At the League's request, four state legislators are introducing legislation fixing a technical problem with the personal property aid program the Legislature created last session to reimburse taxing jurisdictions, including TIF districts, for the lost revenue caused by exempting machinery, tools, and patterns from the personal property tax. Rep. Steffen (R- Howard), Rep. Ohnstad (D-Kenosha), Sen. Bernier (R-Chippewa Falls) and Sen. Ringhand (D-Evansville) are currently seeking other co-sponsors for LRB 4540.
The bill clarifies that personal property aid payments the state makes to a TIF District continue after the TIF district terminates, but transfer to the municipality and other taxing jurisdictions.
The Department of Revenue reads current state law to say that any personal property aid payments being made to a TIF district for exempt personal property existing in the district terminate when the TIF district closes. Terminating the aid payments when the district closes makes no sense since:
* The exempt personal property continues to exist in the community after the TIF district closes.
* If the personal property had existed outside a TIF district the community would continue to receive aid payments indefinitely.
* Computer aid payments made to a TIF district transfer to the municipality after the district closes.
We asked DOR staff to suggest language that we could include in a bill to make it clear to the Department that the personal property aid payments are transferred to the municipality and other taxing jurisdictions after a TIF district closes.
LRB 4540 was drafted using the language DOR staff recommended.
Action step: Ask your state legislators to contact Rep. Steffen's office (608-266-5840) or Sen. Bernier's office (608-266-7511) and sign on as a co-sponsor of LRB 4540.