Wisconsin Assembly Bill AB96

Wisconsin 2023-2024 Regular Session

• Introduced: 3/8/23
• Refer: 3/8/23
• Report Pass: 6/7/23
• Refer: 6/7/23
• Engrossed: 6/14/23
• Refer: 6/14/23
• Failed: 4/15/24

Caption

Developer-financed tax incremental districts.

Impact

The passage of AB96 signifies a pivotal shift in the regulatory landscape surrounding tax incremental financing in Wisconsin. By effectively broadening the powers of towns with populations exceeding 4,000 adjacent to cities, this legislation could lead to increased housing development and infrastructure improvements within those areas. Proponents argue that this approach will expedite the creation of necessary housing infrastructure, thereby addressing housing shortages. Conversely, there are concerns about how this could lead to unregulated growth without adequate oversight, potentially impacting local planning.

Summary

Assembly Bill 96 introduces a framework for allowing certain towns, as well as cities and villages, to establish developer-financed tax incremental districts (TIDs). This initiative aims to facilitate the construction of infrastructure specifically related to housing projects. The bill notably exempts developer-financed TIDs from certain prevailing laws governing TIDs, such as the 12 percent cap on the aggregate value of taxable properties in a district and the requirement that all areas within a TID be contiguous. Through this amendment, the bill seeks to enhance local authorities' capacity to stimulate residential development in areas that may otherwise face statutory limitations.

Contention

The bill has drawn some controversy, particularly regarding how it diminishes the restrictions previously placed on tax incremental financing mechanisms. Critics raise concerns about potential adverse effects on local governance and planning, arguing that it centralizes decision-making power and may foster environments ripe for developer exploitation. Moreover, the stipulation whereby the city shares only a limited portion of tax increments with other districts is seen as a potential source of conflict, as neighboring jurisdictions may feel disadvantaged by the funding decisions of cities involved in these developer-financed TIDs.