66.1105(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 the 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 the 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.
66.1105(6)(f)1.1. 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 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:
66.1105(6)(f)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.
66.1105(6)(f)1.b.
b. The allocation of tax increments under this paragraph is approved by the joint review board.
66.1105(6)(f)2.
2. An allocation of tax increments under this paragraph may be used by the recipient district only if one of the following applies:
66.1105(6)(f)2.a.
a. The project costs in the recipient district are used to create, provide, or rehabilitate low-cost housing or to remediate environmental contamination.
66.1105(6)(f)2.b.
b. The recipient district was created upon a finding that not less than 50 percent, by area, of the real property within the district is blighted or in need of rehabilitation.
66.1105(6)(f)3.
3. The allocation of positive tax increments from a donor district to one or more recipient districts cannot be made unless the donor district has first satisfied all of its current-year debt service and project cost obligations.
66.1105(6)(f)4.
4. No city may request or receive under
sub. (7) (am) 2. an extension for the life of a donor tax incremental district.
66.1105(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 local workforce development board established under
29 USC 2832, 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.
66.1105(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 local workforce development board established under
29 USC 2832, 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.
66.1105(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.
66.1105(6m)(b)1.
1. Twelve months after 30% of the project expenditures are made;
66.1105(6m)(b)3.
3. Twelve months after the termination of the tax incremental district under
sub. (7).
66.1105(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.
66.1105(7)
(7) Termination of tax incremental districts. A tax incremental district terminates when the earlier of the following occurs:
66.1105(7)(a)
(a) That time when the city has received aggregate tax increments with respect to the district in an amount equal to the aggregate of all project costs under the project plan and any amendments to the project plan for the district, except that this paragraph does not apply to a district whose positive tax increments have been allocated under
sub. (6) (d),
(dm),
(e), or
(f) until the district to which the allocation is made has paid off the aggregate of all of its project costs under its project plan.
66.1105(7)(ak)1.1. Except as provided in
par. (am) 1., for a district about which a finding is made under
sub. (4) (gm) 4. a. that not less than 50 percent, by area, of the real property within the district is a blighted area or an area in need of rehabilitation or conservation work, and if the district to which the plan relates is created after September 30, 1995, and before October 1, 2004, 27 years after the district is created.
66.1105(7)(ak)2.
2. For a district that is created after September 30, 1995, and before October 1, 2004, and that is not subject to
subd. 1., 23 years after the district was created, and for a district that is created before October 1, 1995, 27 years after the district is created.
66.1105(7)(am)1.1. For a district described under
par. (ak) 1., the time period specified in that subdivision, except that the city that created the district may, subject to
sub. (8) (e), request that the joint review board extend the life of the district for an additional 4 years. Along with its request for a 4-year extension, the city may provide the joint review board with an independent audit that demonstrates that the district is unable to pay off its project costs within the 27 years after the district is created. The joint review board may deny or approve a request to extend the life of the district for 4 years if the request does not include the independent audit, and the board shall approve a request to extend the life of the district for 4 years if the request includes the audit. If the joint review board extends the district's life, the district shall terminate at the earlier of the end of the extended period or the period specified in
par. (a).
66.1105(7)(am)2.
2. For a district that is created after September 30, 2004, about which a finding is made under
sub. (4) (gm) 4. a. that not less than 50 percent, by area, of the real property within the district is suitable for industrial sites or mixed-use development, 20 years after the district is created, except that the city that created the district may, subject to
sub. (8) (e), request that the joint review board extend the life of the district for an additional 3 years. Along with its request for a 3-year extension, the city may provide the joint review board with an independent audit that demonstrates that the district is unable to pay off its project costs within the 20 years after the district is created. The joint review board may deny or approve a request to extend the life of the district for 3 years if the request does not include the independent audit, and the board shall approve a request to extend the life of the district for 3 years if the request includes the audit. If the joint review board extends the district's life, the district shall terminate at the earlier of the end of the extended period or the period specified in
par. (a).
66.1105(7)(am)3.
3. For a district that is created after September 30, 2004, about which a finding is made under
sub. (4) (gm) 4. a. that not less than 50 percent, by area, of the real property within the district is a blighted area or in need of rehabilitation, 27 years after the district is created, except that the city that created the district may, subject to
sub. (8) (e), request that the joint review board extend the life of the district for an additional 3 years. Along with its request for a 3-year extension, the city may provide the joint review board with an independent audit that demonstrates that the district is unable to pay off its project costs within the 27 years after the district is created. The joint review board may deny or approve a request to extend the life of the district for 3 years if the request does not include the independent audit, and the board shall approve a request to extend the life of the district for 3 years if the request includes the audit. If the joint review board extends the district's life, the district shall terminate at the earlier of the end of the extended period or the period specified in
par. (a).
66.1105(7)(ar)
(ar) Notwithstanding
par. (am), 35 years after the district is created if it was created before October 1, 1995, and if the project plan is amended under
sub. (4) (h) 4.
66.1105(7)(as)
(as) Notwithstanding
par. (am), 35 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
sub. (6) (d) applies to the district.
66.1105(7)(at)
(at) Notwithstanding
par. (am), 16 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 expenditure period is specified in
sub. (6) (am) 2. c.
66.1105(7)(b)
(b) The local legislative body, by resolution, dissolves the district at which time the city becomes 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.
66.1105(8)
(8) Notice of district termination, reporting requirements. 66.1105(8)(a)(a) A city which creates a tax incremental district under this section shall give the department of revenue written notice within 60 days of the termination of the tax incremental district under
sub. (7).
66.1105(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.
66.1105(8)(c)
(c) After a city transmits to the department of revenue the notice required under
par. (a), the city and the department shall agree on a date by which the city shall send to the department, on a form prescribed by the department, all of the following information that relates to the terminated tax incremental district:
66.1105(8)(c)1.
1. A final accounting of all expenditures made by the city.
66.1105(8)(c)3.
3. The total amount of positive tax increments received by a city.
66.1105(8)(c)4.
4. The total amount of project costs, if any, not paid for with tax increments that became obligations of the city after the district was terminated.
66.1105(8)(d)
(d) If a city does not send to the department of revenue the form specified in
par. (c) within the time limit agreed to by the city and the department under
par. (c), the department may not certify the tax incremental base of a tax incremental district under
sub. (5) (a) and
(b) until the form is sent to the department.
66.1105(8)(e)
(e) A city shall notify the department of revenue at least one year before the date on which a tax incremental district is required to terminate under
sub. (7) (am) if a joint review board approves a request to extend the life of the district under
sub. (7) (am). If a city does not notify the department of revenue by that date, the department may deny the extension.
66.1105(9)(a)(a) Payment of project costs may be made by any one or more of the following methods:
66.1105(9)(a)1.
1. Payment by the city from the special fund of the tax incremental district;
66.1105(9)(a)3.
3. Payment out of the proceeds of the sale of bonds or notes issued by it under
ch. 67;
66.1105(9)(a)4.
4. Payment out of the proceeds of the sale of public improvement bonds issued by it under
s. 66.0619;
66.1105(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
66.1105(9)(a)9.
9. Payment out of the proceeds of revenue bonds issued by the city as provided by
s. 66.1103, for a purpose specified in that section.
66.1105(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.
66.1105(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 a referendum or election may be held, through the procedures provided in
s. 66.1103 (10) (d). The 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 the bond or notes. The resolution may prescribe the terms, form and content of the bonds or notes and any other matters that the local legislative body deems useful.
66.1105(9)(b)3.
3. Tax incremental bonds or notes may not be issued in an amount exceeding the aggregate project costs. The bonds or notes shall mature over a period not exceeding 23 years from the date of issuance or a period terminating with the date of termination of the tax incremental district, whichever period terminates earlier. The bonds or notes may contain a provision authorizing the redemption of the bonds or notes, 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 the bonds and notes may be payable at any time and at any place. The bonds or notes may be payable to bearer or may be registered as to the principal or principal and interest. The bonds or notes may be in any denominations. The bonds or notes may be sold at public or private sale. To the extent 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 apply to bonds or notes issued under this subsection.
66.1105(9)(b)4.
4. Tax incremental bonds or notes are payable only out of the special fund created under
sub. (6) (c). Each bond or note shall contain the recitals necessary to show that it is only so payable and that it does not constitute an indebtedness of the city or a charge against its general taxing power. The local legislative body shall irrevocably pledge all or a part of the special fund to the payment of the bonds or notes. The special fund or the designated part of the fund may then be used only for the payment of the bonds or notes and interest on the bonds or notes until the bonds or notes have been fully paid; and a holder of the bonds or notes or of any coupons appertaining to the bonds or notes has a lien against the special fund for payment of the bonds or notes and interest on the bonds or notes and may either at law or in equity protect and enforce the lien.
66.1105(9)(b)5.
5. To increase the security and marketability of tax incremental bonds or notes, the city may:
66.1105(9)(b)5.a.
a. Create a lien for the benefit of the bondholders upon any public improvements or public works financed by the bonds or notes or the revenues from the bonds or notes; or
66.1105(9)(b)5.b.
b. Make covenants and do any acts, not inconsistent with the Wisconsin constitution, necessary or convenient or desirable in order to additionally secure the bonds or notes or tend to make the bonds or notes more marketable according to the best judgment of the local legislative body.
66.1105(10)
(10) Overlapping tax incremental districts. 66.1105(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.
66.1105(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 the overlapping districts, but for no other purpose, the aggregate value of the taxable property in the area as equalized by the department of revenue in any year as to each earlier created district is that portion of the tax incremental base of the district next created which is attributable to the overlapped area.
66.1105(11)
(11) Equalized valuation for apportionment of property taxes. 66.1105(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.
66.1105(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.
66.1105(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).
66.1105(15)
(15) Substantial compliance. Substantial compliance with
subs. (3),
(4) (a),
(b),
(c),
(d),
(e),
(f), and
(h),
(4m), and
(5) (b) by a city that creates, or attempts to create, a tax incremental district is sufficient to give effect to any proceedings conducted under this section if, in the opinion of the department of revenue, any error, irregularity, or informality that exists in the city's attempts to comply with
subs. (3),
(4) (a),
(b),
(c),
(d),
(e),
(f), and
(h),
(4m), and
(5) (b) does not affect substantial justice. If the department of revenue determines that a city has substantially complied with
subs. (3),
(4) (a),
(b),
(c),
(d),
(e),
(f), and
(h),
(4m), and
(5) (b), the department of revenue shall determine the tax incremental base of the district, allocate tax increments, and treat the district in all other respects as if the requirements under
subs. (3),
(4) (a),
(b),
(c),
(d),
(e),
(f), and
(h),
(4m), and
(5) (b) had been strictly complied with based on the date that the resolution described under
sub. (4) (gm) 2. is adopted.
66.1105 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;
1999 a. 9;
1999 a. 150 ss.
457 to
472; Stats. 1999 s. 66.1105;
2001 a. 5,
11,
16,
104;
2003 a. 34,
46,
126,
127,
194,
320,
326.
66.1105 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 Wis. 2d 392,
288 N.W.2d 85 (1980).
66.1105 Annotation
TIF bonds that 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 Wis. 2d 191,
493 N.W.2d 45 (1992).
66.1105 Annotation
Whether the city appropriately determined the project costs under sub. (2) (f) 1. is not a relevant consideration for the joint review board under sub. (4m) (c) 1. The joint review board generally considers the benefits and costs of the TIF district. A failure to consider whether the project plan should include the cost of improving areas outside the TIF district is not grounds for invalidating the board's decision. State ex rel. Olson v. City of Baraboo Joint Review Board, 2002 WI App 64,
252 Wis. 2d 628,
643 N.W.2d 796.
66.1105 Annotation
While sub. (4m) (c) 1. directs the joint review board to consider whether the development expected in the TIF district would occur without the use of tax incremental financing, it does not follow that the joint review board is barred from approving a TIF district if there is any land within the district that would have otherwise been developed. State ex rel. Olson v. City of Baraboo Joint Review Board, 2002 WI App 64,
252 Wis. 2d 628,
643 N.W.2d 796.
66.1105 Annotation
Tax increment law appears constitutional on its face. 65 Atty. Gen. 194.
66.1106
66.1106
Environmental remediation tax incremental financing. 66.1106(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.
66.1106(1)(c)
(c) "Eligible costs" means capital costs, financing costs and administrative and professional service costs, incurred or estimated to be incurred by a political subdivision, for the investigation, removal, containment or monitoring of, or the restoration of soil, air, surface water, sediments 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, property acquisition costs, demolition costs including asbestos removal, and removing and disposing of underground storage tanks or abandoned containers, as defined in
s. 292.41 (1), 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, by any amounts received, or reasonably expected by the political subdivision to be received, from a local, state or federal program for the remediation of contamination in the district that do not require reimbursement or repayment and by the amount of net gain from the sale of the property by the political subdivision. "Eligible costs" associated with groundwater affected by environmental pollution include investigation and remediation costs for groundwater that is located in, and extends beyond, the property that is being remediated.
66.1106(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.
66.1106(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.
66.1106(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.
66.1106(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.
66.1106(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.
66.1106(1)(j)
(j) "Political subdivision" means a city, village, town or county.
66.1106(1)(k)
(k) "Taxable property" means all real and personal taxable property.
