Extending the life and tax increment allocation and project cost expenditure periods for Tax Incremental District Number 1 in the village of Marathon City. (FE)

What it does

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

This bill extends the life and the periods during which tax increments may be allocated and expenditures for project costs may be made for a tax incremental district (TID) in the village of Marathon City.

Under current law, when a city or village 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 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. The portion of the property taxes received from the TID that is attributable to the TID's value increment is called a “tax increment.” The tax increment is placed in a special fund that may be used only to pay back the TID project 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 TID's unextended termination date.

Who's behind it

John Spiros, a Republican, is its author⁠.

2 more lawmakers signed on in support⁠.

What it would cost

State agencies filed a cost estimate. Each opens as a PDF from the Legislature.

• Fiscal Estimate From DOR