2015 - 2016 LEGISLATURE
February 27, 2015 - Introduced by
Joint Legislative Council. Referred to
Committee on Economic Development and Commerce.
1An Act to repeal
60.85 (6) (e) and 66.1105 (3) (g); to renumber and amend
66.1105 (6m) (c) and 66.1106 (10) (a); to amend
60.85 (4) (a) 1., 60.85 (8) (c) 3
(intro.), 66.1105 (4m) (a) and 66.1106 (3) (a); and to create
60.85 (4) (d), 60.85 4
(6) (f), 60.85 (8) (c) 1. to 7., 66.1105 (4m) (f), 66.1105 (6m) (c) 1. to 7., 66.1105 (6m) 5
(e), 66.1106 (3) (e), 66.1106 (10) (a) 1. to 7. and 66.1106 (10m) of the statutes; 6relating to: standing joint review boards, annual joint review board meetings,
7annual reports on tax incremental districts, and granting rule-making
Analysis by the Legislative Reference Bureau
This bill is explained in the Notes provided by the Joint Legislative Council in
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:
Joint Legislative Council prefatory note: This bill was prepared for the Joint
Legislative Council's Study Committee on Review of Tax Incremental Financing (TIF).
Joint Review Boards and Tax Incremental District Annual Reports
Under current law, a city or village may create a tax incremental financing district
(TID) in part of its territory to foster economic development or to conduct environmental
remediation. Currently, towns and counties also have a limited ability to create a TID
under certain circumstances. Any city, village, town, or county (political subdivision) that
seeks to create a TID, amend a TID project plan, have a TID's base redetermined, or incur
project costs for an area that is outside of the TID's boundaries must convene a Joint
Review Board (JRB). The JRB may be a temporary body, with a membership comprised
of the city, village, or town; county; school district; and technical college district; and one
public member. Alternatively, a political subdivision that creates a TID under general
TIF authority (s. 66.1105, stats.), may choose instead to create a standing JRB. By a
majority vote, a temporary JRB may disband following approval or rejection of the
proposal. A standing JRB, however, may remain in existence for the entire time that any
TID created under s. 66.1105, stats., exists in the political subdivision, except that the
political subdivision may disband a standing JRB at any time.
Also under current law, the political subdivision must prepare and make available
to the public an updated annual report describing the status of each existing TID,
including expenditures and revenues. The political subdivision must also send a copy of
the report by May 1, annually, to each overlying taxing jurisdiction (county, school
district, technical college district, lake sanitary district, public inland lake protection and
rehabilitation district, and town sanitary district).
The bill requires a political subdivision to always convene a standing JRB in order
to create a TID, including an industry-specific town TID or an environmental
remediation TID, and requires the standing JRB to remain in existence for the entire time
that any TID exists in the political subdivision with the same overlying taxing
jurisdictions as the overlying taxing jurisdictions represented on the standing JRB. The
standing JRB may, by majority vote, disband following the termination of all existing
TIDs located in the political subdivision with the same overlying taxing jurisdictions as
the overlying taxing jurisdictions represented on the standing JRB. The standing JRB
must also meet annually to review the political subdivision's annual report that describes
the status of each existing TID to review the performance and status of each existing TID.
It must meet on July 1, or as soon as the updated annual report becomes available.
The political subdivision must submit the annual report describing the status of
each existing TID to each overlying taxing jurisdiction as well as the Department of
Revenue (DOR), by July 1, annually. The copy of the annual report filed with DOR must
be in electronic format and DOR must, by rule, create the format for the submission of
the annual reports that a political subdivision must use when electronically filing the
reports with DOR. The annual report must contain at least all of the following
• The name assigned to the TID.
• The classification of the TID that is included in the project plan and the scope of
• The name of any developer who is named in a developer's agreement with the
political subdivision of who receives any financial assistance from tax increments
allocated for the TID.
• The date that the city expects the TID to terminate.
• The amount of tax increments to be deposited into a special fund for that TID.
• An analysis of the special fund for the TID that includes all of the following:
○ The balance in the special fund at the beginning of the fiscal year.
○ All amounts deposited in the special fund by source, including amounts received
from another TID.
○ An itemized list of all expenditures from the special fund by category of
permissible project costs.
○ The balance in the special fund at the end of the fiscal year, including a
breakdown of that balance by source and a breakdown of that balance identifying any
portion of the balance that is required, pledged, earmarked, or otherwise designated for
payment of or securing of obligations and anticipated project costs. Any portion of such
ending balance that has not been identified or is not identified as being required, pledged,
earmarked, or otherwise designated for payment of or securing of obligations or
anticipated project costs shall be designated as surplus.
• The contact information of the person designated by the political subdivision to
respond to questions or concerns regarding the annual report.
DOR must post on its official Internet site the annual reports describing the status
of an existing TID no later than 45 days after it receives the annual report. However, DOR
may grant a political subdivision an extension of time for submitting the annual report
if the political subdivision provides DOR with sufficient evidence that the report is in the
process of being completed. DOR must post on its official Internet site, a list of political
subdivisions that receive an extension of time for submitting the annual report, the time
period of the extension, and whether the municipality timely filed the annual report
within the extension of time.
Also, DOR must notify a political subdivision that its annual report is past due if
the political subdivision does not timely file its annual report, DOR must charge the
political subdivision a fee of $100 per day for each day that the annual report is past due.
Because the bill does not specify where the fee should be deposited, the fees will be
deposited in the common school fund.
Industry-Specific Town Tax Incremental Districts
Any town may create an industry-specific TID for certain agricultural, forestry,
manufacturing, or tourism projects. Any town may also create an industry-specific TID
for residential development or retail development. However, the residential development
must have a necessary and incidental relationship to an agricultural, forestry,
manufacturing, or tourism project; and the retail development must be limited to the
retail sale of products that are produced due to an agricultural, forestry, or
Current law provides a process by which DOR may review an industry-specific
town TID and issue a determination as to whether the money expended, or debt incurred,
by the TID in the prior year complied with the requirement that the town only expend
money or incur monetary obligations for the type of projects allowed under current law.
Any of the following persons, including persons residing outside of the town, may file no
later than July 1, a written request with DOR for such a review:
• An owner of taxable property that is located in the town that has created the
• An owner of taxable property that is located in a taxing jurisdiction which overlies
the town in which the district is located (e.g. county, school districts, technical college
districts, sewerage districts, and public inland lake protection and rehabilitation
• An owner of taxable property in a city or village that borders the town in which
the district is located.
• A taxing jurisdiction that overlies the town in which the district is located (e.g.
county, school districts, technical college districts, sewerage districts, public inland lake
protection, and rehabilitation districts).
• A city or village that borders the town in which the district is located.
DOR may deny any request for review if DOR believes, based on a review of the
request, that insufficient grounds exist to support the alleged noncompliance. DOR must
send written notification of its decision to the person who made the request for review and
to the town. If DOR grants a request for review that is made under this paragraph, it
must hold a hearing and send written notification of the hearing to all of the following:
(1) the clerk of the town that created the industry-specific town TID; (2) the person who
requested the review; (3) the clerk of each overlying taxing jurisdiction; and (3) the clerk
of every city or village that borders the town. The written notification shall include the
time, date, and location of the hearing.
The secretary of revenue, or the secretary's designee, shall preside at the hearing
and shall receive testimony and evidence on all issues that are related to the request for
review. Following the hearing, the DOR secretary must make a determination that either
the town is in compliance or that the town made expenditures or incurred debts that are
not allowed under current law. If the secretary makes a determination of noncompliance,
the secretary must either order: (1) the town to pay back all ineligible costs to the district's
overlying taxing jurisdictions, on a proportional basis that relates to each jurisdiction's
share of the tax increment, from funds other than tax increments; or (2) the TID to be
terminated. If the secretary orders the district to be terminated, the town becomes liable
for all unpaid project costs actually incurred which are not paid from the special fund
which contain the industry-specific town TID's allocated tax increments. Current law
also allows any person or unit of government that received a notice to appeal the
secretary's decision to the circuit court in Dane County.
Current law does not provide a similar review process applicable to a TID created
by a city or village under s. 66.1105, stats., or to an environmental remediation TID.
This bill repeals the entire process, described above, relating to DOR's review and
determination as to whether the money expended, or debt incurred, by an
industry-specific town TID complied with current law.
60.85 (4) (a) 1. of the statutes is amended to read:
(a) 1. Any town that seeks to create a tax incremental district or 3
amend a project plan shall convene a standing
joint review board to review the 4
proposal. If a town creates more than one tax incremental district consisting of
5different overlying taxing jurisdictions, it shall create a separate standing joint
6review board for each combination of overlying jurisdictions, except that if a town
7creates a tax incremental district under this section and s. 66.1105 that share the
8same overlying taxing jurisdictions, the town may create one standing joint review
9board for the districts. The joint review board shall remain in existence for the entire
10time that any tax incremental district exists in the town with the same overlying
11taxing jurisdictions as the overlying taxing jurisdictions represented on the standing
12joint review board.
Except as provided in subd. 2., and subject to par. (am), the joint
review board shall consist of one representative chosen by the school district that has 2
power to levy taxes on the property within the tax incremental district, one 3
representative chosen by the technical college district that has power to levy taxes 4
on the property within the tax incremental district, one representative chosen by the 5
county that has power to levy taxes on the property within the tax incremental 6
district, one representative chosen by the town and one public member. If more than 7
one school district, more than one union high school district, more than one 8
elementary school district, or more than one technical college district has the power 9
to levy taxes on the property within the tax incremental district, the unit in which 10
is located property of the tax incremental district that has the greatest value shall 11
choose that representative to the joint review board. The public member and the 12
joint review board's chairperson shall be selected by a majority of the other joint 13
review board members before the public hearing under sub. (3) (a) or (j) 1. is held. 14
All joint review board members shall be appointed and the first joint review board 15
meeting held within 14 days after the notice is published under sub. (3) (a) or (j) 1. 16Additional meetings Meetings
of the joint review board in addition to the meeting
17required under this subdivision or par. (d)
shall be held upon the call of any member. 18
The town that seeks to create the tax incremental district or to amend its project plan 19
shall provide administrative support for the joint review board. By majority vote, the 20
joint review board may disband following approval or rejection of the proposal the
21termination under sub. (9) of all existing tax incremental districts in the town with
22the same overlying taxing jurisdictions as the overlying taxing jurisdictions
23represented on the joint review board
Note: This Section requires a town to create a standing JRB that must remain
in existence for the entire time that any TID exists in the town with the same overlying
taxing jurisdictions as the overlying taxing jurisdictions represented on the JRB. If a
town creates an industry-specific town TID and a TID under s. 66.1105, stats., and both
TIDs share the same overlying taxing jurisdictions, the town may use the same standing
JRB for both TIDs. Also a standing JRB may, by majority vote, disband following the
termination of all existing TIDs located in the town with the same overlying district as
the overlying taxing jurisdictions represented on the JRB.
60.85 (4) (d) of the statutes is created to read: