Senators Testin and Hesselbein introduce Middleton tax incremental financing bill

The Wisconsin State Legislature introduced Senate Bill 24 on February 5, 2025, aimed at modifying tax incremental financing (TIF) regulations specifically for the city of Middleton. The bill, sponsored by Senators Testin, Hesselbein, Ratcliff, and Spreitzer, along with a bipartisan group of representatives, seeks to provide flexibility in the establishment and lifespan of tax incremental districts (TIDs) within the city.

The primary purpose of Senate Bill 24 is to exempt TID Number 6 from the existing 12 percent cap on the total value of taxable property that can be included in a TID. This exemption applies only if the district is created before June 1, 2025. Currently, the law restricts the combined equalized value of new or amended TIDs, along with existing ones, to 12 percent of the total equalized value of taxable property in a municipality. By lifting this limitation for TID Number 6, the bill aims to encourage economic development and investment in Middleton.

Additionally, the bill addresses the lifespan of TIDs, allowing cities or villages to extend the life of a TID for up to one year specifically for housing stock improvements. This extension is contingent upon the municipality paying off all project costs, adopting a resolution detailing the extension and improvement plans, and notifying the Department of Revenue.

The introduction of Senate Bill 24 has sparked discussions among lawmakers and stakeholders regarding its potential impact on local economic development. Proponents argue that the bill will facilitate necessary investments in Middleton, particularly in housing, which is a growing concern in many Wisconsin communities. However, some critics express concerns about the long-term implications of extending TID lifespans and the potential for reduced tax revenues for local governments.

As the bill moves to the Committee on Government Operations, Labor and Economic Development, its future will depend on further discussions and potential amendments. If passed, Senate Bill 24 could set a precedent for similar legislative efforts in other municipalities facing similar economic challenges. The outcome of this bill may significantly influence the economic landscape in Middleton and potentially across Wisconsin.