Wisconsin`s Proposed Senate Bill Can Have Far-Reaching Implications for Wisconsin Municipalities Creating Tax Incremental Financing Districts

What is a Tax Incremental Financing District?...

What Are The Proposed Changes?

While there are many advantages to TIDs, there is concern that TIDs increase the tax burden on citizens within the community. Governor Tony Evers` proposed budget, introduced as 2019 Senate Bill 59 on March 1, 2019, attempts to address this concern by proposing three changes to future TIDs. Those changes are:

  1. Capping the developer allocation to 20% of the NIR (currently, there is no statutory limit to the amount of NIR that can be allocated to a developer),

  2. Requiring TID project plans to include "stress tests" to test the "TID`s finances and feasibility under different economic situations, including a slower pace of development and lower rate of property value growth than expected in the TID," and

  3. Allowing cities and villages to transfer TID money to its general fund if the "city or village erroneously report a higher value increment for its TID by an aggregate amount of at least $50 million."...

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Ken Notes: I have been advocating for simpler TIF rules with stronger guarantees especially for smaller communities. These changes are anything but that. The stress test specifically would be both difficult and expensive for cities to complete. Also how do you develop infrastructure for a project with no specific project on the boards. We need a simple TIF program for smaller cities to help expanding or new businesses with a development agreement based incentive that is bank financed up front.



- - Volume: 7 - WEEK: 31 Date: 3/14/2019 8:59:59 AM -