AB 367

This bill creates a mechanism to determine the income tax increment generated

by certain tax incremental districts in the city of Milwaukee and authorizes the city

to spend a portion of that revenue on neighborhood economic revitalization.

Under the bill, once a special tax incremental district (TID) is created, the

Department of Revenue must determine the income tax incremental base (ITIB) of

the district, which is the total amount of wages paid to all employees who work in a

special TID in the year in which it was created. DOR is also required to determine

the ITIB of an existing special TID as soon as practicable after the effective date of

the bill.

The bill defines a special TID as any TID that is created under current law

provisions after the bill takes effect and eight specified existing TIDs in the city of

Milwaukee, including Grand Avenue Redevelopment; West McKinley and Juneau

(the Milwaukee Bucks arena); Erie and Jefferson Riverwalk (street car); and

Northwestern Mutual Life Insurance. For each year that a special TID exists after

it is created and for each year that one of the eight specified special TIDs exists after

DOR determines its ITIB, DOR must determine the value income increment (VII)

and the income tax increment (ITI) that relate to the TID.

The VII is the difference between the total amount of wages paid to all

employees who work in a special TID in a given year, and the ITIB. The ITI is the

amount of income taxes paid by employees in a year on the VII. For each year that

DOR determines the ITI, it is required to forward to the city that created the special

TID 50 percent of the ITI and that city is required to use the money only for

neighborhood economic revitalization, as defined by the city's governing body.

In determining which areas of the city may benefit from such revitalization, the

governing body must take into consideration a number of factors that relate to the

area, including the crime rate, poverty level, unemployment rate, and percentage of

the neighborhood's residents who receive some form of public assistance.