2011 - 2012 LEGISLATURE
February 28, 2012 - Introduced by Senator S. Fitzgerald, cosponsored by
Representative J. Fitzgerald. Referred to Committee on Public Health,
Human Services, and Revenue.
1An Act to create
66.0602 (3) (L) of the statutes; relating to: exception to local
2levy limits for the city of Fox Lake.
Analysis by the Legislative Reference Bureau
Generally under current law, and subject to a number of exceptions, a city,
village, town, or county (political subdivision) may not increase its levy by a
percentage that exceeds its "valuation factor," which is defined as the greater of
either zero percent or the percentage change in the political subdivision's equalized
value due to new construction, less improvements removed. The base amount of a
political subdivision's levy, on which the levy limit is imposed, is the actual levy for
the immediately preceding year.
In 2011, the assessor for the city of Fox Lake made an error in reporting the
valuation of a tax incremental district in the city. Under current law, the error is
corrected by adjusting the taxation district's equalized value in the year after the
year in which the error was made. Because of the 2011 valuation error, should the
city impose its intended 2012 levy, the resulting tax rate would be different from
what the city intended. If the city reduces its levy, however, the levy will be less than
initially intended and the levy limit for 2013 would be based on the reduced levy for
2012. Under this bill, the levy limits applicable to the city of Fox Lake for 2013 are
increased by the amount by which the city reduces its levy from the amount it would
have levied in 2012, if not for the valuation error, to compensate for that error. The
actual levy limit increase amount is determined by the Department of Revenue.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB524, s. 1
66.0602 (3) (L) of the statutes is created to read:
(L) If the city of Fox Lake reduces its levy from the amount it would 3
have levied for 2012 if not for an error in the valuation of Tax Incremental District 4
Number 1 in the city, to compensate for that error, the limit otherwise applicable 5
under this section to the city in 2013 is increased by the amount of the reduction, as 6
determined by the department of revenue. The amounts added to the city's limit for 7
2013 under this paragraph may not exceed the amount by which the city 8
underutilized its limit for 2012, as determined by the department of revenue.