LRB-3033/1
KP:kjf
2017 - 2018 LEGISLATURE
May 4, 2017 - Introduced by Senators Vukmir and Feyen, cosponsored by
Representatives Hutton, Kooyenga and Macco. Referred to Committee on
Economic Development, Commerce and Local Government.
SB223,1,3
1An Act to amend 66.1105 (2) (f) 1. n. of the statutes;
relating to: project costs
2for tax incremental districts incurred for territory located within an adjacent
3city, village, or town.
Analysis by the Legislative Reference Bureau
This bill allows the project costs of a tax incremental district (TID) to include
an expenditure incurred for territory that is within a city, village, or town that is
adjacent to the city or village that created the TID, but only if the territory is within
one-half mile of the boundaries of the TID and the governing body of the adjacent
city, village, or town adopts a resolution expressing consent.
Under the current tax incremental financing program, a city or village may
create a TID in part of its territory to foster development. Once a TID has been
created, the Department of Revenue 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 the
property taxes collected from the TID that is attributable to the value increment 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 project costs of a TID, which are initially incurred by the creating city or
village, and generally expended within the TID, include public works such as sewers,
streets, and lighting systems; financing costs; site preparation costs; and
professional service costs. Project costs specifically do not include the cost of
constructing or expanding administrative buildings, police and fire buildings,
libraries, community and recreational buildings, and school buildings. Under
current law, expenditures may be included in the project costs of a TID only if they
are incurred for costs within the TID or for locations within the city or village that
are within one-half mile of the boundaries of the TID.
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:
SB223,1
1Section
1. 66.1105 (2) (f) 1. n. of the statutes is amended to read:
SB223,2,82
66.1105
(2) (f) 1. n. With regard to a tax incremental district that is located
3anywhere other than a city to which sub. (6) (d) applies, and subject to sub. (4m) (d),
4project costs incurred for territory that is located within a one-half mile radius of the
5district's boundaries and within the city that created the district
or that is located
6within a one-half mile radius of the district's boundaries and within a city, village,
7or town adjacent to the city that created the district, if the governing body of the
8adjacent city, village, or town consents to the expenditure by adopting a resolution.
