2019 - 2020 LEGISLATURE
May 30, 2019 - Introduced by Senator Wanggaard, cosponsored by Representatives
Kerkman, Snyder and Spiros. Referred to Committee on Natural Resources
1An Act to create
66.0602 (3) (e) 10. of the statutes; relating to: exception from
2local levy limits for political subdivisions receiving certain utility aid payments.
Analysis by the Legislative Reference Bureau
This bill creates a levy limit exception for political subdivisions that receive
certain utility aid payments.
Generally under current law, local levy limits are applied to the property tax
levies that are imposed by a political subdivision in December of each year. Current
law prohibits any political subdivision from increasing 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.
Current law contains a number of exceptions to the levy limit, such as amounts
a county levies for a countywide emergency medical system, for a county children
with disabilities education board, and for certain bridge and culvert construction and
repair. In addition, a political subdivision may exceed the levy limit that is otherwise
applicable if its governing body adopts a resolution to do so and if that resolution is
approved by the electors in a referendum.
Also under current law, if a power plant that is exempt from property taxes is
decommissioned or closed, and therefore becomes taxable, the county and
municipality where the plant is located receive a utility aid payment from the state
for the first five years in which the plant is subject to the property tax in an amount
equal to a percentage of the utility aid payment that the county or municipality
received for the last year in which the plant was exempt. The percentage decreases
by 20 percent each year.
This bill creates a levy limit exception for a political subdivision that is
receiving these utility aid payments. The amount that is exempt from the levy limit
is equal to the full amount of the utility aid in the first year less the amount of the
utility aid to be paid to the political subdivision in the year in which the levy is
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:
66.0602 (3) (e) 10. of the statutes is created to read:
(e) 10. For a political subdivision that will receive a payment under 3
s. 79.04 (5) (a) or (b), the amount that the political subdivision levies in that year to 4
replace a revenue reduction incurred under s. 79.04 (5) (a) or (b). The amount levied 5
under this subdivision may not exceed the amount paid to the political subdivision 6
under s. 79.04 (5) (a) 1. or (b) 1. less the amount to be paid to the political subdivision 7
under s. 79.04 (5) (a) or (b) in the year in which the levy is imposed. A revenue 8
reduction is incurred under this subdivision only when a political subdivision 9
receives a payment under s. 79.04 (5) (a) or (b) in the current year that is less than 10
the payment under s. 79.04 (5) (a) or (b) in the previous year.