LRB-3849/1
MES:jld:rs
2009 - 2010 LEGISLATURE
December 8, 2009 - Introduced by Representatives Pope-Roberts, Brooks, Dexter,
Zepnick
and Berceau, cosponsored by Senators Erpenbach, Holperin,
Miller, Plale
and Harsdorf. Referred to Committee on Urban and Local
Affairs.
AB611,1,5 1An Act to amend 60.85 (6) (a) (intro.), 60.85 (6) (am), 66.1105 (4) (gm) 4. c.,
266.1105 (5) (b), 66.1105 (6) (a) (intro.), 66.1105 (6) (ae), 66.1106 (7) (a) and
366.1106 (7) (am); and to create 66.1105 (4m) (e), 66.1105 (10) (c) and 66.1105
4(12) of the statutes; relating to: changing certain administrative procedures
5under the tax incremental financing program.
Analysis by the Legislative Reference Bureau
Under the current tax incremental financing program, a city or village may
create a tax incremental district (TID) in part of its territory to foster development
if at least 50 percent of the area to be included in the TID is blighted, in need of
rehabilitation or conservation, suitable for industrial sites, or suitable for mixed-use
development. Currently, towns also have a limited ability to create a TID under
certain circumstances. Before a city or village may create a TID, several steps and
plans are required. These steps and plans include public hearings on the proposed
TID within specified time frames, preparation and adoption by the local planning
commission of a proposed project plan for the TID, approval of the proposed project
plan by the common council or village board, approval of the city's or village's
proposed TID by a joint review board that consists of members who represent the
overlying taxation districts, and adoption of a resolution by the common council or
village board that creates the TID as of a date provided in the resolution.
Also under current law, once a TID has been created, the Department of
Revenue (DOR) calculates the "tax incremental base" value of the TID, which is the

equalized value of all taxable property within the TID at the time of its creation. If
the development in the TID increases the value of the property in the TID above the
base value, a "value increment" is created. That portion of taxes collected on the
value increment in excess of the base value is called a "tax increment." The tax
increment is placed in a special fund that may be used only to pay back the project
costs of the TID. The costs of a TID, which are initially incurred by the creating city
or village, include public works such as sewers, streets, and lighting systems;
financing costs; site preparation costs; and professional service costs. DOR
authorizes the allocation of the tax increments until the TID terminates or, generally,
20 years, 23 years, or 27 years after the TID is created, depending on the type of TID
and the year in which it was created. Under certain circumstances, the life of the TID
and the allocation period may be extended.
Under current law, a planning commission may adopt an amendment to a
project plan, which requires the approval of the common council or village board and
the same findings that current law requires for the creation of a TID. Current law
also authorizes the amendment of a project plan up to four times during a TID's
existence to change the district's boundaries by adding or subtracting territory.
Currently, before a TID may be created or its project plan amended, the city or
village must adopt a resolution containing a finding that the equalized value of
taxable property of the TID plus the value increment of all existing TIDs does not
exceed 12 percent of the total equalized value of taxable property in the city or village
(the "12 percent test"), subject to one exception. Under the exception, a city or village
may simultaneously create a new TID and subtract territory from an existing TID
without adopting a resolution containing the 12 percent test if the city or village
demonstrates to DOR that the value of the territory that is subtracted at least equals
the amount that DOR believes is necessary to ensure that, when the new TID is
created, the 12 percent test is met. The city or village must also certify to DOR that
no other district created under this exception currently exists in the city or village.
This bill changes a number of administrative procedures that apply to TIDs.
Under the bill, in determining whether a city or village complies with the 12 percent
test, DOR must exclude any parcel of land in a newly created TID that is located in
an existing TID. If DOR determines that a city or village has violated the 12 percent
test, it must notify the city or village in writing. The city or village must then either
rescind its approval of the resolution creating a TID or notify DOR in writing that
the county in which the TID is located approves of the city's or village's action related
to the TID even though the 12 percent test is not met.
The bill also changes from December 31 to October 31 the date by which a city
or village must submit certain completed forms to DOR and specifies that, in
complying with meeting notice requirements, a city or village must use a newspaper
that is in general circulation in the county in which the TID is located. With regard
to meetings held by a joint review board, the bill requires all such meetings to be
preceded by a class 2 notice.
Under current law, any city, village, town, or county (political subdivision) that
receives a tax increment for a TID or an environmental remediation TID must pay
DOR an annual administrative fee. Under this bill, if the political subdivision does

not pay the fee by May 15, DOR may not allocate a tax increment to that political
subdivision.
The bill takes effect on October 1, 2010.
For further information see the local fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB611, s. 1 1Section 1. 60.85 (6) (a) (intro.) of the statutes is amended to read:
AB611,3,172 60.85 (6) (a) (intro.) If the joint review board approves the creation of the tax
3incremental district under sub. (4), and subject to par. (am), positive tax increments
4with respect to a tax incremental district are allocated to the town which created the
5district for each year commencing after the date when a project plan is adopted under
6sub. (3) (g). The department of revenue may not authorize allocation of tax
7increments until it determines from timely evidence submitted by the town that each
8of the procedures and documents required under sub. (3) (d) to (f) has been completed
9and all related notices given in a timely manner. The department of revenue may
10authorize allocation of tax increments for any tax incremental district only if the
11town clerk and assessor annually submit to the department all required information
12on or before the 2nd Monday in June. The facts supporting any document adopted
13or action taken to comply with sub. (3) (d) to (f) are not subject to review by the
14department of revenue under this paragraph except as provided under par. (e). After
15the allocation of tax increments is authorized, the department of revenue shall
16annually authorize allocation of the tax increment to the town that created the
17district until the sooner of the following events:
AB611, s. 2 18Section 2. 60.85 (6) (am) of the statutes, as created by 2009 Wisconsin Act 28,
19is amended to read:
AB611,4,6
160.85 (6) (am) With regard to each district for which the department of revenue
2authorizes the allocation of a tax increment under par. (a), the department shall
3charge the town that created the district an annual administrative fee of $150 that
4the town shall pay to the department no later than May 15. If the town does not pay
5the fee that is required under this paragraph, by May 15, the department may not
6authorize the allocation of a tax increment under par. (a) for that town.
AB611, s. 3 7Section 3. 66.1105 (4) (gm) 4. c. of the statutes is amended to read:
AB611,4,198 66.1105 (4) (gm) 4. c. Except as provided in sub. subs. (10) (c) and (17), the
9equalized value of taxable property of the district plus the value increment of all
10existing districts does not exceed 12 percent of the total equalized value of taxable
11property within the city. In determining the equalized value of taxable property
12under this subd. 4. c., the department of revenue shall base its calculations on the
13most recent equalized value of taxable property of the district that is reported under
14s. 70.57 (1m) before the date on which the resolution under this paragraph is
15adopted. If the department of revenue determines that a local legislative body
16exceeds the 12 percent limit described in this subd. 4. c., the department shall notify
17the city of its noncompliance, in writing, not later than December 31 of the year in
18which the department receives the completed application or amendment forms
19described in sub. (5) (b).
AB611, s. 4 20Section 4. 66.1105 (4m) (e) of the statutes is created to read:
AB611,4,2221 66.1105 (4m) (e) Notice of all meetings held by a joint review board shall be
22published as a class 2 notice, under ch. 985.
AB611, s. 5 23Section 5. 66.1105 (5) (b) of the statutes is amended to read:
AB611,5,1324 66.1105 (5) (b) Upon application in writing by the city clerk, in a form
25prescribed by the department of revenue, the department shall determine according

1to its best judgment from all sources available to it the full aggregate value of the
2taxable property and, except as provided in par. (bm), of the city-owned property in
3the tax incremental district. The application shall state the percentage of territory
4within the tax incremental district which the local legislative body estimates will be
5devoted to retail business at the end of the maximum expenditure period specified
6in sub. (6) (am) 1. if that estimate is at least 35%. Subject to sub. (8) (d), the
7department shall certify this aggregate valuation to the city clerk, and the aggregate
8valuation constitutes the tax incremental base of the tax incremental district. The
9city clerk shall complete these forms, including forms for the amendment of a project
10plan, and submit the completed application or amendment forms on or before
11December October 31 of the year the tax incremental district is created, as defined
12in sub. (4) (gm) 2. or, in the case of an amendment, on or before December October
1331 of the year in which the changes to the project plan take effect.
AB611, s. 6 14Section 6. 66.1105 (6) (a) (intro.) of the statutes is amended to read:
AB611,6,515 66.1105 (6) (a) (intro.) If the joint review board approves the creation of the tax
16incremental district under sub. (4m), and subject to par. (ae), positive tax increments
17with respect to a tax incremental district are allocated to the city which created the
18district for each year commencing after the date when a project plan is adopted under
19sub. (4) (g). The department of revenue may not authorize allocation of tax
20increments until it determines from timely evidence submitted by the city that each
21of the procedures and documents required under sub. (4) (d) to (f) has been completed
22and all related notices given in a timely manner. The department of revenue may
23authorize allocation of tax increments for any tax incremental district only if the city
24clerk and assessor annually submit to the department all required information on
25or before the 2nd Monday in June. The facts supporting any document adopted or

1action taken to comply with sub. (4) (d) to (f) are not subject to review by the
2department of revenue under this paragraph. After the allocation of tax increments
3is authorized, the department of revenue shall annually authorize allocation of the
4tax increment to the city that created the district until the soonest of the following
5events:
AB611, s. 7 6Section 7. 66.1105 (6) (ae) of the statutes, as created by 2009 Wisconsin Act
728
, is amended to read:
AB611,6,138 66.1105 (6) (ae) With regard to each district for which the department of
9revenue authorizes the allocation of a tax increment under par. (a), the department
10shall charge the city that created the district an annual administrative fee of $150
11that the city shall pay to the department no later than May 15. If the city does not
12pay the fee that is required under this paragraph, by May 15, the department may
13not authorize the allocation of a tax increment under par. (a) for that city.
AB611, s. 8 14Section 8. 66.1105 (10) (c) of the statutes is created to read:
AB611,6,1715 66.1105 (10) (c) The department of revenue shall exclude any parcel in a newly
16created tax incremental district that is located in an existing district when
17determining compliance with the 12 percent limit described in sub. (4) (gm) 4. c.
AB611, s. 9 18Section 9. 66.1105 (12) of the statutes is created to read:
AB611,6,2219 66.1105 (12) Equalized valuation; the 12 percent limit. If the department of
20revenue notifies a local legislative body that is not in compliance with the 12 percent
21limit described in sub. (4) (gm) 4. c., the local legislative body shall do one of the
22following:
AB611,6,2423 (a) Rescind its approval of the project plan resolution described under sub. (4)
24(g).
AB611,7,15
1(b) Not later than March 15 of the year immediately following the year in which
2the local legislative body receives the notice of noncompliance described in sub. (4)
3(gm) 4. c., the local legislative body sends the department of revenue by 1st class mail
4a copy of a resolution adopted by the county board in which the tax incremental
5district, or proposed district, is located stating that the county board accepts the
6project plan even if the 12 percent limit is exceeded. Notice of the county board
7meeting at which the board accepts the project plan shall be published as a class 2
8notice under ch. 985, except that the notice shall be published in a newspaper having
9general circulation within the county in which the proposed district is to be created.
10The notice shall include information relating to the proposed boundaries of the
11district, the proposed project costs of the proposed project, and whether the project
12costs include cash grants from the local legislative body to the owners, developers,
13or lessees of the land that is located within the proposed district. If the district or
14proposed district is in more than one county, only the county that contains the largest
15portion of the district's value must adopt a resolution as described in this paragraph.
AB611, s. 10 16Section 10. 66.1106 (7) (a) of the statutes is amended to read:
AB611,7,2217 66.1106 (7) (a) Subject to pars. (am), (b), (c) and (d), the department shall
18annually authorize the positive environmental remediation tax increment with
19respect to a parcel or contiguous parcels of property during the period of certification
20to the political subdivision that incurred the costs to remediate environmental
21pollution on the property, except that an authorization granted under this paragraph
22does not apply after the department receives the notice described under sub. (10) (b).
AB611, s. 11 23Section 11. 66.1106 (7) (am) of the statutes, as created by 2009 Wisconsin Act
2428
, is amended to read:
AB611,8,7
166.1106 (7) (am) With regard to each district for which the department
2authorizes the allocation of a tax increment under par. (a), the department shall
3charge the political subdivision that created the district an annual administrative
4fee of $150 that the political subdivision shall pay to the department no later than
5May 15. If the political subdivision does not pay the fee that is required under this
6paragraph, by May 15, the department may not authorize the allocation of a tax
7increment under par. (a) for that political subdivision.
AB611, s. 12 8Section 12. Effective date.
AB611,8,99 (1) This act takes effect on October 1, 2010.
AB611,8,1010 (End)
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