LRB-4646/1
MES:bjk:md
2009 - 2010 LEGISLATURE
April 20, 2010 - Introduced by Representative Danou, cosponsored by Senator
Vinehout. Referred to Committee on Ways and Means.
AB963,1,2
1An Act to create 66.1105 (5) (bs) of the statutes;
relating to: reducing the tax
2incremental base of tax incremental district number 3 in the city of Durand.
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 incremental 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.
Under this bill, the tax incremental base of TID number 3 in the city of Durand
is reduced by $246,700. This amount reflects a decrease in property value in the
district as a result of a fire in the city that occurred on January 4, 2010. Under the
bill, DOR is required to allocate tax increments and treat the TID in all other respects
as if its tax incremental base is $246,700 less than the amount calculated by DOR
in 2007.
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:
AB963, s. 1
1Section
1. 66.1105 (5) (bs) of the statutes is created to read:
AB963,2,82
66.1105
(5) (bs) Notwithstanding the department of revenue's 2007 calculation
3under par. (a) of the tax incremental base of tax incremental district number 3 in the
4city of Durand, the department shall reduce the amount it calculated by $246,700
5and shall allocate tax increments and treat the district in all other respects as if the
6district's tax incremental base is the amount required under this paragraph, except
7that the department may not certify a value increment using the tax incremental
8base required under this paragraph before 2010.
