CHICAGO -- Anticipated property tax reforms in Wisconsin could hurt the ability of tax increment financing districts to support debt service and could weaken tax increment financing as an economic development tool if state lawmakers fail to change existing laws, according to Standard & Poor's Corp.

In April, Gov. Tommy Thompson signed into law a measure that requires the state to reduce property taxes by paying 66.5% of school costs by 1997. That plan will decrease municipalities' overall millage rates, which will result in decreased incremental revenues for tax increment financing districts, Standard & Poor's said in this week's issue of CreditWeek Municipal.

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