LRB-4970/1
MES:skg:ks
1995 - 1996 LEGISLATURE
March 13, 1996 - Introduced by Representatives Foti, Zukowski, Vrakas,
Ainsworth, Jensen and
Ryba, cosponsored by Senator Panzer. Referred to
Committee on Ways and Means.
AB1024,1,2
1An Act to amend 66.46 (2) (f) 3. of the statutes;
relating to: project costs of a
2tax incremental financing district.
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, such as public hearings, preparation of
a proposed project plan and approval of the plan by the common council or village
board. If an existing TID project plan is amended by a planning commission, these
steps are also required.
Also under current law, once a TID has been created, the department of revenue
(DOR) calculates the "tax increment 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 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. Project costs may not
include expenditures or monetary obligations incurred by the city or village for newly
platted residential development for a TID for which a project plan is approved after
September 1995.
Under this bill, the definition of project costs is changed such that these costs
may not include expenditures or monetary obligations incurred by the city for a
residential development that includes any area, the first plat for which was recorded
after the effective date of the bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1024,2,83
66.46
(2) (f) 3. Notwithstanding subd. 1., project costs may not include any
4expenditures made or estimated to be made or monetary obligations incurred or
5estimated to be incurred by the city for
newly platted
a residential development
for
6any tax incremental district for which a project plan is approved after September 30,
71995 that includes any area, the first plat for which is recorded after the effective
8date of this subdivision .... [revisor inserts date].
