Assembly Bill 451 proposes the creation of residential tax incremental districts (TIDs) by cities and villages in Wisconsin, allowing for a different regulatory framework compared to traditional TIDs. Under this bill, a residential TID is exempt from the existing 12 percent cap on the equalized value of taxable property, instead imposing a new limit of 3 percent for residential TIDs. To establish a residential TID, local legislative bodies must adopt a resolution confirming that all project costs are related to residential developments and necessary infrastructure improvements, and that these costs will be funded through tax increments or developer financing. The bill also outlines specific requirements for the types of residential developments eligible for inclusion in a residential TID, including size and occupancy restrictions.

Additionally, the bill introduces provisions that restrict amendments to the project plan of a residential TID, stating that such amendments cannot increase project costs within ten years of the TID's termination date unless unanimously approved by the joint review board. It also specifies that residential TIDs cannot act as donor or recipient districts, meaning that tax increments generated by these districts cannot be used to fund other TIDs. The bill aims to facilitate residential development while ensuring that the financial structure remains sustainable and compliant with the new regulations.

Statutes affected:
Bill Text: 66.1105(4)(gm)4.c, 66.1105