March 8, 2023 - Introduced by Representatives Plumer, Armstrong, Gundrum, Novak, O’Connor, Ohnstad and Spiros, cosponsored by Senators Feyen, Cowles and Quinn. Referred to Committee on Housing and Real Estate.
AB96,,22An Act to amend 66.1105 (4) (gm) 4. c. and 66.1105 (6) (c); and to create 60.23 (32) (bm), 66.1105 (2) (ak), 66.1105 (9) (a) 1m. and 66.1105 (21) of the statutes; relating to: developer-financed tax incremental districts. AB96,,33Analysis by the Legislative Reference Bureau This bill allows cities, villages, and certain towns to create developer-financed tax incremental districts, which are excepted from the general rule that the equalized value of taxable property of a new or amended tax incremental district (TID) plus the value increment of all existing TIDs in a city or village may not exceed 12 percent of the total equalized value of taxable property in the city or village (12 percent rule) and the requirement that all areas of a TID be contiguous.
Under current law, cities and villages may use tax incremental financing (TIF) to encourage development in the city or village. In general, under TIF, a city or village pays for improvements in a TID and then collects tax moneys attributable to all taxing jurisdictions on the increased property value in the TID for a certain period of time to pay for the improvements. Ideally, after the period of time, the city or village will have been repaid for its initial investment and the property tax base in the TID will have permanently increased in value.