Amendment SA1-AB58

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:

AB58-SA1,10,3 79.043 (4) Except as provided under s. 79.02 (3) (e), beginning in 2004 the total amount to be distributed each year to municipalities from the aid account is $703,102,200 $702,483,300.

AB58-SA1, s. 2m Section 2m. 79.05 (7) of the statutes is created to read:

AB58-SA1,10,6 79.05 (7) Beginning in 2007, no municipality may receive a payment under this section.

AB58-SA1, s. 2n Section 2n. 79.051 of the statutes is created to read:

AB58-SA1,10,8 79.051 Municipal levy restraint program. (1) Definitions. In this section:

AB58-SA1,10,11 (ad) "Debt service" includes debt service on debt issued or reissued to fund or refund outstanding municipal obligations, interest on outstanding municipal obligations, and related issuance costs and redemption premiums.

AB58-SA1,10,15 (am) "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 before the statement under s. 79.015.

AB58-SA1,10,19 (b) "Maximum allowable levy" means the municipal tax levy for the year before the statement under s. 79.015, as adjusted under sub. (5), multiplied by the sum of one plus 85 percent of the inflation factor and 85 percent of the valuation factor, rounded to the nearest 0.01 percent.

AB58-SA1,10,24 (c) "Municipal tax levy" means the amounts reported as the total taxes levied for each town, village, or city on the statement of taxes filed with the department of revenue under s. 73.10, not including the incremental levy for municipal tax incremental financing districts and the incremental levy for county environmental tax financing districts.

AB58-SA1,11,2 (d) "Municipal tax rate" means the municipal tax levy divided by the taxable value.

AB58-SA1,11,9 (e) "Region" means any of the following areas to which a municipality is assigned, for purposes of determining the eligibility for and the amount of the payments under this subsection, 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, for purposes of determining the eligibility for and the amount of the payments under this subsection, to be located in the county that has the greater taxable value:

AB58-SA1,11,11 1. Region 1, consisting of the counties of Brown, Door, Florence, Kewaunee, Manitowoc, Marinette, Oconto, and Sheboygan.

AB58-SA1,11,14 2. Region 2, consisting of the counties of Calumet, Fond du Lac, Green Lake, Marquette, Menominee, Outagamie, Shawano, Waupaca, Waushara, and Winnebago.

AB58-SA1,11,16 3. Region 3, consisting of the counties of Buffalo, Crawford, Jackson, La Crosse, Monroe, Pepin, Pierce, Trempealeau, and Vernon.

AB58-SA1,11,18 4. Region 4, consisting of the counties of Adams, Forest, Juneau, Langlade, Lincoln, Marathon, Oneida, Portage, Vilas, and Wood.

AB58-SA1,11,20 5. Region 5, consisting of the counties of Ashland, Bayfield, Burnett, Douglas, Iron, Price, Rusk, Sawyer, Taylor, and Washburn.

AB58-SA1,11,22 6. Region 6, consisting of the counties of Columbia, Dane, Dodge, Jefferson, Rock, and Sauk.

AB58-SA1,11,24 7. Region 7, consisting of the counties of Kenosha, Milwaukee, Ozaukee, Racine, Walworth, Washington, and Waukesha.

AB58-SA1,12,2 8. Region 8, consisting of the counties of Grant, Green, Iowa, Lafayette, and Richland.

AB58-SA1,12,4 9. Region 9, consisting of the counties of Barron, Chippewa, Clark, Dunn, Eau Claire, Polk, and St. Croix.

AB58-SA1,12,9 (f) "Taxable value" means, for a municipality, the equalized assessed value of all property located in the municipality, as determined under s. 70.57, excluding the value of any tax increments under s. 66.1105, and, for a county, the equalized assessed value of all property located in the county, as determined under s. 70.57, excluding the value of any tax increments under s. 66.1105.

AB58-SA1,12,13 (g) "Valuation factor" means a percentage equal to 60 percent of the percentage change in the region's equalized value under s. 70.57 due to new construction less improvements removed between the year before the statement under s. 79.015 and the previous year, but not less than zero nor greater than 2.

AB58-SA1,12,15 (2) Eligibility. A municipality is eligible to receive a payment under sub. (4) if it fulfills all of the following requirements:

AB58-SA1,12,17 (a) The municipality's municipal tax rate for the year before the statement under s. 79.015 is greater than 5 mills.

AB58-SA1,12,19 (b) The municipality's municipal tax levy for the year of the statement under s. 79.015 is no greater than the municipality's maximum allowable levy.

AB58-SA1,12,22 (3) Consumer price index. Annually, on August 1, the department of revenue shall certify to the joint committee on finance the appropriate percentage change in the consumer price index that is to be used to determine the inflation factor.

AB58-SA1,12,24 (4) Payments. (a) Beginning in 2007, each municipality that is eligible under sub. (2) shall receive a payment calculated by the department of revenue as follows:

AB58-SA1,12,25 1. Subtract 5 mills from the municipality's municipal tax rate.

AB58-SA1,13,2 2. Multiply the amount determined under subd. 1. by the municipality's taxable value.

AB58-SA1,13,4 3. Divide the amount determined under subd. 2. by the total of the amounts under subd. 2. for all municipalities that are eligible for a payment under sub. (2).

AB58-SA1,13,5 4. Multiply the amount determined under subd. 3. by $58,145,700.

AB58-SA1,13,7 (b) Each municipality that is eligible under sub. (2) shall receive an additional payment calculated by the department of revenue as follows:

AB58-SA1,13,9 1. Subtract the municipal tax levy, as determined under par. (a) 1., from the municipality's maximum allowable levy.

AB58-SA1,13,11 2. Divide the amount determined under subd. 1. by the total of the amounts under subd. 1. for all municipalities that are eligible for a payment under sub. (2).

AB58-SA1,13,12 3. Multiply the amount determined under subd. 2. by $10,000,000.

AB58-SA1,13,14 (5) Adjustments. For purposes of determining eligibility for and the amount of the payments under this section:

AB58-SA1,13,19 (a) If a municipality transfers to another governmental unit responsibility for providing any service that the municipality provided in the preceding year, its municipal tax levy for the preceding year shall be decreased to reflect the amount that the municipality levied to provide that service, as determined by the department of revenue.

AB58-SA1,13,23 (b) If a municipality increases the services that it provides by adding responsibility for providing a service transferred to it from another governmental unit in any year, its municipal tax levy for the preceding year shall be increased to reflect the cost of that service, as determined by the department of revenue.

AB58-SA1,14,2 (c) If in any year a municipality's distribution under s. 79.043 (5) is less than the municipality's distribution under s. 79.043 (5) in the previous year, the municipality's maximum allowable levy shall be increased to reflect the reduction in the distribution.

AB58-SA1,14,8 (d) The maximum allowable levy otherwise applicable under this section does not apply to amounts levied by a municipality 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 municipality, 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 municipality.

AB58-SA1, s. 2p Section 2p. 79.052 of the statutes is created to read:

AB58-SA1,14,10 79.052 County levy restraint program. (1) Definitions. In this section: