Housing (Community Development)

SB 944 adjusts how property tax limits are calculated for cities and towns (political subdivisions) that redevelop parking lots into new commercial, residential, or mixed-use buildings. Specifically, it adds 1.5 times the value increase from qualifying parking lot redevelopment to the annual development percentage used in tax levy calculations. Qualifying redevelopment requires at least 40% of the parcel area to have been paved parking in the prior year. This change applies to all political subdivisions with qualifying projects but specifically includes tax increment districts in Evansville and Stevens Point, plus new districts after 2024. The bill aims to account for redevelopment value in tax levy limits without increasing the overall tax burden.

AB 737 allows municipalities to establish neighborhood improvement districts that can impose special property charges to fund infrastructure directly related to residential development within those neighborhoods. Property owners in designated districts would pay these charges, which can be collected in installments over time and included in regular tax bills, rather than requiring delinquency. The bill requires districts to specify exactly which infrastructure projects the funds will support and how charges are calculated per parcel, while allowing exemptions from notice requirements if a single owner holds all properties in the district. This legislation affects local property owners and municipalities by creating a new mechanism for financing neighborhood-specific infrastructure improvements through targeted assessments.

SB 658 creates a tax credit for insurance companies that invest in community development entities (CDEs) focused on low-income communities. Insurers can claim a credit equal to 0% of their investment for the first two years and 10% for the next five years, based on the investment amount, against certain insurance fees. The credit applies only to investments where CDEs use at least 100% of funds to support qualified low-income businesses with operations in Wisconsin's rural counties ($125 million allocation) or metro counties ($125 million allocation). This policy directly affects insurers, CDEs, and qualifying businesses in targeted communities, aiming to incentivize private investment in economic development.