Wisconsin Senate Bill SB825

Wisconsin 2023-2024 Regular Session

• Introduced: 12/19/23
• Refer: 12/19/23
• Failed: 4/15/24

Caption

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

Impact

If enacted, SB825 will modify existing statutes that govern tax incremental financing, particularly enabling longer-term planning and financing options for improving housing stock. The shift from a one-year to a three-year extension could enhance the ability of local governments to attract developers and investments into housing. Additionally, a portion of the tax increments collected must be allocated towards affordable housing initiatives, emphasizing a commitment to improving living conditions within municipalities while potentially increasing property values over time.

Summary

Senate Bill 825 proposes an extension of the lifespan of tax incremental districts (TIDs) specifically for housing stock improvements. Currently, the law allows for a one-year extension once the project costs of a TID are paid off, but this bill seeks to increase that extension to a maximum of three years. The intention behind this change is to provide cities and villages more time to reinvest in local housing, potentially enhancing the affordability and quality of housing stock within their jurisdictions. This extension would be contingent upon approval from joint review boards and compliance with existing regulations regarding the use of tax increments.

Contention

While proponents argue that extending TID lifespans will stimulate housing improvements and support community development, there is concern about the implications this may have on other taxing jurisdictions. The requirement for approval from neighboring taxing authorities for any TID extension beyond one year raises questions about whether they will align interests with municipal goals, which could lead to contention between local governments and other stakeholders regarding the allocation of tax revenues. Critics may also question whether this bill sufficiently addresses the urgent need for affordable housing in light of rising costs and the increasingly competitive real estate market.