2019 - 2020 LEGISLATURE
June 7, 2019 - Introduced by Senator Erpenbach, cosponsored by Representatives
Pope and Hesselbein. Referred to Committee on Government Operations,
Technology and Consumer Protection.
SB269,1,3 1An Act to amend 66.1105 (6) (c); and to create 66.1105 (6) (h) of the statutes;
2relating to: tax increment value reporting errors and property tax
Analysis by the Legislative Reference Bureau
Generally under current law, once a tax incremental district 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.
Under this bill, for property values reported in 2018, if a city or village
erroneously reports a higher value increment for its TIDs by an aggregate amount
of at least $50 million, the city's or village's TIDs may transfer the excess tax
increment collections resulting from this error to the city's or village's general fund
to reimburse taxpayers for the higher property tax rates imposed on them due to this
error. Before making any such transfers, the city or village must verify with DOR
the amounts involved.

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:
SB269,1 1Section 1. 66.1105 (6) (c) of the statutes is amended to read:
SB269,3,22 66.1105 (6) (c) Except for tax increments allocated under par. (d), (dm), (e), (f),
3or (g), or erroneous reporting of value increments as described in par. (h), all tax
4increments received with respect to a tax incremental district shall, upon receipt by
5the city treasurer, be deposited into a special fund for that district. The city treasurer
6may deposit additional moneys into such fund pursuant to an appropriation by the
7common council. No moneys may be paid out of such fund except to pay project costs
8with respect to that district, to reimburse the city for such payments, to pay project
9costs of a district under par. (d), (dm), (e), (f), or (g), to pay property tax
10reimbursements as described under par. (h),
or to satisfy claims of holders of bonds
11or notes issued with respect to such district. Subject to par. (d), (dm), (e), (f), or (g),
12moneys paid out of the fund to pay project costs with respect to a district may be paid
13out before or after the district is terminated under sub. (7). Subject to any agreement
14with bondholders, moneys in the fund may be temporarily invested in the same
15manner as other city funds if any investment earnings are applied to reduce project
16costs. After all project costs and all bonds and notes with respect to the district have
17been paid or the payment thereof provided for, subject to any agreement with
18bondholders, if there remain in the fund any moneys that are not allocated under par.
19(d), (dm), (e), (f), or (g), they shall be paid over to the treasurer of each county, school
20district or other tax levying municipality or to the general fund of the city in the
21amounts that belong to each respectively, having due regard for that portion of the

1moneys, if any, that represents tax increments not allocated to the city and that
2portion, if any, that represents voluntary deposits of the city into the fund.
SB269,2 3Section 2. 66.1105 (6) (h) of the statutes is created to read:
SB269,3,114 66.1105 (6) (h) For property values reported to the department of revenue in
52018, if a city erroneously reports a higher value increment for its tax incremental
6districts in an aggregate amount of at least $50,000,000, that city's tax incremental
7districts may transfer the excess tax increments collected resulting from this error
8directly to the city's general fund for the sole purpose of reimbursing taxpayers for
9the resulting erroneously higher property tax rates imposed on the taxpayers. A city
10that acts under this paragraph shall verify with the department of revenue the
11amounts being transferred and disbursed before those transactions may take place.
SB269,3,1212 (End)