SB 391

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.

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

Number 1 in the village of Marathon City until January 3, 2035, which is 33 years

after the TID's creation, expenditures may be made for project costs through January

3, 2023, and the life of the TID is extended for seven years.