AB 913

This bill extends by 10 years 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, or TID, in the city of Middleton, specifically TID Number

5. The bill also increases the number of allowed amendments to modify the

boundaries of this TID.

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. Under certain

circumstances, the life of the TID, the expenditure period, and the allocation period

may be extended. Also, with some exceptions, under current law, a planning

commission may amend a project plan no more than four times during a TID's

existence.

Under this bill, tax increments may be allocated for TID Number 5 in the city

of Middleton until August 4, 2046, which is 37 years after the TID's creation; the

expenditures for project costs may be made for up to 32 years after the TID was

created, through August 4, 2041, and the maximum life is extended by 10 years to

August 4, 2046. The bill also increases the number of allowed amendments to modify

the boundaries of TID Number 5 from four to seven.