Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB862 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	LRB-4582/1
2	2	EVM:amn
3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 862
5	5	January 2, 2024 - Introduced by Representatives RATCLIFF, JACOBSON, C. ANDERSON,
6	6	JOERS, CONLEY, BALDEH, BARE, J. ANDERSON, OHNSTAD and DRAKE, cosponsored
7	7	by Senators L. JOHNSON, SPREITZER, TAYLOR and AGARD. Referred to Committee
8	8	on Ways and Means.
9	9	*AUTHORS SUBJECT TO CHANGE*
10	10	AN ACT to amend 66.1105 (6) (g) 1. (intro.) and 66.1105 (6) (g) 1. b.; and to create
11	11	66.1105 (6) (g) 1m. of the statutes; relating to: extension of tax incremental
12	12	district lifespan for purposes of housing stock improvement.
13	13	Analysis by the Legislative Reference Bureau
14	14	This bill extends the maximum length of a tax incremental district (TID) life
15	15	extension for housing stock improvement from one year to three years.
16	16	Under current law, cities and villages may use tax incremental financing (TIF)
17	17	to encourage development in the city or village. In general, under TIF, a city or
18	18	village pays for improvements in a TID and then collects tax moneys attributable to
19	19	all taxing jurisdictions on the increased property value in the TID for a certain period
20	20	of time to pay for the improvements. Ideally, after the period of time, the city or
21	21	village will have been repaid for its initial investment and the property tax base in
22	22	the TID will have permanently increased in value.
23	23	In general and in brief, a city or village makes use of TIF using the following
24	24	procedure:
25	25	1. The city or village designates an area as a TID and creates a project plan
26	26	laying out the expenditures that the city or village will make within the TID.
27	27	2. The Department of Revenue establishes the “base value” of the TID. This
28	28	value is the equalized value of all taxable property within the TID at the time of its
29	29	creation.
30	30	3. Each year thereafter, the “value increment” of the property within the TID
31	31	is determined by subtracting the base value from the current value of property
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34	34	3 - 2 -2023 - 2024 Legislature LRB-4582/1
35	35	EVM:amn
36	36	ASSEMBLY BILL 862
37	37	within the TID. The portion of taxes collected on any positive value increment is
38	38	collected by the city or village for use solely for the project costs of the TID. The taxes
39	39	collected by the city or village on positive value increments include taxes that would
40	40	have been collected by other taxing jurisdictions, such as counties or school districts,
41	41	were the TID not created.
42	42	4. Tax increments are collected until the city or village has recovered all of its
43	43	project costs or until the TID reaches its statutory termination date.
44	44	Currently, a city or village may extend the life of a TID for up to one year for
45	45	housing stock improvement if all of the following occur:
46	46	1. The city or village pays off all of the TID's project costs.
47	47	2. The city or village adopts a resolution stating that it intends to extend the
48	48	life of the TID, the number of months it intends to do so, and how it intends to improve
49	49	housing stock.
50	50	3. The city or village notifies DOR.
51	51	Current law requires the city or village to use 75 percent of the tax increments
52	52	received during the period specified in the resolution to benefit affordable housing
53	53	in the city or village and 25 percent to otherwise improve the city's or village's
54	54	housing stock.
55	55	Under the bill, a TID's life may be extended for up to three years for housing
56	56	stock improvement. However, for any extension of more than one year, the other
57	57	taxing jurisdictions must approve of the extension.
58	58	Because this bill may increase or decrease, directly or indirectly, the cost of the
59	59	development, construction, financing, purchasing, sale, ownership, or availability of
60	60	housing in this state, the Department of Administration, as required by law, will
61	61	prepare a report to be printed as an appendix to this bill.
62	62	For further information see the state and local fiscal estimate, which will be
63	63	printed as an appendix to this bill.
64	64	The people of the state of Wisconsin, represented in senate and assembly, do
65	65	enact as follows:
66	66	SECTION 1. 66.1105 (6) (g) 1. (intro.) of the statutes is amended to read:
67	67	66.1105 (6) (g) 1. (intro.) After Subject to subd. 1m., after the date on which a
68	68	tax incremental district created by a city pays off the aggregate of all of its project
69	69	costs, and notwithstanding the time at which such a district would otherwise be
70	70	required to terminate under sub. (7), a city may extend the life of the district for one
71	71	year 3 years if the city does all of the following:
72	72	SECTION 2. 66.1105 (6) (g) 1. b. of the statutes is amended to read:
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80	80	LRB-4582/1
81	81	EVM:amn
82	82	SECTION 2
83	83	ASSEMBLY BILL 862
84	84	66.1105 (6) (g) 1. b. The city forwards a copy of the resolution under subd. 1.
85	85	a. and, if the extension is for more than one year, a copy of the resolution under subd.
86	86	1m., to the department of revenue, notifying the department that it must continue
87	87	to authorize the allocation of tax increments to the district under par. (a).
88	88	SECTION 3. 66.1105 (6) (g) 1m. of the statutes is created to read:
89	89	66.1105 (6) (g) 1m. An extension under subd. 1. may not be for more than one
90	90	year unless the joint review board approves, by resolution, the extension under subd.
91	91	1.
92	92	(END)
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