Wisconsin Senate Bill SB103

Wisconsin 2023-2024 Regular Session

• Introduced: 3/1/23
• Refer: 3/1/23
• Failed: 4/15/24

Caption

Developer-financed tax incremental districts.

Impact

The bill has the potential to significantly change the landscape of municipal financing in Wisconsin. By allowing the creation of developer-financed TIDs, it opens up new avenues for funding infrastructure projects outside the traditional constraints. This flexibility may stimulate economic development in areas adjacent to larger cities, where housing shortages and infrastructure deficits are prevalent. The emphasis on projects solely for housing-related infrastructure aligns with state initiatives to address affordable housing and urban development challenges.

Summary

Senate Bill 103 introduces provisions for the establishment of developer-financed tax incremental districts (TIDs) in Wisconsin. This legislation allows cities, villages, and eligible towns to create TIDs that are exempt from certain limitations imposed by current law, specifically the 12 percent rule regarding the aggregate value of taxable property. These new developer-financed TIDs can include non-contiguous areas and will particularly focus on financing infrastructure aimed at housing development. The bill presents an opportunity for expanding housing-related infrastructure, which has become a pressing need in many communities across the state.

Contention

Despite its potential benefits, there are notable points of contention surrounding SB103. Critics may raise concerns about the sustainability of the financing model, particularly regarding the limitation that developer payments cannot exceed 90 percent of estimated tax increments. Questions also exist about the long-term impacts on local revenues, as deviations from the 12 percent rule could lead to inequalities in how different municipalities manage their tax incremental financing. Additionally, stakeholders may debate the appropriateness of allowing non-contiguous TIDs and the implications that might have on community coherence and planning.