66.1105(16)(f)1.1. Except as provided in
subd. 2., if a city or village is in the process of annexing or attaching a district created under this subsection, but has not completed the process, the city or village may enter into a contract or agreement related to the district, with any person, or may assume an obligation of the district, and the town would continue to receive any tax increments for which it is eligible until the annexation or attachment process is complete.
66.1105(16)(f)2.
2. A contract, agreement, or obligation, as described under
subd. 1., does not apply and may not be enforced until the annexation or attachment process is complete and the city or village begins to receive tax increments associated with the district.
66.1105(17)(a)(a)
Subtraction of territory, creation of new district. 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)
Limits on creation of new district. 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(17)(c)
(c)
Village of Pleasant Prairie exception. With regard to the 12 percent limit described under
sub. (4) (gm) 4. c., the following limit applies to the village of Pleasant Prairie:
66.1105(17)(c)1.
1. If the village would like to create a new district, the sum of the following amounts may not exceed 12 percent of the total equalized value of taxable property within the village: the equalized value of taxable property of the district; the value increment of all existing districts in the village, other than Tax Incremental District Number 2; and 1.33 times the tax incremental base of Tax Incremental District Number 2.
66.1105(17)(c)2.
2. If the village would like to amend the project plan of an existing district to add territory to that district, the sum of the following amounts may not exceed 12 percent of the total equalized value of taxable property within the village: the equalized value of the taxable property to be added to the district; the value increment of all existing districts in the village, other than Tax Incremental District Number 2; and 1.33 times the tax incremental base of Tax Incremental District Number 2.
66.1105(18)(a)(a)
Requirements. Two or more cities may enter into an intergovernmental cooperation agreement under
s. 66.0301 to jointly create a multijurisdictional tax incremental district under this section if all of the following apply:
66.1105(18)(a)1.
1. The district's borders contain territory in all of the cities that are a party to the agreement.
66.1105(18)(a)3.
3. At least one parcel in each participating city touches at least one parcel in at least one of the other cities.
66.1105(18)(b)
(b)
Contents of an agreement. The agreement described under
par. (a) shall contain provisions that specify at least all of the following with regard to the proposed multijurisdictional tax incremental district:
66.1105(18)(b)1.
1. A detailed description of how all of the participating cities will be able to exercise the powers authorized under
sub. (3) and meet the requirements under
sub. (4).
66.1105(18)(b)2.
2. A detailed description of how determinations will be made that relate to incurring debt, expending funds for project costs, and distributing positive tax increments allocated by the department of revenue.
66.1105(18)(b)3.
3. The extent to which one of the cities will be authorized by all of the other participating cities to act on behalf of all of the participating cities on some or all matters relating to the district.
66.1105(18)(b)4.
4. A binding dispute resolution procedure to be used by the cities to resolve in a timely fashion any disputes between the participating cities related to the agreement or to the district. The dispute resolution procedure shall include a dissolution provision that allows all of the participating cities to agree to jointly dissolve the district at any time before a dispute is settled by the binding dispute resolution procedure and before the district would otherwise terminate under
sub. (7). The dissolution provision shall describe in detail how and under what circumstances the district may be dissolved before it would otherwise terminate under
sub. (7) and shall specify how the district's assets, liabilities, and any other outstanding obligations will be distributed among the participating cities.
66.1105(18)(b)5.
5. A detailed description of the proposed membership of the joint review board.
66.1105(18)(b)6.
6. A detailed description of the responsibilities of each city's planning commission, the membership and authority of the planning commission for the district, and the operating procedures to be followed by the district's planning commission.
66.1105(18)(b)7.
7. A detailed description of the responsibilities of each city's clerk, treasurer, assessor, and any other officer or official to carry out the requirements of this section, and a detailed description of which clerk, treasurer, assessor, officer, or official will be responsible for each task specified in this section.
66.1105(18)(b)8.
8. Which city will be the lead city for purposes of completing any documents or tasks that this section or the department of revenue require to be completed, which city will be responsible for submitting the district's creation documents, and which city will be responsible for submitting the district's project plan amendment documents.
66.1105(18)(b)9.
9. That all of the participating cities agree that the district's application will be submitted in its entirety as one complete application by the lead city, as determined by the department of revenue.
66.1105(18)(b)10.
10. Consistent with the requirements of
sub. (7), a statement that the entire district will terminate at one time as a single entity and that the lead city shall submit to the department of revenue all necessary notices and reports relating to the termination of the district.
66.1105(18)(b)11.
11. A detailed description of the procedures the participating cities will follow to determine all of the following:
66.1105(18)(b)12.
12. A description of how any annexation costs incurred by a participating city under
s. 66.0219 (10) (a) 1. will be shared among all of the participating cities if the annexed territory is part of the district.
66.1105(18)(c)1.1. Notwithstanding the provisions under
sub. (6) (d),
(dm),
(e), or
(f), a multijurisdictional tax incremental district may not become a donor district, or receive tax increments from a donor district.
66.1105(18)(c)2.
2. Notwithstanding the provisions under
sub. (2) (f) 1. k.,
m., and
n., a multijurisdictional tax incremental district may not incur project costs for any area that is outside of the district's boundaries.
66.1105(18)(c)3.
3. The 12 percent limit findings requirement under
sub. (4) (gm) 4. c. apply on an aggregate basis to all cities that are part of a multijurisdictional district except, for one or more of the participating cities in the multijurisdictional district, the part of the district that is in an individual city may cause that city to exceed the 12 percent limit if the governing bodies of all the taxation districts that overlay that city adopt a resolution approving the creation of the district even though that city exceeds the 12 percent limit.
66.1105(18)(c)4.
4. No town may be part of a multijurisdictional tax incremental district.
66.1105(18)(d)
(d)
Role of the department of revenue. The department of revenue may require each participating city to submit any forms prescribed by the department without regard to whether a particular city is the lead city as described under
par. (b) 8. and without regard to the responsibility of each participating city as specified in the agreement described under
par. (a).
66.1105(18)(e)1.1. A copy of the agreement described under
par. (a), as signed by all of the participating cities, shall be forwarded to the department of revenue by the lead city as described under
par. (b) 8.
66.1105(18)(e)2.
2. Without regard to the number of participating cities in the multijurisdictional tax incremental district, the department of revenue may impose only one fee under
sub. (5) (a) for each action taken by the department under that paragraph for such a district. Unless the agreement under
par. (a) provides otherwise, the lead city, as described under
par. (b) 8., is responsible for any fees imposed by the department under
sub. (5) (a).
66.1105(18)(e)3.
3. Without regard to the number of participating cities in the multijurisdictional tax incremental district, the department of revenue may impose only one annual administrative fee described in
sub. (6) (ae) in the amount specified in that paragraph. Unless the agreement under
par. (a) provides otherwise, the lead city, as described under
par. (b) 8., is responsible for the annual fee and shall submit it to the department.
66.1105(19)
(19) Alternate method to create a district in recently annexed town territory. 66.1105(19)(a)(a)
Authorization. If, within 90 days of annexing town territory, a city holds a hearing under
sub. (4) (a) on the proposed creation of a tax incremental district that is to be located in that former town territory, the city may create a tax incremental district under this section and subject to the limitations and conditions in
par. (b), or the city may create a district in such annexed territory as otherwise provided in this section without being subject to the limitations and conditions in
par. (b).
66.1105(19)(b)1.1. Notwithstanding
sub. (7), a district created under this subsection must terminate upon the earlier of 7 years after the district's creation or 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.
66.1105(19)(b)2.
2. A district created under this subsection may not allocate positive tax increments to another district as described in
sub. (6) (e) or
(f).
66.1105(19)(b)4.
4. Notwithstanding the limit on expenditures described in
sub. (6) (am) 1., a district created under this subsection may make expenditures until October 1, 2016.
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;
2011 a. 10,
12,
32,
40,
41,
77,
137,
139;
2011 a. 260 s.
81;
2013 a. 2,
32,
90;
2013 a. 165 ss.
43,
44,
114;
2013 a. 173 s.
32;
2013 a. 183,
193,
284,
299; s. 35.17 correction in (5) (i) 1.
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 joint review board created under sub. (4m) may conclude that an amendment to a tax incremental district (TID) to provide for payment of already-scheduled street paving work is appropriate for inclusion as proposed project costs. The board could also approve actual street paving expenditures incurred outside of a TID and within a one-half mile radius of the TID's boundaries, if the expenditures are in accordance with the approved project plan.
OAG 6-11.
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 or project 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 or to pay project costs, as defined in
s. 66.1105 (2) (f), of a tax incremental district created under
s. 66.1105 and located in the same overlying taxing jurisdictions and that satisfies one of the requirements under
s. 66.1105 (6) (f) 2. 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.
