Background
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
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
information:
• The name assigned to the TID.
• The classification of the TID that is included in the project plan and the scope of
the project.
• 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
Background
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
manufacturing project.
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
district.
• 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
districts).
• 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.
The Bill
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.
SB51,1
1Section
1. 60.85 (4) (a) 1. of the statutes is amended to read:
SB51,5,232
60.85
(4) (a) 1. Any town that seeks to create a tax incremental district or
3amend a project plan shall convene a
standing joint review board to review the
4proposal.
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
1review board shall consist of one representative chosen by the school district that has
2power to levy taxes on the property within the tax incremental district, one
3representative chosen by the technical college district that has power to levy taxes
4on the property within the tax incremental district, one representative chosen by the
5county that has power to levy taxes on the property within the tax incremental
6district, one representative chosen by the town and one public member. If more than
7one school district, more than one union high school district, more than one
8elementary school district, or more than one technical college district has the power
9to levy taxes on the property within the tax incremental district, the unit in which
10is located property of the tax incremental district that has the greatest value shall
11choose that representative to the joint review board. The public member and the
12joint review board's chairperson shall be selected by a majority of the other joint
13review board members before the public hearing under sub. (3) (a) or (j) 1. is held.
14All joint review board members shall be appointed and the first joint review board
15meeting 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.
18The town that seeks to create the tax incremental district or to amend its project plan
19shall provide administrative support for the joint review board. By majority vote, the
20joint 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.
SB51,2
1Section
2. 60.85 (4) (d) of the statutes is created to read:
SB51,6,52
60.85
(4) (d) A joint review board shall meet annually on July 1, or when an
3annual report under sub. (8) (c) becomes available, to review annual reports under
4sub. (8) (c) and to review the performance and status of each district governed by the
5board.
Note: This Section requires a standing JRB to meet annually on July 1, or as soon
as the updated annual report describing the status of each existing industry-specific
town TID becomes available. The purpose of the annual meeting is to review the
performance and status of each existing industry-specific town TID.
SB51,3
6Section
3. 60.85 (6) (e) of the statutes is repealed.
Note: This Section 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.
SB51,4
7Section
4. 60.85 (6) (f) of the statutes is created to read:
SB51,6,108
60.85
(6) (f) 1. The department of revenue shall, by rule, designate a format for
9annual reports under sub. (8) (c) and shall require these reports to be filed
10electronically.
SB51,6,1411
2. The department of revenue shall post annual reports on its official Internet
12site no later than 45 days after the department receives the report from the town.
13The department shall also post a list of towns that have not submitted a required
14annual report to the joint review board or to the department of revenue.
SB51,7,215
3. Notwithstanding sub. (8) (c), if a town provides the department of revenue
16with sufficient evidence that an annual report is in the process of being completed,
17the department of revenue may grant an extension of time for submitting the report.
18The department shall post on its official Internet site a list of towns that have
1received an extension granted under this subdivision, the period of the extension,
2and an indication of whether the town timely filed the report within the extension.
SB51,7,63
4. If an annual report is not timely filed under subd. 3. or sub. (8) (c), the
4department of revenue shall notify the town that the report is past due. If the town
5does not file the report within 60 days of the date on the notice, the department shall
6charge the town a fee of $100 per day for each day that the report is past due.
This Section requires DOR to create a format for towns to use for the submission
of annual reports describing the status of each existing TID that are to be electronically
filed to DOR. DOR must create this format by rule. DOR must post on its official Internet
site the annual reports filed with it no later than 45 days after it receives the annual
report. However, DOR may grant a municipality an extension of time for filing the annual
report if the municipality 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 towns that
received an extension of time for filing the annual report, the time period of the extension,
and whether the municipality timely filed the annual report within the extension of time.
Also under this Section, DOR must notify a town that its annual report is past due
if the town does not file the annual report by July 1, or within the extension of time
granted by DOR. Under this Section, if the town does not file the required annual report
within 60 days of the notice, DOR must charge the town a fee of $100 per day for each day
that the annual report is past due.
SB51,5
7Section
5
. 60.85 (8) (c) (intro.) of the statutes is amended to read:
SB51,7,148
60.85
(8) (c) (intro.) The town shall prepare and make available to the public
9updated annual reports describing the status of each existing tax incremental
10district, including expenditures and revenues. The town shall
send file a copy of the
11report
to with each overlying district
and the department of revenue by
May 1 July
121 annually.
The copy of the report filed with the department of revenue shall be in
13electronic format. The annual report shall contain at least all of the following
14information:
SB51,6
15Section
6
. 60.85 (8) (c) 1. to 7. of the statutes are created to read:
SB51,7,1616
60.85
(8) (c) 1. The name assigned to the district under sub. (3) (h) 3.
SB51,7,1817
2. The types of projects under sub. (2) (b) that are included in the project plan
18and the scope of the project.
SB51,8,3
13. The name of any developer who is named in a developer's agreement with
2the town or who receives any financial assistance from tax increments allocated for
3the tax incremental district.
SB51,8,54
4. The date that the town expects the tax incremental district to terminate
5under sub. (9).
SB51,8,76
5. The amount of tax increments to be deposited into a special fund for that
7district under sub. (6) (d).
SB51,8,98
6. An analysis of the special fund under sub. (6) (d) for the district. The analysis
9shall include all of the following:
SB51,8,1010
a. The balance in the special fund at the beginning of the fiscal year.
SB51,8,1211
b. All amounts deposited in the special fund by source, including all amounts
12received from another tax incremental district.
SB51,8,1413
c. An itemized list of all expenditures from the special fund by category of
14permissible project costs.
SB51,8,2215
d. The balance in the special fund at the end of the fiscal year, including a
16breakdown of the balance by source and a breakdown of the balance identifying any
17portion of the balance that is required, pledged, earmarked, or otherwise designated
18for payment of, or securing of, obligations and anticipated project costs. Any portion
19of the ending balance that has not been previously identified and is not identified in
20the current analysis as being required, pledged, earmarked, or otherwise designated
21for payment of, or securing of, obligations or anticipated project costs shall be
22designated as surplus.
SB51,8,2423
7. The contact information of a person designated by the town to respond to
24questions or concerns regarding the annual report.
Sections 5 and 6 require the town to file an annual report describing the status of
each existing industry-specific town TID, including expenditures and revenues, to each
overlying taxing jurisdiction and to DOR. The annual report filed with DOR must be in
electronic format and the deadline for filing an annual report is extended from May 1 to
July 1. These Sections also include a list of information that must be included in the
annual report.
SB51,7
1Section
7
. 66.1105 (3) (g) of the statutes is repealed.
SB51,8
2Section
8
. 66.1105 (4m) (a) of the statutes is amended to read:
SB51,9,223
66.1105
(4m) (a) Any city that seeks to create a tax incremental district, amend
4a project plan, have a district's tax incremental base redetermined under sub. (5) (h),
5or incur project costs as described in sub. (2) (f) 1. n. for an area that is outside of a
6district's boundaries, shall convene a
temporary
standing joint review board under
7this paragraph
, or a standing joint review board under sub. (3) (g), to review the
8proposal.
If a city creates more than one tax incremental district consisting of
9different overlying taxing jurisdictions, it shall create a separate joint review board
10for each combination of overlying jurisdictions. The joint review board shall remain
11in existence for the entire time that any tax incremental district exists in the city
12with the same overlying taxing jurisdictions as the overlying taxing jurisdictions
13represented on the standing joint review board. Except as provided in par. (am) and
14(as), and subject to par. (ae), the board shall consist of one representative chosen by
15the school district that has power to levy taxes on the property within the tax
16incremental district, one representative chosen by the technical college district that
17has 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
1the tax incremental district, the unit in which is located property of the tax
2incremental district that has the greatest value shall choose that representative to
3the board. The public member and the board's chairperson shall be selected by a
4majority of the other board members before the public hearing under sub. (4) (a) or
5(h) 1. is held. All board members shall be appointed and the first board meeting held
6within 14 days after the notice is published under sub. (4) (a) or (h) 1.
Additional
7meetings Meetings of the board
in addition to the meeting required under this
8paragraph and par. (f) shall be held upon the call of any member. The city that seeks
9to create the tax incremental district, amend its project plan, have a district's tax
10incremental base redetermined under sub. (5) (h), or make or incur an expenditure
11as described in sub. (2) (f) 1. n. for an area that is outside of a district's boundaries
12shall provide administrative support for the board. By majority vote, the board may
13disband following
approval or rejection of the proposal, unless the board is a standing
14board that is created by the city under sub. (3) (g) the termination under sub. (7) of
15all existing tax incremental districts in the city with the same overlying taxing
16jurisdictions as the overlying taxing jurisdictions represented on the joint review
17board.
Note: Sections 7 and 8 eliminate a political subdivision's ability to create either
a temporary JRB or a standing JRB, at its discretion and instead, require a political
subdivision to convene a standing JRB that must 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 JRB. Section 8
provides that the 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 JRB.
SB51,9
18Section
9. 66.1105 (4m) (f) of the statutes is created to read:
SB51,11,219
66.1105
(4m) (f) The joint review board shall meet annually on July 1, or when
20an annual report under sub. (6m) (c) becomes available, to review annual reports
1under sub. (6m) (c) and to review the performance and status of each district
2governed by the board.
Note: This Section requires a JRB to meet annually on July 1, or as soon as the
updated annual report describing the status of each existing TID becomes available. The
purpose of the annual meeting is to review the performance and status of each existing
TID.
SB51,10
3Section
10
. 66.1105 (6m) (c) of the statutes is renumbered 66.1105 (6m) (c)
4(intro.) and amended to read:
SB51,11,115
66.1105
(6m) (c) (intro.) The city shall prepare and make available to the public
6updated annual reports describing the status of each existing tax incremental
7district, including expenditures and revenues. The city shall
send file a copy of the
8report
to with each overlying district
and the department of revenue by
May
July 1
9annually.
The copy of the report filed with the department of revenue shall be in
10electronic format. The annual report shall contain at least all of the following
11information:
SB51,11
12Section
11
. 66.1105 (6m) (c) 1. to 7. of the statutes are created to read:
SB51,11,1313
66.1105
(6m) (c) 1. The name assigned to the district under sub. (4) (gm) 3.
SB51,11,1514
2. The declared classification of the tax incremental district under sub. (4) (gm)
156. and the scope of the project.
SB51,11,1816
3. The name of any developer who is named in a developer's agreement with
17the city or who receives any financial assistance from tax increments allocated for
18the tax incremental district.
SB51,11,2019
4. The date that the city expects the tax incremental district to terminate under
20sub. (7).
SB51,11,2221
5. The amount of tax increments to be deposited into a special fund for that
22district under sub. (6) (c).
SB51,12,2
16. An analysis of the special fund under sub. (6) (c) for the district. The analysis
2shall include all of the following:
SB51,12,33
a. The balance in the special fund at the beginning of the fiscal year.
SB51,12,54
b. All amounts deposited in the special fund by source, including all amounts
5received from another tax incremental district.
SB51,12,76
c. An itemized list of all expenditures from the special fund by category of
7permissible project costs.
SB51,12,158
d. The balance in the special fund at the end of the fiscal year, including a
9breakdown of the balance by source and a breakdown of the balance identifying any
10portion of the balance that is required, pledged, earmarked, or otherwise designated
11for payment of, or securing of, obligations and anticipated project costs. Any portion
12of the ending balance that has not been previously identified and is not identified in
13the current analysis as being required, pledged, earmarked, or otherwise designated
14for payment of, or securing of, obligations or anticipated project costs shall be
15designated as surplus.
SB51,12,1716
7. The contact information of a person designated by the city to respond to
17questions or concerns regarding the annual report.
Sections 10 and 11 require the political subdivision to file an annual report
describing the status of each existing TID, including expenditures and revenues to each
overlying taxing jurisdiction and to DOR. The annual report filed with DOR must be in
electronic format. The deadline for filing an annual report is extended from May 1 to July
1. Section 11 also includes a list of information that must be included in the annual
report.
SB51,12
18Section
12. 66.1105 (6m) (e) of the statutes is created to read:
SB51,12,2119
66.1105
(6m) (e) 1. The department of revenue shall, by rule, designate a
20format for annual reports under par. (c) and shall require these reports to be filed
21electronically.
SB51,13,4
12. The department of revenue shall post annual reports on its official Internet
2site no later than 45 days after the department receives the report from the city. The
3department shall also post a list of cities that have not submitted a required annual
4report to the joint review board or to the department of revenue.
SB51,13,105
3. Notwithstanding par. (c), if a city provides the department of revenue with
6sufficient evidence that an annual report is in the process of being completed, the
7department of revenue may grant an extension of time for submitting the report. The
8department shall post on its official Internet site a list of cities that have received an
9extension granted under this subdivision, the period of the extension, and an
10indication of whether the municipality timely filed the report within the extension.