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LRB-1863LRB-1863/4
MES:jld&kjf:jf
2005 - 2006 LEGISLATURE
DOA:......Ziegler, BB0463 - Levy limits for counties and municipalities
For 2005-07 Budget -- Not Ready For Introduction
2005 BILL
AN ACT ...; relating to: levy limits for cities, villages, towns, and counties.
Analysis by the Legislative Reference Bureau
local government
This bill creates local levy limits that apply to cities, villages, towns, and counties (political subdivisions) for the property tax levies that are imposed in December 2005 and 2006. Generally, the bill prohibits a city, village, or town (municipality) from increasing its levy by a percentage that exceeds the sum of 60 percent of the percentage change in the equalized assessed value of new construction located in the region in which the municipality is located and the rate of inflation. Each municipality is assigned to a region by DOR based on the county in which the municipality is located and each region consists of several counties. In addition, the calculation of a municipality's levy does not include any tax increment that is generated by a tax incremental district (TID).
Generally, with regard to a county, the bill prohibits a county from increasing its levy by a percentage that exceeds the sum of 60 percent of the percentage change in the equalized assessed value of new construction located in the county and the rate of inflation.
The bill contains exceptions to the levy limit for political subdivisions that transfer the provision of services, for cities or villages that annex town territory, and for a county levy that relates to a county Children with Disabilities Education Board. The levy limit may also be exceeded if a political subdivision's governing body approves a resolution to do so and the resolution is approved in a referendum. A town with a population of less than 2,000 may exceed the levy limit if a resolution to do so is approved by an annual or special town meeting. The levy limits do not apply to a property tax levy that is imposed after December 2006.
Under the bill, a political subdivision's levy limit does not generally apply to any amounts levied to pay debt service on debt authorized by a political subdivision, including general obligation debt service, refunding debt, and interest on outstanding obligations.
Also under this bill, the limit otherwise applicable does not apply to the amount that a first class city (presently only Milwaukee) levies for school purposes. Currently, a first class city school district is not authorized to levy a tax; the city in which the school district is located levies a tax for school purposes at the direction of the school board.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 66.0602 of the statutes is created to read:
66.0602 Local levy limits. (1) DEFINITIONS. In this section:
(a) "County growth factor" means a percentage equal to 60 percent of the percentage change in the county's January 1 equalized value due to new construction less improvements removed between the year before the previous year and the previous year, but not less than zero.
(b) "Debt service" includes debt service on debt issued or reissued to fund or refund outstanding municipal or county obligations, interest on outstanding municipal or county obligations, and related issuance costs and redemption premiums.
(c) "Inflation factor" means a percentage equal to the average annual percentage change in the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, for the 12 months ending on June 30 of the year in which property tax bills are mailed under s. 74.09 (5).
(d) "Members-elect" has the meaning given in s. 59.001 (2m).
(e) "Municipal growth factor" means a percentage equal to 60 percent of the percentage change in the region's January 1 equalized value due to new construction less improvements removed between the year before the previous year and the previous year, but not less than zero.
(f) "Municipality" means a city, village, or town.
(g) "Political subdivision" means a city, village, town, or county.
(h) "Region" means any of the following areas to which a municipality is assigned by the department of revenue, according to the county in which the municipality is located, except that, if the municipality is located in more than one county, the municipality is considered to be located in the county that has the greater taxable value:
1. Region 1, consisting of the counties of Brown, Door, Florence, Kewaunee, Manitowoc, Marinette, Oconto, and Sheboygan.
2. Region 2, consisting of the counties of Calumet, Fond du Lac, Green Lake, Marquette, Menominee, Outagamie, Shawano, Waupaca, Waushara, and Winnebago.
3. Region 3, consisting of the counties of Buffalo, Crawford, Jackson, La Crosse, Monroe, Pepin, Pierce, Trempealeau, and Vernon.
4. Region 4, consisting of the counties of Adams, Forest, Juneau, Langlade, Lincoln, Marathon, Oneida, Portage, Vilas, and Wood.
5. Region 5, consisting of the counties of Ashland, Bayfield, Burnett, Douglas, Iron, Price, Rusk, Sawyer, Taylor, and Washburn.
6. Region 6, consisting of the counties of Columbia, Dane, Dodge, Jefferson, Rock, and Sauk.
7. Region 7, consisting of the counties of Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington, and Waukesha.
8. Region 8, consisting of the counties of Grant, Green, Iowa, Lafayette, and Richland.
9. Region 9, consisting of the counties of Barron, Chippewa, Clark, Dunn, Eau Claire, Polk, and St. Croix.
(2) LEVY LIMIT. (a) Except as provided in subs. (3), (4), and (5), no municipality may increase its levy in any year by a percentage that exceeds the sum of the inflation factor and the municipal growth factor. In determining its levy in any year, a city, village, or town shall subtract any tax increment that is calculated under s. 60.85 (1) (L) or 66.1105 (2) (i).
(b) Except as provided in subs. (3), (4), and (5), no county may increase its levy in any year by a percentage that exceeds the sum of the inflation factor and the county growth factor.
(3) EXCEPTIONS. (a) If a political subdivision transfers to another governmental unit responsibility for providing any service that the political subdivision provided in the preceding year, the levy increase limit otherwise applicable under this section to the political subdivision in the current year is decreased to reflect the cost that the political subdivision would have incurred to provide that service, as determined by the department of revenue.
(b) If a political subdivision increases the services that it provides by adding responsibility for providing a service transferred to it from another governmental unit that provided the service in the preceding year, the levy increase limit otherwise applicable under this section to the political subdivision in the current year is increased to reflect the cost of that service, as determined by the department of revenue.
(c) If a city or village annexes territory from a town, the city's or village's levy increase limit otherwise applicable under this section is increased in the current year by an amount equal to the city's or village's mill rate applied to the current assessed value of the annexed territory, and the levy increase limit otherwise applicable under this section in the current year for the town from which the territory is annexed is decreased by the town's mill rate applied to the assessed value of the annexed territory as of the last year that the territory was subject to taxation by the town, as determined by the department of revenue.
(d) The limit otherwise applicable under this section does not apply to amounts levied by a political subdivision for the payment of any general obligation debt service, including debt service on debt issued or reissued to fund or refund outstanding obligations of the political subdivision, interest on outstanding obligations of the political subdivision, or the payment of related issuance costs or redemption premiums, secured by the full faith and credit of the political subdivision.
(e) The limit otherwise applicable under this section does not apply to the amount that a county levies in that year for a county children with disabilities education board.
(f) The limit otherwise applicable under this section does not apply to the amount that a 1st class city levies for school purposes.
(g) If in any year a political subdivision's distribution under s. 79.043 (5) is less than the political subdivision's distribution under s. 79.043 (5) in the previous year, the limit otherwise applicable under this section shall be increased to reflect the reduction in the distribution.
(4) REFERENDUM EXCEPTION. (a) A political subdivision may exceed the levy increase limit under sub. (2) if its governing body adopts a resolution to that effect and the resolution is approved in a referendum.
(b) The resolution under par. (a) shall specify the proposed amount of increase in the levy beyond the amount that is allowed under sub. (2). The political subdivision may either call a special referendum for the purpose of submitting the resolution to the electors of the political subdivision for approval or rejection or the referendum may be held at the next succeeding spring primary or election or September primary or general election, if such election is to be held not sooner than 42 days after the resolution is adopted.
(c) The clerk of the political subdivision shall publish type A, B, C, D, and E notices of the referendum under s. 10.01 (2). Section 5.01 (1) applies in the event of failure to comply with the notice requirements of this paragraph.
(d) The referendum shall be held in accordance with chs. 5 to 12. The political subdivision shall provide the election officials with all necessary election supplies. The form of the ballot shall correspond substantially with the standard form for referendum ballots prescribed by the elections board under ss. 5.64 (2) and 7.08 (1) (a). The question shall be submitted as follows: "Under state law, the increase in the levy of the .... (name of political subdivision) for the tax to be imposed for the next fiscal year, .... (year), is limited to ....%, which results in a levy of $.... Shall the .... (name of political subdivision) be allowed to exceed this limit and increase the levy for the next fiscal year, .... (year), by a total of ....%, which results in a levy of $....?".
(e) Within 14 days after the referendum, the clerk of the political subdivision shall certify the results of the referendum to the department of revenue.
(f) The levy increase limit otherwise applicable to the political subdivision under sub. (2) is increased in the next fiscal year by the percentage approved by a majority of those voting on the question under par. (d).
(5) EXCEPTION, CERTAIN TOWNS. A town with a population of less than 2,000 may exceed the levy increase limit otherwise applicable under this section to the town if the annual town meeting or a special town meeting adopts a resolution to that effect. The limit otherwise applicable to the town under sub. (2) is increased in the next fiscal year by the percentage approved by a majority of those voting on the question. Within 14 days after the adoption of the resolution, the town clerk shall certify the results of the vote to the department of revenue.
(6) REPORTING REQUIREMENTS. The department of revenue may promulgate rules relating to a political subdivision reporting its debt service levy and nondebt service levy to the department.
(7) SUNSET. This section does not apply to a property tax levy that is imposed after December 2006.
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LRB-1866LRB-1866/1
MJL:lmk:jf
2005 - 2006 LEGISLATURE
DOA:......Binau - Allocation of money by UWS
For 2005-07 Budget -- Not Ready For Introduction
2005 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
Education
Higher education
This bill directs the Board of Regents of the UW System to allocate certain amounts of money from the UW System general program operations appropriation for implementing the recommendations of the UW System Committee on Baccalaureate Expansion and for the UW-Rock County Engineering Initiative.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 9152. Nonstatutory provisions; University of Wisconsin System.
(1) ALLOCATION OF FUNDS. Of moneys appropriated under section 20.285 (1) (a) of the statutes for the 2006-07 fiscal year, the Board of Regents of the University of Wisconsin System shall allocate $1,111,400 for implementing the recommendations of the committee on baccalaureate expansion and $582,000 for the University of Wisconsin-Rock County engineering initiative.
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LRB-1886LRB-1886/5
JK&RAC:lmk:jf
2005 - 2006 LEGISLATURE
DOA:......Ziegler - Increase in the school levy tax property tax credit
For 2005-07 Budget -- Not Ready For Introduction
2005 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Property taxation
This draft increases the total amount of the school levy property tax credits, beginning in 2007, by $150,000,000, from $469,305,000 to $619,305,000 and authorizes a transfer of certain tax revenues from the general fund to the health care quality improvement fund.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1. 16.518 (title) of the statutes is amended to read:
16.518 (title) Transfers to the budget stabilization fund and the cash building projects health care quality improvement fund.
SECTION 2. 16.518 (3) (b) 3. of the statutes is created to read:
16.518 (3) (b) 3. In the 2006-07 fiscal year, the secretary shall reduce any amount transferred to the budget stabilization fund under par. (a) by an amount necessary to ensure that the distribution on June 15, 2007, under s. 79.10 (7m) (a) 1. b. is made.
SECTION 3. 16.518 (4) of the statutes is created to read:
16.518 (4) Notwithstanding sub. (3), if the amount of moneys projected to be deposited in the general fund during the 2005-07 fiscal biennium that are designated as "Taxes" in the summary is less than the amount of such moneys estimated to be deposited in the general fund during that fiscal biennium, as determined by the department under s. 79.10 (7m) (a) 1. b., the secretary may transfer any of the excess to the health care quality improvement fund.
SECTION 4. 79.10 (2) of the statutes is amended to read:
79.10 (2) NOTICE TO MUNICIPALITIES. On or before December 1 of the year preceding the distribution distributions under sub. (7m) (a), the department of revenue shall notify the clerk of each town, village and city of the estimated fair market value, as determined under sub. (11), to be used to calculate the lottery and gaming credit under sub. (5) and of the amount amounts to be distributed to it under sub. (7m) (a) on in the following 4th Monday in July year. The anticipated receipt of such distribution distributions shall not be taken into consideration in determining the tax rate of the municipality but shall be applied as tax credits.
SECTION 5. 79.10 (4) of the statutes is amended to read:
79.10 (4) SCHOOL LEVY TAX CREDIT. The amount appropriated under s. 20.835 (3) (b) shall be distributed to municipalities in proportion to their share of the sum of average school tax levies for all municipalities, as adjusted under sub. (7) except that $150,000,000 of the amount appropriated shall be distributed to municipalities in proportion to their share of general school aids paid under s. 20.255 (2) (ac), (af), and (r) in the year of notification, as determined by the department of revenue.
SECTION 6. 79.10 (7m) (a) 1. of the statutes is renumbered 79.10 (7m) (a) 1. a. and amended to read:
