Assembly Bill 706 proposes significant amendments to the statutes governing tax incremental financing (TIF) in Wisconsin. The bill aims to increase the allowable 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, restoring previous calculations that allow for greater flexibility in local property tax levies.

Key changes include the removal of restrictions on including expenditures for newly platted residential development as project costs, as well as the explicit addition of costs for developing, improving, or expanding parks as eligible project costs. The bill also eliminates the requirement that only 90% of new construction within TIDs created after December 31, 2024, be included in the valuation factor for local levy limits. Overall, these changes are intended to enhance the effectiveness of TIF as a tool for municipal development and to support housing initiatives within the state.

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)