66.46(6)(dm)5.
5. This paragraph, with regard to a city that is described in
subd. 3. b., does not apply after January 1, 2016.
66.46(6)(e)1.1. Before the date on which a tax incremental district terminates under
sub. (7) (a), but not later than the date on which a tax incremental district terminates under
sub. (7) (am), a planning commission may amend under
sub. (4) (h) the project plan of such a tax incremental district to allocate positive tax increments generated by that tax incremental district to another tax incremental district created by that planning commission if all of the following conditions are met:
66.46(6)(e)1.a.
a. The donor tax incremental district, the positive tax increments of which are to be allocated, and the recipient tax incremental district have the same overlying taxing jurisdictions.
66.46(6)(e)1.b.
b. The donor tax incremental district and the recipient tax incremental district have been created before October 1, 1995.
66.46(6)(e)2.
2. Each year, the city that created the tax incremental districts may determine the portion of the donor tax incremental district's positive tax increment that is in excess of the tax increment that is necessary to pay the donor's project costs in that year that shall be allocated to the recipient tax incremental district and shall inform the department of revenue of these amounts.
66.46(6)(e)3.
3. A project plan that is amended under
sub. (4) (h) to authorize the allocation of positive tax increments under
subd. 1. may authorize such an allocation for a period not to exceed 5 years, except that if the planning commission determines that the allocation may be needed for a period longer than 5 years, the planning commission may authorize such an allocation for up to an additional 5 years if the project plan is amended under
sub. (4) (h) during the 4th year of the allocation. In no case may positive tax increments under
subd. 1. be allocated from one donor tax incremental district for a period longer than 10 years.
66.46(6c)
(6c) Notification of position openings. 66.46(6c)(a)(a) Any person who operates for profit and is paid project costs under
sub. (2) (f) 1. a.,
d.,
j. and
k. in connection with the project plan for a tax incremental district shall notify the department of workforce development and the area private industry council under the job training partnership act,
29 USC 1501 to
1798, of any positions to be filled in the county in which the city which created the tax incremental district is located during the period commencing with the date the person first performs work on the project and ending one year after receipt of its final payment of project costs. The person shall provide this notice at least 2 weeks prior to advertising the position.
66.46(6c)(b)
(b) Any person who operates for profit and buys or leases property in a tax incremental district from a city for which the city incurs real property assembly costs under
sub. (2) (f) 1. c. shall notify the department of workforce development and the area private industry council under the job training partnership act,
29 USC 1501 to
1798, of any position to be filled in the county in which the city creating the tax incremental district is located within one year after the sale or commencement of the lease. The person shall provide this notice at least 2 weeks prior to advertising the position.
66.46(6m)(a)(a) The city shall cause a certified public accountant to conduct audits of each tax incremental district to determine if all financial transactions are made in a legal and proper manner and to determine if the tax incremental district is complying with its project plan and with this section. Any city that creates a tax incremental district under this section and has an annual general audit may include the audits required under this subsection as part of the annual general audit.
66.46(6m)(b)1.
1. Twelve months after 30% of the project expenditures are made;
66.46(6m)(b)3.
3. Twelve months after the termination of the tax incremental district under
sub. (7).
66.46(6m)(c)
(c) The city shall prepare and make available to the public updated annual reports describing the status of each existing tax incremental district, including expenditures and revenues. The city shall send a copy of the report to each overlying district by May 1 annually.
66.46(7)
(7) Termination of tax incremental districts. The existence of a tax incremental district shall terminate when the earlier of the following occurs:
66.46(7)(a)
(a) That time when the city has received aggregate tax increments with respect to such district in an amount equal to the aggregate of all project costs under the project plan and any amendments to the project plan for such district, except that this paragraph does not apply to a district whose positive tax increments have been allocated under
sub. (6) (d),
(dm) or
(e) until the district to which the allocation is made has paid off the aggregate of all of its project costs under its project plan.
66.46(7)(am)
(am) Sixteen years after the last expenditure identified in the project plan is made if the district to which the plan relates is created after September 30, 1995, or 20 years after the last expenditure identified in the project plan is made if the district to which the plan relates is created before October 1, 1995, except that in no case may the total number of years during which expenditures are made under
sub. (6) (am) 1. plus the total number of years during which tax increments are allocated under this paragraph exceed 27 years.
66.46(7)(ar)
(ar) Notwithstanding
par. (am), 22 years after the last expenditure identified in the project plan is made if the district to which the plan relates is created before October 1, 1995, and the project plan is amended under
sub. (4) (h) 3.
66.46(7)(b)
(b) The local legislative body, by resolution, dissolves the district at which time the city shall become liable for all unpaid project costs actually incurred which are not paid from the special fund under
sub. (6) (c), except this paragraph does not make the city liable for any tax incremental bonds or notes issued.
66.46(8)
(8) Notice of district termination. 66.46(8)(a)(a) A city which creates a tax incremental district under this section shall give the department of revenue written notice within 10 days of the termination of the tax incremental district under
sub. (7).
66.46(8)(b)
(b) If the department of revenue receives a notice under
par. (a) during the period from January 1 to May 15, the effective date of the notice is the date the notice is received. If the notice is received during the period from May 16 to December 31, the effective date of the notice is the first January 1 after the department of revenue receives the notice.
66.46(9)
(9) Financing of project costs. 66.46(9)(a)(a) Payment of project costs may be made by any one or more of the following methods or any combination thereof:
66.46(9)(a)1.
1. Payment by the city from the special fund of the tax incremental district;
66.46(9)(a)3.
3. Payment out of the proceeds of the sale of bonds or notes issued by it under
ch. 67;
66.46(9)(a)4.
4. Payment out of the proceeds of the sale of public improvement bonds issued by it under
s. 66.059;
66.46(9)(a)6.
6. Payment out of the proceeds of revenue bonds or notes issued by it under
s. 66.066;
66.46(9)(a)7.
7. Payment out of the proceeds of revenue bonds issued by it under
s. 66.51;
66.46(9)(a)8.
8. Payment out of the proceeds of the sale of tax incremental bonds or notes issued by it under this subsection; or
66.46(9)(a)9.
9. Payment out of the proceeds of revenue bonds issued by the city as provided by
s. 66.521, for a purpose specified in that section.
66.46(9)(b)1.1. For the purpose of paying project costs or of refunding municipal obligations issued under
ch. 67 or this subsection for the purpose of paying project costs, the local legislative body may issue tax incremental bonds or notes payable out of positive tax increments. Each bond or note and accompanying interest coupon, if any, is a negotiable instrument. The bonds and notes shall not be included in the computation of the constitutional debt limitation of the city. Bonds and notes issued under this subsection, together with their interest and income, shall be taxed in the same manner as are municipal obligations issued under
s. 67.04.
66.46(9)(b)2.
2. Tax incremental bonds or notes shall be authorized by resolution of the local legislative body without the necessity of a referendum or any elector approval, but such referendum or election may be held, through the procedures provided in
s. 66.521 (10) (d). Such resolution shall state the name of the tax incremental district, the amount of bonds or notes authorized, and the interest rate or rates to be borne by such bond or notes. Such resolution may prescribe the terms, form and content of such bonds or notes and such other matters as the local legislative body deems useful.
66.46(9)(b)3.
3. Tax incremental bonds or notes may not be issued in an amount exceeding the aggregate project costs. Such bonds or notes shall mature over a period not exceeding 23 years from the date thereof or a period terminating with the date of termination of the tax incremental district, whichever period terminates earlier. Such bonds or notes may contain a provision authorizing the redemption thereof, in whole or in part, at stipulated prices, at the option of the city, on any interest payment date and shall provide the method of selecting the bonds or notes to be redeemed. The principal and interest on such bonds and notes may be payable at any time and at any place. Such bonds or notes may be payable to bearer or may be registered as to the principal or principal and interest. Such bonds or notes may be in any denominations. Such bonds or notes may be sold at public or private sale. Insofar as they are consistent with this subsection, the provisions of
ch. 67 relating to procedures for issuance, form, contents, execution, negotiation, and registration of municipal bonds and notes are incorporated herein by reference.
66.46(9)(b)4.
4. Tax incremental bonds or notes are payable only out of the special fund created under
sub. (6) (c). Each such bond or note shall contain such recitals as are necessary to show that it is only so payable and that it does not constitute an indebtedness of such city or a charge against its general taxing power. The local legislative body shall irrevocably pledge all or a part of such special fund to the payment of such bonds or notes. Such special fund or the designated part thereof may thereafter be used only for the payment of such bonds or notes and interest thereon until the same have been fully paid; and a holder of such bonds or notes or of any coupons appertaining thereto shall have a lien against such special fund for payment of such bonds or notes and interest thereon and may either at law or in equity protect and enforce such lien.
66.46(9)(b)5.
5. To increase the security and marketability of tax incremental bonds or notes, the city may:
66.46(9)(b)5.a.
a. Create a lien for the benefit of the bondholders upon any public improvements or public works financed thereby or the revenues therefrom; or
66.46(9)(b)5.b.
b. Make such covenants and do any and all such acts, not inconsistent with the Wisconsin constitution, as may be necessary or convenient or desirable in order to additionally secure such bonds or notes or tend to make the bonds or notes more marketable according to the best judgment of the local legislative body.
66.46(10)
(10) Overlapping tax incremental districts. 66.46(10)(a)(a) Subject to any agreement with bondholders, a tax incremental district may be created, the boundaries of which overlap one or more existing districts, except that districts created as of the same date may not have overlapping boundaries.
66.46(10)(b)
(b) If the boundaries of 2 or more tax incremental districts overlap, in determining how positive tax increments generated by that area which is within 2 or more districts are allocated among such districts, but for no other purpose, the aggregate value of the taxable property in such area as equalized by the department of revenue in any year as to each earlier created district is deemed to be that portion of the tax incremental base of the district next created which is attributable to such overlapped area.
66.46(11)
(11) Equalized valuation for apportionment of property taxes. 66.46(11)(a)(a) With respect to the county, school districts and any other local governmental body having the power to levy taxes on property located within a tax incremental district, if the allocation of positive tax increments has been authorized by the department of revenue under
sub. (6) (a), the calculation of the equalized valuation of taxable property in a tax incremental district for the apportionment of property taxes may not exceed the tax incremental base of the district until the district is terminated.
66.46(13)
(13) The department of commerce, in cooperation with other state agencies and local governments, shall make a comprehensive report to the governor and the chief clerk of each house of the legislature, for distribution to the legislature under
s. 13.172 (2), at the beginning of each biennium, beginning with the 1977 biennium, as to the effects and impact of tax incremental financing projects socially, economically and financially.
66.46(14)
(14) Use of tax incremental financing for inland lake protection and rehabilitation prohibited. Notwithstanding
sub. (9), no tax incremental financing project plan may be approved and no payment of project costs may be made for an inland lake protection and rehabilitation district or a county acting under
s. 59.70 (8).
66.46 History
History: 1975 c. 105,
199,
311;
1977 c. 29 ss.
724m,
725,
1646 (1), (3);
1977 c. 418;
1979 c. 221,
343;
1979 c. 361 s.
112;
1981 c. 20,
317;
1983 a. 27,
31,
207,
320,
405,
538;
1985 a. 29,
39,
285;
1987 a. 27,
186,
395;
1989 a. 31,
336;
1993 a. 293,
337,
399;
1995 a. 27 ss.
3330c to
3337,
9116 (5),
9130 (4);
1995 a. 201,
225,
227,
335;
1997 a. 3,
27,
237,
252.
66.46 Annotation
The tax Increment Law constitutionally authorizes financing of described public improvements, but does not authorize acquisition of private property by condemnation. Sigma Tau Gamma Fraternity House v. Menomonie, 93 W (2d) 392, 288 NW (2d) 85 (1980).
66.46 Annotation
TIF bonds which a city proposed to issue under this section constituted debt under Art. XI, s. 3 and are subject to its debt limits. City of Hartford v. Kirley, 172 W (2d) 191, 493 NW (2d) 45 (1992).
66.46 Annotation
Tax increment law appears constitutional on its face. 65 Atty. Gen. 194.
66.462
66.462
Environmental remediation tax incremental financing. 66.462(1)(a)
(a) "Chief executive officer" means the mayor or city manager of a city, the village president of a village, the town board chairperson of a town or the county executive of a county or, if the county does not have a county executive, the chairperson of the county board of supervisors.
66.462(1)(b)
(b) "Department" means the department of revenue.
66.462(1)(c)
(c) "Eligible costs" means capital costs, financing costs and administrative and professional service costs for the investigation, removal, containment or monitoring of, or the restoration of soil or groundwater affected by, environmental pollution, including monitoring costs incurred within 2 years after the date on which the department of natural resources certifies that environmental pollution on the property has been remediated, except that for any parcel of land "eligible costs" shall be reduced by any amounts received from persons responsible for the discharge, as defined in
s. 292.01 (3), of a hazardous substance on the property to pay for the costs of remediating environmental pollution on the property and the amount of net gain from the sale of the property by the political subdivision.
66.462(1)(d)
(d) "Environmental pollution" has the meaning given in
s. 292.01 (4), except that "environmental pollution" does not include any damage caused by runoff from land under agricultural use.
66.462(1)(e)
(e) "Environmental remediation tax increment" means that amount obtained by multiplying the total city, county, school and other local general property taxes levied on a parcel of real property that is certified under this section in a year by a fraction having as a numerator the environmental remediation value increment for that year for that parcel and as a denominator that year's equalized value of that parcel. In any year, an environmental remediation tax increment is "positive" if the environmental remediation value increment is positive; it is "negative" if the environmental remediation value increment is negative.
66.462(1)(f)
(f) "Environmental remediation tax incremental base" means the aggregate value, as equalized by the department, of a parcel of real property that is certified under this section as of the January 1 preceding the date on which the department of natural resources issues a certificate certifying that environmental pollution on the property has been remediated in accordance with rules promulgated by the department of natural resources.
66.462(1)(g)
(g) "Environmental remediation value increment" means the equalized value of a parcel of real property that is certified under this section minus the environmental remediation tax incremental base. In any year, the environmental remediation value increment is "positive" if the environmental remediation tax incremental base of the parcel of property is less than the aggregate value of the parcel of property as equalized by the department; it is "negative" if that base exceeds that aggregate value.
66.462(1)(i)
(i) "Period of certification" means a period of not more than 16 years beginning after the department certifies the environmental remediation tax incremental base of a parcel of property under
sub. (4) or a period before all eligible costs have been paid, whichever occurs first.
66.462(1)(j)
(j) "Political subdivision" means a city, village, town or county.
66.462(1)(k)
(k) "Taxable property" means all real and personal taxable property.
66.462(2)
(2) Use of environmental remediation tax increments. A political subdivision that develops, and whose governing body approves, a written proposal to remediate environmental pollution on property owned by the political subdivision may use an environmental remediation tax increment to pay the eligible costs of remediating environmental pollution on property that is not part of a tax incremental district created under
s. 66.46 and that is owned by the political subdivision at the time of the remediation and then transferred to another person after the property is remediated, as provided in this section. No political subdivision may submit an application to the department under
sub. (4) until the joint review board approves the political subdivision's written proposal under
sub. (3).
66.462(3)(a)(a) Any political subdivision that seeks to use an environmental remediation tax increment under
sub. (2) shall convene a joint review board to review the proposal. The board shall consist of one representative chosen by the school district that has power to levy taxes on the property that is remediated, one representative chosen by the technical college district that has power to levy taxes on the property, one representative chosen by the county that has power to levy taxes on the property that is remediated, one representative chosen by the political subdivision and one public member. If more than one school district, more than one technical college district or more than one county has the power to levy taxes on the property that is remediated, the unit in which is located property that has the greatest value shall choose that representative to the board. The public member and the board's chairperson shall be selected by a majority of the other board members at the board's first meeting. All board members shall be appointed and the first board meeting held within 14 days after the political subdivision's governing body approves the written proposal under
sub. (2). Additional meetings of the board shall be held upon the call of any member. The political subdivision that seeks to act under
sub. (2) shall provide administrative support for the board. By majority vote, the board may disband following approval or rejection of the proposal.
66.462(3)(b)1.1. The board shall review the written proposal and the statement described under
sub. (4) (a). As part of its deliberations the board may hold additional hearings on the proposal.
66.462(3)(b)2.
2. No written application may be submitted under
sub. (4) unless the board approves the written proposal under
sub. (2) by a majority vote not less than 10 days nor more than 30 days after receiving the proposal.
66.462(3)(b)3.
3. The board shall submit its decision to the political subdivision no later than 7 days after the board acts on and reviews the written proposal.
66.462(3)(c)1.1. The board shall base its decision to approve or deny a proposal on the following criteria:
66.462(3)(c)1.a.
a. Whether the development expected in the remediated property would occur without the use of environmental remediation tax incremental financing.
66.462(3)(c)1.b.
b. Whether the economic benefits of the remediated property, as measured by increased employment, business and personal income and property value, are insufficient to compensate for the cost of the improvements.
66.462(3)(c)1.c.
c. Whether the benefits of the proposal outweigh the anticipated environmental remediation tax increments to be paid by the owners of property in the overlying taxing districts.
66.462(3)(c)2.
2. The board shall issue a written explanation describing why any proposal it rejects fails to meet one or more of the criteria specified in
subd. 1.
66.462(3)(d)
(d) If a joint review board convened by a city or village under
s. 66.46 (4m) is in existence when a city or village seeks to act under this section, the city or village may require the joint review board convened under
s. 66.46 (4m) to exercise the functions of a joint review board that could be convened under this subsection.
66.462(4)
(4) Certification. Upon written application to the department of revenue by the clerk of a political subdivision on or before April 1 of the year following the year in which the certification described in
par. (a) is received from the department of natural resources, the department of revenue shall certify to the clerk of the political subdivision the environmental remediation tax incremental base of a parcel of real property if all of the following apply:
66.462(4)(a)
(a) The political subdivision submits a statement that it has incurred eligible costs with respect to the parcel of property and the statement details the purpose and amount of the expenditures and includes a dated certificate issued by the department of natural resources that certifies that environmental pollution on the parcel of property has been remediated in accordance with rules promulgated by the department of natural resources.
66.462(4)(b)
(b) The political subdivision submits a statement that all taxing jurisdictions with the authority to levy general property taxes on the parcel of property have been notified that the political subdivision intends to recover the costs of remediating environmental pollution on the property and have been provided a statement of the estimated costs to be recovered.
66.462(4)(c)
(c) The political subdivision submits a statement, signed by its chief executive officer, that the political subdivision has attempted to recover the cost of remediating environmental pollution on the property from responsible parties.
66.462(4)(d)
(d) The political subdivision completes and submits all forms required by the department that relate to the determination of the environmental remediation tax incremental base.
66.462(5)
(5) Designation on assessment and tax rolls. The assessor of a taxation district shall identify on the assessment roll returned and examined under
s. 70.45 those parcels of property that have been certified under
sub. (4) during the period of certification. The clerk of a taxation district shall make a similar notation on the tax roll under
s. 70.65.
66.462(6)
(6) Notice to taxing jurisdictions. During the period of certification, the department shall annually give notice to the designated finance officer of all taxing jurisdictions having the power to levy general taxes on property that is certified under
sub. (4) of the equalized value of that property and the environmental remediation tax incremental base of that property. The notice shall explain that the environmental remediation tax increment shall be paid to the political subdivision as provided under
sub. (8) from the taxes collected.
