2013 - 2014 LEGISLATURE
February 14, 2014 - Introduced by Representatives Kooyenga and Kahl. Referred
to Committee on State Affairs and Government Operations.
1An Act to amend
66.1105 (2) (f) 2. b. of the statutes; relating to: the definition
2of project costs under the tax incremental financing program.
Analysis by the Legislative Reference Bureau
Under the current tax incremental financing program, a city or village may
create a tax incremental district (TID) in part of its territory to foster development
if at least 50 percent of the area to be included in the TID is blighted, in need of
rehabilitation or conservation, suitable for industrial sites, or suitable for mixed-use
development. Currently, towns and counties also have a limited ability to create a
TID under certain circumstances. Before a city or village may create a TID, several
steps and plans are required. These steps and plans include public hearings on the
proposed TID within specified time frames, preparation and adoption by the local
planning commission of a proposed project plan for the TID, approval of the proposed
project plan by the common council or village board, approval of the city's or village's
proposed TID by a joint review board that consists of members who represent the
overlying taxation districts, and adoption of a resolution by the common council or
village board that creates the TID as of a date provided in the resolution.
Also under current law, once a TID has been created, 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 creating city or
village, include public works such as sewers, streets, and lighting systems; financing
costs; site preparation costs; and professional service costs. Project costs under
current law include expenditures for the construction of public works or
improvements; new buildings, structures, and fixtures; and the demolition,
alteration, remodeling, repair, or reconstruction of certain properties. For a TID
created after 1981, however, project costs do not include the cost of constructing or
expanding any facility if the city generally finances similar facilities only with utility
Under this bill, parking structures that support redevelopment activities are
excluded from the exclusion of the cost of constructing or expanding a facility, if the
city generally finances similar facilities only with utility user fees, from the
definition of project costs.
For further information see the 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:
66.1105 (2) (f) 2. b. of the statutes is amended to read:
(f) 2. b. The cost of constructing or expanding any facility, except
3a parking structure that supports redevelopment activities,
if the city generally 4
finances similar facilities only with utility user fees.