Before the city or village may adopt the resolution concerning its project costs,
the common council must hold a public hearing at which interested parties may
express their views on the proposed distressed TID. Notice of the hearing must be
sent to the overlying taxation districts. Following receipt of the resolution and
financial data, the joint review board must evaluate the information to determine
whether designating the TID as distressed or allowing increment sharing will likely
enhance the ability of the city or village to pay its project costs. The resolution
adopted by the city or village may not take effect without joint review board approval
of the designation. The board may approve or deny the designation.
If the joint review board approves the designation, DOR must certify the
designation and notify all overlying taxing jurisdictions of the certification. DOR
may impose a $500 fee on a city or village to administer the city's or village's TID that
is so designated.
Under the bill, a distressed TID may continue to exist and receive tax
increments, as well as contributions from a donor TID, for up to 40 years after the
distressed TID was created. A distressed TID may not amend its project plan to add
any additional project costs, add territory, become a donor TID, make any

expenditures after its original expenditure period ends, or expend funds outside of
the TID's boundaries. A distressed TID must terminate whenever all of its project
costs have been paid off or 40 years after it was created, whichever occurs first. A
donor TID must terminate upon the earlier of the distressed TID's termination or 40
years after the donor TID is created
The bill authorizes a mixed-use or industrial TID that has been designated as
distressed to receive tax increments from a donor TID. Currently, the recipient TID
must be a blighted area or an area in need of rehabilitation, or the project costs in
the recipient TID must be used to rehabilitate low-income housing or for
environmental contamination remediation.
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:
AB426, s. 1 1Section 1. 20.566 (2) (hm) of the statutes, as affected by 2009 Wisconsin Act
228
, is amended to read:
AB426,3,103 20.566 (2) (hm) Administration of tax incremental, and environmental
4remediation tax incremental, financing programs.
All moneys received from the fees
5imposed under ss. 60.85 (5) (a) and (6) (am), 66.1105 (4e) (f), (5) (a), and (6) (ae), and
666.1106 (7) (am) and (13) (b) to pay the costs of the department of revenue in
7providing staff and administrative services associated with tax incremental districts
8under ss. 60.85, 66.1105, and 66.1106, and to reimburse a municipality for costs
9incurred by the municipality related to the department's administration of the tax
10incremental financing program.
AB426, s. 2 11Section 2. 66.1105 (4e) of the statutes is created to read:
AB426,3,1512 66.1105 (4e) Distressed tax incremental districts. (a) Subject to the
13limitations in this subsection, a city may designate a tax incremental district that
14it created before October 1, 2008, as a distressed tax incremental district if all of the
15following occur:
AB426,4,4
11. The local legislative body adopts a resolution finding that its project costs
2incurred, with regard to the tax incremental district, exceed the amount of revenues
3from all sources that the city expects the district to generate to pay off such project
4costs during the life of the district.
AB426,4,85 2. The clerk of the local legislative body certifies the resolution and forwards
6a copy of the certified resolution and a copy of all of the financial data that the local
7legislative body used in the adoption process under subd. 1. to the department of
8revenue and the joint review board.
AB426,4,209 (b) 1. Adoption of a resolution under par. (a) 1. shall be preceded by a public
10hearing held by the common council at which interested parties shall be afforded a
11reasonable opportunity to express their views on the proposed designation of a
12distressed tax incremental district. Notice of the hearing shall be published as a
13class 2 notice under ch. 985. The notice shall describe the resolution and shall advise
14that a copy of the resolution will be provided on request. Before publication, a copy
15of the notice shall be sent by 1st class mail to the chief executive officer or
16administrator of all local governmental entities having the power to levy taxes on
17property within the district and to the school board of any school district that
18includes property located within the proposed district. For a county with no chief
19executive officer or administrator, this notice shall be sent to the county board
20chairperson.
AB426,5,221 2. Following receipt of the resolution and the financial data under par. (a) 2.,
22the joint review board shall evaluate the resolution and data to determine whether
23the designation of the district as a distressed district or the sharing of tax increments
24by a donor district with the distressed district is likely to enhance the ability of the
25city to pay its project costs related to the district within the time specified in par. (d)

12. The joint review board may approve or deny the designation and shall send a
2written copy of its findings to the common council.
AB426,5,43 3. A resolution adopted under par. (a) 1. may not take effect unless the joint
4review board approves, by resolution, the designation under subd. 2.
AB426,5,85 (c) If the department of revenue prescribes any forms that the city clerk must
6complete as part of the designation of a distressed tax incremental district, the clerk
7shall submit the forms to the department on or before December 31 of the year the
8district is designated as distressed.
AB426,5,139 (d) 1. Notwithstanding the time limits for the allocation of positive tax
10increments under sub. (6) (a), but subject to sub. (6) (a) 1., and notwithstanding the
11requirement under sub. (6) (f) 1. b., the department of revenue shall allocate positive
12tax increments to a distressed tax incremental district for up to 40 years after the
13district is created.
AB426,5,1614 2. Notwithstanding the time limits for termination under sub. (7) (ak) to (at),
15but subject to sub. (7) (a) and (b), a distressed district may remain in existence for
16up to 40 years after the district is created.
AB426,5,2017 3. Notwithstanding the time limits and other provisions for termination under
18sub. (7), a donor tax incremental district under sub. (6) (d), (dm), (e), and (f) may
19continue to share tax increments with a distressed district until the earlier of the
20following occurs:
AB426,5,2121 a. The distressed district terminates under sub. (7) (a), (au), or (b).
AB426,5,2222 b. Following its creation, the donor district has existed for 40 years.
AB426,5,2323 (e) A distressed tax incremental district may not do any of the following:
AB426,5,2424 1. Amend its project plan to add any new project costs.
AB426,5,2525 2. Become part of a district with overlapping boundaries under sub. (10).
AB426,6,1
13. Expend any funds outside of the tax incremental district's boundaries.
AB426,6,22 4. Add any territory to the district under sub. (4) (h) 2.
AB426,6,33 5. Become a donor district under sub. (6) (d), (dm), (e), or (f).
AB426,6,54 6. Make any expenditures after its expenditure period, as determined before
5its designation as a distressed district expires.
AB426,6,116 (f) If the joint review board approves a designation under par. (b) 3., the
7department of revenue shall certify the district as a distressed tax incremental
8district and shall send a copy of the certification to the city and to all overlying
9taxation jurisdictions. The department may impose a fee of $500 on a city for each
10district in the city that is so designated, for the additional costs incurred by the
11department in administering such a district.
AB426, s. 3 12Section 3. 66.1105 (6) (f) 2. c. of the statutes is created to read:
AB426,6,1413 66.1105 (6) (f) 2. c. The recipient district is a mixed-use or industrial-use
14district that has been designated as a distressed district under sub. (4e).
AB426, s. 4 15Section 4. 66.1105 (7) (au) of the statutes is created to read:
AB426,6,1716 66.1105 (7) (au) With regard to a distressed tax incremental district under sub.
17(4e), the time period specified in sub. (4e) (d) 2.
AB426, s. 5 18Section 5. Effective date.
AB426,6,1919 (1) This act takes effect on October 1, 2009.
AB426,6,2020 (End)
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