Amendment SA1-AB58

LRBa0221/1

MES/PG/JK:wj:jf

2005 - 2006 LEGISLATURE

SENATE AMENDMENT 1, TO 2005 ASSEMBLY BILL 58

February 22, 2005 - Offered by Senators Decker, Wirch, Erpenbach, Lassa, Carpenter, Breske, Jauch, Robson, Plale, Hansen and Taylor.

AB58-SA1,1,2 At the locations indicated, amend the bill, as shown by assembly substitute amendment 1, as follows:

AB58-SA1,1,3 1. Page 1, line 3: delete "limits and" and substitute "limits,".

AB58-SA1,1,4 2. Page 1, line 4: after "districts" insert ", and making appropriations".

AB58-SA1,1,5 3. Page 2, line 1: before that line insert:

AB58-SA1,1,6 " Section 1ab. 16.518 (title) of the statutes is amended to read:

AB58-SA1,1,8 16.518 (title) Transfers to the budget stabilization fund and the cash building projects health care quality improvement fund.

AB58-SA1, s. 1ad Section 1ad. 16.518 (3) (b) 3. of the statutes is created to read:

AB58-SA1,1,13 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.

AB58-SA1, s. 1am Section 1am. 16.518 (4) of the statutes is created to read:

AB58-SA1,2,7 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.

AB58-SA1, s. 1b Section 1b. 20.835 (1) (c) of the statutes is amended to read:

AB58-SA1,2,11 20.835 (1) (c) Expenditure restraint program account. A sum sufficient to make the payments under s. 79.05. No moneys may be encumbered or expended from this appropriation after December 31, 2006.

AB58-SA1, s. 1c Section 1c. 20.835 (1) (cb) of the statutes is created to read:

AB58-SA1,2,14 20.835 (1) (cb) Municipal levy restraint payment account. Beginning in 2007, a sum sufficient to make the payments to municipalities under s. 79.051 (4) (a).

AB58-SA1, s. 1d Section 1d. 20.835 (1) (cd) of the statutes is created to read:

AB58-SA1,2,17 20.835 (1) (cd) Municipal levy restraint bonus payment account. Beginning in 2007, a sum sufficient to make the payments to municipalities under s. 79.051 (4) (b).

AB58-SA1, s. 1e Section 1e. 20.835 (1) (cf) of the statutes is created to read:

AB58-SA1,2,20 20.835 (1) (cf) County levy restraint payment account. Beginning in 2007, a sum sufficient to make the payments to counties under s. 79.052 (4) (a).

AB58-SA1, s. 1f Section 1f. 20.835 (1) (cg) of the statutes is created to read:

AB58-SA1,2,23 20.835 (1) (cg) County levy restraint bonus payment account. Beginning in 2007, a sum sufficient to make the payments to counties under s. 79.052 (4) (b).".

AB58-SA1,2,24 4. Page 2, line 1: delete " Section 1" and substitute "Section 1m".

AB58-SA1,3,2 5. Page 5, line 3: delete the material beginning with that line and ending with page 8, line 19, and substitute:

AB58-SA1,3,3 " Section 2e. 66.0602 of the statutes is created to read:

AB58-SA1,3,4 66.0602 Local levy limits. (1) Definitions. In this section:

AB58-SA1,3,8 (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.

AB58-SA1,3,12 (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.

AB58-SA1,3,17 (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).

AB58-SA1,3,18 (d) "Members-elect" has the meaning given in s. 59.001 (2m).

AB58-SA1,3,22 (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.

AB58-SA1,3,23 (f) "Municipality" means a city, village, or town.

AB58-SA1,3,24 (g) "Political subdivision" means a city, village, town, or county.

AB58-SA1,4,5 (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:

AB58-SA1,4,7 1. Region 1, consisting of the counties of Brown, Door, Florence, Kewaunee, Manitowoc, Marinette, Oconto, and Sheboygan.

AB58-SA1,4,10 2. Region 2, consisting of the counties of Calumet, Fond du Lac, Green Lake, Marquette, Menominee, Outagamie, Shawano, Waupaca, Waushara, and Winnebago.

AB58-SA1,4,12 3. Region 3, consisting of the counties of Buffalo, Crawford, Jackson, La Crosse, Monroe, Pepin, Pierce, Trempealeau, and Vernon.

AB58-SA1,4,14 4. Region 4, consisting of the counties of Adams, Forest, Juneau, Langlade, Lincoln, Marathon, Oneida, Portage, Vilas, and Wood.

AB58-SA1,4,16 5. Region 5, consisting of the counties of Ashland, Bayfield, Burnett, Douglas, Iron, Price, Rusk, Sawyer, Taylor, and Washburn.

AB58-SA1,4,18 6. Region 6, consisting of the counties of Columbia, Dane, Dodge, Jefferson, Rock, and Sauk.

AB58-SA1,4,20 7. Region 7, consisting of the counties of Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington, and Waukesha.

AB58-SA1,4,22 8. Region 8, consisting of the counties of Grant, Green, Iowa, Lafayette, and Richland.

AB58-SA1,4,24 9. Region 9, consisting of the counties of Barron, Chippewa, Clark, Dunn, Eau Claire, Polk, and St. Croix.

AB58-SA1,5,5 (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).

AB58-SA1,5,8 (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.

AB58-SA1,5,14 (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.

AB58-SA1,5,20 (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.

AB58-SA1,6,3 (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.

AB58-SA1,6,10 (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.

AB58-SA1,6,13 (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.

AB58-SA1,6,15 (f) The limit otherwise applicable under this section does not apply to the amount that a 1st class city levies for school purposes.

AB58-SA1,6,19 (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.

AB58-SA1,6,22 (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.

AB58-SA1,7,4 (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.

AB58-SA1,7,7 (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.

AB58-SA1,7,16 (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 $....?"

AB58-SA1,7,18 (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.

AB58-SA1,7,21 (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).

AB58-SA1,8,3 (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.

AB58-SA1,8,6 (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.

AB58-SA1,8,8 (7) Sunset. This section does not apply to a property tax levy that is imposed after December 2006.".

AB58-SA1,8,10 6. Page 8, line 19: after that line delete the material inserted by assembly amendment 1 and substitute:

AB58-SA1,8,11 " Section 2f. 79.01 (1) of the statutes is amended to read:

AB58-SA1,8,17 79.01 (1) There is established an account in the general fund entitled the "Expenditure Restraint Program Account." There shall be appropriated to that account $25,000,000 in 1991, in 1992, and in 1993; $42,000,000 in 1994; $48,000,000 in each year beginning in 1995 and ending in 1999; $57,000,000 in the year 2000 and in the year 2001; $57,570,000 in 2002; and $58,145,700 in 2003 and in each year thereafter, ending in 2006.

AB58-SA1, s. 2g Section 2g. 79.01 (5) of the statutes is created to read:

AB58-SA1,8,21 79.01 (5) There is established an account in the general fund entitled the "County Levy Restraint Payment Account." There shall be appropriated to that account $25,000,000 in 2007 and in each year thereafter.

AB58-SA1, s. 2h Section 2h. 79.01 (5b) of the statutes is created to read:

AB58-SA1,9,3 79.01 (5b) There is established an account in the general fund entitled the "Municipal Levy Restraint Payment Account." There shall be appropriated to that account $58,145,700 in 2007 and in each year thereafter.

AB58-SA1, s. 2i Section 2i. 79.01 (6) of the statutes is created to read:

AB58-SA1,9,7 79.01 (6) There is established an account in the general fund entitled the "County Levy Restraint Bonus Payment Account." There shall be appropriated to that account $10,000,000 in 2007 and in each year thereafter.

AB58-SA1, s. 2j Section 2j. 79.01 (6b) of the statutes is created to read:

AB58-SA1,9,11 79.01 (6b) There is established an account in the general fund entitled the "Municipal Levy Restraint Bonus Payment Account." There shall be appropriated to that account $10,000,000 in 2007 and in each year thereafter.

AB58-SA1, s. 2k Section 2k. 79.015 of the statutes is amended to read:

AB58-SA1,9,17 79.015 Statement of estimated payments. The department of revenue, on or before September 15 of each year, shall provide to each municipality and county a statement of estimated payments to be made in the next calendar year to the municipality or county under ss. 79.03, 79.035, 79.04, 79.05, 79.051, 79.052, 79.058, and 79.06.

AB58-SA1, s. 2L Section 2L. 79.02 (2) (b) of the statutes is amended to read:

AB58-SA1,9,22 79.02 (2) (b) Subject to ss. 59.605 (4) and 70.995 (14) (b), payments in July shall equal 15% of the municipality's or county's estimated payments under ss. 79.03, 79.035, 79.04, 79.058, and 79.06 and 100% of the municipality's or county's estimated payments under s. ss. 79.05, 79.051, and 79.052.

AB58-SA1, s. 2Lx Section 2Lx. 79.043 (4) of the statutes is amended to read: