66.1105(12)(b)
(b) Remove parcels from the district's, or proposed district's, boundaries so that the district, or proposed district, complies with the 12 percent limit. Such a removal of parcels may not substantially alter the project plan as approved under
sub. (4) (g), or the resolution adopted under
sub. (4) (gm) and approved by the joint review board under
sub. (4m) (b) 2. Not later than 30 days after receiving the department's notice of noncompliance under
sub. (4) (gm) 4. c., the city clerk shall submit, or resubmit, to the department the application described under
sub. (5) (b), and the application shall reflect the removal of parcels under this paragraph.
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(16)(a)(a) A town may create a tax incremental district under this section if all of the following apply:
66.1105(16)(a)1.
1. The town enters into a cooperative plan with a city or village, under
s. 66.0307, under which part or all of the town will be annexed by the city or village in the future.
66.1105(16)(a)2.
2. The city or village into which the town territory will be annexed adopts a resolution approving the creation of the tax incremental district.
66.1105(16)(a)3.
3. The tax incremental district is located solely within territory that is to be annexed by a city or village as described under
subd. 1.
66.1105(16)(b)
(b) Along with the application that is filed under
sub. (5) (b), a town shall include a copy of the cooperative plan to which it is a party.
66.1105(17)
(17) Subtraction of territory, creation of new district. 66.1105(17)(a)(a) Subject to
par. (b), a city may simultaneously create a tax incremental district under this section and adopt an amendment to a project plan to subtract territory from an existing district without adopting a resolution containing the 12-percent-limit findings specified in
sub. (4) (gm) 4. c. if all of the following occur:
66.1105(17)(a)1.
1. The city includes with its application described under
sub. (5) (b) a copy of its amendment to a project plan that subtracts territory from an existing district, as described in
sub. (4) (h) 2.
66.1105(17)(a)2.
2. The city provides the department of revenue with 2 appraisals from certified appraisers, as defined in
s. 458.01 (7), which demonstrate all of the following:
66.1105(17)(a)2.a.
a. The current fair market value of the taxable property within the district that the city proposes to create.
66.1105(17)(a)2.b.
b. The current fair market value of the taxable property that the city proposes to subtract from an existing district.
66.1105(17)(a)3.
3. Both appraisals under
subd. 2. demonstrate that the value of the taxable property that is subtracted from an existing district equals or exceeds the amount that the department of revenue believes is necessary to ensure that, when the proposed district is created, the 12-percent limit specified in
sub. (4) (gm) 4. c. is met.
66.1105(17)(a)4.
4. The city certifies to the department of revenue that no other district created under this paragraph currently exists in the city.
66.1105(17)(b)
(b) A city may not act under
par. (a) if a tax incremental district that has been created under
par. (a) currently exists in the city.
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;
2005 a. 6,
13,
46,
328,
331,
385;
2007 a. 2,
10,
21,
41,
43,
57,
73,
96;
2009 a. 5,
28,
67,
170,
176,
310,
312.
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,
01-0201.
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,
01-0201.
66.1105 Annotation
TIF districts can be created or amended without notice to or input from towns that adjoin the creating municipality. Although property taxpayers in adjoining towns that lie within the same overlying taxing districts are arguably affected when TIF districts are created or amended, the towns themselves are not, and lack legally protected interests at stake in the amendment of the TIF district. Consequently, towns lack standing to challenge the creation of a TIF district by an adjoining municipality. Town of Baraboo v. Village of West Baraboo, 2005 WI App 96,
283 Wis. 2d 479,
699 N.W.2d 610,
04-0980.
66.1105 Annotation
A city may lawfully agree to cooperate with a business venture in an effort to create a TIF district as long as it is clear from the agreement that all applicable laws and procedures are to be followed. The city is not bound until the common council votes to approve the agreement. Town of Brockway v. City of Black River Falls, 2005 WI App 174,
285 Wis. 2d 708,
702 N.W.2d 418,
04-2916.
66.1105 Annotation
Tax increment law appears constitutional on its face. 65 Atty. Gen. 194.
66.1105 Annotation
A Modest Proposal: Eliminating Blight, Abolishing But-For, and Putting New Purpose in Wisconsin's Tax Increment Finance Law. Farwell. 89 MLR 407 (2005).
66.1105 Annotation
Developer-Funded Tax Incremental Financing: Promoting Development Without Breaking the Bank. Ishikawa. Wis. Law. May 2006.
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)(be)
(be) "District" means an environmental remediation tax incremental district created under this section that consists of the parcels of property described in a written proposal developed under
sub. (2) (a) that is approved by a joint review board under
sub. (3).
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, cancellation of delinquent taxes if the political subdivision demonstrates that it has not already recovered such costs by any other means, 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). 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 taxable property in a year by a fraction having as a numerator the environmental remediation value increment for that year in such district and as a denominator that year's equalized value of that taxable property. 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 taxable property that is certified under this section as of the January 1 preceding the date on which the environmental remediation tax incremental district is created, as determined under
sub. (1m) (b).
66.1106(1)(fm)
(fm) "Environmental remediation tax incremental district" means a contiguous geographic area within a political subdivision defined and created by resolution of the governing body of the political subdivision consisting solely of whole units of property as are assessed for general property tax purposes, other than railroad rights-of-way, rivers, or highways. Railroad rights-of-way, rivers, or highways may be included in an environmental remediation tax incremental district only if they are continuously bounded on either side, or on both sides, by whole units of property as are assessed for general property tax purposes which are in the environmental remediation tax incremental district. "Environmental remediation tax incremental district" does not include any area identified as a wetland on a map under
s. 23.32.
66.1106(1)(g)
(g) "Environmental remediation value increment" means the equalized value of taxable 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 taxable property is less than the aggregate value of the taxable 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 23 years beginning after the department certifies the environmental remediation tax incremental base under
sub. (4), a period before all eligible costs have been paid, or a period before all eligible costs of a recipient district designated under
sub. (2) (c) have been paid, whichever occurs first.
66.1106(1)(j)
(j) "Political subdivision" means a city, village, town or county.
66.1106(1)(je)
(je) "Project expenditures" means eligible costs and other costs incurred by a political subdivision to create and operate an environmental remediation tax incremental district.
66.1106(1)(k)
(k) "Taxable property" means all real and personal taxable property located in an environmental remediation tax incremental district.
66.1106(1m)
(1m) Creation of environmental remediation tax incremental districts. In order to implement the provisions of this section, the governing body of the political subdivision shall adopt a resolution which does all of the following:
66.1106(1m)(a)
(a) Describes the boundaries of an environmental remediation tax incremental district with sufficient definiteness to identify with ordinary and reasonable certainty the territory included within the district.
66.1106(1m)(b)
(b) Creates the district as of January 1 of the same calendar year for a resolution adopted before October 1 or as of January 1 of the next subsequent calendar year for a resolution adopted after September 30.
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 in an environmental remediation tax incremental district 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(2)(c)
(c) Notwithstanding
par. (a) or
(b), or
sub. (7) (d) 1. or
(11) (a), if the governing body of a political subdivision determines that all eligible costs of an environmental remediation tax incremental district that it created will be paid before the date specified in
sub. (11) (b), the governing body of that political subdivision may adopt a resolution requesting that the department allocate positive environmental remediation tax increments generated by that donor environmental remediation tax incremental district to pay the eligible costs of another environmental remediation tax incremental district created by that governing body. A resolution under this paragraph must be adopted before the expiration of the period of certification.
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 December 31 of the same calendar year for an environmental remediation tax incremental district created before October, as determined under
sub. (1m) (b), or December 31 of the subsequent calendar year for an environmental remediation tax incremental district created after September 30, the department of revenue shall certify to the clerk of the political subdivision the environmental remediation tax incremental base 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 or contiguous parcels 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. (am),
(b),
(c),
(d), and
(e), the department shall annually authorize the positive environmental remediation tax increment with respect to a parcel or contiguous parcels 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).
66.1106 Note
NOTE: Par. (a) is shown as affected by 2 acts of the 2009 Wisconsin legislature and as merged by the legislative reference bureau under s. 13.92 (2) (i).
66.1106(7)(am)
(am) With regard to each district for which the department authorizes the allocation of a tax increment under
par. (a), the department shall charge the political subdivision that created the district an annual administrative fee of $150 that the political subdivision shall pay to the department no later than May 15. If the political subdivision does not pay the fee that is required under this paragraph, by May 15, the department may not authorize the allocation of a tax increment under
par. (a) for that political subdivision.
66.1106(7)(b)
(b) The department may authorize a positive environmental remediation tax increment under
par. (a) only if the political subdivision submits to the department all information required by the department on or before the 2nd Monday in June of the year to which the authorization relates.
66.1106(7)(c)
(c) If the department receives the notice described under
sub. (10) (b) during the period from January 1 to May 15, the effective date of the notice is the date on which the notice is received. If the department receives the notice described under
sub. (10) (b) during the period from May 16 to December 31, the effective date of the notice is the first January 1 after the date on which the notice is received.
66.1106(7)(d)1.1. The department may not authorize a positive environmental remediation tax increment under
par. (a) to pay otherwise eligible costs that are incurred by the political subdivision after the department of natural resources certifies to the department of revenue that environmental pollution on the parcel or contiguous parcels of property has been remediated unless the costs are associated with activities, as determined by the department of natural resources, that are necessary to close the site described in the site investigation report.
66.1106(7)(d)2.
2. The department of natural resources shall certify to the department of revenue the completion of the remediation of environmental pollution at the site described in the site investigation report.
66.1106(7)(e)
(e) Notwithstanding
par. (d), if the governing body of a political subdivision adopts a resolution described in
sub. (2) (c), it shall provide a copy of the resolution to the department. The department shall authorize a positive environmental remediation tax increment generated by a donor district, as described in
sub. (2) (c), to the political subdivision that incurred eligible costs to remediate environmental pollution in another district within that political subdivision, as described in
sub. (2) (c), until the earlier of the following occurs:
66.1106(7)(e)1.
1. The political subdivision has received aggregate environmental remediation tax increments with respect to the recipient district in an amount equal to the aggregate of all of the eligible costs for that district.
66.1106(8)
(8) Settlement for environmental remediation tax increments. Every officer charged by law to collect and settle general property taxes shall, on the settlement dates provided by law, pay to the treasurer of a political subdivision from all general property taxes collected by the officer the proportion of the environmental remediation tax increment due the political subdivision that the general property taxes collected bears to the total general property taxes levied, exclusive of levies for state trust fund loans, state taxes and state special charges.
66.1106(9)
(9) Separate accounting required. An environmental remediation tax increment received with respect to a parcel or contiguous parcels of land that is subject to this section shall be deposited in a separate fund by the treasurer of the political subdivision. No money may be paid out of the fund except to pay eligible costs for a parcel or contiguous parcels of land or to reimburse the political subdivision for such costs. If an environmental remediation tax increment that has been collected with respect to a parcel of land remains in the fund after the period of certification has expired, it shall be paid to the treasurers of the taxing jurisdictions in which the parcel is located in proportion to the relative share of those taxing jurisdictions in the most recent levy of general property taxes on the parcel.
66.1106(10)
(10) Reporting requirements; notice of district termination. A political subdivision that uses an environmental remediation tax increment to pay eligible costs of remediating environmental pollution under this section shall do all of the following:
66.1106(10)(a)
(a) Prepare and make available to the public updated annual reports describing the status of all projects to remediate environmental pollution funded under this section, including revenues and expenditures. A copy of the report shall be sent to all taxing jurisdictions with authority to levy general property taxes on the parcel or contiguous parcels of property by May 1 annually.
66.1106(10)(b)
(b) Notify the department within 10 days after the period of certification for a parcel or contiguous parcels of property has expired.
