Wisconsin Assembly Bill AB137

Wisconsin 2025-2026 Regular Session

• Introduced: 3/13/25
• Refer: 3/13/25
• Report Pass: 4/15/25
• Refer: 4/15/25
• Refer: 5/9/25
• Engrossed: 5/13/25
• Refer: 5/14/25
• Failed: 3/23/26

Caption

An Act to create 66.1105 (6) (a) 22., 66.1105 (6) (g) 7., 66.1105 (7) (am) 10. and 66.1105 (17) (h) of the statutes; Relating to: maximum life and allocation period for Tax Incremental District Number 9 in the village of DeForest and the total value of taxable property that may be included in tax incremental financing districts created in the village of DeForest. (FE)

Summary

AB137 is a local bill that creates targeted exceptions to Wisconsin’s tax incremental financing (TIF) law for Tax Incremental District (TID) Number 9 in the village of DeForest. The bill extends the district’s maximum life and tax increment allocation period from the usual 20 years to 30 years after creation, allowing the village to continue capturing tax increments for a longer period to pay project costs associated with the district. The bill also exempts DeForest’s TID 9 from the statewide 12 percent cap that normally limits the total equalized value of taxable property that may be included in a city or village’s TIF districts, but only for one amendment to the project plan. In addition, it bars the village from using the separate one-year housing stock improvement extension for this district. The measure amends Wisconsin Statutes section 66.1105 to carve out these specific exceptions for DeForest.

Impact

AB137 would alter the application of Wisconsin’s TIF statutes only for the village of DeForest’s TID 9, rather than changing the general rules for all municipalities. It would lengthen the district’s allowable life and allocation period, permit one project plan amendment without regard to the 12 percent TIF value cap, and prohibit a housing stock improvement extension for that district. The practical effect is to give DeForest more time and flexibility to finance and complete TID 9-related development costs while preserving the district’s special treatment under state law.

Sentiment

The bill appears to have received strong support in the Assembly, passing 93-4 on third reading. That vote suggests broad acceptance of the local financing adjustment, likely reflecting a view that the extension serves a specific municipal development need in DeForest. However, the bill ultimately failed to concur pursuant to Senate Joint Resolution 1, indicating that it did not complete the full legislative process despite the favorable Assembly vote.

Contention

The main points of contention are the bill’s departure from statewide TIF limits and the fact that it grants a municipality-specific exception. Critics of such measures typically object to extending TID lifespans, relaxing the 12 percent cap, or allowing local districts to retain tax increments longer than generally permitted, because those changes can affect other taxing jurisdictions and reduce the pace at which property returns to the general tax base. The bill also expressly denies the housing stock improvement extension for TID 9, which may reflect an effort to narrowly tailor the exception and avoid additional extension authority beyond the 30-year limit.