Senate Bill 696 proposes significant amendments to the statutes governing tax incremental financing (TIF) in Wisconsin. The bill aims to increase the percentage of a municipality's equalized value that can be included within a tax incremental district (TID) from 12% to 18%. Additionally, it allows for the inclusion of construction costs for residential buildings as project costs within a TID, thereby broadening the scope of eligible expenditures. The bill also repeals certain provisions from the 2023-24 legislative session that affected local levy limits related to TIDs, specifically those that limited the calculation of net new construction for TIDs created after December 31, 2024.

Furthermore, the bill eliminates restrictions on including expenditures for newly platted residential development as project costs, which were previously limited to certain conditions. It also adds costs associated with developing, improving, or expanding parks as eligible project costs. By making these changes, the bill seeks to enhance the effectiveness of TIF as a tool for local development and to support housing initiatives in Wisconsin.

Statutes affected:
Bill Text: 60.23(32)(b)4, 60.23, 66.0602(1)(d), 66.0602, 66.0602(3)(dm), 66.0602(3)(dq), 66.0602(3)(ds), 66.0602(3)(dv), 66.1105(2)(cm), 66.1105, 66.1105(2)(f)1.a, 66.1105(2)(f)3, 66.1105(4)(gm)4.c, 66.1105(4)(h)7, 66.1105(4m)(b)2m, 66.1105(5)(bn), 66.1105(5)(bo)