Evers signs TIF transparency bill into law
Long overdue but not enough to rein in abuses of tax increment financing
Gov. Tony Evers has signed into a law a bill that adds transparency requirements for proposed tax increment financing (TIF) districts. The much-needed bill was authored by state Sen. Joan Ballweg (R-Markesan) and shepherded through the Legislature in part by Sen. Duey Stroebel (R-Cedarburg), the chairman of the Senate Committee on Government Operations, Legal Review and Consumer Protection.
TIF districts are controversial and opinions about them do not break cleanly along party lines. They sometimes drive economic redevelopment, as they are supposed to do, but more often they funnel taxpayer dollars to projects that would have happened without the subsidy, and at the expense of taxpayers and other taxing entities such as schools.
Stroebel says the new transparency requirements will help local officials and the public assess whether their tax dollars are being used wisely:
Economic development and property taxes are two very important issues in our state. The new transparency provisions in Act 142 will make sure the right data is being collected and reported to the Department of Revenue so we can correctly analyze how tax increment financing interacts with levy limit and revenue limit laws to impact property taxes. Moreover, since TIF is a fundamentally local decision, municipalities are now required to report this property tax impact as part of its currently required annual reports.
As Stroebel says, decisions surrounding the use of TIFs can be some of the most important financial decisions communities make:
These decisions are often complex and the impacts on average property taxpayers can easily go unseen. Act 142 will help ensure local officials, and those they represent, will be aware of all the tax implications of a decision to use TIF. Most importantly, by each municipality preparing an annual report, the average property taxpayer will now be able to see the increased taxes they are paying to subsidize TIF development within their community. With eyes open going forward, Wisconsinites should make the best decisions for their communities on both economic development and property taxes.
A big deal …