(9) Payment of taxes.
If an industrial project acquired by a municipality or county under this section is used by a private person as a lessee, sublessee or in any capacity other than owner, that person is subject to taxation in the same amount and to the same extent as if that person were the owner of the property. Taxes shall be assessed to the private person using the real property and collected in the same manner as taxes assessed to owners of real property. When due, the taxes constitute a debt due from the private person to the taxing unit and are recoverable as provided by law, and the unpaid taxes become a lien against the property with respect to which they were assessed, superior to all other liens, except a lien under s. 292.31 (8) (i)
, and shall be placed on the tax roll when there has been a conveyance of the property in the same manner as other taxes assessed against real property.
An action required or permitted by this section to be taken by a governing body may be taken at any lawful meetings of the governing body. A simple majority of a quorum of the governing body is sufficient for the action under this section. The ayes and noes need not be taken with respect to the action and the action need not be officially read before adoption. Failure to publish an action under this section does not affect the validity of the action.
Upon the adoption of an initial resolution under this section, public notice of the adoption shall be given to the electors of the municipality or county before the issuance of the bonds described in the resolution, by publication as a class 1 notice, under ch. 985
. The notice need not set forth the full contents of the resolution, but shall state the maximum amount of the bonds; the name of the eligible participant; the purpose of the bonds; the net number of jobs which the project the municipality or county would finance with the bond issue is expected to eliminate, create or maintain on the project site and elsewhere in this state which is required to be shown by the proposed eligible participant on the form submitted under sub. (4m) (a) 1.
; and that the resolution was adopted under this section. A form of the public notice shall be attached to the initial resolution. Prior to adoption of the initial resolution, the open meeting notice given to members of the public under s. 19.84
shall indicate that information with respect to the job impact of the project will be available at the time of consideration of the initial resolution. No other public notice of the authorization, issuance or sale of bonds under this section is required.
A copy of the initial resolution together with a statement indicating when the public notice required under par. (b)
was published shall be filed with the Wisconsin Economic Development Corporation within 20 days following publication of notice. Prior to the closing of the bond issue, the corporation may require additional information from the eligible participant or the municipality or county. After the closing of the bond issue, the corporation shall be notified of the closing date, any substantive changes made to documents previously filed with the corporation, and the principal amount of the financing.
The governing body may issue bonds under this section without submitting the proposition to the electors of the municipality or county for approval unless within 30 days from the date of publication of notice of adoption of the initial resolution for the bonds, a petition conforming to the requirements of s. 8.40
, signed by not less than 5 percent of the registered electors of the municipality or county, or, if there is no registration of electors in the municipality or county, by 10 percent of the number of electors of the municipality or county voting for the office of governor at the last general election as determined under s. 115.01 (13)
, is filed with the clerk of the municipality or county and as provided in s. 8.37
requesting a referendum upon the question of the issuance of the bonds. If a petition is filed, the bonds may not be issued until approved by a majority of the electors of the municipality or county voting on the referendum at a general or special election.
Members of a governing body and officers and employees of a municipality or county are not personally liable on bonds and are not personally liable for any act or omission related to the authorization or issuance of bonds.
Bonds may not be issued unless prior to adoption of an initial resolution a document which provides a good faith estimate of attorney fees which will be paid from bond proceeds is filed with the clerk of the municipality or county and the Wisconsin Economic Development Corporation.
Bonds may not be issued unless prior to issuance all prerequisite conditions contained in the initial resolution are satisfied.
With respect to the enforcement of any construction lien or other lien under ch. 779
arising out of the construction of projects financed under this section, no deficiency judgment or judgment for costs may be entered against the municipality or county. Projects financed under this section are not public works, public improvements or public construction within the meaning of ss. 59.52 (29)
and contracts for the construction of the projects are not public contracts within the meaning of ss. 59.52 (29)
unless factors including municipal or county control over the costs, construction and operation of the project and the beneficial ownership of the project warrant the conclusion that they are public contracts.
Except as provided by subd. 2.
, construction work which is let by contract and which has an estimated cost exceeding $5,000 may be financed with bonds only if the contract is let to the lowest responsible bidder and proposals for the contract are advertised by publishing a class 2 notice under ch. 985
The contract shall include a clause prohibiting discrimination in employment and subcontracting. No facility constructed with industrial revenue bonds shall be used for any purpose which includes any act of employment discrimination as specified under s. 111.322
The governing body of a municipality or county may waive subd. 1.
with respect to a particular project by adopting an ordinance or resolution containing a statement of the reasons for the waiver and a description of the project for which waiver is made and publishing it as a class 1 notice under ch. 985
(12) Validation of certain bonds and proceedings.
Notwithstanding this section or any other law:
In the absence of fraud, all bonds issued before July 25, 1980, purportedly under this section, and all proceedings taken purportedly under this section before that date for the authorization and issuance of those bonds or of bonds not yet issued, and the sale, execution and delivery of bonds issued before July 25, 1980, are validated, ratified, approved and confirmed, notwithstanding any lack of power, however patent, other than constitutional, of the issuing municipality or the governing body or municipal officer, to authorize and issue the bonds, or to sell, execute or deliver the bonds, and notwithstanding any defects or irregularities, however patent, other than constitutional, in the proceeding or in the sale, execution or delivery of bonds issued before July 25, 1980. All bonds issued before July 25, 1980, are binding, legal obligations in accordance with their terms.
Any proceedings for the authorization and issuance of bonds under this section in process prior to July 25, 1980 may be continued under this section as in effect prior to July 25, 1980 or under this section as in effect on and after July 25, 1980 if the governing body so elects and the initial resolution is published or republished after July 25, 1980. All such continued proceedings are validated, ratified, approved and confirmed; and all bonds issued as a result of such proceedings are binding, legal obligations in accordance with their terms.
(13) Cost of industrial project eligible for financing. 66.1103(13)(a)1.
“Placed into service" means having become a completed part of a facility which is in fact operational at the level of pollution control for which it was designed.
“Substantially" refers to an expenditure of 15 percent or more of the financed cost of acquiring the property involved.
This section may be used to finance all or part of the cost, tangible or intangible, whenever incurred, of providing an industrial project under this section, whether or not the industrial project is in existence on the date of adoption of the initial resolution or of issuance of the bonds; whether new or previously used; whether or not previously owned by the eligible participant, the eligible participant's designee or a party affiliated with either; and notwithstanding that this section was not in effect or did not permit the financing on the date of adoption of the resolution or at the time ownership was acquired, except as follows:
No part of the costs of constructing or acquiring personal property owned by the eligible participant, the eligible participant's designee or a party affiliated with either at any time before the date of adoption of the initial resolution may be so financed except costs for:
Pollution control facilities which have not been placed into service on the date of adoption of the initial resolution; or
Personal property which will either be substantially reconstructed, rehabilitated, rebuilt or repaired in connection with the financing or which represents less than 10 percent of the entire financing. Personal property is considered owned only after 50 percent of the acquisition cost of the personal property has been paid and the property has been delivered and installed.
No part of the costs of acquiring real property or of acquiring or constructing improvements to the real property may be so financed except costs:
For pollution control facilities which have not been placed into service on the date of adoption of the initial resolution;
For real property which will be substantially improved or rehabilitated in connection with the project or which represents less than 25 percent of the entire financing;
For acquiring improvements which will themselves be substantially improved or rehabilitated in connection with the project, which represent less than 25 percent of the entire financing, or the cost of which is less than 33 percent of the cost of the real property to which they are appurtenant which is also being acquired; or
As are incurred after the date of adoption of the initial resolution for constructing improvements.
History: 1973 c. 265
; 1977 c. 28
; 1979 c. 32
s. 92 (9)
; 1979 c. 34
; 1979 c. 361
; 1979 c. 362
; 1981 c. 314
; 1983 a. 24
; 1983 a. 189
, 329 (14)
; 1983 a. 207
s. 93 (8)
; 1983 a. 532
; 1985 a. 29
; 1985 a. 297
; 1985 a. 299
; 1987 a. 27
; 1989 a. 192
; 1991 a. 39
; 1993 a. 122
; 1995 a. 27
ss. 9116 (5)
, 9130 (4)
; 1995 a. 201
; 1997 a. 3
; 1999 a. 9
; 1999 a. 150
; Stats. 1999 s. 66.1103; 1999 a. 182
; 2001 a. 30
; 2009 a. 28
; 2011 a. 32
Industrial development revenue bonding is not available for a project for a new automobile showroom, warehouse, and repair facility of a retail automobile dealership. 62 Atty. Gen. 141.
Typical turnkey projects financed by industrial development revenue bonds under s. 66.521 [now s. 66.1103] are not subject to s. 66.293 (3) [now s. 66.0903 (3)], concerning prevailing wage rates. 63 Atty. Gen. 145.
Sub. (11) does not require a municipality to obtain performance bonds for typical industrial revenue bond projects constructed by private industry. 64 Atty. Gen. 169.
A chiropractic clinic may qualify for financing under this section. 70 Atty. Gen. 133.
The financing of corporate expansion through industrial revenue bonds. Mulcahy & Guszkowski. 57 MLR 201.
This section shall be known and may be cited as the “Tax Increment Law".
In this section, unless a different intent clearly appears from the context:
“Affordable housing" means housing that costs a household no more than 30 percent of the household's gross monthly income.
An area, including a slum area, in which the structures, buildings or improvements, which by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for ventilation, light, air, sanitation, or open spaces, high density of population and overcrowding, or the existence of conditions which endanger life or property by fire and other causes, or any combination of these factors is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency, or crime, and is detrimental to the public health, safety, morals or welfare.
An area which is predominantly open and which consists primarily of an abandoned highway corridor, as defined in s. 66.1333 (2m) (a)
, or that consists of land upon which buildings or structures have been demolished and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of the community.
“Blighted area" does not include predominantly open land area that has been developed only for agricultural purposes.
“Decrement situation" means a situation in which the aggregate value, as equalized by the department of revenue, of all taxable property located within a tax incremental district on or about the date on which a resolution is adopted under sub. (5) (h) 1.
is at least 10 percent less than the current tax incremental base of that district.
“Household" means an individual and his or her spouse and all minor dependents.
“Local legislative body" means the common council.
“Mixed-use development" means development that contains a combination of industrial, commercial, or residential uses, except that lands proposed for newly platted residential use, as shown in the project plan, may not exceed 35 percent, by area, of the real property within the district.
“Planning commission" means a plan commission created under s. 62.23
, a board of public land commissioners if the city has no plan commission, or a city plan committee of the local legislative body, if the city has neither a commission nor a board.
“Project costs" mean any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the city which are listed in a project plan as costs of public works or improvements within a tax incremental district or, to the extent provided in this subd. 1. (intro.)
or subds. 1. k.
, 1. m.
, and 1. n.
, or sub. (20) (c)
, without the district, plus any incidental costs, diminished by any income, special assessments, or other revenues, including user fees or charges, other than tax increments, received or reasonably expected to be received by the city in connection with the implementation of the plan. For any tax incremental district for which a project plan is approved on or after July 31, 1981, only a proportionate share of the costs permitted under this subdivision may be included as project costs to the extent that they benefit the tax incremental district, except that expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by a 1st class city, to fund parking facilities ancillary to and within one mile from public entertainment facilities, including a sports and entertainment arena, shall be considered to benefit any tax incremental district located in whole or in part within a one-mile radius of such parking facilities. To the extent the costs benefit the municipality outside the tax incremental district, a proportionate share of the cost is not a project cost. “Project costs" include:
Capital costs including, but not limited to, the actual costs of the construction of public works or improvements, new buildings, structures, and fixtures; the demolition, alteration, remodeling, repair or reconstruction of existing buildings, structures and fixtures other than the demolition of listed properties as defined in s. 44.31 (4)
; the acquisition of equipment to service the district; the removal or containment of, or the restoration of soil or groundwater affected by, environmental pollution; and the clearing and grading of land.
Financing costs, including, but not limited to, all interest paid to holders of evidences of indebtedness issued to pay for project costs, any premium paid over the principal amount of the obligations because of the redemption of the obligations prior to maturity, and payments made by the city or village to a county or other municipality that issues obligations to finance project costs of a district pursuant to sub. (20)
Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the city of real or personal property within a tax incremental district for consideration which is less than its cost to the city.
Professional service costs, including, but not limited to, those costs incurred for architectural, planning, engineering, and legal advice and services.
Imputed administrative costs, including, but not limited to, reasonable charges for the time spent by city employees in connection with the implementation of a project plan.
Relocation costs, including, but not limited to, those relocation payments made following condemnation under ss. 32.19
Organizational costs, including, but not limited to, the costs of conducting environmental impact and other studies and the costs of informing the public with respect to the creation of tax incremental districts and the implementation of project plans.
Payments made, in the discretion of the local legislative body, which are found to be necessary or convenient to the creation of tax incremental districts or the implementation of project plans, including payments made to a town that relate to property taxes levied on territory to be included in a tax incremental district as described in sub. (4) (gm) 1.
That portion of costs related to the construction or alteration of sewerage treatment plants, water treatment plants or other environmental protection devices, storm or sanitary sewer lines, water lines, or amenities on streets or the rebuilding or expansion of streets the construction, alteration, rebuilding or expansion of which is necessitated by the project plan for a district and is within the district.
That portion of costs related to the construction or alteration of sewerage treatment plants, water treatment plants or other environmental protection devices, storm or sanitary sewer lines, water lines, or amenities on streets outside the district if the construction, alteration, rebuilding or expansion is necessitated by the project plan for a district, and if at the time the construction, alteration, rebuilding or expansion begins there are improvements of the kinds named in this subdivision on the land outside the district in respect to which the costs are to be incurred.
Costs for the removal, or containment, of lead contamination in buildings or infrastructure if the city declares that such lead contamination is a public health concern.
With regard to a tax incremental district that is located in a city to which sub. (6) (d)
applies and about which a finding has been made that not less than 50 percent, by area, of the real property within the district is a blighted area, project costs incurred for territory that is located within a one-half mile radius of the district's boundaries.
With regard to a tax incremental district that is located anywhere other than a city to which sub. (6) (d)
applies, and subject to sub. (4m) (d)
, project costs incurred for territory that is located within a one-half mile radius of the district's boundaries and within the city that created the district.
Notwithstanding subd. 2. a.
, a grant, loan, or appropriation of funds to assist a local exposition district created under subch. II of ch. 229
in the development and construction of sports and entertainment arena facilities, as defined in s. 229.41 (11g)
, provided that the city and the local exposition district enter into a development agreement.
Notwithstanding subd. 1.
, except subd. 1. p.
, none of the following may be included as project costs for any tax incremental district for which a project plan is approved on or after July 31, 1981:
The cost of constructing or expanding administrative buildings, police and fire buildings, libraries, community and recreational buildings and school buildings, unless the administrative buildings, police and fire buildings, libraries and community and recreational buildings were damaged or destroyed before January 1, 1997, by a natural disaster.
The cost of constructing or expanding any facility, except a parking structure that supports redevelopment activities, if the city generally finances similar facilities only with utility user fees.
General government operating expenses, unrelated to the planning or development of a tax incremental district.
Cash grants made by the city to owners, lessees, or developers of land that is located within the tax incremental district unless the grant recipient has signed a development agreement with the city, a copy of which shall be sent to the appropriate joint review board or, if that joint review board has been dissolved, retained by the city in the official records for that tax incremental district.
For a tax incremental district in the city of Milwaukee, direct or indirect expenses related to operating a rail fixed guideway transportation system, as defined in s. 85.066 (1)
, in the city of Milwaukee.
Notwithstanding subd. 1.
, project costs may include any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the city for newly platted residential development only for any tax incremental district for which a project plan is approved before September 30, 1995, or for a mixed-use development tax incremental district to which one of the following applies:
The density of the residential housing is at least 3 units per acre.
“Project plan" means the properly approved plan for the development or redevelopment of a tax incremental district, including all properly approved amendments thereto.
Except as provided in subd. 2.
, “tax increment” means that amount obtained by multiplying the total county, city, school and other local general property taxes levied on all taxable property within a tax incremental district in a year by a fraction having as a numerator the value increment for that year in the district and as a denominator that year's equalized value of all taxable property in the district. In any year, a tax increment is “positive" if the value increment is positive; it is “negative" if the value increment is negative.
For purposes of any agreement between the taxing jurisdiction and a developer regarding the tax incremental district entered into prior to April 5, 2018, “tax increment” includes the amount that a taxing jurisdiction is obligated to attribute to a tax incremental district under s. 79.096 (3)
“Tax incremental base" means the aggregate value, as equalized by the department of revenue, of all taxable property located within a tax incremental district on the date as of which the district is created, determined as provided in sub. (5) (b)
. The base of districts created before October 1, 1980, does not include the value of property exempted under s. 70.111 (17)