AB654, s. 27 15Section 27. 66.1105 (6) (a) 4. of the statutes, as affected by 2003 Wisconsin Acts
1634
and 46, is amended to read:
AB654,17,1917 66.1105 (6) (a) 4. Twenty-three years after the tax incremental district is
18created if the district is created after September 30, 1995, and before October 1,
192004
.
AB654, s. 28 20Section 28. 66.1105 (6) (a) 7. of the statutes is created to read:
AB654,17,2421 66.1105 (6) (a) 7. Twenty years after the tax incremental district is created if
22the district is created on or after the effective date of this subdivision .... [revisor
23inserts date], and if the district is at least predominantly suitable for mixed-use
24development or industrial sites under sub. (4) (gm) 6.
AB654, s. 29 25Section 29. 66.1105 (6) (a) 8. of the statutes is created to read:
AB654,18,4
166.1105 (6) (a) 8. Twenty-seven years after the tax incremental district is
2created if the district is created on or after the effective date of this subdivision ....
3[revisor inserts date], and if the district is a district specified under sub. (4) (gm) 6.
4other than a district specified under subd. 7.
AB654, s. 30 5Section 30. 66.1105 (6) (am) 1. of the statutes, as affected by 2003 Wisconsin
6Act 34
, is repealed and recreated to read:
AB654,18,97 66.1105 (6) (am) 1. Except as otherwise provided in this paragraph, no
8expenditure may be made later than 2 years before the unextended termination date
9of a tax incremental district under sub. (7) (am).
AB654, s. 31 10Section 31. 66.1105 (6) (c) of the statutes is amended to read:
AB654,19,511 66.1105 (6) (c) Except for tax increments allocated under par. (d), (dm) or, (e),
12or (f) all tax increments received with respect to a tax incremental district shall, upon
13receipt by the city treasurer, be deposited into a special fund for that district. The
14city treasurer may deposit additional moneys into such fund pursuant to an
15appropriation by the common council. No moneys may be paid out of such fund
16except to pay project costs with respect to that district, to reimburse the city for such
17payments, to pay project costs of a district under par. (d), (dm) or (e) or to satisfy
18claims of holders of bonds or notes issued with respect to such district. Subject to par.
19(d), (dm) or (e), moneys paid out of the fund to pay project costs with respect to a
20district may be paid out before or after the district is terminated under sub. (7).
21Subject to any agreement with bondholders, moneys in the fund may be temporarily
22invested in the same manner as other city funds if any investment earnings are
23applied to reduce project costs. After all project costs and all bonds and notes with
24respect to the district have been paid or the payment thereof provided for, subject to
25any agreement with bondholders, if there remain in the fund any moneys that are

1not allocated under par. (d), (dm) or (e), they shall be paid over to the treasurer of each
2county, school district or other tax levying municipality or to the general fund of the
3city in the amounts that belong to each respectively, having due regard for that
4portion of the moneys, if any, that represents tax increments not allocated to the city
5and that portion, if any, that represents voluntary deposits of the city into the fund.
AB654, s. 32 6Section 32. 66.1105 (6) (e) 1. d. of the statutes is created to read:
AB654,19,117 66.1105 (6) (e) 1. d. The donor tax incremental district is able to demonstrate,
8based on the positive tax increments that are currently generated, that it has
9sufficient revenues to pay for all project costs that have been incurred under the
10project plan for that district and sufficient surplus revenues to pay for some of the
11eligible costs of the recipient tax incremental district.
AB654, s. 33 12Section 33. 66.1105 (6) (e) 2. of the statutes is repealed.
AB654, s. 34 13Section 34. 66.1105 (6) (f) of the statutes is created to read:
AB654,19,1814 66.1105 (6) (f) 1. Not later than the date on which a tax incremental district
15terminates under sub. (7) (am), a planning commission may amend under sub. (4) (h)
16the project plan of a tax incremental district to allocate positive tax increments
17generated by that tax incremental district to another tax incremental district
18created by that planning commission if all of the following conditions are met:
AB654,19,2119 a. The donor tax incremental district, the positive tax increments of which are
20to be allocated, and the recipient tax incremental district have the same overlying
21taxing jurisdictions.
AB654,19,2322 b. The allocation of tax increments under this paragraph is approved by the
23joint review board.
AB654,19,2524 2. An allocation of tax increments under this paragraph may be used by the
25recipient district only if one of the following applies:
AB654,20,2
1a. The project costs in the recipient district are used to create, provide, or
2rehabilitate low-cost housing or to remediate environmental contamination.
AB654,20,53 b. The recipient district was created upon a finding that not less than 50
4percent, by area, of the real property within the district is blighted or in need of
5rehabilitation.
AB654,20,86 3. The allocation of positive tax increments from a donor district to one or more
7recipient districts cannot be made unless the donor district has first satisfied all of
8its current-year debt service and project cost obligations.
AB654,20,109 4. No city may request or receive under sub. (7) (am) 2. an extension for the life
10of a donor tax incremental district.
AB654, s. 35 11Section 35. 66.1105 (7) (a) of the statutes is amended to read:
AB654,20,1812 66.1105 (7) (a) That time when the city has received aggregate tax increments
13with respect to the district in an amount equal to the aggregate of all project costs
14under the project plan and any amendments to the project plan for the district, except
15that this paragraph does not apply to a district whose positive tax increments have
16been allocated under sub. (6) (d), (dm) or, (e), or (f) until the district to which the
17allocation is made has paid off the aggregate of all of its project costs under its project
18plan.
AB654, s. 36 19Section 36. 66.1105 (7) (am) of the statutes, as affected by 2003 Wisconsin Act
2046
, is repealed and recreated to read:
AB654,20,2421 66.1105 (7) (am) 1. For a district about which a finding is made under sub. (4)
22(gm) 4. a. that not less than 50 percent, by area, of the real property within the district
23is a blighted area or in need of rehabilitation or conservation work, 27 years after the
24district is created.
AB654,21,14
12. For a district about which a finding is made under sub. (4) (gm) 4. a. that not
2less than 50 percent, by area, of the real property within the district is suitable for
3industrial sites or mixed-use development, 20 years after the district is created,
4except that during the 18th year of such a district's existence, the city that created
5the district may request that the joint review board extend the life of the district for
6an additional 5 years. Along with its request for a 5-year extension, the city may
7provide the joint review board with an independent audit that demonstrates that the
8district is unable to pay off its project costs within the 20 years after the district is
9created. The joint review board may deny or approve a request to extend the life of
10the district for 5 years if the request does not include the independent audit, and the
11board shall approve a request to extend the life of the district for 5 years if the request
12includes the audit. If the joint review board extends the district's life, the district
13shall terminate at the earlier of the end of the extended period or the period specified
14in par. (a).
AB654, s. 37 15Section 37. 66.1105 (7) (ar) of the statutes is amended to read:
AB654,21,1916 66.1105 (7) (ar) Notwithstanding par. (am), 22 35 years after the last
17expenditure identified in the project plan is made if the
district to which the plan
18relates
is created if it was created before October 1, 1995, and if the project plan is
19amended under sub. (4) (h) 3. or 4.
AB654, s. 38 20Section 38. 66.1105 (8) (title) of the statutes is amended to read:
AB654,21,2121 66.1105 (8) (title) Notice of district termination, reporting requirements.
AB654, s. 39 22Section 39. 66.1105 (8) (a) of the statutes is amended to read:
AB654,21,2523 66.1105 (8) (a) A city which creates a tax incremental district under this section
24shall give the department of revenue written notice within 10 60 days of the
25termination of the tax incremental district under sub. (7).
AB654, s. 40
1Section 40. 66.1105 (8) (c) of the statutes is created to read:
AB654,22,52 66.1105 (8) (c) After a city transmits to the department of revenue the notice
3required under par. (a) the city and the department shall agree on a date by which
4the city shall send to the department, on a form prescribed by the department, all of
5the following information that relates to the terminated tax incremental district:
AB654,22,66 1. A final accounting of all expenditures made by the city.
AB654,22,77 2. The total amount of project costs incurred by the city.
AB654,22,88 3. The total amount of positive tax increments received by a city.
AB654,22,109 4. The total amount of project costs, if any, not paid for with tax increments that
10became obligations of the city after the district was terminated.
AB654, s. 41 11Section 41. 66.1105 (8) (d) of the statutes is created to read:
AB654,22,1612 66.1105 (8) (d) If a city does not send to the department of revenue the form
13specified in par. (c) within the time limit agreed to by the city and the department
14under par. (c), the department may not certify the tax incremental base of a tax
15incremental district under sub. (5) (a) and (b) until the form is sent to the
16department.
AB654, s. 42 17Section 42. 66.1105 (15) of the statutes is created to read:
AB654,23,518 66.1105 (15) Substantial compliance. Substantial compliance with subs. (3),
19(4) (a), (b), (c), (d), (e), (f), and (h), (4m), and (5) (b) by a city that creates, or attempts
20to create, a tax incremental district is sufficient to give effect to any proceedings
21conducted under this section if, in the opinion of the department of revenue, any
22error, irregularity, or informality that exists in the city's attempts to comply with
23subs. (3), (4) (a), (b), (c), (d), (e), (f), and (h), (4m), and (5) (b) does not affect substantial
24justice. If the department of revenue determines that a city has substantially
25complied with subs. (3), (4) (a), (b), (c), (d), (e), (f), and (h), (4m), and (5) (b), the

1department of revenue shall determine the tax incremental base of the district,
2allocate tax increments, and treat the district in all other respects as if the
3requirements under subs. (3), (4) (a), (b), (c), (d), (e), (f), and (h), (4m), and (5) (b) had
4been strictly complied with based on the date that the resolution described under
5sub. (4) (gm) 2. is adopted.
AB654, s. 43 6Section 43. 66.1106 (13) of the statutes is created to read:
AB654,23,167 66.1106 (13) Payment of eligible costs for annexed territory,
8redetermination of tax incremental base.
If a city or village annexes territory from
9a town and if the town is using an environmental remediation tax increment to
10remediate environmental pollution on all or part of the territory that is annexed, the
11city or village shall pay to the town that portion of the eligible costs that are
12attributable to the annexed territory. The city or village, and the town, shall
13negotiate an agreement on the amount that must be paid under this subsection. The
14department shall redetermine the environmental tax incremental base of any parcel
15of real property for which the environmental remediation tax incremental base was
16determined under sub. (4) if part of that parcel is annexed under this subsection.
AB654, s. 44 17Section 44. Laws of 1975, chapter 105, section 1 (1) and (2) are amended to
18read:
AB654,24,519 [Laws of 1975, chapter 105] Section 1 (1) The legislature finds that the existing
20system of allocating aggregate property tax revenues among tax levying
21municipalities has resulted in significant inequities and disincentives. The cost of
22public works or improvements within a city or, village, or county has been borne
23entirely by the city or, village, or county while the expansion of tax base which is
24stimulated, directly or indirectly, by such improvements, benefits not only the city
25or, village, or county but also all municipalities which share such tax base. This

1situation is inequitable. Moreover, when the cost to a city or, village, or county of a
2public improvement project exceeds the future benefit to the city or, village, or county
3resulting therefrom, the city or, village , or county may decide not to undertake such
4project. This situation has resulted in the postponement or cancellation of socially
5desirable projects.
AB654,24,116 (2) The legislature further finds that accomplishment of the vital and beneficial
7public purposes of sections 66.405 to 66.425, 66.43, 66.431, 66.435 and 66.52 of the
8statutes, is being frustrated because of a lack of incentives and financial resources.
9The purpose of this act is to create a viable procedure by which a city or, village, or
10county
, through its own initiative and efforts, may finance projects which will tend
11to accomplish these laudable objectives.
AB654, s. 45 12Section 45. Initial applicability.
AB654,24,1513 (1) Except as provided in subsections (2) and (3), this act first applies to a tax
14incremental district that is in existence on the effective date of this subsection or that
15is created on the effective date of this subsection.
AB654,24,2016 (2) Except as provided in subsection (3 ), the treatment of section 66.1105 (2) (f)
171. i. and 2. d., (4) (e) and (gm) 1. and 6., (4m) (a), (ae), (am), and (b) 2., 2m., and 4.,
18(5) (a), (b), (c), and (ce), (6) (a) 4., 7., and 8., and (e) 1. d. and 2., (7) (a), (am), and (ar),
19and (8) (title), (a), (c), and (d) of the statutes, first applies to a tax incremental district
20that is created on October 1, 2004.
AB654,24,2421 (3) The treatment of section 66.1105 (2) (f) 1. i. and 2. d., (4) (gm) 1. and (h) 2.,
22(4m) (b) 2., (5) (b), (c), and (ce), and (6) (e) 1. d. of the statutes first applies to the
23amendment of a tax incremental district's project plan that takes effect on October
241, 2004.
AB654, s. 46
1Section 46. Effective dates. This act takes effect on the first day of the 4th
2month beginning after publication, except as follows:
AB654,25,7 3(1) The treatment of sections 59.57 (3) and 66.1105 (2) (f) 1. i. and 2. d., (3) (g),
4(4) (e), (gm) 1., 4. a. and c., and 6., and (h) 2., (4m) (a), (am), (b) 2., 2m., and 4., (5) (a),
5(b), (c), and (ce), (6) (a) 3., 4., 7., and 8., (am) 1., and (e) 1. d. and 2., (7) (am), and (ar),
6and (8) (title), (c), and (d) of the statutes takes effect on October 1, 2004, or on the day
7after publication, whichever is later.
AB654,25,88 (End)
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