LRB-1758/2
MES:cjs:jm
2013 - 2014 LEGISLATURE
August 16, 2013 - Introduced by Senators Gudex, L. Taylor, Grothman, Harris, T.
Cullen
, Olsen and Jauch, cosponsored by Representatives Schraa, Hintz,
Spiros, Thiesfeldt, Weatherston, Brooks, Ripp, Stone, Kahl, Kolste,
Mason, Wright, Jorgensen, Zepnick and Bies. Referred to Committee on
Workforce Development, Forestry, Mining, and Revenue.
SB252,1,5 1An Act to amend 66.1105 (4m) (a), 66.1105 (4m) (b) 1., 66.1105 (4m) (b) 2. and
266.1105 (5) (a); and to create 66.1105 (2) (aj) and 66.1105 (5) (h) of the statutes;
3relating to: authorizing a city or village to require the Department of Revenue
4to redetermine the value of the tax incremental base of certain tax incremental
5districts.
Analysis by the Legislative Reference Bureau
Under the current tax incremental financing program, a city or village may
create a tax incremental district (TID) in part of its territory to foster development
if at least 50 percent of the area to be included in the TID is blighted, in need of
rehabilitation or conservation, suitable for industrial sites, or suitable for mixed-use
development. Currently, towns and counties also have a limited ability to create a
TID under certain circumstances. 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, approval of the city's or village's
proposed TID by a joint review board that consists of members who represent the
overlying taxation districts, and adoption of a resolution by the common council or
village board that creates the TID 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 incremental 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.
Generally under current law a local planning commission may amend the
project plan of a TID, by adding or subtracting territory from the district, not more
than four times during the TID's existence. If a TID's project plan is amended,
current law authorizes DOR to redetermine the TID's tax incremental base. DOR
may charge a city or village $1,000 to determine or redetermine a TID's tax
incremental base or, if a project plan amendment both adds and subtracts territory,
DOR may impose a fee of $2,000.
Under this bill, a city or village may adopt a resolution, subject to joint review
board approval, and not more than twice during a TID's life, requiring DOR to
redetermine the tax incremental base of a TID which is in a decrement situation that
has continued for at least two consecutive years. The bill defines decrement situation
as a situation in which the current aggregate equalized value of all the taxable
property within the TID is at least 10 percent less than the current value of the TID's
tax incremental base. DOR may charge the city of village $1,000 for the
redetermination.
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:
SB252,1 1Section 1. 66.1105 (2) (aj) of the statutes is created to read:
SB252,2,62 66.1105 (2) (aj) "Decrement situation" means a situation in which the
3aggregate value, as equalized by the department of revenue, of all taxable property
4located within a tax incremental district on or about the date on which a resolution
5is adopted under sub. (5) (h) 1. is at least 10 percent less than the current tax
6incremental base of that district.
SB252,2 7Section 2. 66.1105 (4m) (a) of the statutes is amended to read:
SB252,3,248 66.1105 (4m) (a) Any city that seeks to create a tax incremental district, amend
9a project plan, have a district's tax incremental base redetermined under sub. (5) (h),
10or incur project costs as described in sub. (2) (f) 1. n. for an area that is outside of a

1district's boundaries, shall convene a temporary joint review board under this
2paragraph, or a standing joint review board under sub. (3) (g), to review the proposal.
3Except as provided in par. (am) and (as), and subject to par. (ae), the board shall
4consist of one representative chosen by the school district that has power to levy taxes
5on the property within the tax incremental district, one representative chosen by the
6technical college district that has power to levy taxes on the property within the tax
7incremental district, one representative chosen by the county that has power to levy
8taxes on the property within the tax incremental district, one representative chosen
9by the city, and one public member. If more than one school district, more than one
10union high school district, more than one elementary school district, more than one
11technical college district or more than one county has the power to levy taxes on the
12property within the tax incremental district, the unit in which is located property of
13the tax incremental district that has the greatest value shall choose that
14representative to the board. The public member and the board's chairperson shall
15be selected by a majority of the other board members before the public hearing under
16sub. (4) (a) or (h) 1. is held. All board members shall be appointed and the first board
17meeting held within 14 days after the notice is published under sub. (4) (a) or (h) 1.
18Additional meetings of the board shall be held upon the call of any member. The city
19that seeks to create the tax incremental district, amend its project plan, have a
20district's tax incremental base redetermined under sub. (5) (h),
or make or incur an
21expenditure as described in sub. (2) (f) 1. n. for an area that is outside of a district's
22boundaries shall provide administrative support for the board. By majority vote, the
23board may disband following approval or rejection of the proposal, unless the board
24is a standing board that is created by the city under sub. (3) (g).
SB252,3 25Section 3. 66.1105 (4m) (b) 1. of the statutes is amended to read:
SB252,4,4
166.1105 (4m) (b) 1. The board shall review the public record, planning
2documents and the resolution passed by the local legislative body or planning
3commission under sub. (4) (gm) or (h) 1., or sub. (5) (h) 1. As part of its deliberations
4the board may hold additional hearings on the proposal.
SB252,4 5Section 4. 66.1105 (4m) (b) 2. of the statutes is amended to read:
SB252,4,206 66.1105 (4m) (b) 2. Except as provided in subd. 2m., no tax incremental district
7may be created and no project plan may be amended unless the board approves the
8resolution adopted under sub. (4) (gm) or (h) 1., and no tax incremental base may be
9redetermined under sub. (5) (h) unless the board approves the resolution adopted
10under sub. (5) (h) 1.,
by a majority vote within 30 days after receiving the resolution.
11With regard to a multijurisdictional tax incremental district created under this
12section, each public member of a participating city must be part of the majority that
13votes for approval of the resolution or the district may not be created. The board may
14not approve the resolution under this subdivision unless the board's approval
15contains a positive assertion that, in its judgment, the development described in the
16documents the board has reviewed under subd. 1. would not occur without the
17creation of a tax incremental district. The board may not approve the resolution
18under this subdivision unless the board finds that, with regard to a tax incremental
19district that is proposed to be created by a city under sub. (17) (a), such a district
20would be the only existing district created under that subsection by that city.
SB252,5 21Section 5. 66.1105 (5) (a) of the statutes is amended to read:
SB252,5,422 66.1105 (5) (a) Subject to sub. (8) (d), upon the creation of a tax incremental
23district or, upon adoption of any amendment subject to par. (c), or upon the adoption
24and approval of a resolution under par. (h),
its tax incremental base shall be
25determined or redetermined as soon as reasonably possible. The department of

1revenue may impose a fee of $1,000 on a city to determine or redetermine the tax
2incremental base of a tax incremental district under this subsection, except that if
3the redetermination is based on a single amendment to a project plan that both adds
4and subtracts territory, the department may impose a fee of $2,000.
SB252,6 5Section 6. 66.1105 (5) (h) of the statutes is created to read:
SB252,5,96 66.1105 (5) (h) 1. Subject to subds. 2. and 3., a local legislative body may adopt
7a resolution requiring the department of revenue to redetermine the tax incremental
8base of a district that is in a decrement situation that has continued for at least 2
9consecutive years.
SB252,5,1210 2. A resolution adopted under subd. 1. may not take effect unless it is approved
11by a joint review board under sub. (4m), acting as it would if the district's project plan
12was to be amended.
SB252,5,1413 3. A local legislative body may not adopt a resolution under subd. 1. more than
14twice during the life of a tax incremental district.
SB252,5,1615 4. Upon approval by a joint review board under subd. 2., the department of
16revenue shall redetermine the tax incremental base of the district under par. (a).
SB252,5,1717 (End)
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