LRB-2981/3
MES:kmg:rs
2003 - 2004 LEGISLATURE
November 5, 2003 - Introduced by Representatives Bies and F. Lasee, cosponsored
by Senator A. Lasee. Referred to Committee on Ways and Means.
AB636,1,4 1An Act to amend 66.1105 (4) (h) 1. and 66.1105 (4) (h) 2.; and to create 66.1105
2(4) (h) 6., 66.1105 (6) (a) 6., 66.1105 (6) (am) 2. d. and 66.1105 (7) (at) of the
3statutes; relating to: extending the expenditure period and the life of Tax
4Incremental District Number Two in the city of Sturgeon Bay.
Analysis by the Legislative Reference Bureau
Under the current tax incremental financing (TIF) 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 suitable for industrial sites. 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, and
adoption of a resolution by the common council or village board that creates the
district as of a date provided in the resolution.
Also under current law, once a TID has been created, the Department of
Revenue (DOR) calculates the "tax increment 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 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. DOR
authorizes the allocation of the tax increments until the TID terminates or, generally,
23 years, or 27 years in certain cases, after the TID is created, whichever is sooner.
TIDs are required to terminate, under current law and with one exception, once these
costs are paid back, 16 years, or 20 years in certain cases, after the last expenditure
identified in the project plan is made or when the creating city or village dissolves
the TID, whichever occurs first. Under the exception, which is limited to certain
circumstances, after a TID pays off its project costs, but not later than the date on
which it must otherwise terminate, the planning commission may allocate positive
tax increments generated by the TID (the "donor" TID) to another TID that has been
created by the planning commission. Generally, under current law, a planning
commission may amend a TID's project plan by adding territory to the district not
more than once during the seven years after the TID is created.
Currently, with regard to TID Number Two in the city of Sturgeon Bay,
expenditures may be made no later than 10 years after the TID was created, or
through December 31, 2004. The TID's project plan has already be amended once,
and currently the TID must terminate no later than 2021.
Under this bill, the general expenditure period for TID Number Two in
Sturgeon Bay is extended to 15 years after the TID was created, or through December
31, 2009, although the bill also authorizes the planning commission to amend the
TID's project plan one additional time. If the project plan is amended a second time,
the expenditure period for TID Number Two in the city of Sturgeon Bay is extended
for up to five years after the date on which the local legislative body adopts a
resolution, which may be a date after December 31, 2009. The bill also authorizes
DOR to allocate tax increments to this TID for 29 years after the TID was created and
the TID must terminate 14 years after the last expenditure in the project plan is
made, if the project plan is amended a second time.
For further information see the state 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:
AB636, s. 1 1Section 1. 66.1105 (4) (h) 1. of the statutes, as affected by 2003 Wisconsin Act
234
, is amended to read:
AB636,3,133 66.1105 (4) (h) 1. Subject to subds. 2., 3., 4., and 5., and 6., the planning
4commission may, by resolution, adopt an amendment to a project plan. The
5amendment is subject to approval by the local legislative body and approval requires

1the same findings as provided in par. (g). Any amendment to a project plan is also
2subject to review by a joint review board, acting under sub. (4m). Adoption of an
3amendment to a project plan shall be preceded by a public hearing held by the plan
4commission at which interested parties shall be afforded a reasonable opportunity
5to express their views on the amendment. Notice of the hearing shall be published
6as a class 2 notice, under ch. 985. The notice shall include a statement of the purpose
7and cost of the amendment and shall advise that a copy of the amendment will be
8provided on request. Before publication, a copy of the notice shall be sent by 1st class
9mail to the chief executive officer or administrator of all local governmental entities
10having the power to levy taxes on property within the district and to the school board
11of any school district which includes property located within the proposed district.
12For a county with no chief executive officer or administrator, this notice shall be sent
13to the county board chairperson.
AB636, s. 2 14Section 2. 66.1105 (4) (h) 2. of the statutes, as affected by 2003 Wisconsin Act
1534
, is amended to read:
AB636,3,2416 66.1105 (4) (h) 2. Except as provided in subds. 3., 4., and 5., and 6., not more
17than once during the 7 years after the tax incremental district is created, the
18planning commission may adopt an amendment to a project plan under subd. 1. to
19modify the district's boundaries by adding territory to the district that is contiguous
20to the district and that is served by public works or improvements that were created
21as part of the district's project plan. Expenditures for project costs that are incurred
22because of an amendment to a project plan to which this subdivision applies may be
23made for not more than 3 years after the date on which the local legislative body
24adopts a resolution amending the project plan.
AB636, s. 3 25Section 3. 66.1105 (4) (h) 6. of the statutes is created to read:
AB636,4,9
166.1105 (4) (h) 6. With regard to Tax Incremental District Number 2 in the city
2of Sturgeon Bay, not more than twice after the district is created, the planning
3commission may adopt an amendment to a project plan under subd. 1. to modify the
4district's boundaries by adding territory to the district that is contiguous to the
5district and that is to be served by public works or improvements that were created
6as part of the district's project plan. Expenditures for project costs that are incurred
7because of an amendment to a project plan to which this subdivision applies may be
8made for not more than 5 years after the date on which the local legislative body
9adopts a resolution amending the project plan.
AB636, s. 4 10Section 4. 66.1105 (6) (a) 6. of the statutes is created to read:
AB636,4,1311 66.1105 (6) (a) 6. Twenty-nine years after the tax incremental district is
12created if the district is Tax Incremental District Number 2 in the city of Sturgeon
13Bay.
AB636, s. 5 14Section 5. 66.1105 (6) (am) 2. d. of the statutes is created to read:
AB636,4,1815 66.1105 (6) (am) 2. d. Expenditures for project costs for Tax Incremental
16District Number 2 in the city of Sturgeon Bay. Subject to sub. (4) (h) 6., such
17expenditures may be made no later than 15 years after the tax incremental district
18is created, and may be made through December 31, 2009.
AB636, s. 6 19Section 6. 66.1105 (7) (at) of the statutes is created to read:
AB636,4,2320 66.1105 (7) (at) Notwithstanding par. (am), 14 years after the last expenditure
21identified in the project plan is made if the district is Tax Incremental District
22Number 2 in the city of Sturgeon Bay and if the project plan is amended under sub.
23(4) (h) 6.
AB636,4,2424 (End)
Loading...
Loading...