AB437-SSA1,24,43
c. An owner of taxable property in a city or village that borders the town in
4which the district is located.
AB437-SSA1,24,55
d. A taxing jurisdiction that overlies the town in which the district is located.
AB437-SSA1,24,66
e. A city or village that borders the town in which the district is located.
AB437-SSA1,24,97
2. A written request described under subd. 1. shall be on a form that is
8prescribed by the department of revenue, shall contain the grounds on which the
9request is based, and shall be filed with the department no later than July 1.
AB437-SSA1,24,1410
3. The department of revenue may deny any request for review that is made
11under this paragraph if the department believes, based on a review of the request,
12that insufficient grounds exist to support the alleged noncompliance with sub. (2) (b).
13The department shall send written notification of its decision to the person who made
14the request for review and to the town.
AB437-SSA1,24,2015
4. If the department of revenue grants a request for review that is made under
16this paragraph, it shall hold a hearing and it shall send written notification of the
17hearing to the clerk of the town that created the tax incremental district, the person
18who requested the review, the clerk of each overlying taxing jurisdiction, and the
19clerk of every city or village that borders the town. The written notification shall
20include the time, date, and location of the hearing.
AB437-SSA1,24,2421
5. The secretary of revenue, or the secretary's designee, shall preside at the
22hearing and shall receive testimony and evidence on all issues that are related to the
23request for review. Following the hearing, the secretary shall make one of the
24following determinations:
AB437-SSA1,24,2525
a. The town is in compliance with sub. (2) (b).
AB437-SSA1,25,8
1b. The town has made expenditures or incurred debts that are not allowed
2under sub. (2) (b). If the secretary makes this determination, the secretary shall
3either order the town to pay back all ineligible costs to the district's overlying taxing
4jurisdictions, on a proportional basis that relates to each jurisdiction's share of the
5tax increment, from funds other than tax increments allocated under this subsection,
6or shall order the district to be terminated. If the secretary orders the district to be
7terminated, the town becomes liable for all unpaid project costs actually incurred
8which are not paid from the special fund under sub. (6) (d).
AB437-SSA1,25,109
6. Any person or unit of government that received a notice under subd. 4. may
10appeal the secretary's decision to the circuit court in Dane County.
AB437-SSA1,25,19
11(7) Notification of position openings. (a) Any person who operates for profit
12and is paid project costs under sub. (1) (h) 1. a., d., i. and j. in connection with the
13project plan for a tax incremental district shall notify the department of workforce
14development and the local workforce development board established under
29 USC
152832, of any positions to be filled in the county in which the town which created the
16tax incremental district is located during the period commencing with the date the
17person first performs work on the project and ending one year after receipt of its final
18payment of project costs. The person shall provide this notice at least 2 weeks prior
19to advertising the position.
AB437-SSA1,26,220
(b) Any person who operates for profit and buys or leases property in a tax
21incremental district from a town for which the town incurs real property assembly
22costs under sub. (1) (h) 1. c. shall notify the department of workforce development
23and the local workforce development board established under
29 USC 2832, of any
24position to be filled in the county in which the town creating the tax incremental
1district is located within one year after the sale or commencement of the lease. The
2person shall provide this notice at least 2 weeks prior to advertising the position.
AB437-SSA1,26,8
3(8) Review. (a) The town shall cause a certified public accountant to conduct
4audits of each tax incremental district to determine if all financial transactions are
5made in a legal and proper manner and to determine if the tax incremental district
6is complying with its project plan and with this section. Any town that creates a tax
7incremental district under this section and has an annual general audit may include
8the audits required under this subsection as part of the annual general audit.
AB437-SSA1,26,99
(b) Audits shall be conducted at all the following times:
AB437-SSA1,26,1110
1. No later than twelve months after 30 percent of the project expenditures are
11made.
AB437-SSA1,26,1312
2. No later than twelve months after the end of the expenditure period specified
13in sub. (6) (b) 1.
AB437-SSA1,26,1514
3. No later than twelve months after the termination of the tax incremental
15district under sub. (9).
AB437-SSA1,26,1916
(c) The town shall prepare and make available to the public updated annual
17reports describing the status of each existing tax incremental district, including
18expenditures and revenues. The town shall send a copy of the report to each
19overlying district by May 1 annually.
AB437-SSA1,26,21
20(9) Termination of tax incremental districts. A tax incremental district
21terminates when the earliest of the following occurs:
AB437-SSA1,26,2422
(a) That time when the town has received aggregate tax increments with
23respect to the district in an amount equal to the aggregate of all project costs under
24the project plan and any amendments to the project plan for the district.
AB437-SSA1,27,2
1(b) Eleven years after the last expenditure identified in the original,
2unamended project plan is made.
AB437-SSA1,27,53
(c) The town board, by resolution, dissolves the district, at which time the town
4becomes liable for all unpaid project costs actually incurred which are not paid from
5the special fund under sub. (6) (d).
AB437-SSA1,27,86
(d) The secretary of revenue determines that tax increments have been used
7to pay for ineligible costs and the secretary of revenue orders that the district be
8terminated under sub. (6) (e) 5. b.
AB437-SSA1,27,12
9(10) Notice of district termination. (a) A town which creates a tax
10incremental district under this section shall give the department of revenue written
11notice within 10 days of the termination of the tax incremental district under sub.
12(9).
AB437-SSA1,27,1713
(b) If the department of revenue receives a notice under par. (a) during the
14period from January 1 to May 15, the effective date of the notice is the date the notice
15is received. If the notice is received during the period from May 16 to December 31,
16the effective date of the notice is the first January 1 after the department of revenue
17receives the notice.
AB437-SSA1,27,2218
(c) Not later than February 15 of the year immediately following the year in
19which a town transmits to the department of revenue the notice required under par.
20(a) the town shall send to the department, on a form prescribed by the department,
21all of the following information that relates to the terminated tax incremental
22district:
AB437-SSA1,27,2323
1. A final accounting of all expenditures made by the town.
AB437-SSA1,27,2424
2. The total amount of project costs incurred by the town.
AB437-SSA1,27,2525
3. The total amount of positive tax increments received by a town.
AB437-SSA1,28,3
1(d) If a town does not send to the department of revenue the form specified in
2par. (c), the department may not certify the tax incremental base of a tax incremental
3district in the town under sub. (5) (a) and (b) until the form is sent to the department.
AB437-SSA1,28,5
4(11) Financing of project costs. Payment of project costs may be made by any
5one or more of the following methods:
AB437-SSA1,28,66
(a) Payment by the town from the special fund of the tax incremental district.
AB437-SSA1,28,77
(b) Payment out of its general funds.
AB437-SSA1,28,98
(c) Payment out of the proceeds of the sale of bonds or notes issued by it under
9ch. 67.
AB437-SSA1,28,1110
(d) Payment out of the proceeds of the sale of public improvement bonds issued
11by it under s. 66.0619.
AB437-SSA1,28,1212
(e) Payment as provided under s. 66.0713 (2) and (4) or 67.16.
AB437-SSA1,28,1413
(f) Payment out of the proceeds of revenue bonds or notes issued by it under s.
1466.0621.
AB437-SSA1,28,1615
(g) Payment out of the proceeds of revenue bonds issued by the town as provided
16by s. 66.1103, for a purpose specified in that section.
AB437-SSA1,28,20
17(12) Overlapping tax incremental districts. (a) Subject to any agreement
18with bondholders, a tax incremental district may be created, the boundaries of which
19overlap one or more existing districts, except that districts created as of the same
20date may not have overlapping boundaries.
AB437-SSA1,29,221
(b) If the boundaries of 2 or more tax incremental districts overlap, in
22determining how positive tax increments generated by that area which is within 2
23or more districts are allocated among the overlapping districts, but for no other
24purpose, the aggregate value of the taxable property in the area as equalized by the
25department of revenue in any year as to each earlier created district is that portion
1of the tax incremental base of the district next created which is attributable to the
2overlapped area.
AB437-SSA1,29,9
3(13) Equalized valuation for apportionment of property taxes. With respect
4to the county, school districts and any other local governmental body having the
5power to levy taxes on property located within a tax incremental district, if the
6allocation of positive tax increments has been authorized by the department of
7revenue under sub. (6) (a), the calculation of the equalized valuation of taxable
8property in a tax incremental district for the apportionment of property taxes may
9not exceed the tax incremental base of the district until the district is terminated.
AB437-SSA1,29,15
10(14) Department of commerce report. The department of commerce, in
11cooperation with other state agencies and local governments, shall make a
12comprehensive report to the governor and the chief clerk of each house of the
13legislature, for distribution to the legislature under s. 13.172 (2), at the beginning
14of each biennium, beginning with the 2007 biennium, as to the effects and impact of
15town tax incremental financing projects socially, economically, and financially.
AB437-SSA1,29,20
16(16) Use of tax incremental financing for inland lake protection and
17rehabilitation prohibited. Notwithstanding sub. (11), no tax incremental financing
18project plan may be approved and no payment of project costs may be made for an
19inland lake protection and rehabilitation district or a county acting under s. 59.70
20(8).
AB437-SSA1,30,4
21(17) Payment of eligible costs for annexed territory, redetermination of tax
22incremental base. If a city or village annexes territory from a town and if all or part
23of the territory that is annexed is part of a tax incremental district created by the
24town, the city or village shall pay to the town that portion of the eligible costs that
25are attributable to the annexed territory. The city or village, and the town, shall
1negotiate an agreement on the amount that must be paid under this subsection. The
2department shall redetermine the tax incremental base of any parcel of real property
3for which the tax incremental base was determined under sub. (5) if part of that
4parcel is annexed under this subsection.
AB437-SSA1,30,16
5(18) Substantial compliance. Substantial compliance with subs. (2), (3) (a),
6(b), (c), (d), (e), (f), and (j), (4), and (5) (b) by a town that creates, or attempts to create,
7a tax incremental district is sufficient to give effect to any proceedings conducted
8under this section if, in the opinion of the department of revenue, any error,
9irregularity, or informality that exists in the town's attempts to comply with subs.
10(2), (3) (a), (b), (c), (d), (e), (f), and (j), (4), and (5) (b) does not affect substantial justice.
11If the department of revenue determines that a town has substantially complied with
12subs. (2), (3) (a), (b), (c), (d), (e), (f), and (j), (4), and (5) (b), the department of revenue
13shall determine the tax incremental base of the district, allocate tax increments, and
14treat the district in all other respects as if the requirements under subs. (2), (3) (a),
15(b), (c), (d), (e), (f), and (j), (4), and (5) (b) had been strictly complied with based on the
16date that the resolution described under sub. (3) (h) 2. is adopted.
AB437-SSA1, s. 3
17Section
3. Laws of 1975, chapter 105, section 1 (1) and (2) are amended to read:
AB437-SSA1,31,418
[Laws of 1975, chapter 105] Section 1 (1) The legislature finds that the existing
19system of allocating aggregate property tax revenues among tax levying
20municipalities has resulted in significant inequities and disincentives. The cost of
21public works or improvements within a city
, town, or village has been borne entirely
22by the city
, town, or village, while the expansion of tax base which is stimulated,
23directly or indirectly, by such improvements, benefits not only the city
, town, or
24village but also all municipalities which share such tax base. This situation is
25inequitable. Moreover, when the cost to a city
, town, or village of a public
1improvement project exceeds the future benefit to the city
, town, or village resulting
2therefrom, the city
, town, or village may decide not to undertake such project. This
3situation has resulted in the postponement or cancellation of socially desirable
4projects.
AB437-SSA1,31,105
(2) The legislature further finds that accomplishment of the vital and beneficial
6public purposes of sections 66.405 to 66.425, 66.43, 66.431, 66.435 and 66.52 of the
7statutes
, is being frustrated because of a lack of incentives and financial resources.
8The purpose of this act is to create a viable procedure by which a city
or, village
, or
9town, through its own initiative and efforts, may finance projects which will tend to
10accomplish these laudable objectives.
AB437-SSA1,31,1312
(1) This act first applies to a tax incremental district that is created on October
131, 2004.