Housing

AB 451 creates new rules for "residential tax incremental districts" (RTIDs) in cities, limiting these districts to 3% of a city's total taxable property value (down from a 12% cap for other districts). It requires RTIDs to fund only infrastructure for residential developments meeting strict size limits: single-family homes under 7,500 sq ft lots, two-family homes under 15,000 sq ft lots, and strict setbacks/sizes for homes (e.g., max 1,500 sq ft for single-story). Project costs are restricted to district-wide infrastructure (like stormwater systems), not individual lots, and must be paid from tax increments or developer financing. The bill directly affects cities creating RTIDs and developers building qualifying residential projects.

AB 140 creates a specific exception in Wisconsin statute for Port Washington's Tax Incremental District Number 5, removing a standard 12% limit on the total taxable property value that can be included in such districts. This bill directly affects the city of Port Washington and its Tax Incremental District Number 5, allowing that district to exceed the usual property value cap. The key mechanism is adding a new statutory provision (66.1105 (17) (h)) that explicitly states the 12% limit does not apply to this specific district. The bill was enacted as 2025 Wisconsin Act 16 after approval by the Governor.