AB 227

Under this bill, tax increments may be allocated for Tax Incremental District

Number 2 in the city of Wisconsin Dells through 2036 and expenditures may be made

for project costs for that TID through 2031. The bill also allows expenditures for

project costs for Tax Incremental District Number 3 in the city of Wisconsin Dells

through 2040. When a city creates a TID, the Department of Revenue calculates the

“tax incremental base" value of the TID, which is the equalized value of all taxable

property within the TID at the time of its creation. If the development in the TID

increases the value of the property in the TID above the base value, a “value

increment" is created. That portion of taxes collected on the value increment in

excess of the base value is called a “tax increment." The tax increment is placed in

a special fund that may be used only to pay back the project costs of the TID.

The project costs of a TID, which are initially incurred by the city, include public

works such as sewers, streets, and lighting systems; financing costs; site preparation

costs; and professional service costs. DOR authorizes the allocation of the tax

increments until the TID terminates or, generally, 20 years, 23 years, or 27 years

after the TID is created, depending on the type of TID and the year in which it was

created. Also under current law, a city or village may not generally make

expenditures for project costs later than five years before the unextended

termination date of the TID. Under certain circumstances, the life of the TID, the

expenditure period, and the allocation period may be extended.