LRB-3756/1
MES:cjs
2015 - 2016 LEGISLATURE
February 4, 2016 - Introduced by Representative Kleefisch, cosponsored by
Senator Gudex. Referred to Committee on Ways and Means.
AB863,1,5 1An Act to amend 66.1105 (6) (a) 10., 66.1105 (6) (am) 2. em. and 66.1105 (7) (ak)
22.; and to create 66.1105 (7) (ak) 4. of the statutes; relating to: lengthening
3the time during which tax increments may be allocated and expenditures for
4project costs may be made for Tax Incremental District Number 3 in the city of
5Middleton.
Analysis by the Legislative Reference Bureau
This bill extends the maximum life, the expenditure period, and the time during
which tax increments may be allocated with regard to Tax Incremental District
Number 3 in the city of Middleton.
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.
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 the property taxes collected from the TID that
is attributable to the value increment 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.
Under this bill, with regard to Tax Incremental District Number 3 in the city
of Middleton, the expenditures for project costs may be made for up to 42 years after
the TID was created, the Department of Revenue may allocate tax increments for up
to 47 years after the TID's creation, and the maximum life of the TID is extended for
ten years.
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:
AB863,1 1Section 1. 66.1105 (6) (a) 10. of the statutes is amended to read:
AB863,2,42 66.1105 (6) (a) 10. Thirty-seven Forty-seven years after the tax incremental
3district is created if the district is Tax Incremental District Number 3 in the city of
4Middleton.
AB863,2 5Section 2. 66.1105 (6) (am) 2. em. of the statutes is amended to read:
AB863,2,86 66.1105 (6) (am) 2. em. Expenditures for project costs for Tax Incremental
7District Number 3 in the city of Middleton. Such expenditures may be made no later
8than 32 42 years after the district is created and may be made through 2025 2035.
AB863,3 9Section 3. 66.1105 (7) (ak) 2. of the statutes is amended to read:
AB863,2,1310 66.1105 (7) (ak) 2. For a district that is created after September 30, 1995, and
11before October 1, 2004, and that is not subject to subd. 1., 23 years after the district
12was created, and, except as provided in subd. subds. 3. and 4., for a district that is
13created before October 1, 1995, 27 years after the district is created.
AB863,4 14Section 4. 66.1105 (7) (ak) 4. of the statutes is created to read:
AB863,3,2
166.1105 (7) (ak) 4. For Tax Incremental District Number 3 in the city of
2Middleton, 47 years after the district is created.
AB863,3,33 (End)
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