Housing

SB 480 modifies Wisconsin's rules for residential tax incremental districts (TIDs), which are special tax zones used to fund local development projects. It allows towns with sewer systems to create residential TIDs using city-level powers (previously limited to cities), extends the standard TID lifespan to 20 years (up from 15), and adds conditions for extensions: cities must provide an independent audit proving they cannot repay project costs within 20 years to request a 3-year extension. The bill also clarifies that project costs for residential TIDs can include expenses for newly platted single-family homes and adjusts lot size requirements for residential developments. These changes apply to TIDs created on or after October 1, 2004, with specific adjustments for districts approved after March 3, 2016.

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.