Under current law, the environmental remediation tax incremental financing
program permits a city, village, town, or county (political subdivision) to recoup the
costs of remediating contaminated property from property taxes that are levied on
the remediated property. The mechanism for financing remediation costs is very
similar to the mechanism for financing project costs under the tax incremental
financing (TIF) program.

Initially, the governing body of a political subdivision adopts a resolution
creating an environmental remediation tax incremental district (ERTID) with
particular boundaries. This resolution is then reviewed by a joint review board made
up of representatives of the overlying taxing jurisdictions. If the joint review board
approves the ERTID, a political subdivision that has incurred eligible costs to
remediate environmental pollution on a parcel of property may apply to the
Department of Revenue (DOR) to certify the environmental remediation tax
incremental base of the parcel. DOR is required to certify the environmental
remediation tax incremental base if the political subdivision submits to DOR all of

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the following: 1) a statement that the political subdivision has incurred some eligible
costs, together with a detailed proposed remedial action plan approved by the
Department of Natural Resources (DNR) that contains cost estimates for anticipated
eligible costs, a schedule for the design and implementation that is needed to
complete the remediation, and certification from DNR that it has approved the site
investigation report that relates to the parcel; 2) a statement that all taxing
jurisdictions with authority to levy general property taxes on the parcel of property
have been notified that the political subdivision intends to recover its environmental
remediation costs by using an environmental remediation tax increment; and 3) a
statement that the political subdivision has attempted to recover its environmental
remediation costs from the person who is responsible for the environmental pollution
that is being remediated. Thereafter, the political subdivision that created the
ERTID may use positive environmental remediation tax increments to pay eligible
costs of remediating environmental pollution in the ERTID.

Currently, the maximum life of an ERTID is 23 years and no expenditure for
an eligible cost may be made by a political subdivision later than 15 years after the
environmental remediation tax incremental base is certified by DOR. Alternately,
an ERTID must terminate before its 23 year maximum life span if a political
subdivision receives sufficient environmental remediation tax increments to cover
all of its eligible costs.

This bill allows ERTID number one in the city of Cudahy and ERTID number
one in the city of Oak Creek to continue generating environmental remediation tax
increments after all of the eligible costs for each ERTID have been recovered. These
increments would be applied, respectively, to ERTID number two in the city of
Cudahy and an ERTID yet to be created in the city of Oak Creek. ERTID number
one in the city of Cudahy and ERTID number one in the city of Oak Creek would each
terminate 23 years after creation or once the eligible costs for the recipient ERTID
has been recovered, whichever occurs sooner.