LRB-3662/1
EVM:sac:rs
2013 - 2014 LEGISLATURE
February 3, 2014 - Introduced by Representative Krug, cosponsored by Senator
Lassa. Referred to Committee on State and Local Finance.
AB723,1,4
1An Act to create 66.1105 (6) (e) 1. f. of the statutes;
relating to: authorizing the
2village of Biron to allocate positive tax increments from Tax Incremental
3District Number 2 in the village to Tax Incremental District Number 3 in the
4village.
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 project costs of a TID, which are initially incurred by the
creating city or village, may 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 limited circumstances, a TID that has paid off all of its project
costs but has not reached its mandatory termination date may become a donor TID,
continue to receive tax increments, and forward those increments to a recipient TID
created by the same city or village.
This bill creates an exception that allows TID Number 2 in the village of Biron
to allocate its positive tax increments to TID Number 3 in the village.
For further information see the 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:
AB723,1
1Section
1. 66.1105 (6) (e) 1. f. of the statutes is created to read:
AB723,2,62
66.1105
(6) (e) 1. f. Notwithstanding subd. 1. b. and subject to subd. 1. a. and
3d., the planning commission of the village of Biron may amend, under sub. (4) (h), the
4project plan of Tax Incremental District Number 2 in the village to allocate positive
5tax increments generated by that district to Tax Incremental District Number 3 in
6the village.
