Wisconsin Assembly Bill AB834

Wisconsin 2023-2024 Regular Session

• Introduced: 12/22/23
• Refer: 12/22/23
• Report Pass: 2/7/24
• Refer: 2/7/24
• Failed: 4/15/24

Caption

Limitations on the total value of taxable property that may be included in a tax incremental financing district created in the city of Evansville. (FE)

Impact

The introduction of AB834 has implications for local economic development strategies as it enables the city of Evansville to potentially expand its tax increment financing efforts without being constrained by the typical property value limitations. Proponents of the bill argue that it will stimulate investment in the district, leading to job creation and enhanced public services funded by increased tax revenues generated from the growth of property values in the TIF district. This could serve as a model for other municipalities facing similar barriers to local funding for development projects.

Summary

Assembly Bill 834 aims to amend the current regulations regarding tax incremental financing (TIF) districts in the city of Evansville. Specifically, it creates an exception to the existing 12 percent limitation on the total value of taxable property that may be included in a TIF district. This exception applies to Tax Incremental District Number 10 established by the Evansville common council and will remain in effect only as long as the district is operational. The intent of this legislation is to facilitate economic development within the city by allowing for greater investment in this particular district.

Contention

Despite its intended benefits, AB834 is likely to face scrutiny regarding its potential impact on local governance and fiscal responsibility. Critics may raise concerns about creating a special exception that could set a precedent for other TIF districts within the state, possibly undermining the regulatory framework designed to maintain tax equity among various municipalities. Furthermore, discussions may center around whether such measures inadvertently favor certain areas at the expense of broader community needs, raising questions about the fairness of tax policy in Wisconsin.