SECTION 5. Tax 19.03(1)(c) is amended for the following reasons:
1. Historically, the consumer price index change has been calculated to only one significant digit to the right of the decimal point, so rounding the municipal budget percentage change to 2 places to the right of the decimal point is sufficient to determine if the municipality meets the budget requirement.
2. 1993 Wis. Act 16 created s. 79.05(6), Stats., providing a budget adjustment for services transferred between local governments.
SECTION 6. Tax 19.03(1)(d) and (e) are repealed because 1993 Wis. Act 16 repealed s. 79.05(2)(b), Stats., eliminating the less than 120% of average municipal per capita full value requirement.
SECTION 7. Tax 19.03(1)(f) is renumbered to keep the definitions under this subsection in alphabetical order.
SECTION 8. Tax 19.03(1)(g) is repealed because 1991 Wis. Act 39 amended s. 79.08, Stats., eliminating the special charge against the municipality procedure for payments made under s. 79.05, Stats.
SECTION 9. Tax 19.03(1)(h) is repealed because 1993 Wis. Act 16 amended s. 79.05(2)(a), Stats., eliminating the use of the average municipal tax rate in determining qualification for a payment.
SECTION 10. Tax 19.03(1)(i) and (j) are renumbered to keep the definitions under this subsection in alphabetical order.
SECTION 11. Tax 19.03(1)(k) is renumbered and amended for the following reasons:
1. The definitions under this subsection will remain in alphabetical order.
2. The percentage change in the consumer price index has historically been calculated to only one significant digit to the right of the decimal point.
3. 1991 Wis.Act 61 amended s. 79.05(2)(e), Stats., so that the 12-month period for calculating the consumer price index change is the 12 months ending on September 30 of the year before the statement under s. 79.015, Stats.
4. 1993 Wis. Act 16 created s. 79.05(am), Stats., naming the consumer price index change the inflation factor.
SECTION 12. Tax 19.03(1)(L) is renumbered to keep the definitions under this subsection in alphabetical order and is amended because 1993 Wis. Act 16 amended s. 79.05(title), Stats., renaming the tax rate disparity program the expenditure restraint program.
SECTION 13. Tax 19.03(1)(m) is renumbered to keep the definitions under this subsection in alphabetical order.
SECTION 14. Tax 19.03(1)(i) is created because 1993 Wis. Act 16 created s. 79.05(1)(d), Stats., which defines a valuation factor for determining if a municipality meets the budget requirement.
SECTION 15. Tax 19.03(2)(intro.) is amended because 1993 Wis. Act 16 amended s. 79.05(title), Stats., renaming the tax rate disparity program the expenditure restraint program.
SECTION 16. Tax 19.03(2)(a) is amended because 1993 Wis. Act 16 amended s. 79.05(2)(a), Stats., changing the municipal tax rate requirement from being greater than the municipal average tax rate to being greater than 5 mills.
SECTION 17. Tax 19.03(2)(b) is repealed because 1993 Wis. Act 16 repealed s. 79.05(2)(b), Stats., eliminating the less than 120% of average municipal per capita full value requirement.
SECTION 18. Tax 19.03(2)(c) is renumbered and amended for the following reasons:
1. Renumbering will keep these eligiblity requirements in numerical order.
2. 1993 Wis. Act 16 renumbered and amended s. 79.05(2)(c)(intro.), Stats., and repealed s. 79.05(2)(c)1 and 2, Stats., changing the municipal budget increase requirement from being less than the consumer price index increase plus a set percentage to less than the total of the consumer price index increase and a valuation factor.
3. 1991 Wis. Act 39 amended the definition of municipal budget under s. 79.05(1)(b), Stats., to be the municipality's general fund budget. Standard usage refers to a municipality's ”operating budget” which is defined in Tax 19.05.
SECTION 19. Tax 19.03(3) and (4)(intro.) are amended for the following reasons:
1. 1993 Wis. Act 16 amended s. 79.05(title), Stats., renaming the tax rate disparity program the expenditure restraint program.
2. 1993 Wis. Act 16 repealed s. 79.05(2)(b), Stats., eliminating the less than 120% of average municipal per capita full value requirement.
SECTION 20. Tax 19.03(4)(a) is amended because 1993 Wis. Act 16 amended s. 79.05(3)(a), Stats., changing the formula for calculating an expenditure restraint payment from using a qualifying municipality's tax rate exceeding the municipal average tax rate to using its tax rate in excess of 5 mills.
SECTION 21. Tax 19.03(4)(d) is created because the final payment calculation step was inadvertently left out of the original tax rate disparity rules created in 1991.
SECTION 22. Tax 19.04(title), (1) and (2) are amended for the following reasons:
1. 1993 Wis. Act 16 amended s. 79.05(title), Stats., renaming the tax rate disparity program the expenditure restraint program.
2. 1993 Wis. Act 16 repealed s. 79.05(2)(b), Stats., eliminating the less than 120% of average municipal per capita full value requirement.
3. The reference to s. Tax 19.04(2)(c) in the original tax rate disparity rules created in 1991 was incorrect. The reference should have been to s. Tax 19.03(2)(c), which is being renumbered and amended in section 18 of these rules.
SECTION 23. Tax 19.04(3)(a) is repealed because this paragraph affected only 1991 payments under this chapter and it is now obsolete.
SECTION 24. Tax 19.04(3)(b) and (c) are renumbered and amended for the following reasons:
1. The requirements under this subsection will remain in numerical order.
2. 1993 Wis. Act 16 amended s. 79.05(title), Stats., renaming the tax rate disparity program the expenditure restraint program.
3. Tax 19.04(3)(a) is being repealed in section 23 of these rules.
SECTION 25. Tax 19.04(4) is repealed because it is not needed or used for the following reasons:
1. 1991 Wis. Act 307 amended s. 79.02(3), Stats., requiring that payments first made in each July under s. 79.02(2)(b), Stats., which includes payments calculated under s. 79.05, Stats., be recalculated and adjusted in each November of the payment year.
2. S. 79.08, Stats., as amended by 1989 Wis. Act 336 and 1991 Wis. Act 39, clearly explains how a correction to a prior year's payment calculated under s. 79.05, Stats., is to be made.
SECTION 26. Tax 19.05(1)(intro.) is amended to correct an error in the original tax rate disparity rules created in 1991.
SECTION 27. Tax 19.05(1)(b) is amended because 1991 Wis. Act 39 amended s. 79.05(1)(b), Stats., defining the municipality's budget to be the municipality's general fund budget.
SECTION 28. Tax 19.05(2) is amended for the following reasons:
1. 1993 Wis. Act 16 amended s. 79.05(title), Stats., renaming the tax rate disparity program the expenditure restraint program.
2. The failure to comply provisions under Tax 19.04(4) are being repealed in section 25 of these rules.
Note: This proposed rule is being adopted under the procedure of s. 227.16(2)(b), Stats.
Text of Rule
SECTION 1. Chapter Tax 19(title) is amended to read:
CHAPTER TAX 19 (title)
TAX RATE DISPARITY
EXPENDITURE RESTRAINT PAYMENTS
SECTION 2. Tax 19.01 is amended to read:
Tax 19.01 PURPOSE. The purpose of this chapter is to establish standards and procedures for determining whether a town, village, or city is eligible for a tax rate disparity an expenditure restraint payment under s. 79.05, Stats., and the computation of the payment.
SECTION 3. Tax 19.03(1)(a) is repealed.
SECTION 4. Tax 19.03(1)(b) is renumbered Tax 19.03(1)(a) and is amended to read:
Tax 19.03(1)(b) ”Excess property tax levy rate” means the amount by which the property tax levy rate for a municipality exceeds
the average property tax levy rate for all municipalities 5
mills.
SECTION 5. Tax 19.03(1)(c) is amended to read:
Tax 19.03(1)(c) ”Increased over its municipal budget” ”Municipal operating budget increase” means an amount, expressed as a percentage and rounded to 9 2 places beyond the decimal, which results from dividing:
1. The difference between the amount of the municipal operating budget for the year of the statement and the amount of the municipal operating budget, including any adjustment under s. 79.05(6), Stats., for the year before the year of the statement; by
2. The amount of the municipal operating budget, including any adjustment under s. 79.05(6), Stats., for the year before the year of the statement.
SECTION 6. Tax 19.03(1)(d) and (e) are repealed.
SECTION 7. Tax 19.03(1)(f) is renumbered Tax 19.03(1)(d).
SECTION 8. Tax 19.03(1)(g) is repealed.
SECTION 9. Tax 19.03(1)(h) is repealed.
SECTION 10. Tax 19.03(1)(i) and 19.03(1)(j) are renumbered Tax 19.03(1)(e) and 19.03(1)(f).
SECTION 11. Tax 19.03(1)(k) is renumbered Tax 19.03(1)(b) and is amended to read:
Tax 19.03(1)(b) ”The percentage change between the U.S. consumer price index” ”Inflation factor”
means an amount expressed as a percentage and rounded to 9 places one place beyond the decimal, which results from dividing:
1.The difference between the annualized index
sum of the 12 monthly indexes of the U.S. consumer price index for all urban consumers, U.S. city average, for the year ending on September 30 for of the year before the year of the statement and the annualized index sum of the 12 monthly indexes of the U.S. consumer price index for all urban consumers, U.S. city average, for the year ending on September 30 for of the year prior to that year; by
2. The annualized index sum of the 12 monthly indexes of the U.S. consumer price index for all urban consumers, U.S. city average, for the year ending on September 30 for
of the year prior to the year before the year of the statement.
SECTION 12. Tax 19.03(1)(L) is renumbered Tax 19.03(1)(g) and is amended to read:
Tax 19.03(1)(g) ”The year of the statement” means the calendar year in which the statement under s. 79.015, Stats., is issued and is the year prior to the calendar year in which the tax rate disparity expenditure restraint payment is to be made.
SECTION 13. Tax 19.03(1)(m) is renumbered Tax 19.03(1)(h).
SECTION 14. Tax 19.03(1)(i) is created to read:
Tax 19.03(1)(i) ”Valuation factor” has the same meaning as in s. 79.05(1)(d), Stats.
SECTION 15. Tax 19.03(2)(intro.) is amended to read:
Tax 19.03(2)(intro.) ELIGIBILITY. Any town, village, or city shall receive a tax rate disparity an expenditure restraint payment if all of the following requirements are met:
SECTION 16. Tax 19.03(2)(a) is amended to read:
Tax 19.03(2)(a) Its property tax levy rate established during the year before the year of the statement is greater than the average for all municipalities 5 mills.
SECTION 17. Tax 19.03(2)(b) is repealed.
SECTION 18. Tax 19.03(2)(c) is renumbered Tax 19.03(2)(b) and is amended to read:
Tax 19.03(2)(b) Its municipal operating budget
, exclusive of principal and interest on long-term debt, for the year of the statement increased over its municipal budget, exclusive of principal and interest on long-term debt, for the year before that year by, as defined in s. Tax 19.05(1)(b), increase is less than the percentage change under s. 79.05(2)(c), Stats., plus 3%. For 1994 and subsequent years' payments plus 0%.
SECTION 19. Tax 19.03(3) and (4)(intro.) are amended to read:
Tax 19.03(3) ELIGIBILITY UNDER SUB.(2)(a) AND (b). The department of revenue shall determine whether a municipality meets the eligibility requirements requirement under subs. sub.(2)(a)
and (b). If a municipality meets these this eligibility requirements requirement, the department of revenue shall send the tax rate disparity expenditure restraint worksheet to the municipality which, when returned to the department of revenue, shall be used to determine if the municipality meets the requirement in sub.(2)(c). (b).
NOTE: See s. Tax 19.04 for information about the tax rate disparity expenditure restraint worksheet.
Tax 19.03(4)(intro.) PAYMENT. If the department of revenue determines that a municipality meets the requirements in sub. (2), it shall receive a tax rate disparity an expenditure restraint payment calculated by the department of revenue as follows:
SECTION 20. Tax 19.03(4)(a) is amended to read:
Tax 19.03(4)(a) Subtract the statewide average property tax levy rate 5 mills from the municipality's property tax levy rate.
SECTION 21. Tax 19.03(4)(d) is created to read:
Tax 19.03(4)(d) Multiply the amount under par. (c) by the amount of the appropriation under s. 79.01(1), Stats.
