SB11: Bill Text

LRB-0637/1

MES:jld:md

2011 - 2012 LEGISLATURE

2011 Senate BILL 11

January 21, 2011 - Introduced by Senators Taylor, S. Coggs and C. Larson, cosponsored by Representatives Fields, E. Coggs, Kessler, Turner, Grigsby, Young and Staskunas. Referred to Committee on Economic Development and Veterans and Military Affairs.

SB11,1,3 An Act to create 66.1105 (5) (bs) of the statutes; relating to: the filing of certain forms related to Tax Incremental Financing District Number 72 in the city of Milwaukee.

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. Currently, towns also have a limited ability to create a TID under certain circumstances. 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, approval of the city's or village's proposed TID by a joint review board that consists of members who represent the overlying taxation districts, and adoption of a resolution by the common council or village board that creates the TID as of a date provided in the resolution.

Once these steps are accomplished, the city clerk is required to complete certain forms and an application and submit the documents to the Department of Revenue (DOR) on or before October 31 of the year in which the TID is created, although until October 1, 2010, this deadline was December 31 of the year in which the TID was created. Upon receipt of the application, DOR is required to certify the full aggregate value of the taxable property in the city, which constitutes the tax incremental base of the TID.

This bill specifies that, if the city of Milwaukee clerk had submitted to DOR not later than May 31, 2010, the required forms and an application for a TID that was created, or attempted to have been created, on January 1, 2009, based on action taken by the city in December 2008, even though the forms and application were originally due on December 31, 2009, DOR must proceed as if the forms had been timely filed not later than December 31, 2009, except that DOR may not certify a value increment before 2011.

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:

SB11, s. 1 Section 1. 66.1105 (5) (bs) of the statutes is created to read:

SB11,2,12 66.1105 (5) (bs) Notwithstanding the time limits in par. (b), if the city clerk of a city that created, or attempted to create, a tax incremental district on January 1, 2009, based on actions taken by the common council in December 2008, files with the department of revenue, not later than May 31, 2010, the forms and application that were originally due on or before December 31, 2009, the tax incremental base of the district shall be calculated by the department of revenue as if the forms and application had been filed on or before December 31, 2009, and, until the tax incremental district terminates, the department of revenue shall allocate tax increments and treat the district in all other respects as if the forms and application had been filed on or before December 31, 2009, except that the department of revenue may not certify a value increment under par. (b) before 2011.

SB11,2,13 (End)