Wisconsin 2025-2026 Regular Session

Wisconsin Assembly Bill AB137 Compare Versions

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

Old	New	Differences
1	1	2025 - 2026 LEGISLATURE
2	2	LRB-2164/1
3	3	EVM:cdc
4	4	2025 ASSEMBLY BILL 137
5	5	March 13, 2025 - Introduced by Representatives KURTZ, NOVAK, WITTKE,
6	6	MCCARVILLE, ARNEY, DONOVAN, JOERS, PENTERMAN, ROE, SPIROS and
7	7	TENORIO, cosponsored by Senators WANGGAARD, KEYESKI and TOMCZYK.
8	8	Referred to Committee on Local Government.
9	9
10	10	*AUTHORS SUBJECT TO CHANGE*
11	11	AN ACT to create 66.1105 (6) (a) 22., 66.1105 (6) (g) 7., 66.1105 (7) (am) 10. and
12	12	66.1105 (17) (h) of the statutes; relating to: maximum life and allocation
13	13	period for Tax Incremental District Number 9 in the village of DeForest and
14	14	the total value of taxable property that may be included in tax incremental
15	15	financing districts created in the village of DeForest.
16	16	This bill creates exceptions to two aspects of the statutes governing tax
17	17	incremental financing (TIF) for a tax incremental district (TIDs) located in the
18	18	village of DeForest.
19	19	Under current law, cities and villages may use TIF to encourage development
20	20	in the city or village. In general, under TIF, a city or village pays for improvements
21	21	in a TID and then collects tax moneys attributable to all taxing jurisdictions on the
22	22	increased property value in the TID for a certain period of time to pay for the
23	23	improvements. Ideally, after the period of time, the city or village will have been
24	24	repaid for its initial investment and the property tax base in the TID will have
25	25	permanently increased in value.
26	26	In general and in brief, a city or village makes use of TIF using the following
27	27	procedure:
28	28	1. The city or village designates an area as a TID and creates a project plan
29	29	laying out the expenditures that the city or village will make within the TID.
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34	34	5 2025 - 2026 Legislature
35	35	ASSEMBLY BILL 137
36	36	- 2 - LRB-2164/1
37	37	EVM:cdc
38	38	SECTION 1
39	39	2. DOR establishes the Xbase valueY of the TID. This value is the equalized
40	40	value of all taxable property within the TID at the time of its creation.
41	41	3. Each year thereafter, the Xvalue incrementY of the property within the TID
42	42	is determined by subtracting the base value from the current value of property
43	43	within the TID. The portion of taxes collected on any positive value increment (Xtax
44	44	incrementY) is collected by the city or village for use solely for the project costs of the
45	45	TID. The tax increment includes the taxes that would have been collected by other
46	46	taxing jurisdictions, such as counties or school districts, were the TID not created.
47	47	4. Tax increments are collected until the city or village has recovered all of the
48	48	TID[s project costs or until the TID reaches its statutory termination date.
49	49	TID Number 9 in the village of DeForest was created as a mixed-use TID in
50	50	September 2017. Under current law, the unextended termination date of TID
51	51	Number 9 in the village of DeForest is 20 years. Under this bill, the life of TID
52	52	Number 9 in the village of DeForest is extended, and tax increments may continue
53	53	to be allocated, for up to 30 years after the TID[s creation.
54	54	Under current law, the equalized value of taxable property of a new or
55	55	amended TID plus the value increment of all existing TIDs in a city or village may
56	56	not exceed 12 percent of the total equalized value of taxable property in the city or
57	57	village. Under the bill, the 12 percent rule does not apply to one amendment of the
58	58	project plan of TID Number 9 in the village of DeForest.
59	59	Also under current law, a city or village may extend the life of a TID for up to
60	60	one year for housing stock improvement if all of the following occur:
61	61	1. The city or village pays off all of the TID[s project costs.
62	62	2. The city or village adopts a resolution stating that it intends to extend the
63	63	life of the TID, the number of months it intends to do so, and how it intends to
64	64	improve housing stock.
65	65	3. The city or village notifies DOR.
66	66	Under the bill, a housing stock improvement extension may not be exercised
67	67	with regard to TID Number 9 in the village of DeForest.
68	68	For further information see the state and local fiscal estimate, which will be
69	69	printed as an appendix to this bill.
70	70	The people of the state of Wisconsin, represented in senate and assembly, do
71	71	enact as follows:
72	72	SECTION 1. 66.1105 (6) (a) 22. of the statutes is created to read:
73	73	66.1105 (6) (a) 22. For Tax Incremental District Number 9 in the village of
74	74	DeForest, 30 years after the district is created.
75	75	SECTION 2. 66.1105 (6) (g) 7. of the statutes is created to read:
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79	79	4 2025 - 2026 Legislature
80	80	ASSEMBLY BILL 137
81	81	- 3 - LRB-2164/1
82	82	EVM:cdc
83	83	SECTION 2
84	84	66.1105 (6) (g) 7. This paragraph does not apply to Tax Increment District
85	85	Number 9 in the village of DeForest.
86	86	SECTION 3. 66.1105 (7) (am) 10. of the statutes is created to read:
87	87	66.1105 (7) (am) 10. Notwithstanding subd. 2., for Tax Incremental District
88	88	Number 9 in the village of DeForest, 30 years after the district is created.
89	89	SECTION 4. 66.1105 (17) (h) of the statutes is created to read:
90	90	66.1105 (17) (h) Village of DeForest exception. The 12 percent limit described
91	91	under sub. (4) (gm) 4. c. does not apply to an amendment to a project plan for Tax
92	92	Incremental District Number 9 in the village of DeForest. The exception in this
93	93	paragraph may not be used for more than one amendment of the project plan.
94	94	(END)
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