AB478,2,6
1An Act to repeal 66.1105 (4) (h) 3. and 66.1105 (6) (e) 2.;
to renumber and
2amend 66.1105 (6) (a) and 66.1105 (6) (am) 1.;
to amend 66.1105 (2) (f) 1. i.,
366.1105 (2) (f) 3., 66.1105 (3) (e), 66.1105 (4) (e), 66.1105 (4) (gm) 1., 66.1105 (4)
4(gm) 4. a., 66.1105 (4) (gm) 4. c., 66.1105 (4) (h) 1., 66.1105 (4) (h) 2., 66.1105 (4m)
5(a), 66.1105 (4m) (b) 2., 66.1105 (4m) (b) 2m., 66.1105 (5) (a), 66.1105 (5) (b),
666.1105 (5) (c), 66.1105 (5) (ce), 66.1105 (5) (d), 66.1105 (7) (am), 66.1105 (7) (ar),
766.1105 (8) (title), 66.1106 (1) (c), 66.1106 (1) (e), 66.1106 (1) (f), 66.1106 (1) (g),
866.1106 (1) (i), 66.1106 (1) (k), 66.1106 (2) (a), 66.1106 (4) (intro.), 66.1106 (4) (b),
966.1106 (7) (a), 66.1106 (7) (d) 1., 66.1106 (9), 66.1106 (10) (a), 66.1106 (10) (b),
1074.23 (1) (b), 74.25 (1) (b) 1., 74.25 (1) (b) 2., 74.30 (1) (i), 74.30 (1) (j), 74.30 (2)
11(b), 79.095 (1) (c), 79.095 (2) (b) and 234.01 (4n) (a) 3m. a.; and
to create 20.566
12(1) (go), 66.1105 (2) (cm), 66.1105 (2) (f) 2. d., 66.1105 (3) (g), 66.1105 (4) (gm)
136., 66.1105 (4m) (am), 66.1105 (4m) (b) 4., 66.1105 (4m) (b) 5., 66.1105 (6) (a) 4.,
1466.1105 (6) (am) 1. c., 66.1105 (6) (e) 1. d., 66.1105 (7) (ae), 66.1105 (8) (c),
166.1105 (8) (d), 66.1105 (15), 66.1106 (1) (fm), 66.1106 (1) (jm), 66.1106 (1m),
266.1106 (10) (c), 66.1106 (10) (d), 66.1106 (11), 66.1106 (12), 66.1106 (13) and
373.03 (57) of the statutes;
relating to: making technical and policy changes in
4the tax incremental financing program based on the recommendations of the
5governor's December 2000 working group on tax incremental finance and
6modifying the environmental remediation tax incremental financing program.
Analysis by the Legislative Reference Bureau
Under the current tax incremental financing (TIF) program, a city or village
may create a tax incremental district (TID) in part of its territory to foster
development if at least 50% of the area to be included in the TID is blighted, in need
of rehabilitation, or suitable for industrial sites. 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
district as of a date provided in the resolution. Another step that must be taken
before a TID may be created is the creation by the city or village of a joint review
board to review the proposal. The joint review board, which is made up of
representatives of the overlying taxing jurisdictions of the proposed TID, must
approve the project plan within specified time frames or the TID may not be created.
If an existing TID project plan is amended by a planning commission, all of these
steps are also required.
Once these steps are accomplished, the city or village clerk is required to
complete certain forms and an application and submit the documents to the
Department of Revenue (DOR) on or before December 31 of the year in which the TID
is created. Upon receipt of the application, DOR is required to determine the full
aggregate value of the taxable property, and of certain city or village owned property,
that lies within the TID.
Once the aggregate value is determined, DOR certifies the "tax incremental
base" of the TID, which is the equalized value of all taxable property within the TID
at the time of its creation. If 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 is called a "tax increment." The tax
increment is placed in a special fund that may only be used 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 23 years,
or 27 years in certain cases, after the TID is created, whichever is sooner. Under
current law, TIDs are required to terminate, with one exception, once these costs are
paid back, 16 years, or 20 years in certain cases, after the last expenditure identified
in the project plan is made, or when the creating city or village dissolves the TID,
whichever occurs first. Under the exception, which is limited to certain
circumstances, after a TID pays off its project costs, but not later the date on which
it must otherwise terminate, the planning commission may allocate positive tax
increments generated by the TID (the "donor" TID) to another TID that has been
created by the planning commission.
This bill makes a number of technical and substantive changes to the TIF
program. Among the technical changes, the bill does the following:
1. Prohibits DOR from certifying a tax incremental base of a TID until DOR
reviews and approves the findings submitted by the city or village relating to the
equalized value of taxable property in the TID and the equalized value of all of the
taxable property in the city or village.
2. Allows a representative from a union high school district and a
representative from an elementary school district to each have one-half vote on a
joint review board.
3. Requires a city or village to provide DOR with a final accounting of TID
project expenditures, project costs, and positive tax increments received. If the city
or village does not provide this information to DOR within 60 days of the TID's
termination, DOR may not certify the tax incremental base of any other TID in the
city or village.
Among the substantive changes, the bill does the following:
1. Provides that, not later than five days after a joint review board submits its
decision on a TIF proposal submitted by a city or village, a majority of the members
of the board may request DOR to review the objective facts contained in the
documents submitted to the board by the city or village. DOR must investigate the
specific fact or item that the members believe is incomplete or inaccurate. If DOR
finds that the proposal contains factual inaccuracies or does not comply with other
statutory requirements, DOR must return the TIF proposal to the city or village for
correction and resubmittal. However, the city or village is not required to correct or
resubmit its proposal.
2. Requires DOR to prepare and update a manual on the TIF program.
3. For a TID that is created on or after the effective date of the bill, the bill
increases from seven years to ten years the period during which expenditures related
to the TID may be made by the city or village after the TID's creation. Currently, the
ten-year period only applies to TIDs created before October 1, 1995, and the
seven-year period only applies to TIDs created after September 30, 1995.
4. Requires that before a "donor" TID may transfer positive tax increments to
another TID, it must demonstrate that it has sufficient revenues to pay for all
incurred or expected project costs and surplus revenues to pay for some of the "donee"
TID's eligible costs. Under current law, the "donor" TID need only have sufficient
revenues to pay costs that are due in the current year.
5. Limits the inclusion in a TID of land that has been annexed by the city or
village.
6. Prohibits a joint review board from approving a TID proposal unless the
board asserts that, in its judgment, the development project described in the TID
documents would not occur without the creation of a TID.
7. Provides that an amendment to a TID's boundary may subtract territory
from the TID if the subtraction does not remove contiguity from the TID.
8. Allows a city or village to create a standing joint review board that may
remain in existence for the entire time that any TID exists in the city or village. The
city or village may also disband the standing joint review board. Currently, a joint
review board may vote to disband following the approval or rejection of a TID
proposal.
9. Specifically requires that an amendment to a project plan requires the same
findings by a city or village relating to the equalized value of taxable property in the
TID and the equalized value of all of the taxable property in the city or village as is
currently required for the creation of a TID.
10. Limits the life of a TID that is predominantly suitable for industrial sites
to ten years after the last expenditure in the project plan is made, or a total of 20 years
after its creation.
11. Authorizes DOR to impose a fee of $1,000 on a city or village to determine
or redetermine the tax incremental base of a TID. The money generated by the fees
goes to DOR to pay for staff and administrative service costs related to the TIF
program. The bill also creates a new position in DOR to perform auditing related to
TIDs.
12. Authorizes a city or village to create a TID if at least 50% of the area to be
included in the TID is a "mixed-use development," which is defined as a development
that contains a combination of industrial, commercial, and residential uses and in
which the residential portion consists of no more than 35%, by area, of the real
property within the district.
This bill also modifies the environmental remediation tax incremental
financing program. Under current law, the environmental remediation tax
incremental financing program permits a city, village, town, or county (political
subdivision) to defray the costs of remediating contaminated property that is owned
by the political subdivision. The mechanism for financing costs that are eligible for
remediation is very similar to the mechanism under the TIF program. If the
remediated property is transferred to another person and is then subject to property
taxation, environmental remediation tax incremental financing may be used to
allocate some of the property taxes that are levied on the property to the political
subdivision to pay for the costs of remediation.
A political subdivision that has incurred "eligible costs" to remediate
environmental pollution on a parcel of property may apply to DOR to certify the
"environmental remediation tax incremental base" of the parcel. DOR is required
to certify the environmental remediation tax incremental base if the political
subdivision submits to DOR all of the following: 1) a statement that the political
subdivision has incurred some eligible costs, together with a detailed proposed
remedial action plan approved by the Department of Natural Resources (DNR) that
contains cost estimates for anticipated eligible costs, a schedule for the design and
implementation that is needed to complete the remediation, and certification from
DNR that has approved the site investigation report that relates to the parcel; 2) a
statement that all taxing jurisdictions with authority to levy general property taxes
on the parcel of property have been notified that the political subdivision intends to
recover its environmental remediation costs by using an "environmental
remediation tax increment"; and 3) a statement that the political subdivision has
attempted to recover its environmental remediation costs from the person who is
responsible for the environmental pollution that is being remediated.
This bill makes technical changes to the environmental remediation tax
incremental financing program. These changes include creating a definition of
"project expenditures" and a definition of "environmental remediation tax
incremental district" (ERTID) that is somewhat similar to the definition of "tax
incremental district" under the TIF program; making changes to the definitions of
"environmental remediation tax increment," "environmental remediation tax
incremental base," "period of certification," and "taxable property"; creating
procedures for the termination of an ERTID that are similar to the termination
procedures for a tax incremental district under the TIF program; requiring that the
final report under the program include an independent certified financial audit;
requiring that DOR be provided with a final accounting of the ERTID's project
expenditures and the final amount of eligible costs that have been paid for an ERTID;
and modifying certain provisions of the program to apply to contiguous parcels of
property or land, as well as a parcel of property or land. Also under the bill, if a city
or village annexes property from a town that is using an ERTID to remediate
environmental pollution on all or part of the territory that is annexed, the city or
village must pay to the town that portion of the eligible costs that are attributable
to the annexed territory. The city or village, and the town, must negotiate an
agreement on the amount that must be paid.
Generally, this bill takes effect on the first day of the 4th month after the bill is
enacted.
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:
AB478, s. 1
1Section
1. 20.566 (1) (go) of the statutes is created to read:
AB478,6,22
20.566
(1) (go)
Administration of tax incremental financing program. All
3moneys received from the fees imposed under s. 66.1105 (5) (a) to pay the costs of the
1department of revenue in providing staff and administrative services associated
2with tax incremental districts under s. 66.1105.
AB478, s. 2
3Section
2. 66.1105 (2) (cm) of the statutes is created to read:
AB478,6,74
66.1105
(2) (cm) "Mixed-use development" means a development that contains
5a combination of industrial, commercial, or residential uses, except that residential
6use, as shown in the project plan, may not exceed 35%, by area, of the real property
7within the district.
AB478, s. 3
8Section
3. 66.1105 (2) (f) 1. i. of the statutes is amended to read:
AB478,6,139
66.1105
(2) (f) 1. i. Payments made, in the discretion of the local legislative body,
10which are found to be necessary or convenient to the creation of tax incremental
11districts or the implementation of project plans
, including payments made to a town
12that relate to property taxes levied on territory to be included in a tax incremental
13district as described in sub. (4) (gm) 1.
AB478, s. 4
14Section
4. 66.1105 (2) (f) 2. d. of the statutes is created to read:
AB478,6,1715
66.1105
(2) (f) 2. d. Cash grants made by the city to owners, lessees, or
16developers of land that is located within the tax incremental district unless the grant
17recipient has signed a development agreement with the city.
AB478, s. 5
18Section
5. 66.1105 (2) (f) 3. of the statutes is amended to read:
AB478,6,2419
66.1105
(2) (f) 3. Notwithstanding subd. 1., project costs may not include any
20expenditures made or estimated to be made or monetary obligations incurred or
21estimated to be incurred by the city for newly platted residential development for any
22tax incremental district for which a project plan is approved after September 30,
231995
, or for which an amendment of a project plan is approved after the effective date
24of this subdivision .... [revisor inserts date].
AB478, s. 6
25Section
6. 66.1105 (3) (e) of the statutes is amended to read:
AB478,7,20
166.1105
(3) (e) Enter into any contracts or agreements, including agreements
2with bondholders, determined by the local legislative body to be necessary or
3convenient to implement the provisions and effectuate the purposes of project plans.
4The contracts or agreements may include conditions, restrictions, or covenants
5which either run with the land or which otherwise regulate the use of land.
A city
6may not enter into a development agreement as described under sub. (2) (f) 2. d.
7unless, at least 14 days before entering into the agreement, a public hearing is held
8by the city or by the planning commission at which interested parties are afforded
9a reasonable opportunity to express their views on the proposed development
10agreement. Notice of the hearing shall be published as a class 2 notice, under ch. 985,
11shall state that the proposed project plan's project costs include cash grants, and
12shall state that the cash grants will be on the agenda of the public hearing. The
13hearing may be held in conjunction with the hearing provided for in sub. (4) (e). The
14notice shall include a statement advising that a copy of the proposed development
15agreement will be provided on request. Before publication, a copy of the notice shall
16be sent by 1st class mail to the chief executive officer or administrator of all local
17governmental entities having the power to levy taxes on property within the district
18and to the school board of any school district which includes property located within
19the proposed district. For a county with no chief executive officer or administrator,
20notice shall be sent to the county board chairperson.
AB478, s. 7
21Section
7. 66.1105 (3) (g) of the statutes is created to read:
AB478,8,222
66.1105
(3) (g) Create a standing joint review board that may remain in
23existence for the entire time that any tax incremental district exists in the city. All
24of the provisions that apply to a joint review board that is convened under sub. (4m)
25(a) apply to a standing joint review board that is created under this paragraph. A
1city may disband a joint review board that is created under this paragraph at any
2time.
AB478, s. 8
3Section
8. 66.1105 (4) (e) of the statutes is amended to read:
AB478,8,204
66.1105
(4) (e) At least
30 14 days before adopting a resolution under par. (gm),
5holding of a public hearing by the planning commission at which interested parties
6are afforded a reasonable opportunity to express their views on the proposed project
7plan. The hearing may be held in conjunction with the hearing provided for in par.
8(a).
If the proposed project plan's project costs include cash grants made by the city
9to owners, lessees, or developers of land that is located within the tax incremental
10district, the hearing agenda shall include a separate item for the cash grants and for
11any development agreement described under sub. (2) (f) 2. d., and the hearing notice
12shall state that the cash grants are a proposed project cost that will be on the agenda
13of the hearing. Notice of the hearing shall be published as a class 2 notice, under ch.
14985. The notice shall include a statement advising that a copy of the proposed project
15plan will be provided on request. Before publication, a copy of the notice shall be sent
16by 1st class mail to the chief executive officer or administrator of all local
17governmental entities having the power to levy taxes on property within the district
18and to the school board of any school district which includes property located within
19the proposed district. For a county with no chief executive officer or administrator,
20notice shall be sent to the county board chairperson.
AB478, s. 9
21Section
9. 66.1105 (4) (gm) 1. of the statutes is amended to read:
AB478,9,2422
66.1105
(4) (gm) 1. Describes the boundaries, which may, but need not, be the
23same as those recommended by the planning commission, of a tax incremental
24district with sufficient definiteness to identify with ordinary and reasonable
25certainty the territory included in the district.
The boundaries of the tax incremental
1district may not include any territory that was not within the boundaries of the city
2on January 1, 2004, unless at least 3 years have elapsed since the territory was
3annexed by the city, unless the city enters into a cooperative plan boundary
4agreement, under s. 66.0307, with the town from which the territory was annexed,
5or unless the city and town enter into another kind of agreement relating to the
6annexation except that, notwithstanding these conditions, the city may include
7territory that was not within the boundaries of the city on January 1, 2004, if the city
8pledges to pay the town an amount equal to the property taxes levied on the territory
9by the town at the time of the annexation for each of the next 5 years. If, as the result
10of a pledge by the city to pay the town an amount equal to the property taxes levied
11on the territory by the town at the time of the annexation for each of the next 5 years,
12the city includes territory in a tax incremental district that was not within the
13boundaries of the city on January 1, 2004, the city's pledge is enforceable by the town
14from which the territory was annexed. The boundaries shall include only those
15whole units of property as are assessed for general property tax purposes. Property
16standing vacant for an entire 7-year period immediately preceding adoption of the
17resolution creating a tax incremental district may not comprise more than 25% of the
18area in the tax incremental district, unless the tax incremental district is suitable
19for industrial sites under subd. 4. a. and the local legislative body implements an
20approved project plan to promote industrial development within the meaning of s.
2166.1101. In this subdivision, "vacant property" includes property where the fair
22market value or replacement cost value of structural improvements on the parcel is
23less than the fair market value of the land. In this subdivision, "vacant property"
24does not include property acquired by the local legislative body under ch. 32 or
1property included within the abandoned Park East freeway corridor or the
2abandoned Park West freeway corridor in Milwaukee County.
AB478, s. 10
3Section
10. 66.1105 (4) (gm) 4. a. of the statutes is amended to read:
AB478,10,84
66.1105
(4) (gm) 4. a. Not less than 50%, by area, of the real property within
5the district is at least one of the following: a blighted area; in need of rehabilitation
6or conservation work, as defined in s. 66.1337 (2m) (b);
or suitable for industrial sites
7within the meaning of s. 66.1101 and has been zoned for industrial use;
or suitable
8for a mixed-use development; and
AB478, s. 11
9Section
11. 66.1105 (4) (gm) 4. c. of the statutes is amended to read:
AB478,10,1710
66.1105
(4) (gm) 4. c. Either the equalized value of taxable property of the
11district plus all existing districts does not exceed 7% of the total equalized value of
12taxable property within the city or the equalized value of taxable property of the
13district plus the value increment of all existing districts within the city does not
14exceed 5% of the total equalized value of taxable property within the city.
The
15calculations required under this subd. 4. c. shall be based on the most recent
16equalized value of taxable property of the district that is reported under s. 70.57 (1m)
17before the date on which a resolution is adopted under this paragraph.
AB478, s. 12
18Section
12. 66.1105 (4) (gm) 6. of the statutes is created to read:
AB478,10,2519
66.1105
(4) (gm) 6. Declares that the district is a blighted area district, a
20rehabilitation or conservation district, an industrial district, or a mixed-use district
21based on the identification and classification of the property included within the
22district under par. (c) and subd. 4. a. If the district is not exclusively blighted,
23rehabilitation or conservation, industrial, or mixed use, the declaration under this
24subdivision shall be based on which classification is predominant with regard to the
25area described in subd. 4. a.
AB478, s. 13
1Section
13. 66.1105 (4) (h) 1. of the statutes, as affected by 2003 Wisconsin Act
2.... (Senate Bill 188), is amended to read:
AB478,11,183
66.1105
(4) (h) 1. Subject to subds. 2.,
3. 4., and 5., the planning commission
4may, by resolution, adopt an amendment to a project plan. The amendment is subject
5to approval by the local legislative body and approval requires the same findings as
6provided in
par.
pars. (g)
and (gm) 4. c. Any amendment to a project plan is also
7subject to review by a joint review board, acting under sub. (4m). Adoption of an
8amendment to a project plan shall be preceded by a public hearing held by the plan
9commission at which interested parties shall be afforded a reasonable opportunity
10to express their views on the amendment. Notice of the hearing shall be published
11as a class 2 notice, under ch. 985. The notice shall include a statement of the purpose
12and cost of the amendment and shall advise that a copy of the amendment will be
13provided on request. Before publication, a copy of the notice shall be sent by 1st class
14mail to the chief executive officer or administrator of all local governmental entities
15having the power to levy taxes on property within the district and to the school board
16of any school district which includes property located within the proposed district.
17For a county with no chief executive officer or administrator, this notice shall be sent
18to the county board chairperson.
AB478, s. 14
19Section
14. 66.1105 (4) (h) 2. of the statutes, as affected by 2003 Wisconsin Act
20.... (Senate Bill 188), is amended to read:
AB478,12,821
66.1105
(4) (h) 2. Except as provided in subds.
3., 4.
, and 5.,
not more than once
22during the 7 years after the tax incremental district is created, the planning
23commission may adopt an amendment to a project plan under subd. 1. to modify the
24district's boundaries by
subtracting territory from the district in a way that does not
25remove contiguity from the district or, not more than once during the 7 years after
1the tax incremental district is created by adding territory to the district that is
2contiguous to the district and that is served by public works or improvements that
3were created as part of the district's project plan. Expenditures for project costs that
4are incurred because of an amendment to a project plan to which this subdivision
5applies may be made for not more than 3 years after the date on which the local
6legislative body adopts a resolution amending the project plan
or not more than the
7number of years in which expenditures may be made without an amendment to a
8project plan as specified in sub. (6) (am), whichever period is longer.
AB478, s. 15
9Section
15. 66.1105 (4) (h) 3. of the statutes is repealed.
AB478, s. 16
10Section
16. 66.1105 (4m) (a) of the statutes is amended to read:
AB478,13,811
66.1105
(4m) (a) Any city that seeks to create a tax incremental district or
12amend a project plan shall convene a
temporary joint review board
under this
13paragraph, or a standing joint review board under sub. (3) (g), to review the proposal.
14The Except as provided in par. (am), the board shall consist of one representative
15chosen by the school district that has power to levy taxes on the property within the
16tax incremental district, one representative chosen by the technical college district
17that has power to levy taxes on the property within the tax incremental district, one
18representative chosen by the county that has power to levy taxes on the property
19within the tax incremental district, one representative chosen by the city and one
20public member. If more than one school district,
more than one union high school
21district, more than one elementary school district, more than one technical college
22district or more than one county has the power to levy taxes on the property within
23the tax incremental district, the unit in which is located property of the tax
24incremental district that has the greatest value shall choose that representative to
25the board. The public member and the board's chairperson shall be selected by a
1majority of the other board members before the public hearing under sub. (4) (a) or
2(h) 1. is held. All board members shall be appointed and the first board meeting held
3within 14 days after the notice is published under sub. (4) (a) or (h) 1. Additional
4meetings of the board shall be held upon the call of any member. The city that seeks
5to create the tax incremental district or to amend its project plan shall provide
6administrative support for the board. By majority vote, the board may disband
7following approval or rejection of the proposal
, unless the board is a standing board
8that is created by the city under sub. (3) (g).
AB478, s. 17
9Section
17. 66.1105 (4m) (am) of the statutes is created to read:
AB478,13,1710
66.1105
(4m) (am) If a city seeks to create a tax incremental district that is
11located in a union high school district, the seat that is described under par. (a) for the
12school district representative to the board shall be held by 2 representatives, each
13of whom has one-half of a vote. One representative shall be chosen by the union high
14school district that has the power to levy taxes on the property within the tax
15incremental district and one representative shall be chosen by the elementary school
16district that has the power to levy taxes on the property within the tax incremental
17district.
AB478, s. 18
18Section
18. 66.1105 (4m) (b) 2. of the statutes is amended to read:
AB478,14,219
66.1105
(4m) (b) 2. Except as provided in subd. 2m.
and subject to subd. 4., no
20tax incremental district may be created and no project plan may be amended unless
21the board approves the resolution adopted under sub. (4) (gm) or (h) 1. by a majority
22vote not less than
10 14 days nor more than
30 21 days after receiving the resolution.
23The board may not approve the resolution under this subdivision unless the board's
24approval contains a positive assertion that, in its judgment, the development
1described in the documents the board has reviewed under subd. 1. would not occur
2without the creation of a tax incremental district.
AB478, s. 19
3Section
19. 66.1105 (4m) (b) 2m. of the statutes is amended to read:
AB478,14,104
66.1105
(4m) (b) 2m. The requirement under subd. 2. that a vote by the board
5take place not less than
10 days nor more than 30
14 days after receiving a resolution
6does not apply to a resolution amending a project plan under sub. (4) (h) 1. if the
7resolution relates to a tax incremental district, the application for the
8redetermination of the tax incremental base of which was made in 1998, that is
9located in a village that was incorporated in 1912, has a population of at least 3,800
10and is located in a county with a population of at least 108,000.
AB478, s. 20
11Section
20. 66.1105 (4m) (b) 4. of the statutes is created to read:
AB478,15,212
66.1105
(4m) (b) 4. Not later than 5 working days after submitting its decision
13under subd. 3., a majority of the members of the board may request that the
14department of revenue review the objective facts contained in any of the documents
15listed in subd. 1. to determine whether the information submitted to the board
16complies with this section or whether any of the information contains a factual
17inaccuracy. The request must be in writing and must specify which particular
18objective fact or item the members believe is incomplete or inaccurate. Not later than
1910 working days after receiving a request that complies with the requirements of this
20subdivision, the department of revenue shall investigate the issues raised in the
21request and shall send its written response to the board. If the department of
22revenue determines that the information in the proposal does not comply with this
23section or contains a factual inaccuracy, the department shall return the proposal to
24the city. The board shall request, but may not require, that the city resolve the
25problems in its proposal and resubmit the proposal to the board. If the city resubmits
1its proposal, the board shall review the resubmitted proposal and vote to approve or
2deny the proposal as specified in this paragraph.
AB478, s. 21
3Section
21. 66.1105 (4m) (b) 5. of the statutes is created to read:
AB478,15,74
66.1105
(4m) (b) 5. The board shall notify prospectively the governing body of
5every local governmental unit that is not represented on the board, and that has
6power to levy taxes on the property within the tax incremental district, of meetings
7of the board and of the agendas of each meeting for which notification is given.
AB478, s. 22
8Section
22. 66.1105 (5) (a) of the statutes is amended to read:
AB478,15,149
66.1105
(5) (a)
Upon Subject to sub. (8) (d), upon the creation of a tax
10incremental district or upon adoption of any amendment subject to par. (c), its tax
11incremental base shall be determined as soon as reasonably possible.
The
12department of revenue may impose a fee of $1,000 on a city to determine or
13redetermine the tax incremental base of a tax incremental district under this
14subsection.
AB478, s. 23
15Section
23. 66.1105 (5) (b) of the statutes is amended to read:
AB478,16,516
66.1105
(5) (b) Upon application in writing by the city clerk, in a form
17prescribed by the department of revenue, the department shall determine according
18to its best judgment from all sources available to it the full aggregate value of the
19taxable property and, except as provided in par. (bm), of the city-owned property in
20the tax incremental district. The
application shall state the percentage of territory
21within the tax incremental district which the local legislative body estimates will be
22devoted to retail business at the end of the maximum expenditure period specified
23in sub. (6) (am) 1. c. if that estimate is at least 35%. Subject to sub. (8) (d), the 24department shall certify this aggregate valuation to the city clerk, and the aggregate
25valuation constitutes the tax incremental base of the tax incremental district. The
1city clerk shall complete these forms
, including forms for the amendment of a project
2plan, and submit the application
or amendment forms on or before December 31 of
3the year the tax incremental district is created, as defined in sub. (4) (gm) 2.
or, in
4the case of an amendment, on or before December 31 of the year in which the changes
5to the project plan take effect.
AB478, s. 24
6Section
24. 66.1105 (5) (c) of the statutes, as affected by 2003 Wisconsin Act
7.... (Senate Bill 188), is amended to read:
AB478,16,258
66.1105
(5) (c) If the city adopts an amendment to the original project plan for
9any district
which reduces project costs by subtracting territory from the district or 10which includes additional project costs at least part of which will be incurred after
11the period specified in sub. (6) (am) 1., the tax incremental base for the district shall
12be redetermined, if sub. (4) (h) 2.,
3., 4., or 5. applies to the amended project plan,
13either by
subtracting from the tax incremental base the value of the taxable property
14that is subtracted from the existing district or by adding to the tax incremental base
15the value of the taxable property
and the value of real property owned by the city,
16other than property described in par. (bm), that is added to the existing district under
17sub. (4) (h) 2.,
3., 4., or 5. or, if sub. (4) (h) 2.,
3., 4., or 5. does not apply to the amended
18project plan, under par. (b), as of the January 1 next preceding the effective date of
19the amendment if the amendment becomes effective between January 2 and
20September 30, as of the next subsequent January 1 if the amendment becomes
21effective between October 1 and December 31 and if the effective date of the
22amendment is January 1 of any year, the redetermination shall be made on that date.
23The With regard to a district to which territory has been added, the tax incremental
24base as redetermined under this paragraph is effective for the purposes of this
25section only if it exceeds the original tax incremental base determined under par. (b).
AB478, s. 25
1Section
25. 66.1105 (5) (ce) of the statutes, as affected by 2003 Wisconsin Act
2.... (Senate Bill 188), is amended to read:
AB478,17,163
66.1105
(5) (ce) If the city adopts an amendment, to which sub. (4) (h) 2.,
3., 4.,
4or 5. applies, the tax incremental base for the district shall be redetermined,
either 5by
subtracting from the tax incremental base the value of the taxable property that
6is subtracted from the existing district or by adding to the tax incremental base the
7value of the taxable property
and the value of real property owned by the city, other
8than property described in par. (bm), that is added to the existing district under sub.
9(4) (h) 2.,
3., 4., or 5., as of the January 1 next preceding the effective date of the
10amendment if the amendment becomes effective between January 2 and
11September 30, as of the next subsequent January 1 if the amendment becomes
12effective between October 1 and December 31 and if the effective date of the
13amendment is January 1 of any year, the redetermination shall be made on that date.
14The With regard to a district to which territory has been added, the tax incremental
15base as redetermined under this paragraph is effective for the purposes of this
16section only if it exceeds the original tax incremental base determined under par. (b).
AB478, s. 26
17Section
26. 66.1105 (5) (d) of the statutes is amended to read:
AB478,18,218
66.1105
(5) (d) The department of revenue may not certify the tax incremental
19base as provided in par. (b) until it determines that each of the procedures and
20documents required by sub. (4) (a), (b), (gm) or (h) and par. (b) has been timely
21completed and all notices required under sub. (4) (a), (b), (gm) or (h) timely given.
22The facts supporting any document adopted or action taken to comply with sub. (4)
23(a), (b), (gm) or (h) are not subject to review by the department of revenue under this
24paragraph
, except that the department may not certify the tax incremental base as
1provided in par. (b) until it reviews and approves of the findings that are described
2in sub. (4) (gm) 4. c.
AB478, s. 27
3Section
27. 66.1105 (6) (a) of the statutes is renumbered 66.1105 (6) (a) (intro.)
4and amended to read:
AB478,18,195
66.1105
(6) (a) (intro.) If the joint review board approves the creation of the tax
6incremental district under sub. (4m), positive tax increments with respect to a tax
7incremental district are allocated to the city which created the district for each year
8commencing after the date when a project plan is adopted under sub. (4) (g). The
9department of revenue may not authorize allocation of tax increments until it
10determines from timely evidence submitted by the city that each of the procedures
11and documents required under sub. (4) (d) to (f) has been completed and all related
12notices given in a timely manner. The department of revenue may authorize
13allocation of tax increments for any tax incremental district only if the city clerk and
14assessor annually submit to the department all required information on or before the
152nd Monday in June. The facts supporting any document adopted or action taken
16to comply with sub. (4) (d) to (f) are not subject to review by the department of revenue
17under this paragraph. After the allocation of tax increments is authorized, the
18department of revenue shall annually authorize allocation of the tax increment to
19the city that created the district until the
soonest of the following events:
AB478,18,21
201. The department of revenue receives a notice under sub. (8) and the notice
21has taken effect under sub. (8) (b)
, 27.
AB478,18,25
222. Twenty-seven years after the tax incremental district is created if the
23district is created before October 1, 1995
, 38 years after the tax incremental district
24is created if the district is created before October 1, 1995, and the project plan is
25amended under sub. (4) (h) 3. or 23.
AB478,19,2
13. Twenty-three years after the tax incremental district is created if the district
2is created after September 30, 1995
, whichever is sooner.
AB478, s. 28
3Section
28. 66.1105 (6) (a) 4. of the statutes is created to read:
AB478,19,74
66.1105
(6) (a) 4. Twenty years after the tax incremental district is created if
5the district is created on or after the effective date of this subdivision .... [revisor
6inserts date], and if the district is at least predominantly suitable for industrial sites
7under sub. (4) (gm) 6.