Creating a mechanism to determine the income tax increment generated by certain tax incremental financing districts in the city of Milwaukee and authorizing the city to spend a portion of that money on neighborhood economic revitalization. (FE)

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.