2019 - 2020 LEGISLATURE
June 7, 2019 - Introduced by Senator Petrowski, cosponsored by Representative
Spiros. Referred to Committee on Economic Development, Commerce and
1An Act to amend
66.1105 (7) (am) 2.; and to create
66.1105 (6) (a) 16., 66.1105 2
(6) (am) 2. k. and 66.1105 (7) (am) 7. of the statutes; relating to: lengthening
3the time during which tax increments may be allocated and expenditures for
4project costs may be made and extending the maximum life for Tax Incremental
5District Number Two in the village of Kronenwetter.
Analysis by the Legislative Reference Bureau
This bill increases the maximum life from 20 to 25 years, the expenditure period
from 15 to 20 years, and the tax increment allocation period from 20 to 25 years for
Tax Incremental District Number Two in the village of Kronenwetter.
Under the current tax incremental financing program, a city or village may
create a tax incremental district in part of its territory to foster development under
certain conditions. Currently, towns and counties also have a limited ability to create
a TID under certain circumstances. Before a city or village may create a TID, several
steps and plans are required. These steps and plans include public hearings on the
proposed TID within specified time frames, preparation and adoption by the local
planning commission of a proposed project plan for the TID, approval of the proposed
project plan by the common council or village board, approval of the city's or village's
proposed TID by a joint review board that consists of members who represent the
overlying taxation districts, and adoption of a resolution by the common council or
village board that creates the TID as of a date provided in the resolution.
Also under current law, once a TID has been created, the Department of
Revenue calculates the “tax incremental base" value of the TID, which is the
equalized value of all taxable property within the TID at the time of its creation. If
the development in the TID increases the value of the property in the TID above the
base value, a “value increment" is created. That portion of taxes collected on the
value increment in excess of the base value is called a “tax increment." The tax
increment is placed in a special fund that may be used only to pay back the project
costs of the TID.
The project costs of a TID, which are initially incurred by the creating city or
village, include public works such as sewers, streets, and lighting systems; financing
costs; site preparation costs; and professional service costs. DOR authorizes the
allocation of the tax increments until the TID terminates or, generally, 20 years, 23
years, or 27 years after the TID is created, depending on the type of TID and the year
in which it was created. Also under current law, a city or village may not generally
make expenditures for project costs later than five years before the unextended
termination date of the TID. Under certain circumstances, the life of the TID, the
expenditure period, and the allocation period may be extended.
Under this bill, with regard to TID Number Two in the village of Kronenwetter,
the expenditures for project costs may be made for up to 20 years after the TID was
created, DOR may allocate tax increments for up to 25 years after the TID's creation,
and the maximum life of the TID is extended for 5 years.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
66.1105 (6) (a) 16. of the statutes is created to read:
(a) 16. Twenty-five years after the tax incremental district is 3
created if the district is Tax Incremental District Number 2 in the village of 4
66.1105 (6) (am) 2. k. of the statutes is created to read:
(am) 2. k. Expenditures for project costs for Tax Incremental 7
District Number 2 in the village of Kronenwetter. Such expenditures may be made 8
no later than 20 years after the district is created and may be made through 2024.
66.1105 (7) (am) 2. of the statutes is amended to read:
(am) 2. Except as provided in subds. 4., 5., and
6., and 7.,
for a 11
district that is created after September 30, 2004, about which a finding is made under
sub. (4) (gm) 4. a. that not less than 50 percent, by area, of the real property within 2
the district is suitable for industrial sites or mixed-use development, 20 years after 3
the district is created, except that the city that created the district may, subject to 4
sub. (8) (e), request that the joint review board extend the life of the district for an 5
additional 3 years. Along with its request for a 3-year extension, the city may 6
provide the joint review board with an independent audit that demonstrates that the 7
district is unable to pay off its project costs within the 20 years after the district is 8
created. The joint review board may deny or approve a request to extend the life of 9
the district for 3 years if the request does not include the independent audit, and the 10
board shall approve a request to extend the life of the district for 3 years if the request 11
includes the audit. If the joint review board extends the district's life, the district 12
shall terminate at the earlier of the end of the extended period or the period specified 13
in par. (a). For a tax incremental district created after March 3, 2016, the 14
termination date for a district to which this subdivision applies shall either be 15
increased by one year beyond the otherwise applicable termination date under this 16
subdivision if that district's project plan is adopted under sub. (4) (g) after September 17
30 and before May 15, or shall be the period specified in par. (a), whichever is earlier.
66.1105 (7) (am) 7. of the statutes is created to read:
(am) 7. For Tax Incremental District Number 2 in the village of 20
Kronenwetter, 25 years after the district is created.