AB227: Bill Text

LRB-2475/1

JK:cdc

2021 - 2022 LEGISLATURE

2021 Assembly BILL 227

March 31, 2021 - Introduced by Representatives Dallman, Kurtz, Skowronski, Steffen, Tittl and Tusler, cosponsored by Senators Ballweg and Marklein. Referred to Committee on Ways and Means.

AB227,1,6 An Act to create 66.1105 (6) (a) 19., 66.1105 (6) (am) 2. n. and 66.1105 (6) (am) 2. o. of the statutes; relating to: extending the time during which tax increments may be allocated and expenditures for project costs may be made for Tax Incremental District Number 2 in the city of Wisconsin Dells and extending the time during which expenditures for project costs may be made for Tax Incremental District Number 3 in the city of Wisconsin Dells.

Analysis by the Legislative Reference Bureau

Under this bill, tax increments may be allocated for Tax Incremental District Number 2 in the city of Wisconsin Dells through 2036 and expenditures may be made for project costs for that TID through 2031. The bill also allows expenditures for project costs for Tax Incremental District Number 3 in the city of Wisconsin Dells through 2040. When a city creates a TID, the Department of Revenue calculates the “tax incremental base" value of the TID, which is the equalized value of all taxable property within the TID at the time of its creation. If the development in the TID increases the value of the property in the TID above the base value, a “value increment" is created. That portion of taxes collected on the value increment in excess of the base value is called a “tax increment." The tax increment is placed in a special fund that may be used only to pay back the project costs of the TID.

The project costs of a TID, which are initially incurred by the city, include public works such as sewers, streets, and lighting systems; financing costs; site preparation costs; and professional service costs. DOR authorizes the allocation of the tax increments until the TID terminates or, generally, 20 years, 23 years, or 27 years after the TID is created, depending on the type of TID and the year in which it was created. Also under current law, a city or village may not generally make expenditures for project costs later than five years before the unextended termination date of the TID. Under certain circumstances, the life of the TID, the expenditure period, and the allocation period may be extended.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB227,1 Section 1. 66.1105 (6) (a) 19. of the statutes is created to read:

AB227,2,3 66.1105 (6) (a) 19. December 31, 2036, if the district is Tax Incremental District Number 2 in the city of Wisconsin Dells.

AB227,2 Section 2. 66.1105 (6) (am) 2. n. of the statutes is created to read:

AB227,2,7 66.1105 (6) (am) 2. n. Expenditures for project costs for Tax Incremental District Number 2 in the city of Wisconsin Dells. Such expenditures may be made through 2031.

AB227,3 Section 3. 66.1105 (6) (am) 2. o. of the statutes is created to read:

AB227,2,11 66.1105 (6) (am) 2. o. Expenditures for project costs for Tax Incremental District Number 3 in the city of Wisconsin Dells. Such expenditures may be made through 2040.

AB227,2,12 (End)