AB1077: Bill Text

LRB-4536/2

MES:jld:rs

2005 - 2006 LEGISLATURE

2005 Assembly BILL 1077

February 27, 2006 - Introduced by Representatives Lamb, Kleefisch, Rhoades, Moulton, Gundrum, Pettis, Musser, Jeskewitz, Newcomer, Albers, Ainsworth, Krawczyk, Kreibich, Wood, J. Fitzgerald, Nass, Nischke, F. Lasee, LeMahieu and Vos, cosponsored by Senators Stepp and Harsdorf. Referred to Committee on Urban and Local Affairs.

AB1077,1,3 An Act to renumber and amend 66.0617 (9); and to create 66.0617 (9) (b) of the statutes; relating to: the time period during which impact fees must be used and the refunding of impact fees.

Analysis by the Legislative Reference Bureau

Under current law, a city, village, town, or county (political subdivision) may impose an impact fee on a developer to pay for the capital costs to construct certain public facilities that are necessary to accommodate land development. The definition of "public facilities" includes highways; facilities for treating sewage, storm waters, and surface waters; facilities for pumping, storing, and distributing water; parks; playgrounds; fire protection, emergency medical, and law enforcement facilities; and libraries. Also under current law, an impact fee ordinance must require that an impact fee that is imposed and collected by a political subdivision, but not used within a reasonable time after it is collected, be refunded to the current owner of the property with regard to which the impact fee was imposed.

Under this bill, an impact fee must be used within seven years after it is collected, or the fee must be refunded to the first person who purchased the property from the developer. The bill also allows a political subdivision to extend the seven-year time period for an additional three years if the political subdivision adopts a resolution stating that, due to extenuating circumstances and hardship, it needs an additional three years to use the impact fee that has been collected.

For further information see the 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:

AB1077, s. 1 Section 1. 66.0617 (9) of the statutes is renumbered 66.0617 (9) (a) and amended to read:

AB1077,2,14 66.0617 (9) (a) An Subject to par. (b), an ordinance enacted under this section shall specify that impact fees that are imposed and collected by a political subdivision but are not used within a reasonable period of time 7 years after they are collected to pay the capital costs for which they were imposed shall be refunded to the current owner of first person who purchased the property from the developer, with respect to which the impact fees were imposed. The ordinance shall specify, by type of public facility, reasonable time periods within which impact fees must be spent or refunded under this subsection, subject to the 7-year limit in this paragraph and the extended time period specified in par. (b). In determining the length of the time periods under the ordinance, a political subdivision shall consider what are appropriate planning and financing periods for the particular types of public facilities for which the impact fees are imposed.

AB1077, s. 2 Section 2. 66.0617 (9) (b) of the statutes is created to read:

AB1077,2,21 66.0617 (9) (b) The 7-year time limit for using impact fees that is specified under par. (a) may be extended for 3 years if the political subdivision adopts a resolution stating that, due to extenuating circumstances and hardship in meeting the 7-year limit, it needs an additional 3 years to use the impact fees that were collected. The resolution shall specify the extenuating circumstances and hardship that led to the need to adopt a resolution under this paragraph.

AB1077, s. 3 Section 3. Initial applicability.

AB1077,3,3 (1) This act first applies to impact fees that have been imposed under impact fee ordinances that are in effect on the effective date of this subsection.

AB1077,3,4 (End)