By Joseph E. Tierney, IV
On January 22, 2016, Senator Petrowski and Representative Spiros introduced 2015 Senate Bill 606 (“SB 606”) amending certain aspects of the law governing tax incremental financing districts (collectively, “TIDs” or singularly, a“TID”). SB 606 provides that an amendment to a TID’s project plan that only subtracts territory from a TID would not count against the current limit of four amendments over the life of the TID. Additionally, an amendment which only subtracts territory from a TID would not be subject to the “12 percent” test which requires the adoption of a resolution finding that the equalized value of the taxable property of the TID does not exceed 12 percent of the total equalized value of taxable property of the particular City or Village.
If passed, this change to TID law might enable municipalities to redraw the TID landscape in their communities so as to enable new TIDs and close older TIDs to spur development and the growth of municipal revenue. For developers, there may be an opportunity to look at opportunities that were previously locked into a particular district and push the municipality to subtract them from the old TID and roll them into a new TID.
SB 606 has been Referred to the Committee on Economic Development and Commerce.
If you have any questions regarding this article, please contact your Davis & Kuelthau attorney, or the author, Joseph E. Tierney at 414.225.1471 / jtierney@dkattorneys.com.