Wisconsin Senate Bill SB6

Wisconsin 2023-2024 Regular Session

• Introduced: 1/27/23
• Refer: 1/27/23
• Report Pass: 4/13/23
• Failed: 4/15/24

Caption

Eliminating certain exceptions established for Pleasant Prairie Tax Incremental District Number 2. (FE)

Impact

By tightening the regulations concerning TIDs in Pleasant Prairie, SB6 impacts how the village will be able to finance and manage development projects. Without the previously established exceptions, any new or amended TID will need to conform to the more restrictive valuation standards. This could limit the village's ability to invest in new projects aimed at stimulating economic development or revitalizing areas that may have struggled financially. This bill aims to ensure financial accountability and uniformity in the management of local tax increment financing.

Summary

Senate Bill 6 seeks to eliminate specific exceptions that were previously established for Tax Incremental Districts (TIDs) in the village of Pleasant Prairie. The bill specifically repeals measures that allowed for preferential treatment in the creation and management of TIDs, particularly TID Number 2. This change means that all TIDs created by Pleasant Prairie will now be subject to the general statutory limits concerning the equalized value of taxable property, which cannot exceed 12 percent of the total equalized value of taxable property within the city. The implications of this bill are significant for local fiscal planning and development.

Contention

There are notable points of contention surrounding the bill. Proponents argue that removing the exceptions will prevent potential fiscal irresponsibility and misuse of TID mechanisms, while ensuring a fair framework for all municipalities in Wisconsin. However, opponents raise concerns that this could stifle growth opportunities in Pleasant Prairie, especially in areas where the village might otherwise seek to expand or adjust existing TIDs. The fear is that this legislative change could hinder local economic initiatives aimed at enhancing property values or attracting new businesses to the area.