to minimum wage.
6. Occupational licensing requirements that are more stringent than a state
requirement.
The bill also repeals the following:
1. The prohibition of the state and local governments from requiring any person
to waive the person's rights under state or federal labor laws as a condition of any
approval by the state or local government.
2. A provision under which neither the state nor a local government may enact
a statute or ordinance, adopt a policy or regulation, or impose a contract, zoning,
permitting, or licensing requirement, or any other condition, that would require any
person to accept any provision that is a subject of collective bargaining under state
labor laws or the federal National Labor Relations Act.
Project labor agreements
Under current law, the state and local units of government are prohibited from
engaging in certain practices in letting bids for state procurement or public works
contracts. Among these prohibitions, as established by
2017 Wisconsin Act 3, the
state and local governments may not do any of the following in specifications for bids
for the contracts: 1) require that a bidder enter into an agreement with a labor
organization; 2) consider, when awarding a contract, whether a bidder has or has not
entered into an agreement with a labor organization; or 3) require that a bidder enter
into an agreement that requires that the bidder or bidder's employees become or
remain members of a labor organization or pay any dues or fees to a labor
organization. The bill repeals these limitations related to labor organizations.
Nonmetallic quarry hours of operation
The bill prohibits a political subdivision from limiting the times that activities
related to extracting or processing minerals at a quarry occur if the minerals will be
used in a public works project that requires nighttime construction or an emergency
repair.
Exception to law enforcement officer citizenship requirement
Under current law, no person may be appointed as a deputy sheriff of any
county or police officer of any city, village, or town unless that person is a citizen of
the United States. The bill allows the sheriff of a county or the appointing authority
of a local law enforcement agency to elect to authorize the appointment of noncitizens
who are in receipt of valid employment authorization from the federal Department
of Homeland Security as deputy sheriffs or police officers. The bill also prevents the
Law Enforcement Standards Board from preventing such a noncitizen from
participating in a law enforcement preparatory training program.
Premier resort area exceptions
The bill allows the city of Prescott and the village of Pepin to become premier
resort areas notwithstanding the fact that they do not meet the generally applicable
requirement that at least 40 percent of the equalized assessed value of the taxable
property within a political subdivision be used by tourism-related retailers (the
40-percent requirement). “Tourism-related retailers" is defined to include certain
retailers who are classified in the Standard Industrial Classification Manual that
is published by the U.S. Office of Management and Budget. The statutory definition
lists 21 types of retailers, including variety stores, dairy product stores, gasoline
service stations, eating places, drinking places, and hotels and motels.
Currently, a number of cities and villages are authorized to enact an ordinance
or adopt a resolution to become a premier resort area notwithstanding the fact that
none of these cities or villages meet the 40 percent requirement. As is the case with
the villages of Sister Bay, Ephraim, and Stockholm, and the city of Rhinelander, the
premier resort area tax may not take effect in Prescott or Pepin unless it is approved
in a referendum of the voters.
A premier resort area may impose a tax at a rate of 0.5 percent of the gross
receipts from the sale, lease, or rental of goods or services that are subject to the
general sales and use tax and are sold by tourism-related retailers. The proceeds
of the tax may be used only to pay for infrastructure expenses within the jurisdiction
of the premier resort area. The definition of “infrastructure expenses" includes the
costs of purchasing, constructing, or improving parking lots; transportation
facilities, including roads and bridges; sewer and water facilities; recreational
facilities; exposition center facilities; fire fighting equipment; and police vehicles.
Marijuana legalization and regulation
General; marijuana legalization and regulation
Under the bill, a person who is at least 21 years old may legally possess
marijuana. A person who is at least 18 may possess marijuana if the person has
certain medical conditions. Under the bill, a person may produce, process, or sell
marijuana if the person has a permit. The bill creates an excise tax for the privilege
of producing, processing, distributing, or selling marijuana in this state, and all of
the revenue collected from the tax is deposited into a segregated fund called the
“community reinvestment fund.” Under the bill, a person who may possess medical
marijuana is not subject to sales or excise taxes on the purchase or use of the
marijuana. The bill does not affect federal law, which generally prohibits persons
from manufacturing, delivering, or possessing marijuana and applies to both
intrastate and interstate violations.
