WI AB451

Cities and villages may create residential tax incremental districts (TIDs) specifically for owner-occupied single-family and 2-family housing developments with restrictions on lot sizes (under 7,500 sq ft for single-family, 15,000 sq ft or less for 2-family) and structure sizes (1,500 sq ft max for single-story, 2,000 sq ft max for 2-story)

Residential TIDs are exempt from the standard 12% cap on equalized property value but are subject to a separate 3% cap on total equalized value of taxable property within the municipality

Project costs in residential TIDs are limited to infrastructure construction or improvement necessary for residential development, and must be paid directly from tax increments or financed by a developer

Residential TIDs cannot serve as donor districts or receive tax increments from other districts, preventing cross-subsidization between residential and other TIDs

Project plan amendments increasing costs are prohibited within 10 years of the TID's termination date unless unanimously approved by the joint review board