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.
66.1106(2)
(2) Use of environmental remediation tax increments. 66.1106(2)(a)(a) A political subdivision that develops, and whose governing body approves, a written proposal to remediate environmental pollution may use an environmental remediation tax increment to pay the eligible costs of remediating environmental pollution on contiguous parcels of property that are located within the political subdivision and that are not part of a tax incremental district created under
s. 66.1105, as provided in this section, except that a political subdivision may use an environmental remediation tax increment to pay the cost of remediating environmental pollution of groundwater without regard to whether the property above the groundwater is owned by the political subdivision. 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).
66.1106(2)(b)
(b) 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 the department under
sub. (4).
66.1106(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 city, village or town that has power to levy taxes on the property that is remediated and one public member. If more than one city, village or town, 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.
66.1106(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.
66.1106(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.
66.1106(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.
66.1106(3)(c)1.1. The board shall base its decision to approve or deny a proposal on the following criteria:
66.1106(3)(c)1.a.
a. Whether the development expected in the remediated property would occur without the use of environmental remediation tax incremental financing.
66.1106(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.
66.1106(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.
66.1106(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.
66.1106(3)(d)
(d) If a joint review board convened by a city or village under
s. 66.1105 (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. 66.1105 (4m) to exercise the functions of a joint review board that could be convened under this subsection.
66.1106(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:
66.1106(4)(a)
(a) The political subdivision submits a statement that it has incurred some eligible costs, and includes with the statement a detailed proposed remedial action plan approved by the department of natural resources that contains cost estimates for anticipated eligible costs and a schedule for the design, implementation and construction that is needed to complete the remediation, with respect to the parcel or contiguous parcels of property and the statement details the purpose and amount of the expenditures already made and includes a dated certificate issued by the department of natural resources that certifies that the department of natural resources has approved the site investigation report that relates to the parcel or contiguous parcels in accordance with rules promulgated by the department of natural resources.
66.1106(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.
66.1106(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 the person who caused the environmental pollution.
66.1106(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.
66.1106(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.
66.1106(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.
66.1106(7)
(7) Environmental remediation tax increments authorized. 66.1106(7)(a)(a) Subject to
pars. (b),
(c) and
(d), the department shall annually authorize the positive environmental remediation tax increment with respect to a parcel of property during the period of certification to the political subdivision that incurred the costs to remediate environmental pollution on the property, except that an authorization granted under this paragraph does not apply after the department receives the notice described under
sub. (10) (b).
