LRB-1573/1
MES:jld:jm
2013 - 2014 LEGISLATURE
February 13, 2013 - Introduced by Senators Tiffany and Hansen, cosponsored by
Representatives Nygren, Jacque, Mursau, Steineke, Tauchen and
Weininger. Referred to Committee on Economic Development and Local
Government.
SB21,1,2 1An Act to create 66.1105 (6) (am) 2. f. of the statutes; relating to: extending the
2expenditure period for a tax incremental district in the city of Marinette.
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 and counties 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.
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 project 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. 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 certain circumstances, the life of the TID, the
expenditure period, and the allocation period may be extended.
This bill extends the expenditure period for TID Number 3 in the city of
Marinette from July 2, 2013, to its unextended termination date, which is July 2,
2018.
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:
SB21,1 1Section 1. 66.1105 (6) (am) 2. f. of the statutes is created to read:
SB21,2,42 66.1105 (6) (am) 2. f. Expenditures for project costs for Tax Incremental District
3Number 3 in the city of Marinette. Such expenditures may be made through July 2,
42018.
SB21,2,55 (End)
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