Senate Bill 480 proposes the creation of residential tax incremental districts (TIDs) by cities and villages in Wisconsin, allowing these local governments to designate specific areas for residential development under a different set of financial rules. The bill amends existing law to remove the 12 percent cap on the equalized value of taxable property for general TIDs, replacing it with a more restrictive 3 percent cap specifically for residential TIDs. This means that when establishing or amending a residential TID, the combined equalized value of the new or amended TID and any existing residential TIDs must not exceed 3 percent of the total equalized value of taxable property within the city or village.

Additionally, the bill outlines specific requirements for the creation and management of residential TIDs, including the types of residential developments allowed, infrastructure improvements, and financing methods. It stipulates that all project costs must be related to residential developments that meet certain criteria, such as size and occupancy type, and that these costs must be funded through tax increments generated by the residential TID or financed by developers. The bill also restricts amendments to project plans for residential TIDs, requiring unanimous approval from the joint review board for any increases in project costs within ten years of the TID's termination date. Furthermore, residential TIDs are prohibited from being donor or recipient districts, ensuring that tax increments generated within these districts are used solely for their own project costs.

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