LRB-2124/2
MES:kmg:jf
2003 - 2004 LEGISLATURE
May 14, 2003 - Introduced by Senators Leibham and Panzer, cosponsored by
Representatives Kestell, Van Akkeren and LeMahieu. Referred to
Committee on Homeland Security, Veterans and Military Affairs and
Government Reform.
SB167,1,4 1An Act to renumber and amend 66.1105 (6) (a); to amend 66.1105 (6) (am) 2.
2c. and 66.1105 (7) (am); and to create 66.1105 (6) (a) 5. and 66.1105 (7) (as) of
3the statutes; relating to: extending the expenditure period and the life of a tax
4incremental district in Sheboygan.
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. 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, and
adoption of a resolution by the common council or village board that creates the
district as of a date provided in the resolution.
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 be used only to pay back the project

costs of the TID. The 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,
23 years, or 27 years in certain cases, after the TID is created, whichever is sooner.
TIDs are required to terminate, under current law and with one exception, once these
costs are paid back, 16 years, or 20 years in certain cases, after the last expenditure
identified in the project plan is made or when the creating city or village dissolves
the TID, whichever occurs first. Under the exception, which is limited to certain
circumstances, after a TID pays off its project costs, but not later than the date on
which it must otherwise terminate, the planning commission may allocate positive
tax increments generated by the TID (the "donor" TID) to another TID that has been
created by the planning commission.
Currently, with regard to TID number six in Sheboygan, expenditures may be
made no later than 13 years after the TID was created, or through December 31,
2004. That TID must terminate no later that 20 years after the last expenditure is
made.
Under this bill, the expenditure period for TID number six in Sheboygan is
extended to 15 years after the TID was created, or through December 31, 2006. The
bill also authorizes DOR to allocate tax increments to this TID for 31 years after the
TID was created.
For further information see the state 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:
SB167, s. 1 1Section 1. 66.1105 (6) (a) of the statutes is renumbered 66.1105 (6) (a) (intro.)
2and amended to read:
SB167,3,73 66.1105 (6) (a) (intro.) If the joint review board approves the creation of the tax
4incremental district under sub. (4m), positive tax increments with respect to a tax
5incremental district are allocated to the city which created the district for each year
6commencing after the date when a project plan is adopted under sub. (4) (g). The
7department of revenue may not authorize allocation of tax increments until it
8determines from timely evidence submitted by the city that each of the procedures
9and documents required under sub. (4) (d) to (f) has been completed and all related
10notices given in a timely manner. The department of revenue may authorize

1allocation of tax increments for any tax incremental district only if the city clerk and
2assessor annually submit to the department all required information on or before the
32nd Monday in June. The facts supporting any document adopted or action taken
4to comply with sub. (4) (d) to (f) are not subject to review by the department of revenue
5under this paragraph. After the allocation of tax increments is authorized, the
6department of revenue shall annually authorize allocation of the tax increment to
7the city that created the district until the soonest of the following events:
SB167,3,9 81. The department of revenue receives a notice under sub. (8) and the notice
9has taken effect under sub. (8) (b), 27.
SB167,3,11 102. Twenty-seven years after the tax incremental district is created if the
11district is created before October 1, 1995, 38.
SB167,3,14 123. Thirty-eight years after the tax incremental district is created if the district
13is created before October 1, 1995, and the project plan is amended under sub. (4) (h)
143. or 23
SB167,3,16 154. Twenty-three years after the tax incremental district is created if the district
16is created after September 30, 1995, whichever is sooner.
SB167, s. 2 17Section 2. 66.1105 (6) (a) 5. of the statutes is created to read:
SB167,3,2018 66.1105 (6) (a) 5. Thirty-one years after the tax incremental district is created
19if the district is created before October 1, 1995, and the expenditure period is
20specified in par. (am) 2. c.
SB167, s. 3 21Section 3. 66.1105 (6) (am) 2. c. of the statutes is amended to read:
SB167,4,222 66.1105 (6) (am) 2. c. Expenditures for project costs for Tax Incremental
23District Number Six in a city with a population of at least 45,000 that is located in
24a county that was created in 1853 1836 and that is adjacent to one of the Great Lakes.

1Such expenditures may be made no later than 13 15 years after the tax incremental
2district is created, and may be made through December 31, 2004 2006.
SB167, s. 4 3Section 4. 66.1105 (7) (am) of the statutes is amended to read:
SB167,4,104 66.1105 (7) (am) Sixteen years after the last expenditure identified in the
5project plan is made if the district to which the plan relates is created after
6September 30, 1995, or 20 years after the last expenditure identified in the project
7plan is made if the district to which the plan relates is created before October 1, 1995,
8except that in no case may the total number of years during which expenditures are
9made under sub. (6) (am) 1. plus the total number of years during which tax
10increments are allocated under this paragraph sub. (6) (a) exceed 27 years.
SB167, s. 5 11Section 5. 66.1105 (7) (as) of the statutes is created to read:
SB167,4,1412 66.1105 (7) (as) Notwithstanding par. (am), 16 years after the last expenditure
13identified in the project plan is made if the district to which the plan relates is created
14before October 1, 1995, and the expenditure period is specified in sub. (6) (am) 2. c.
SB167,4,1515 (End)
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