LRB-4113/1
MES:jld:rs
2005 - 2006 LEGISLATURE
December 29, 2005 - Introduced by Representatives Nelson, Berceau, Zepnick,
Sheridan, Staskunas, Fields and Molepske, cosponsored by Senator
Roessler. Referred to Committee on Ways and Means.
AB896,1,3
1An Act to amend 66.1106 (1) (i) and 66.1106 (2) (b) of the statutes;
relating to:
2expanding the maximum life and expenditure period for environmental
3remediation tax incremental financing districts.
Analysis by the Legislative Reference Bureau
Under current law, the environmental remediation tax incremental financing
program permits a city, village, town, or county (political subdivision) to defray the
costs of remediating contaminated property that is owned by the political
subdivision. The mechanism for financing costs that are eligible for remediation is
very similar to the mechanism under the tax incremental financing (TIF) program.
If the remediated property is transferred to another person and is then subject to
property taxation, environmental remediation tax incremental financing may be
used to allocate some of the property taxes that are levied on the property to the
political subdivision to pay for the costs of remediation.
A political subdivision that has incurred "eligible costs" to remediate
environmental pollution on a parcel of property may apply to the Department of
Revenue (DOR) to certify the "environmental remediation tax incremental base" of
the parcel. DOR is required to certify the environmental remediation tax
incremental base if the political subdivision submits to DOR all of the following: 1)
a statement that the political subdivision has incurred some eligible costs, together
with a detailed proposed remedial action plan approved by the Department of
Natural Resources (DNR) that contains cost estimates for anticipated eligible costs,
a schedule for the design and implementation that is needed to complete the
remediation, and certification from DNR that it has approved the site investigation
report that relates to the parcel; 2) a statement that all taxing jurisdictions with
authority to levy general property taxes on the parcel of property have been notified
that the political subdivision intends to recover its environmental remediation costs
by using an "environmental remediation tax increment"; and 3) a statement that the
political subdivision has attempted to recover its environmental remediation costs
from the person who is responsible for the environmental pollution that is being
remediated.
Currently, the maximum life of an environmental remediation tax incremental
district (ERTID) is 16 years, which is the maximum allowable "period of
certification." The period of certification is defined as the sooner of either a period
beginning after DOR certifies the environmental remediation tax incremental base
of a parcel of property or a period before all eligible costs have been paid. Also under
current law, no expenditure for an eligible cost may be made by a political subdivision
later than 15 years after the environmental remediation tax incremental base is
certified by DOR.
This bill increases the maximum allowable period of certification to 27 years,
and the maximum expenditure period to 20 years. This bill takes effect on October
1, 2006, and first applies to an ERTID that is in existence or that is created on that
date.
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:
AB896, s. 1
1Section
1. 66.1106 (1) (i) of the statutes is amended to read:
AB896,2,52
66.1106
(1) (i) "Period of certification" means a period of not more than
16 27 3years beginning after the department certifies the environmental remediation tax
4incremental base of a parcel of property under sub. (4) or a period before all eligible
5costs have been paid, whichever occurs first.
AB896, s. 2
6Section
2. 66.1106 (2) (b) of the statutes is amended to read:
AB896,2,97
66.1106
(2) (b) No expenditure for an eligible cost may be made by a political
8subdivision later than
15 20 years after the environmental remediation tax
9incremental base is certified by the department under sub. (4).
AB896,3,3
1(1) This act first applies to an environmental remediation tax incremental
2district that is in existence on the effective date of this subsection or that is created
3on the effective date of this subsection.
AB896,3,55
(1) This act takes effect on October 1, 2006.
