Lakeside Interceptor | Duluth, MN

Increased Equalized Value Limitation Proposed

David Rasmussen | with 0 Comments

Increased Equalized Value Limitation Proposed

The Joint Legislative Council Study Committee (JLCSC), comprised of 12 public members and six legislators, has submitted eight proposed changes to Wisconsin’s Tax Incremental Financing (TIF) laws.  In a recent blog post, I discussed the new proposed requirements for a Joint Review Board and accountability. 

Another proposed change has to do with the value limitation

THE JLCSC is recommending to raise the “equalized value limitation” from 12% to 15%.  Currently, communities cannot create or amend an existing TIF District by adding territory if the equalized value of the new District or territory and the value increment of the existing District exceed 12% of the equalized value of the community. 

The proposed change would not apply until 2016, and is not applicable to all TIDs.
This can stymie new development opportunities in communities that are at the 12% limitation should that community need to create a new District or add territory to an existing District. The recommendation of the JLCSC is to raise that limitation to 15% of the equalized value of the community.
The Wisconsin Joint Legislative Study Committee appointed David Rasmussen, MSA senior planner, Rice Lake, to the Study Committee on the Review of Tax Incremental Financing (TIF).  The committee submitted their recommendations in November 2014. Over the next few weeks, David will summarize the proposed TIF changes in a series of blog posts.  Contact David for more information on these proposed changes or any questions you have on TIF.

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