LRB-4957/2
MES:kjf&wlj:ch
2005 - 2006 LEGISLATURE
April 28, 2006 - Introduced by Senators Harsdorf and Brown. Referred to
Committee on Veterans, Homeland Security, Military Affairs, Small Business
and Government Reform.
SB717,1,4
1An Act to repeal 66.0602 (7);
to amend 66.0602 (1) (b), 66.0602 (1) (d), 66.0602
2(3) (d) 2., 66.0602 (4) (a), 66.0602 (4) (d), 66.0602 (5) and 66.0602 (6) (c); and
to
3create 66.0602 (1) (am) and 66.0602 (2) of the statutes;
relating to: modifying
4and making permanent local levy limits.
Analysis by the Legislative Reference Bureau
The state budget bill,
2005 Wisconsin Act 25, created local levy limits that
generally prohibit a political subdivision (any city, village, town, or county) from
increasing its levy by a percentage that exceeds its "valuation factor," which is
defined as the percentage change in the political subdivision's equalized value due
to new construction, less improvements removed, but not less than 2 percent. In
addition, the calculation of a political subdivision's levy does not include any tax
increment that is generated by a tax incremental district.
Current law contains exceptions to the levy limits for political subdivisions that
transfer the provision of services, for cities or villages that annex town territory, and
for a county levy that relates to a county Children with Disabilities Education Board.
The levy limit may also be exceeded if a political subdivision's resolution to do so is
approved in a referendum. The levy limits do not apply beginning on January 1,
2007.
This bill repeals the sunset date so, under the bill, the levy limits are
permanent. Also under the bill, a political subdivision is prohibited from increasing
its levy by a percentage that exceeds the sum of the rate of inflation and the valuation
factor. The bill also changes the valuation factor limit of not less than 2 percent to
not less than zero.
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:
SB717, s. 1
1Section
1. 66.0602 (1) (am) of the statutes is created to read:
SB717,2,62
66.0602
(1) (am) "Inflation factor" means a percentage equal to the average
3annual percentage change in the U.S. consumer price index for all urban consumers,
4U.S. city average, as determined by the U.S. department of labor, for the 12 months
5ending on June 30 of the year in which property tax bills are mailed under s. 74.09
6(5).
SB717,2,119
66.0602
(1) (b) "Penalized excess" means the levy over the limit
under sub. (2) 10for the political subdivision, not including any amount that is excepted from the limit
11under subs. (3), (4), and (5).
SB717,3,214
66.0602
(1) (d) "Valuation factor" means a percentage equal to the percentage
15change in the political subdivision's January 1 equalized value due to new
16construction less improvements removed between the previous year and the current
17year, but not less than
2. Except as provided in subs. (3), (4), and (5), no political
18subdivision may increase its levy in any year by a percentage that exceeds the
19political subdivision's valuation factor. In determining its levy in any year, a city,
1village, or town shall subtract any tax increment that is calculated under s. 60.85 (1)
2(L) or 66.1105 (2) (i) zero.
SB717, s. 4
3Section
4. 66.0602 (2) of the statutes is created to read:
SB717,3,84
66.0602
(2) Levy limit. Except as provided in subs. (3), (4), and (5), no political
5subdivision may increase its levy in any year by a percentage that exceeds the sum
6of the inflation factor and the political subdivision's valuation factor. In determining
7its levy in any year, a city, village, town, or county shall subtract any tax increment
8that is calculated under s. 59.57 (3) (a), 60.85 (1) (L), or 66.1105 (2) (i).
SB717,3,1711
66.0602
(3) (d) 2. The limit otherwise applicable under this section does not
12apply to amounts levied by a political subdivision for the payment of any general
13obligation debt service, including debt service on debt issued or reissued to fund or
14refund outstanding obligations of the political subdivision, interest on outstanding
15obligations of the political subdivision, or the payment of related issuance costs or
16redemption premiums, authorized on or after July 1, 2005,
by a referendum and
17secured by the full faith and credit of the political subdivision.
SB717,4,620
66.0602
(4) (a) A political subdivision may exceed the levy increase limit
under
21sub. (2) if its governing body adopts a resolution to that effect and if the resolution
22is approved in a referendum. The resolution shall specify the proposed amount of
23increase in the levy beyond the amount that is allowed
under sub. (2), and shall
24specify whether the proposed amount of increase is for the next fiscal year only or if
25it will apply on an ongoing basis. With regard to a referendum relating to the 2005
1levy
, or any levy in an odd-numbered year thereafter, the political subdivision may
2call a special referendum for the purpose of submitting the resolution to the electors
3of the political subdivision for approval or rejection. With regard to a referendum
4relating to the 2006 levy,
or any levy in an even-numbered year thereafter, the
5referendum shall be held at the next succeeding spring primary or election or
6September primary or general election.
SB717,4,159
66.0602
(4) (d) Within 14 days after the referendum, the clerk of the political
10subdivision shall certify the results of the referendum to the department of revenue.
11The levy increase limit otherwise applicable to the political subdivision
under sub.
12(2) is increased in the next fiscal year by the percentage approved by a majority of
13those voting on the question. If the resolution specifies that the increase is for one
14year only, the amount of the increase shall be subtracted from the base used to
15calculate the limit for the 2nd succeeding fiscal year.
SB717,5,218
66.0602
(5) Exception, certain towns. A town with a population of less than
192,000 may exceed the levy increase limit otherwise applicable under this section to
20the town if the town board adopts a resolution supporting an increase and places the
21question on the agenda of an annual town meeting or a special town meeting and if
22the annual or special town meeting adopts a resolution endorsing the town board's
23resolution. The limit otherwise applicable to the town
under sub. (2) is increased in
24the next fiscal year by the percentage approved by a majority of those voting on the
1question. Within 14 days after the adoption of the resolution, the town clerk shall
2certify the results of the vote to the department of revenue.
SB717,5,75
66.0602
(6) (c) Ensure that the amount of the penalized excess is not included
6in determining the limit described
under sub. (2) for the political subdivision for the
7following year.