LRB-2110/3
MES&EVM:jld:ph
2009 - 2010 LEGISLATURE
March 30, 2009 - Introduced by Representatives Mason, Turner, Zepnick and
Barca, cosponsored by Senators Lehman, Plale, Coggs and
Wirch. Referred
to Committee on Urban and Local Affairs.
AB175,1,2
1An Act to create 66.1105 (6) (a) 9. and 66.1105 (6) (am) 2. d. of the statutes;
2relating to: expanding the life of a tax incremental district in the city of Racine.
Analysis by the Legislative Reference Bureau
Under the current tax incremental financing 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 conservation, suitable for industrial sites, or suitable for mixed-use
development. 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 TID 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,
20 years, 23 years, or 27 years after the TID is created, depending on the type of TID
and the year in which it was created. Under certain circumstances, the life of the TID
and the allocation period may be extended. Also under current law, a city or village
may not generally make expenditures for project costs later than five years before
the unextended termination date of the TID.
Under this bill, for TID Number 2 in the city of Racine, the 27-year life of the
TID and the period of time during which DOR may authorize tax increments is
extended from 2010 to 2020, and the expenditure period is extended from 2005 to
2015.
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:
AB175, s. 1
1Section
1. 66.1105 (6) (a) 9. of the statutes is created to read:
AB175,2,42
66.1105
(6) (a) 9. Thirty-seven years after the tax incremental district is
3created if the district is created before October 1, 1983, and the expenditure period
4is specified in par. (am) 2. d.
AB175, s. 2
5Section
2. 66.1105 (6) (am) 2. d. of the statutes is created to read:
AB175,2,86
66.1105
(6) (am) 2. d. Expenditures for project costs for Tax Incremental
7District Number 2 in the city of Racine. Such expenditures may be made no later
8than 32 years after the district is created and may be made through 2015.
