Wisconsin Assembly Bill AB862

Wisconsin 2023-2024 Regular Session

• Introduced: 1/2/24
• Refer: 1/2/24
• Failed: 4/15/24

Caption

Extension of tax incremental district lifespan for purposes of housing stock improvement. (FE)

Impact

The primary impact of AB862 will be on state and local laws governing tax financing and property tax collection. By allowing an extension of the TID lifespan, it potentially increases the available funds for local housing projects, which could accelerate improvements and developments in affordable housing. The proposal aims to address housing shortages by providing municipalities with more flexibility in financing projects that improve residential properties. This could lead to a more robust housing market and benefit local economies reliant on housing developments.

Summary

Assembly Bill 862 seeks to amend the statutes related to tax incremental districts (TIDs) by extending the maximum lifespan for which a city or village can collect tax increments specifically for the purpose of housing stock improvement. Currently, municipalities are permitted to extend the life of a TID for only one year after the outstanding project costs are paid off. AB862 proposes to extend this period up to three years, subject to approval by other taxing jurisdictions if more than one year is involved. This adjustment reflects a strategic shift towards enhancing local housing stock through financial incentives provided by TIF.

Contention

Despite the perceived benefits, there are notable points of contention surrounding the bill. Critics may argue that extending the TID duration shifts tax revenues from other jurisdictions potentially impacting their budgetary needs. Further, there are concerns that the reliance on tax increments could sideline comprehensive strategies for addressing affordable housing needs, leading to inequitable developments. The necessity of obtaining approval from other taxing jurisdictions for extensions exceeding one year introduces a layer of bureaucracy that opponents may see as a hindrance to swift action in housing improvement efforts.