Lakeside Interceptor | Duluth, MN

Public Hearing on Proposed TIF Changes

David Rasmussen | with 0 Comments

Public Hearing on Proposed TIF Changes

The Assembly Ways and Means committee met on Thursday, October 8, 2015 with a public hearing on Assembly Bills 131 – 136.  Most of the testimony was surrounding Bill 136 which raises the Tax Increment Finance district limitation from 12% to 15%. So, how does this affect Wisconsites?

There are 28 communities directly affected by Bill 136, and many more that are between 10-12%. Three communities discussed during my testimony included the Village of West Baraboo, Village of Minog and Village of Grantsburg. I was able to share how these communities will be affected if this legislation doesn’t pass.

Approximately six other people also gave testimony on Senate Bill 136 including the mayor from the City of Kenosha. Officials from Kenosha explained their ability to use future TIF is on the line if the legislation doesn’t pass.

The City of Kenosha welcomed a new $250 million Amazon fulfillment center in October of 2014 with the help of $22 million in local financing, according to the Milwaukee Journal Sentinel. Prior to attracting the large online retailer to the community, the City was operating at a ratio of under 6% according to testimony given by officials. However, as of January 1, 2016, Amazon will be up to their full TID value pushing Kenosha over the 12% maximum ratio. Amazon has added more than 1,000 jobs to Kenosha to date. Without a passage of the legislation, cities like Kenosha could have challenges attracting new businesses to their communities.
Value Limitation

Under current law,
communities can create or amend a TIF district (TID) if the value of the proposed TIF district, or the amended territory plus the value increment of all existing TIDs, does not exceed 12% of the equalized value of the municipality.

The proposed change recommended by the TIF committe was to increase the maximum ratio of TID value increments to total equalized value of the taxable property in a city or village to 15%. this proposed change is not applicable to all TIDs.

The Ways and Means Committee was in support of all five Bills and some have already been approved by the Committee. Bill 136 has not passed yet so there is still time for communities to voice their opinion to local legislators.

The proposed changes on TIF can be confusing. You can learn more about the Bills by downloading our free white paper. Are you thinking about creating a TIF district in the future? Contact MSA’s David Rasmussen for more information.

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