Senate Bill 480 proposes amendments to the statutes regarding tax incremental districts (TIDs) by allowing cities and villages to create residential TIDs, which will be governed by different rules than standard TIDs. Specifically, the bill introduces a new section, 66.1105 (21), which outlines the criteria for establishing a residential TID. This includes requirements for the local legislative body to adopt a resolution that confirms the project plan aligns with specific residential development standards, such as limits on lot sizes and types of residences. Notably, the bill establishes a new threshold for residential TIDs, allowing them to have a maximum equalized value of taxable property that does not exceed 3 percent of the total equalized value of taxable property within the city, as opposed to the 12 percent limit that applies to other TIDs.

Additionally, the bill stipulates that all project costs for residential TIDs must be directly funded through tax increments generated by the district or financed by a developer, and it prohibits these districts from being donor or recipient TIDs. Amendments to the project plan for a residential TID to increase project costs are restricted to a timeframe of no later than 10 years before the unextended termination date, requiring unanimous approval from the joint review board for any changes. This legislation 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