LRB-4662/1
MES:cjs:rs
2005 - 2006 LEGISLATURE
February 20, 2006 - Introduced by Representative Nischke. Referred to
Committee on Housing.
AB1054,1,3
1An Act to create 66.1106 (1) (be) and 66.1106 (14) of the statutes;
relating to:
2authorizing the town of Madison to reduce the territory of an environmental
3remediation tax incremental district.
Analysis by the Legislative Reference Bureau
Under current law, the environmental remediation tax incremental financing
program permits a city, village, town, or county (political subdivision) to recoup the
costs of remediating contaminated property that is owned by the political subdivision
from property taxes that are levied on the remediated property. The mechanism for
financing remediation costs is very similar to the mechanism for financing project
costs under the tax incremental financing (TIF) program.
A political subdivision that has incurred "eligible costs" to remediate
environmental pollution on a parcel of property may apply to the Department of
Revenue (DOR) to certify the "environmental remediation tax incremental base" of
the parcel. DOR is required to certify the environmental remediation tax
incremental base if the political subdivision submits to DOR all of the following: 1)
a statement that the political subdivision has incurred some eligible costs, together
with a detailed proposed remedial action plan approved by the Department of
Natural Resources (DNR) that contains cost estimates for anticipated eligible costs,
a schedule for the design and implementation that is needed to complete the
remediation, and certification from DNR that it has approved the site investigation
report that relates to the parcel; 2) a statement that all taxing jurisdictions with
authority to levy general property taxes on the parcel of property have been notified
that the political subdivision intends to recover its environmental remediation costs
by using an "environmental remediation tax increment"; and 3) a statement that the
political subdivision has attempted to recover its environmental remediation costs
from the person who is responsible for the environmental pollution that is being
remediated.
Currently, the maximum life of an environmental remediation tax incremental
district (ERTID) is 16 years, and no expenditure for an eligible cost may be made by
a political subdivision later than 15 years after the environmental remediation tax
incremental base is certified by DOR.
This bill authorizes the town of Madison to modify the boundaries of its ERTID
once during the life of the district by subtracting territory from the district, subject
to approval from a joint review board. To subtract territory from the district, the bill
requires the town to act before October 2, 2006, and requires that the parcels in the
district remain contiguous after the subtraction. If the town does modify its ERTID
in the manner authorized by the bill, DOR must redetermine the environmental
remediation tax incremental base of the district as of January 1, 2006.
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:
AB1054, s. 1
1Section
1. 66.1106 (1) (be) of the statutes is created to read:
AB1054,2,52
66.1106
(1) (be) "District" means an environmental remediation tax
3incremental district created under this section that consists of the parcels of property
4described in a written proposal developed under sub. (2) (a) that is approved by a joint
5review board under sub. (3).
AB1054, s. 2
6Section
2. 66.1106 (14) of the statutes is created to read:
AB1054,2,117
66.1106
(14) Subtracting territory from a district. (a) If the department has
8certified before January 2, 2001, the environmental remediation tax incremental
9base of a district that is created by a town, the town may modify the district's
10boundaries, not more than once during the period of certification, by subtracting
11territory from the district, if all of the following apply:
AB1054,3,3
11. Before October 2, 2006, the town adopts an amendment to the proposal
2adopted under sub. (2) (a), which modifies the district's boundaries. The amendment
3shall specify the parcel that is to be subtracted from the district.
AB1054,3,54
2. The parcels in the district, after subtracting the parcel described in subd. 1.,
5remain contiguous.
AB1054,3,76
3. A joint review board, following the procedures in sub. (3), approves the
7amendment.
AB1054,3,118
(b) If a town subtracts territory from a district by acting under par. (a) and
9submits a written application to the department under sub. (4), the department shall
10redetermine the environmental remediation tax incremental base of the district as
11of January 1, 2006.
