This bill extends the levy limit on political subdivisions through 2009, modifies the calculation of the limit, and creates a number of new exceptions to the limit. The bill changes the definition of "valuation factor" to be the greater of either 4 percent or the percentage change in the political subdivision's equalized value due to new construction, less improvements removed. Also under the bill, the base amount of a political subdivision's levy, on which the levy limit is imposed, is the maximum allowable levy for the immediately preceding year.
The bill creates several new exceptions to the levy limit for political subdivisions: county levies for certain bridge and culvert construction and repairs; certain levies for fire departments from any combination of cities, villages, and towns that have entered into a contract to jointly provide fire protection services; political subdivision levies for a revenue short fall for the debt service on a revenue bond; and county levies for payments to adjacent counties for library services.
Under this bill, DOR may not reduce a political subdivision's aid payments unless its penalized excess is at least $500, but, if the amount of a political subdivision's penalized excess exceeds its aid payments in the following year, DOR must carry forward the unused penalized excess and deduct it from aid payments for future years until the penalized excess amount is fully deducted from local aid payments in future years. Also under the bill, a political subdivision will not be liable for a penalty for a penalized excess if DOR determines that the penalized excess is directly caused by DOR assessment errors or because of an error in preparing or delivering the tax roll by the taxation district clerk or county clerk.
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 (1) (am) of the statutes is created to read:
66.0602 (1) (am) "Joint fire department" means a joint fire department organized under s. 61.65 (2) (a) 3. or 62.13 (2m), or a joint fire department organized by any combination of 2 or more cities, villages, or towns under s. 66.0301 (2).
SECTION 2. 66.0602 (1) (b) of the statutes is amended to read:
66.0602 (1) (b) "Penalized excess" means the levy, in an amount that is at least $500 over the limit under sub. (2) for the political subdivision, not including any amount that is excepted from the limit under subs. (3), (4), and (5).
SECTION 3. 66.0602 (1) (d) of the statutes is amended to read:
66.0602 (1) (d) "Valuation factor" means a percentage equal to the greater of either 4 percent or the percentage change in the political subdivision's January 1 equalized value due to new construction less improvements removed between the previous year and the current year, but not less than 2. Except as provided in subs. (3), (4), and (5), no political subdivision may increase its levy in any year by a percentage that exceeds the political subdivision's valuation 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).
SECTION 4. 66.0602 (2) of the statutes is created to read:
66.0602 (2) LEVY LIMIT. Except as provided in subs. (3), (4), and (5), no political subdivision may increase its levy in 2007 or 2008 by a percentage that exceeds the political subdivision's valuation factor. The base amount in any year, to which the limit under this section applies, shall be the maximum allowable levy for the immediately preceding year. 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).
SECTION 5. 66.0602 (3) (e) of the statutes is renumbered 66.0602 (3) (e) (intro.) and amended to read:
66.0602 (3) (e) (intro.) 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. any of the following:
SECTION 6. 66.0602 (3) (e) 1. of the statutes is created to read:
66.0602 (3) (e) 1. The amount that a county levies in that year for a county children with disabilities education board.
SECTION 7. 66.0602 (3) (e) 2. of the statutes is created to read:
66.0602 (3) (e) 2. The amount that a 1st class city levies in that year for school purposes.
SECTION 8. 66.0602 (3) (e) 3. of the statutes is created to read:
66.0602 (3) (e) 3. The amount that a county levies in that year under s. 82.08 (2) for bridge and culvert construction and repair.
SECTION 9. 66.0602 (3) (e) 4. of the statutes is created to read:
66.0602 (3) (e) 4. The amount that a county levies in that year to make payments to an adjacent county, under s. 43.12 (1), for library services.
SECTION 10. 66.0602 (3) (e) 5. of the statutes is created to read:
66.0602 (3) (e) 5. The amount that a political subdivision levies in that year to make up any revenue shortfall for the debt service on a revenue bond issued under s. 66.0621.
SECTION 11. 66.0602 (3) (f) of the statutes is repealed.
SECTION 12. 66.0602 (3) (h) 1. of the statutes is amended to read:
66.0602 (3) (h) 1. Subject to subd. 2., the limit otherwise applicable under this section does not apply to the amount that a city, village, or town levies in that year to pay for charges assessed by a joint fire department organized under s. 61.65 (2) (a) 3. or 62.13 (2m), but only to the extent that the amount levied to pay for such charges would cause the city, village, or town to exceed the limit that is otherwise applicable under this section.
SECTION 13. 66.0602 (4) (a) of the statutes is amended to read:
66.0602 (4) (a) A political subdivision may exceed the levy increase limit under sub. (2) if its governing body adopts a resolution to that effect and if the resolution is approved in a referendum. The resolution shall specify the proposed amount of increase in the levy beyond the amount that is allowed under sub. (2), and shall specify whether the proposed amount of increase is for the next fiscal year only or if it will apply on an ongoing basis. With regard to a referendum relating to the 2005 levy, or any levy in an odd-numbered year thereafter, the political subdivision may call a special referendum for the purpose of submitting the resolution to the electors of the political subdivision for approval or rejection. With regard to a referendum relating to the 2006 levy, or any levy in an even-numbered year thereafter, the referendum shall be held at the next succeeding spring primary or election or September primary or general election.
SECTION 14. 66.0602 (4) (d) of the statutes is amended to read:
66.0602 (4) (d) Within 14 days after the referendum, the clerk of the political subdivision shall certify the results of the referendum to the department of revenue. The levy increase limit otherwise applicable to the political subdivision under this section is increased in the next fiscal year by the percentage approved by a majority of those voting on the question. If the resolution specifies that the increase is for one year only, the amount of the increase shall be subtracted from the base used to calculate the limit for the 2nd succeeding fiscal year.
SECTION 15. 66.0602 (5) of the statutes is amended to read:
66.0602 (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 town board adopts a resolution supporting an increase and places the question on the agenda of an annual town meeting or a special town meeting and if the annual or special town meeting adopts a resolution endorsing the town board's resolution. The limit otherwise applicable to the town under this section 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.
SECTION 16. 66.0602 (6) (intro.) of the statutes is amended to read:
66.0602 (6) PENALTIES. (intro.) If Except as provided in sub. (6m), if the department of revenue determines that a political subdivision has a penalized excess in any year, the department of revenue shall do all of the following:
SECTION 17. 66.0602 (6) (c) of the statutes is amended to read:
66.0602 (6) (c) Ensure that the amount of the penalized excess is not included in determining the limit described under sub. (2) for the political subdivision for the following year.
SECTION 18. 66.0602 (6) (d) of the statutes is created to read:
66.0602 (6) (d) Ensure that, if a political subdivision's penalized excess exceeds the amount of aid payment that may be reduced under par. (a), the excess amount is subtracted from the aid payments under par. (a) in the following years until the total amount of penalized excess is subtracted from the aid payments.
SECTION 19. 66.0602 (6m) of the statutes is created to read:
66.0602 (6m) MISTAKES IN LEVIES. The department of revenue may issue a finding that a political subdivision is not liable for a penalty that would otherwise be imposed under sub. (6) if the department determines that the political subdivision's penalized excess is caused by one of the following clerical errors:
(a) The department, through mistake or inadvertence, has assessed to any county or taxation district, in the current year or in the previous year, a greater or less valuation for any year than should have been assessed, causing the political subdivision's levy to be erroneous in a way that directly causes a penalized excess.
(b) A taxation district clerk or a county clerk, through mistake or inadvertence in preparing or delivering the tax roll, causes a political subdivision's levy to be erroneous in a way that directly causes a penalized excess.
SECTION 20. 66.0602 (7) of the statutes is repealed.
(End)
LRB-1181LRB-1181/9
JK/CTS/GMM:jld/kjf:rs
2007 - 2008 LEGISLATURE
DOA:......Easton, BB0238 - Increase the real estate transfer fee
For 2007-09 Budget -- Not Ready For Introduction
2007 BILL
AN ACT to amend 20.835 (1) (d), 20.835 (1) (db), 20.835 (1) (dm), 46.215 (2) (c) 3., 46.22 (1) (e) 3. c., 49.45 (6m) (br) 1., 77.22 (1), 77.24, 79.01 (2d), 79.035 (1), 301.26 (3) (c), 301.26 (3) (em), 301.26 (4) (a) and 301.26 (6) (a); and to create 20.143 (2) (r), 20.143 (2) (s), 20.143 (2) (t), 20.143 (2) (u), 20.410 (3) (r), 20.625 (1) (q), 20.835 (1) (dc), 20.835 (1) (q), 20.855 (4) (vm), 25.17 (1) (ab), 25.17 (1) (bw), 25.415, 25.51 and 301.26 (7) (cm) of the statutes; relating to: the budget.
Analysis by the Legislative Reference Bureau
correctional system
juvenile correctional system
Under current law relating to community youth and family aids (generally referred to as "youth aids"), DOC is required to allocate to counties various state and federal moneys to pay for state-provided juvenile correctional services and local delinquency-related and juvenile justice services. This bill appropriates for youth aids moneys from the county aid fund, which consists of real estate transfer fees retained by the state, and requires DOC to allocate those moneys to counties based on each county's proportion of the number of juveniles statewide who are placed in a juvenile correctional facility during the most recent three-year period for which that information is available.
taxation
Other taxation
Under current law, generally, the conveyance of real property from one person to another is subject to a real estate transfer fee at the rate of 30 cents for each $100 of the conveyance's value. The register of deeds for the county in which the property is located collects the fee at the time that the conveyance is recorded with the register of deeds. The register of deeds retains 20 percent of the fee for the county and submits the remainder to the state. This bill increases the rate of the real estate transfer fee to 60 cents for each $100 of a conveyance's value and requires the register of deeds to submit 90 percent of the fee to the state, rather than 80 percent. Under the bill, the amount of the real estate transfer fee retained by the state is deposited into the county aid fund. This bill pays part of the amount paid to counties for circuit court costs out of the county aid fund. The bill also pays from the county aid fund part of the amount paid to counties as community youth and family aids (generally referred to as "youth aids"), which are aids paid to counties for juvenile delinquency-related services. Those costs and aids are currently paid out of the general fund. Beginning in 2008, county aid payments, formerly referred to as "shared revenue payments," will be paid in part from the county aid fund and in part from the general fund.
Additionally, the bill creates an affordable housing trust fund, consisting of moneys transferred from the county aid fund and appropriated for current housing grant and loan programs administered by the Department of Commerce.
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. 20.143 (2) (r) of the statutes is created to read:
20.143 (2) (r) Housing grants and loans; affordable housing trust fund. Biennially, from the affordable housing trust fund, the amounts in the schedule for grants and loans under s. 560.9803 and for grants under s. 560.9805.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 2. 20.143 (2) (s) of the statutes is created to read:
20.143 (2) (s) Payments to designated agents; affordable housing trust fund. From the affordable housing trust fund, the amounts in the schedule for payments for services provided by agents designated under s. 560.9804 (2), in accordance with agreements entered into under s. 560.9804 (1).
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 3. 20.143 (2) (t) of the statutes is created to read:
20.143 (2) (t) Shelter for homeless and transitional housing grants; affordable housing trust fund. From the affordable housing trust fund, the amounts in the schedule for transitional housing grants under s. 560.9806 and for grants to agencies and shelter facilities for homeless individuals and families as provided under s. 560.9808. Notwithstanding ss. 20.001 (3) (a) and 20.002 (1), the department may transfer funds between fiscal years under this paragraph. All funds allocated but not encumbered by December 31 of each year lapse to the affordable housing trust fund on the next January 1 unless transferred to the next calendar year by the joint committee on finance.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 4. 20.143 (2) (u) of the statutes is created to read:
20.143 (2) (u) Mental health for homeless individuals; affordable housing trust fund. From the affordable housing trust fund, the amounts in the schedule for mental health services for homeless individuals under s. 560.9811.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 5. 20.410 (3) (r) of the statutes is created to read:
20.410 (3) (r) County aid fund; community youth and family aids. From the county aid fund, the amounts in the schedule for the improvement and provision of juvenile delinquency-related services under s. 301.26 and for reimbursement to counties having a population of less than 500,000 for the cost of court-attached intake services as provided in s. 938.06 (4). Notwithstanding ss. 20.001 (3) (a) and 20.002 (1), the department of corrections may transfer moneys under this paragraph between fiscal years. Except for moneys authorized for transfer under s. 301.26 (3), all moneys from this paragraph allocated under s. 301.26 (3) and not spent or encumbered by counties by December 31 of each year shall lapse into the county aid fund on the succeeding January 1. The joint committee on finance may transfer additional moneys to the next calendar year.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 6. 20.625 (1) (q) of the statutes is created to read:
20.625 (1) (q) Circuit court support payments. From the county aid fund, the amounts in the schedule to make payments to each county under s. 758.19 (5).
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 7. 20.835 (1) (d) of the statutes is amended to read:
20.835 (1) (d) Shared revenue account. A sum sufficient to meet the requirements of the shared revenue account established under s. 79.01 (2) to provide for the distributions from the shared revenue account to counties, towns, villages and cities under ss. 79.03, 79.04 (1) to (4), and 79.06.
SECTION 8. 20.835 (1) (db) of the statutes is amended to read:
20.835 (1) (db) County and municipal Municipal aid account. Beginning in 2004, a A sum sufficient to make payments to counties, towns, villages, and cities under s. ss. 79.035 and 79.043.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 9. 20.835 (1) (dc) of the statutes is created to read:
20.835 (1) (dc) County aid account; supplemental. A sum sufficient to make payments to counties under ss. 79.035, 79.04, and 79.043, less the amounts paid from the appropriation account under s. 20.835 (1) (q).
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 10. 20.835 (1) (dm) of the statutes is amended to read:
20.835 (1) (dm) Public utility distribution account. Beginning in 2005, a sum sufficient to make the payments to municipalities under s. 79.04 (5), (6), and (7).
SECTION 11. 20.835 (1) (q) of the statutes is created to read:
20.835 (1) (q) County aid account. From the county aid fund, a sum sufficient to make payments to counties under ss. 79.035, 79.04, and 79.043.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 12. 20.855 (4) (vm) of the statutes is created to read:
20.855 (4) (vm) Transfer to affordable housing trust fund. From the county aid fund, the amounts in the schedule to be transferred to the affordable housing trust fund.
****NOTE: This SECTION involves a change in an appropriation that must be reflected in the revised schedule in s. 20.005, stats.
SECTION 13. 25.17 (1) (ab) of the statutes is created to read:
25.17 (1) (ab) Affordable housing trust fund (s. 25.415);
SECTION 14. 25.17 (1) (bw) of the statutes is created to read:
25.17 (1) (bw) County aid fund (s. 25.51).
