2015 - 2016 LEGISLATURE
February 27, 2015 - Introduced by
Joint Legislative Council. Referred to
Committee on Economic Development and Commerce.
1An Act to amend
66.1105 (4e) (a) of the statutes; relating to: designation of tax
2incremental districts as distressed or severely distressed districts.
Analysis by the Legislative Reference Bureau
This bill is explained in the Notes provided by the Joint Legislative Council in
For further information see the state and 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:
Joint Legislative Council prefatory note: This bill was prepared for the Joint
Legislative Council's Study Committee on Tax Incremental Financing (TIF).
During the 2009-10 legislative session, the TIF law was amended to allow the local
legislative body of a city or village (local government) to designate a tax incremental
district (TID) that was created before October 1, 2008, as a distressed TID or severely
As originally enacted, the distressed and severely distressed TID law required a
local government to declare a TID to be distressed or severely distressed by October 1,
2011. 2011 Wisconsin Act 41
extended that date to 2015 and also repealed a requirement
of the distressed and severely distressed TID law that required a district to be at least 7
years old before being declared distressed or severely distressed.
Under current law, a local government may designate such a TID as either
distressed or severely distressed when the local government, in addition to other
procedural requirements, adopts a resolution finding that the project costs exceed the
amount of revenues from all sources that the city or village expects the district to generate
during the life of the TID.
For a local government to designate a district as a severely distressed TID, current
law also requires a finding that the amount of the value increment generated in any year
has declined at least 25 percent from the district's highest value increment over the
course of the district's lifespan.
A local government must act by October 1, 2015, to declare a TID as distressed or
severely distressed. Also, no TID may be declared distressed or severely distressed if the
local government approves a project amendment after October 1, 2009, except for the
amendment that declares the TID distressed or severely distressed.
If a district is designated as a distressed TID, it may collect positive tax increments
for up to 10 years after it would otherwise have been required to terminate. If a district
is designated as a severely distressed TID, then it is able to collect positive tax increments
for up to 40 years after the district was originally created.
The bill replaces the October 1, 2015, deadline by which a local government must
declare a TID to be distressed or severely distressed with a new deadline of October 1,
66.1105 (4e) (a) of the statutes is amended to read:
(a) Before October 1, 2015 2020
, and subject to par. (am) and the 3
limitations in this subsection, a city may designate a tax incremental district that 4
it created before October 1, 2008, as a distressed or severely distressed tax 5
incremental district if all of the following occur or apply:
Note: The above amendment replaces the statutory sunset of October 1, 2015, with
a new deadline of October 1, 2020.