Print Page   |   Contact Us   |   Sign In   |   Join WEDA
News & Press: Legislative Memos to the Capitol

TID Base Value Reassessment Legislation (LRB 1758)

Wednesday, July 17, 2013   (0 Comments)
Posted by: Rebecca Hogan
Share |

TO:              Wisconsin State Legislature

FROM:        Wisconsin Economic Development Association

RE:              TID Base Value Reassessment Legislation (LRB 1758)

DATE:        July 15, 2013

Sen. Gudex and Rep. Schraa are circulating legislation, LRB 1758, which provides a mechanism for the Department of Revenue (DOR) to adjust or reassess the base value of certain Tax Incremental Finance Districts (TIDs / TIFs). Considering the critical role that TIF fulfills throughout the state, the Wisconsin Economic Development Association (WEDA) respectfully requests that you consider signing onto the bill as a co-sponsor.

Since 1975, TIF has been one of Wisconsin’s primary and most successful economic development tools. Statewide, TIF projects have revitalized urban corridors and bolstered industrial growth among Wisconsin’s rural areas. Over the years, various TIF related changes have been implemented to reconcile or address shifting marketplace conditions. In response to the challenges associated with the Great Recession, the upper Midwest is experiencing a much steeper economic climb that most of its counterparts throughout the nation.

To accelerate Wisconsin’s economic position, WEDA is urging the Legislature to considering adjusting its TIF legislation. Under current law, when an industrial or commercial property experiences long-term vacancy; when the property has sustained damage from a natural disaster; or when a property has been demolished, the base value of the property in a tax incremental district (TID) remains the same even though the actual or market value may have seriously declined. This discrepancy between the base value and the actual marketplace value, known as decrement, often presents a serious development impediment.

By allowing DOR to reassess a decrement situation within a TIF that has continued for at least two consecutive years, LRB 1758 would resolve this issue. The bill defines decrement as a situation where the current aggregate equalized value of all the taxable property within the TIF is at least 10% less than the current value of the TIF’s tax incremental base.

By permitting these base value adjustments, communities experiencing this decrement situation can generate positive TIF increment more quickly; increase the number of value-added public-private development partnerships; and accelerate the stream of benefits for all of the impacted taxing jurisdictions (e.g. Local Units of Government, Technical College and School District).

Please consider co-sponsoring this legislation, which will help jump-start new development and redevelopment throughout Wisconsin.

If you have any questions, please feel free to contact Rebecca Hogan at 608.258.9506. Thank you.



Membership Software Powered by YourMembership  ::  Legal