MES:emw
2017 - 2018 LEGISLATURE
February 14, 2018 - Introduced by Representative Weatherston, cosponsored by
Senator Wanggaard. Referred to Committee on Ways and Means.
AB952,1,6 1An Act to amend 66.1105 (7) (am) 2.; and to create 66.1105 (6) (a) 14., 66.1105
2(6) (a) 15., 66.1105 (6) (am) 2. i., 66.1105 (6) (am) 2. j., 66.1105 (7) (am) 5. and
366.1105 (7) (am) 6. of the statutes; relating to: lengthening the time during
4which tax increments may be allocated and expenditures for project costs may
5be made and extending the maximum life for Tax Incremental Districts
6Number One and Four in the village of Caledonia.
Analysis by the Legislative Reference Bureau
This bill increases the maximum life, the expenditure period, and the tax
increment allocation period for Tax Incremental Districts Number One and Four in
the village of Caledonia.
Under the current tax incremental financing program, a city or village may
create a TID in part of its territory to foster development under certain conditions.
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 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.
Under this bill, with regard to TID Number One in the village of Caledonia, the
expenditures for project costs may be made for up to 32 years after the TID was
created, DOR may allocate tax increments for up to 37 years after the TID's creation,
and the maximum life of the TID is extended for 17 years.
Also under this bill, with regard to TID Number Four in the village of
Caledonia, the expenditures for project costs may be made for up to 25 years after
the TID was created, DOR may allocate tax increments for up to 30 years after the
TID's creation, and the maximum life of the TID is extended for 10 years.
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:
AB952,1 1Section 1. 66.1105 (6) (a) 14. of the statutes is created to read:
AB952,2,42 66.1105 (6) (a) 14. Thirty-seven years after the tax incremental district is
3created if the district is Tax Incremental District Number 1 in the village of
4Caledonia.
AB952,2 5Section 2. 66.1105 (6) (a) 15. of the statutes is created to read:
AB952,2,76 66.1105 (6) (a) 15. Thirty years after the tax incremental district is created if
7the district is Tax Incremental District Number 4 in the village of Caledonia.
AB952,3
1Section 3. 66.1105 (6) (am) 2. i. of the statutes is created to read:
AB952,3,42 66.1105 (6) (am) 2. i. Expenditures for project costs for Tax Incremental District
3Number 1 in the village of Caledonia. Such expenditures may be made no later than
432 years after the district is created and may be made through 2039.
AB952,4 5Section 4. 66.1105 (6) (am) 2. j. of the statutes is created to read:
AB952,3,86 66.1105 (6) (am) 2. j. Expenditures for project costs for Tax Incremental District
7Number 4 in the village of Caledonia. Such expenditures may be made no later than
825 years after the district is created and may be made through 2039.
AB952,5 9Section 5. 66.1105 (7) (am) 2. of the statutes is amended to read:
AB952,4,310 66.1105 (7) (am) 2. Except as provided in subd. subds. 4., 5., and 6., for a district
11that is created after September 30, 2004, about which a finding is made under sub.
12(4) (gm) 4. a. that not less than 50 percent, by area, of the real property within the
13district is suitable for industrial sites or mixed-use development, 20 years after the
14district is created, except that the city that created the district may, subject to sub.
15(8) (e), request that the joint review board extend the life of the district for an
16additional 3 years. Along with its request for a 3-year extension, the city may
17provide the joint review board with an independent audit that demonstrates that the
18district is unable to pay off its project costs within the 20 years after the district is
19created. The joint review board may deny or approve a request to extend the life of
20the district for 3 years if the request does not include the independent audit, and the
21board shall approve a request to extend the life of the district for 3 years if the request
22includes the audit. If the joint review board extends the district's life, the district
23shall terminate at the earlier of the end of the extended period or the period specified
24in par. (a). For a tax incremental district created after March 3, 2016, the
25termination date for a district to which this subdivision applies shall either be

1increased by one year beyond the otherwise applicable termination date under this
2subdivision if that district's project plan is adopted under sub. (4) (g) after September
330 and before May 15, or shall be the period specified in par. (a), whichever is earlier.
AB952,6 4Section 6. 66.1105 (7) (am) 5. of the statutes is created to read:
AB952,4,65 66.1105 (7) (am) 5. For Tax Incremental District Number 1 in the village of
6Caledonia, 37 years after the district is created.
AB952,7 7Section 7. 66.1105 (7) (am) 6. of the statutes is created to read:
AB952,4,98 66.1105 (7) (am) 6. For Tax Incremental District Number 4 in the village of
9Caledonia, 30 years after the district is created.
AB952,4,1010 (End)
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