Number
200751
Version
ORIGINAL
Reference
Sponsor
ALD. STAMPER
Title
Resolution directing the Department of Administration - Intergovernmental Relations Division to seek introduction and passage of State legislation to allow tax incremental district tax revenue increments to be deposited into a central city commercial and residential development fund and to provide property tax relief for central city property owners who have been affected by large property tax increases.
Analysis
This resolution directs the Department of Administration - Intergovernmental Relations Division to seek introduction and passage of State legislation to allow tax incremental district tax revenue increments to be deposited into a central city commercial and residential development fund and to provide property tax relief for central city property owners who have been affected by large property tax increases.
Body
Whereas, Under Section 66.1105, Wis. Stats., revenue produced from a tax incremental district (TID) is generally restricted for usage within that particular TID area or within a one-half mile radius of the TID boundary; and
Whereas, Current state law allows for some exceptions to TID revenue usage, including a city’s ability to extend the life of a TID for one year after all project costs have been paid off and to use the additional tax increment to improve the housing stock at any location in the city; and
Whereas, A large share of the City of Milwaukee’s TIDs are located in and produce revenue in or near the Downtown area; and
Whereas, Redirecting a portion of revenue generated through TIDs, such as 10 percent, to historically disinvested neighborhoods of the city would provide a critical boost to commercial and residential projects that are underway or proposed in those areas; and
Whereas, Creating a commercial and residential development fund would give the City, including the Department of City Development, a flexible resource to bolster neighborhood revitalization efforts in the central city; and
Whereas, Article VIII, section I of the Wisconsin Constitution (“Uniformity Clause”) is intended to ensure that local governments levy taxes upon citizens in a uniform manner and would thus restrict the City’s ability to lessen property tax burdens for people most affected by recent increases; and
Whereas, Earlier in 2020, Milwaukee as a whole saw a 9.14 percent property tax increase for all residential and commercial property, which was up from a 5 percent increase in 2019; and
Whereas, Many Milwaukee residents have struggled paying bills, including property taxes, as a result of the recent economic downturn that has led to increased healthcare costs, reduced work hours, reduced pay, and job loss associated with the COVID-19 pandemic; and
Whereas, On April 14, 2020, the Common Council passed File Number 191925, directing the Department of Administration - Intergovernmental Relations Division to seek introduction and passage of legislation permitting municipal treasurers to slow the collection of property taxes in light of the COVID-19 pandemic; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of Administration - Intergovernmental Relations Division is directed to seek introduction and passage of State legislation to allow tax incremental district tax revenue increments to be deposited into a central city commercial and residential development fund; and, be it
Further Resolved, That the Department of Administration - Intergovernmental Relations Division is directed to seek introduction and passage of State legislation to allow tax incremental district tax increments to provide property tax relief for central city property owners who have been affected by large property tax increases; and, be it
Further Resolved, That File Number 180898 is amended by inserting the following items in the document attached to the file and identified as “2019-2020 State Legislative Package Proposals”:
|
Community and Neighborhood Revitalization |
DCD |
Allow tax incremental district tax revenue increments to be deposited into a central city development fund to support commercial and residential development. |
|
Fiscal Efficiency/Stability |
City Assessor |
Allow tax incremental district tax revenue increments to provide property tax relief for central city property owners who have been affected by large property tax increases. |
; and, be it
Further Resolved, That the City Clerk shall send copies of this resolution to the City’s delegation to the State Legislature.
Requestor
Drafter
Alex Highley
LRB176259-1
August 14, 2020