AB478: Bill Text

AB478,15,2 66.1105 (4m) (b) 4. Not later than 5 working days after submitting its decision under subd. 3., a majority of the members of the board may request that the department of revenue review the objective facts contained in any of the documents listed in subd. 1. to determine whether the information submitted to the board complies with this section or whether any of the information contains a factual inaccuracy. The request must be in writing and must specify which particular objective fact or item the members believe is incomplete or inaccurate. Not later than 10 working days after receiving a request that complies with the requirements of this subdivision, the department of revenue shall investigate the issues raised in the request and shall send its written response to the board. If the department of revenue determines that the information in the proposal does not comply with this section or contains a factual inaccuracy, the department shall return the proposal to the city. The board shall request, but may not require, that the city resolve the problems in its proposal and resubmit the proposal to the board. If the city resubmits its proposal, the board shall review the resubmitted proposal and vote to approve or deny the proposal as specified in this paragraph.

AB478, s. 21 Section 21. 66.1105 (4m) (b) 5. of the statutes is created to read:

AB478,15,7 66.1105 (4m) (b) 5. The board shall notify prospectively the governing body of every local governmental unit that is not represented on the board, and that has power to levy taxes on the property within the tax incremental district, of meetings of the board and of the agendas of each meeting for which notification is given.

AB478, s. 22 Section 22. 66.1105 (5) (a) of the statutes is amended to read:

AB478,15,14 66.1105 (5) (a) Upon Subject to sub. (8) (d), upon the creation of a tax incremental district or upon adoption of any amendment subject to par. (c), its tax incremental base shall be determined as soon as reasonably possible. The department of revenue may impose a fee of $1,000 on a city to determine or redetermine the tax incremental base of a tax incremental district under this subsection.

AB478, s. 23 Section 23. 66.1105 (5) (b) of the statutes is amended to read:

AB478,16,5 66.1105 (5) (b) Upon application in writing by the city clerk, in a form prescribed by the department of revenue, the department shall determine according to its best judgment from all sources available to it the full aggregate value of the taxable property and, except as provided in par. (bm), of the city-owned property in the tax incremental district. The application shall state the percentage of territory within the tax incremental district which the local legislative body estimates will be devoted to retail business at the end of the maximum expenditure period specified in sub. (6) (am) 1. c. if that estimate is at least 35%. Subject to sub. (8) (d), the department shall certify this aggregate valuation to the city clerk, and the aggregate valuation constitutes the tax incremental base of the tax incremental district. The city clerk shall complete these forms, including forms for the amendment of a project plan, and submit the application or amendment forms on or before December 31 of the year the tax incremental district is created, as defined in sub. (4) (gm) 2. or, in the case of an amendment, on or before December 31 of the year in which the changes to the project plan take effect.

AB478, s. 24 Section 24. 66.1105 (5) (c) of the statutes, as affected by 2003 Wisconsin Act .... (Senate Bill 188), is amended to read:

AB478,16,25 66.1105 (5) (c) If the city adopts an amendment to the original project plan for any district which reduces project costs by subtracting territory from the district or which includes additional project costs at least part of which will be incurred after the period specified in sub. (6) (am) 1., the tax incremental base for the district shall be redetermined, if sub. (4) (h) 2., 3., 4., or 5. applies to the amended project plan, either by subtracting from the tax incremental base the value of the taxable property that is subtracted from the existing district or by adding to the tax incremental base the value of the taxable property and the value of real property owned by the city, other than property described in par. (bm), that is added to the existing district under sub. (4) (h) 2., 3., 4., or 5. or, if sub. (4) (h) 2., 3., 4., or 5. does not apply to the amended project plan, under par. (b), as of the January 1 next preceding the effective date of the amendment if the amendment becomes effective between January 2 and September 30, as of the next subsequent January 1 if the amendment becomes effective between October 1 and December 31 and if the effective date of the amendment is January 1 of any year, the redetermination shall be made on that date. The With regard to a district to which territory has been added, the tax incremental base as redetermined under this paragraph is effective for the purposes of this section only if it exceeds the original tax incremental base determined under par. (b).

AB478, s. 25 Section 25. 66.1105 (5) (ce) of the statutes, as affected by 2003 Wisconsin Act .... (Senate Bill 188), is amended to read:

AB478,17,16 66.1105 (5) (ce) If the city adopts an amendment, to which sub. (4) (h) 2., 3., 4., or 5. applies, the tax incremental base for the district shall be redetermined, either by subtracting from the tax incremental base the value of the taxable property that is subtracted from the existing district or by adding to the tax incremental base the value of the taxable property and the value of real property owned by the city, other than property described in par. (bm), that is added to the existing district under sub. (4) (h) 2., 3., 4., or 5., as of the January 1 next preceding the effective date of the amendment if the amendment becomes effective between January 2 and September 30, as of the next subsequent January 1 if the amendment becomes effective between October 1 and December 31 and if the effective date of the amendment is January 1 of any year, the redetermination shall be made on that date. The With regard to a district to which territory has been added, the tax incremental base as redetermined under this paragraph is effective for the purposes of this section only if it exceeds the original tax incremental base determined under par. (b).

AB478, s. 26 Section 26. 66.1105 (5) (d) of the statutes is amended to read:

AB478,18,2 66.1105 (5) (d) The department of revenue may not certify the tax incremental base as provided in par. (b) until it determines that each of the procedures and documents required by sub. (4) (a), (b), (gm) or (h) and par. (b) has been timely completed and all notices required under sub. (4) (a), (b), (gm) or (h) timely given. The facts supporting any document adopted or action taken to comply with sub. (4) (a), (b), (gm) or (h) are not subject to review by the department of revenue under this paragraph, except that the department may not certify the tax incremental base as provided in par. (b) until it reviews and approves of the findings that are described in sub. (4) (gm) 4. c.

AB478, s. 27 Section 27. 66.1105 (6) (a) of the statutes is renumbered 66.1105 (6) (a) (intro.) and amended to read:

AB478,18,19 66.1105 (6) (a) (intro.) If the joint review board approves the creation of the tax incremental district under sub. (4m), positive tax increments with respect to a tax incremental district are allocated to the city which created the district for each year commencing after the date when a project plan is adopted under sub. (4) (g). The department of revenue may not authorize allocation of tax increments until it determines from timely evidence submitted by the city that each of the procedures and documents required under sub. (4) (d) to (f) has been completed and all related notices given in a timely manner. The department of revenue may authorize allocation of tax increments for any tax incremental district only if the city clerk and assessor annually submit to the department all required information on or before the 2nd Monday in June. The facts supporting any document adopted or action taken to comply with sub. (4) (d) to (f) are not subject to review by the department of revenue under this paragraph. After the allocation of tax increments is authorized, the department of revenue shall annually authorize allocation of the tax increment to the city that created the district until the soonest of the following events:

AB478,18,21 1. The department of revenue receives a notice under sub. (8) and the notice has taken effect under sub. (8) (b), 27.

AB478,18,25 2. Twenty-seven years after the tax incremental district is created if the district is created before October 1, 1995, 38 years after the tax incremental district is created if the district is created before October 1, 1995, and the project plan is amended under sub. (4) (h) 3. or 23.

AB478,19,2 3. Twenty-three years after the tax incremental district is created if the district is created after September 30, 1995, whichever is sooner.

AB478, s. 28 Section 28. 66.1105 (6) (a) 4. of the statutes is created to read:

AB478,19,7 66.1105 (6) (a) 4. Twenty years after the tax incremental district is created if the district is created on or after the effective date of this subdivision .... [revisor inserts date], and if the district is at least predominantly suitable for industrial sites under sub. (4) (gm) 6.

AB478, s. 29 Section 29. 66.1105 (6) (am) 1. of the statutes, as affected by 2003 Wisconsin Act .... (Senate Bill 188), is renumbered 66.1105 (6) (am) 1. a. and amended to read:

AB478,19,13 66.1105 (6) (am) 1. a. For a tax incremental district that is created after September 30, 1995, and before the effective date of this subd. 1. a. .... [revisor inserts date], no expenditure may be made later than 7 years after the tax incremental district is created, and for.

AB478,19,18 b. For a tax incremental district that is created before October 1, 1995, no expenditure may be made later than 10 years after the tax incremental district is created, except that, for a tax incremental district that is created before October 1, 1995, and which is located in a city to which par. (d) applies, no expenditure may be made later than 17 years after the tax incremental district is created.

AB478, s. 30 Section 30. 66.1105 (6) (am) 1. c. of the statutes is created to read:

AB478,19,22 66.1105 (6) (am) 1. c. For a tax incremental district that is created on or after the effective date of this subd. 1. c. .... [revisor inserts date], all expenditures shall be completed no later than 10 years after the tax incremental district is created.

AB478, s. 31 Section 31. 66.1105 (6) (e) 1. d. of the statutes is created to read:

AB478,20,4 66.1105 (6) (e) 1. d. The donor tax incremental district is able to demonstrate, based on the positive tax increments that are currently generated and that are expected to be generated, that it has sufficient revenues to pay for all project costs that have been incurred, or are expected to be incurred, under the project plan for that district and sufficient surplus revenues to pay for some of the eligible costs of the recipient tax incremental district.

AB478, s. 32 Section 32. 66.1105 (6) (e) 2. of the statutes is repealed.

AB478, s. 33 Section 33. 66.1105 (7) (ae) of the statutes is created to read:

AB478,20,10 66.1105 (7) (ae) Notwithstanding par. (am), 10 years after the last expenditure identified in the project plan is made if the district to which the plan relates is created on or after the effective date of this paragraph .... [revisor inserts date], and if the district is suitable for industrial sites under sub. (4) (gm) 4. a.

AB478, s. 34 Section 34. 66.1105 (7) (am) of the statutes, as affected by 2003 Wisconsin Act .... (Senate Bill 167), is amended to read:

AB478,20,21 66.1105 (7) (am) Sixteen years after the last expenditure identified in the project plan is made if the district to which the plan relates is created after September 30, 1995, and before October 1, 2003, 13 years after the last expenditure identified in the project plan is made if the district to which the plan relates is created on or after October 1, 2003, or 20 years after the last expenditure identified in the project plan is made if the district to which the plan relates is created before October 1, 1995, except that in no case may the total number of years during which expenditures are made under sub. (6) (am) 1. plus the total number of years during which tax increments are allocated under this sub. (6) (a) exceed 27 years.

AB478, s. 35 Section 35. 66.1105 (7) (ar) of the statutes is amended to read:

AB478,20,25 66.1105 (7) (ar) Notwithstanding par. (am), 22 years after the last expenditure identified in the project plan is made if the district to which the plan relates is created before October 1, 1995, and the project plan is amended under sub. (4) (h) 3. or 4.

AB478, s. 36 Section 36. 66.1105 (8) (title) of the statutes is amended to read:

AB478,21,2 66.1105 (8) (title) Notice of district termination, reporting requirements.

AB478, s. 37 Section 37. 66.1105 (8) (c) of the statutes is created to read:

AB478,21,7 66.1105 (8) (c) Not later than February 15 of the year after the year in which a city transmits to the department of revenue the notice required under par. (a) the city shall send to the department, on a form prescribed by the department, all of the following information that relates to the terminated tax incremental district:

AB478,21,8 1. A final accounting of all expenditures made by the city.

AB478,21,9 2. The total amount of project costs incurred by the city.

AB478,21,10 3. The total amount of positive tax increments received by a city.

AB478, s. 38 Section 38. 66.1105 (8) (d) of the statutes is created to read:

AB478,21,15 66.1105 (8) (d) If a city does not send to the department of revenue the form specified in par. (c) within the time limit specified in par. (c), the department may not certify the tax incremental base of a tax incremental district under sub. (5) (a) and (b) until the form is sent to the department.

AB478, s. 39 Section 39. 66.1105 (15) of the statutes is created to read:

AB478,22,4 66.1105 (15) Substantial compliance. Substantial compliance with subs. (3), (4) (a), (b), (c), (d), (e), (f), and (h), (4m), and (5) (b) by a city that creates, or attempts to create, a tax incremental district is sufficient to give effect to any proceedings conducted under this section if, in the opinion of the department of revenue, any error, irregularity, or informality that exists in the city's attempts to comply with subs. (3), (4) (a), (b), (c), (d), (e), (f), and (h), (4m), and (5) (b) does not affect substantial justice. If the department of revenue determines that a city has substantially complied with subs. (3), (4) (a), (b), (c), (d), (e), (f), and (h), (4m), and (5) (b), the department of revenue shall determine the tax incremental base of the district, allocate tax increments, and treat the district in all other respects as if the requirements under subs. (3), (4) (a), (b), (c), (d), (e), (f), and (h), (4m), and (5) (b) had been strictly complied with based on the date that the resolution described under sub. (4) (gm) 2. is adopted.

AB478, s. 40 Section 40. 66.1106 (1) (c) of the statutes is amended to read:

AB478,23,2 66.1106 (1) (c) "Eligible costs" means capital costs, financing costs and administrative and professional service costs, incurred or estimated to be incurred by a political subdivision, for the investigation, removal, containment or monitoring of, or the restoration of soil, air, surface water, sediments or groundwater affected by, environmental pollution, including monitoring costs incurred within 2 years after the date on which the department of natural resources certifies that environmental pollution on the property has been remediated, cancellation of delinquent taxes if the political subdivision demonstrates that it has not already recovered such costs by any other means, property acquisition costs, demolition costs including asbestos removal, and removing and disposing of underground storage tanks or abandoned containers, as defined in s. 292.41 (1), except that for any parcel of land "eligible costs" shall be reduced by any amounts received from persons responsible for the discharge, as defined in s. 292.01 (3), of a hazardous substance on the property to pay for the costs of remediating environmental pollution on the property, by any amounts received, or reasonably expected by the political subdivision to be received, from a local, state or federal program for the remediation of contamination in the district that do not require reimbursement or repayment and by the amount of net gain from the sale of the property by the political subdivision. "Eligible costs" associated with groundwater affected by environmental pollution include investigation and remediation costs for groundwater that is located in, and extends beyond, the property that is being remediated.

AB478, s. 41 Section 41. 66.1106 (1) (e) of the statutes is amended to read:

AB478,23,12 66.1106 (1) (e) "Environmental remediation tax increment" means that amount obtained by multiplying the total city, county, school and other local general property taxes levied on a parcel of real property that is certified under this section taxable property in a year by a fraction having as a numerator the environmental remediation value increment for that year for that parcel in such district and as a denominator that year's equalized value of that parcel taxable property. In any year, an environmental remediation tax increment is "positive" if the environmental remediation value increment is positive; it is "negative" if the environmental remediation value increment is negative.

AB478, s. 42 Section 42. 66.1106 (1) (f) of the statutes is amended to read:

AB478,23,20 66.1106 (1) (f) "Environmental remediation tax incremental base" means the aggregate value, as equalized by the department, of a parcel of real taxable property that is certified under this section as of the January 1 preceding the date on which the department of natural resources issues a certificate certifying that environmental pollution on the property has been remediated in accordance with rules promulgated by the department of natural resources environmental remediation tax incremental district is created, as determined under sub. (1m) (b).

AB478, s. 43 Section 43. 66.1106 (1) (fm) of the statutes is created to read:

AB478,24,7 66.1106 (1) (fm) "Environmental remediation tax incremental district" means a contiguous geographic area within a political subdivision defined and created by resolution of the governing body of the political subdivision consisting solely of whole units of property as are assessed for general property tax purposes, other than railroad rights-of-way, rivers, or highways. Railroad rights-of-way, rivers, or highways may be included in an environmental remediation tax incremental district only if they are continuously bounded on either side, or on both sides, by whole units of property as are assessed for general property tax purposes which are in the environmental remediation tax incremental district. "Environmental remediation tax incremental district" does not include any area identified as a wetland on a map under s. 23.32.

AB478, s. 44 Section 44. 66.1106 (1) (g) of the statutes is amended to read:

AB478,24,15 66.1106 (1) (g) "Environmental remediation value increment" means the equalized value of a parcel of real taxable property that is certified under this section minus the environmental remediation tax incremental base. In any year, the environmental remediation value increment is "positive" if the environmental remediation tax incremental base of the parcel of taxable property is less than the aggregate value of the parcel of taxable property as equalized by the department; it is "negative" if that base exceeds that aggregate value.

AB478, s. 45 Section 45. 66.1106 (1) (i) of the statutes is amended to read:

AB478,24,20 66.1106 (1) (i) "Period of certification" means a period of not more than 16 23 years beginning after the department certifies the environmental remediation tax incremental base of a parcel of property under sub. (4) or a period before all eligible costs have been paid, whichever occurs first.

AB478, s. 46 Section 46. 66.1106 (1) (jm) of the statutes is created to read:

AB478,24,24 66.1106 (1) (jm) "Project expenditures" means the sum of eligible costs and all other costs incurred by a political subdivision in the creation and operation of an environmental remediation tax incremental district.

AB478, s. 47 Section 47. 66.1106 (1) (k) of the statutes is amended to read:

AB478,25,2 66.1106 (1) (k) "Taxable property" means all real and personal taxable property located in an environmental remediation tax incremental district.

AB478, s. 48 Section 48. 66.1106 (1m) of the statutes is created to read:

AB478,25,6 66.1106 (1m) Creation of environmental remediation tax incremental districts. In order to implement the provisions of this section, the governing body of the political subdivision shall adopt a resolution which does all of the following:

AB478,25,9 (a) Describes the boundaries of an environmental remediation tax incremental district with sufficient definiteness to identify with ordinary and reasonable certainty the territory included within the district.

AB478,25,15 (b) Creates such district as of a date therein provided. If the resolution is adopted during the period between January 2 and September 30, then such date shall be the next preceding January 1. If such resolution is adopted during the period between October 1 and December 31, then such date shall be the next subsequent January 1. If the resolution is adopted on January 1, the environmental remediation tax incremental district shall be created as of the date of the resolution.

AB478, s. 49 Section 49. 66.1106 (2) (a) of the statutes is amended to read:

AB478,26,3 66.1106 (2) (a) A political subdivision that develops, and whose governing body approves, a written proposal to remediate environmental pollution may use an environmental remediation tax increment to pay the eligible costs of remediating environmental pollution on contiguous parcels of property that are located in an environmental remediation tax incremental district within the political subdivision and that are not part of a tax incremental district created under s. 66.1105, as provided in this section, except that a political subdivision may use an environmental remediation tax increment to pay the cost of remediating environmental pollution of groundwater without regard to whether the property above the groundwater is owned by the political subdivision. No political subdivision may submit an application to the department under sub. (4) until the joint review board approves the political subdivision's written proposal under sub. (3).

AB478, s. 50 Section 50. 66.1106 (4) (intro.) of the statutes is amended to read:

AB478,26,14 66.1106 (4) Certification. (intro.) Upon written application to the department of revenue by the clerk of a political subdivision on or before April 1 of the year following the year in which the certification described in par. (a) is received from the department of natural resources December 31 of the year the environmental remediation tax incremental district is created, as determined under sub. (1m) (b), except that if the environmental remediation tax incremental district is created during the period between October 1 and December 31, on or before December 31 of the following year, the department of revenue shall certify to the clerk of the political subdivision the environmental remediation tax incremental base of a parcel of real property if all of the following apply:

AB478, s. 51 Section 51. 66.1106 (4) (b) of the statutes is amended to read:

AB478,26,20 66.1106 (4) (b) The political subdivision submits a statement that all taxing jurisdictions with the authority to levy general property taxes on the parcel or contiguous parcels of property have been notified that the political subdivision intends to recover the costs of remediating environmental pollution on the property and have been provided a statement of the estimated costs to be recovered.

AB478, s. 52 Section 52. 66.1106 (7) (a) of the statutes is amended to read:

AB478,27,2 66.1106 (7) (a) Subject to pars. (b), (c) and (d), the department shall annually authorize the positive environmental remediation tax increment with respect to a parcel or contiguous parcels of property during the period of certification to the political subdivision that incurred the costs to remediate environmental pollution on the property, except that an authorization granted under this paragraph does not apply after the department receives the notice described under sub. (10) (b).

AB478, s. 53 Section 53. 66.1106 (7) (d) 1. of the statutes is amended to read:

AB478,27,10 66.1106 (7) (d) 1. The department may not authorize a positive environmental remediation tax increment under par. (a) to pay otherwise eligible costs that are incurred by the political subdivision after the department of natural resources certifies to the department of revenue that environmental pollution on the parcel or contiguous parcels of property has been remediated unless the costs are associated with activities, as determined by the department of natural resources, that are necessary to close the site described in the site investigation report.

AB478, s. 54 Section 54. 66.1106 (9) of the statutes is amended to read:

AB478,27,22 66.1106 (9) Separate accounting required. An environmental remediation tax increment received with respect to a parcel or contiguous parcels of land that is subject to this section shall be deposited in a separate fund by the treasurer of the political subdivision. No money may be paid out of the fund except to pay eligible costs for a parcel or contiguous parcels of land, or to reimburse the political subdivision for such costs or to satisfy claims of holders of bonds or notes issued to pay eligible costs. If an environmental remediation tax increment that has been collected with respect to a parcel of land remains in the fund after the period of certification has expired, it shall be paid to the treasurers of the taxing jurisdictions in which the parcel is located in proportion to the relative share of those taxing jurisdictions in the most recent levy of general property taxes on the parcel.

AB478, s. 55 Section 55. 66.1106 (10) (a) of the statutes is amended to read:

AB478,28,3 66.1106 (10) (a) Prepare and make available to the public updated annual reports describing the status of all projects to remediate environmental pollution funded under this section, including revenues and expenditures. A copy of the report shall be sent to all taxing jurisdictions with authority to levy general property taxes on the parcel or contiguous parcels of property by May 1 annually.

AB478, s. 56 Section 56. 66.1106 (10) (b) of the statutes is amended to read:

AB478,28,6 66.1106 (10) (b) Notify the department within 10 days after the period of certification for a parcel or contiguous parcels of property has expired.

AB478, s. 57 Section 57. 66.1106 (10) (c) of the statutes is created to read:

AB478,28,16 66.1106 (10) (c) With regard to an environmental remediation tax incremental district, not later than 12 months after the last expenditure is made or not later than 12 months after an expenditure may be made under sub. (2) (b), whichever comes first, prepare and make available to the public a report that is similar to the report required under par. (a), except that the report required under this paragraph shall also include an independent certified audit of the project to determine if all financial transactions were made in a legal manner and to determine if the environmental remediation tax incremental district complied with this section. A copy of the report shall be sent out to all taxing jurisdictions which received the reports under par. (a).

AB478, s. 58 Section 58. 66.1106 (10) (d) of the statutes is created to read:

AB478,28,21 66.1106 (10) (d) Not later than February 15 of the year after the year in which an environmental remediation tax incremental district terminates under sub. (11), provide the department with all of the following on a form that is prescribed by the department:

AB478,28,23 1. A final accounting of project expenditures that are made for the environmental remediation tax incremental district.

AB478,28,25 2. The final amount of eligible costs that have been paid for the environmental remediation tax incremental district.

AB478,29,2 3. The total amount of environmental remediation tax increments that have been paid to the political subdivision.

AB478, s. 59 Section 59. 66.1106 (11) of the statutes is created to read: