60.85(8)(a)(a) The town 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 town 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.
60.85(8)(b)
(b) Audits shall be conducted at all the following times:
60.85(8)(b)1.
1. No later than twelve months after 30 percent of the project expenditures are made.
60.85(8)(b)3.
3. No later than twelve months after the termination of the tax incremental district under sub.
(9).
60.85(8)(c)
(c) The town 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 town shall file a copy of the report with each overlying district and the department of revenue by July 1 annually. The copy of the report filed with the department of revenue shall be in electronic format. The annual report shall contain at least all of the following information:
60.85(8)(c)2.
2. The types of projects under sub.
(2) (b) that are included in the project plan and the scope of the project.
60.85(8)(c)3.
3. The name of any developer who is named in a developer's agreement with the town or who receives any financial assistance from tax increments allocated for the tax incremental district.
60.85(8)(c)4.
4. The date that the town expects the tax incremental district to terminate under sub.
(9).
60.85(8)(c)5.
5. The amount of tax increments to be deposited into a special fund for that district under sub.
(6) (d).
60.85(8)(c)6.
6. An analysis of the special fund under sub.
(6) (d) for the district. The analysis shall include all of the following:
60.85(8)(c)6.a.
a. The balance in the special fund at the beginning of the fiscal year.
60.85(8)(c)6.b.
b. All amounts deposited in the special fund by source, including all amounts received from another tax incremental district.
60.85(8)(c)6.c.
c. An itemized list of all expenditures from the special fund by category of permissible project costs.
60.85(8)(c)6.d.
d. The balance in the special fund at the end of the fiscal year, including a breakdown of the balance by source and a breakdown of the balance identifying any portion of the balance that is required, pledged, earmarked, or otherwise designated for payment of, or securing of, obligations and anticipated project costs. Any portion of the ending balance that has not been previously identified and is not identified in the current analysis as being required, pledged, earmarked, or otherwise designated for payment of, or securing of, obligations or anticipated project costs shall be designated as surplus.
60.85(8)(c)7.
7. The contact information of a person designated by the town to respond to questions or concerns regarding the annual report.
60.85 Cross-reference
Cross-reference: See also s.
Tax 12.60, Wis. adm. code.
60.85(9)
(9)
Termination of tax incremental districts. A tax incremental district terminates when the earliest of the following occurs:
60.85(9)(a)
(a) That time when the town 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.
60.85(9)(b)
(b) Eleven years after the last expenditure identified in the original, unamended project plan is made.
60.85(9)(c)
(c) The town board, by resolution, dissolves the district, at which time the town becomes liable for all unpaid project costs actually incurred which are not paid from the special fund under sub.
(6) (d).
60.85(10)
(10)
Notice of district termination. 60.85(10)(a)
(a) A town which creates a tax incremental district under this section shall give the department of revenue written notice within 10 days of the termination of the tax incremental district under sub.
(9).
60.85(10)(b)
(b) If the department of revenue receives a notice under par.
(a) during the period from January 1 to April 15, the effective date of the notice is the date the notice is received. If the notice is received during the period from April 16 to December 31, the effective date of the notice is the first January 1 after the department of revenue receives the notice.
60.85(10)(c)
(c) Not later than February 15 of the year immediately following the year in which a town transmits to the department of revenue the notice required under par.
(a), the town 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:
60.85(10)(c)1.
1. A final accounting of all expenditures made by the town.
60.85(10)(c)2.
2. The total amount of project costs incurred by the town.
60.85(10)(c)3.
3. The total amount of positive tax increments received by the town.
60.85(10)(d)
(d) If a town does not send to the department of revenue the form specified in par.
(c), the department may not certify the tax incremental base of a tax incremental district in the town under sub.
(5) (a) and
(b) until the form is sent to the department.
60.85(11)
(11)
Financing of project costs. Payment of project costs may be made by any one or more of the following methods:
60.85(11)(a)
(a) Payment by the town from the special fund of the tax incremental district.
60.85(11)(c)
(c) Payment out of the proceeds of the sale of bonds or notes issued by it under ch.
67.
60.85(11)(d)
(d) Payment out of the proceeds of the sale of public improvement bonds issued by it under s.
66.0619.
60.85(11)(f)
(f) Payment out of the proceeds of revenue bonds or notes issued by it under s.
66.0621.
60.85(11)(g)
(g) Payment out of the proceeds of revenue bonds issued by the town as provided by s.
66.1103, for a purpose specified in that section.
60.85(12)
(12)
Overlapping tax incremental districts. 60.85(12)(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.
60.85(12)(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.
60.85(13)
(13)
Equalized valuation for apportionment of property taxes. 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.
60.85(16)
(16)
Use of tax incremental financing for inland lake protection and rehabilitation prohibited. Notwithstanding sub.
(11), 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).
60.85(17)
(17)
Payment of eligible costs for annexed territory, redetermination of tax incremental base. If a city or village annexes territory from a town and if all or part of the territory that is annexed is part of a tax incremental district created by the town, the city or village shall pay to the town that portion of the eligible costs that are attributable to the annexed territory. The city or village, and the town, shall negotiate an agreement on the amount that must be paid under this subsection. The department shall redetermine the tax incremental base of any parcel of real property for which the tax incremental base was determined under sub.
(5) if part of that parcel is annexed under this subsection.
60.85(18)
(18)
Substantial compliance. Substantial compliance with subs.
(2),
(3) (a),
(b),
(c),
(d),
(e),
(f), and
(j),
(4), and
(5) (b) by a town 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 town's attempts to comply with subs.
(2),
(3) (a),
(b),
(c),
(d),
(e),
(f), and
(j),
(4), and
(5) (b) does not affect substantial justice. If the department of revenue determines that a town has substantially complied with subs.
(2),
(3) (a),
(b),
(c),
(d),
(e),
(f), and
(j),
(4), 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.
(2),
(3) (a),
(b),
(c),
(d),
(e),
(f), and
(j),
(4), and
(5) (b) had been strictly complied with based on the date that the resolution described under sub.
(3) (h) 2. is adopted.
