SB 11

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.

Once these steps are accomplished, the city clerk is required to complete certain

forms and an application and submit the documents to the Department of Revenue

(DOR) on or before October 31 of the year in which the TID is created, although until

October 1, 2010, this deadline was December 31 of the year in which the TID was

created. Upon receipt of the application, DOR is required to certify the full aggregate

value of the taxable property in the city, which constitutes the tax incremental base

of the TID.

This bill specifies that, if the city of Milwaukee clerk had submitted to DOR not

later than May 31, 2010, the required forms and an application for a TID that was

created, or attempted to have been created, on January 1, 2009, based on action

taken by the city in December 2008, even though the forms and application were

originally due on December 31, 2009, DOR must proceed as if the forms had been

timely filed not later than December 31, 2009, except that DOR may not certify a

value increment before 2011.