AB507,3,5 238.17 Levy limit. (1) Definition. In this section, "debt service" includes debt
3service on debt issued or reissued to fund or refund outstanding municipal
4obligations, interest on outstanding municipal obligations, and related issuance
5costs and redemption premiums.
AB507,3,8 6(2) Limit. Except as provided in subs. (3) and (4), no district board may increase
7its levy in 2007 or 2008 to an amount that exceeds its levy for the previous fiscal year
8multiplied by 1.026.
AB507,3,13 9(3) Adjustments. (a) 1. If a district board transfers to another governmental
10unit responsibility for providing any service that it provided in the preceding fiscal
11year, the limit otherwise applicable under sub. (2) in the current fiscal year is
12decreased by the cost that it would have incurred to provide that service, as
13determined by the department of revenue.
AB507,3,1814 2. If a district board increases the services that it provides by adding
15responsibility for providing a service transferred to it from another governmental
16unit that provided the service in the previous fiscal year, the limit otherwise
17applicable under sub. (2) in the current fiscal year is increased by the cost of that
18service, as determined by the department of revenue.
AB507,3,2419 (b) 1. If the amount of debt service for a district board in the preceding fiscal
20year is less than the amount of debt service needed in the current fiscal year, as a
21result of the district board adopting a resolution before July 1, 2007, authorizing the
22issuance of debt, the limit otherwise applicable under sub. (2) for the current fiscal
23year is increased by the difference between the 2 amounts, as determined by the
24department of revenue.
AB507,4,6
12. The limit otherwise applicable under this section does not apply to amounts
2levied by a district board for the payment of any general obligation debt service,
3including debt service on debt issued or reissued to fund or refund outstanding
4municipal obligations, interest on outstanding municipal obligations, or the
5payment of related issuance costs or redemption premiums, authorized on or after
6July 1, 2007, by a referendum and secured by the full faith and credit of the district.
AB507,4,12 7(4) Referendum. (a) 1. A district board may exceed the levy limit under sub.
8(2) if it adopts a resolution to that effect and the resolution is approved in a
9referendum. The resolution shall specify the proposed amount of increase in the levy
10beyond the amount that is allowed under sub. (2), and shall also specify whether the
11proposed amount of increase is for the next fiscal year only or if it will apply on an
12ongoing basis.
AB507,4,1513 2. With regard to a referendum relating to a levy in an odd-numbered year, the
14district board may call a special referendum for the purpose of submitting the
15resolution to the electors of the district for approval or rejection.
AB507,4,1816 3. With regard to a referendum relating to a levy in an even-numbered year,
17the referendum shall be held at the spring primary or election or September primary
18or general election.
AB507,4,2119 (b) The district board shall publish type A, B, C, D, and E notices of the
20referendum under s. 10.01 (2). Section 5.01 (1) applies in the event of failure to
21comply with the notice requirements of this paragraph.
AB507,5,522 (c) The referendum shall be held in accordance with chs. 5 to 12. The district
23board shall provide the election officials with all necessary election supplies. The
24form of the ballot shall correspond substantially with the standard form for
25referendum ballots prescribed by the elections board under ss. 5.64 (2) and 7.08 (1)

1(a). The question shall be submitted as follows: "Under state law, the percentage
2increase in the levy of the .... (name of district) for the next fiscal year, .... (year), is
3limited to ....percent, resulting in a levy of $..... Shall the .... (name of district) be
4allowed to exceed this limit such that the percentage increase for the next fiscal year,
5.... (year), will be ....percent, resulting in a levy of $....?"
AB507,5,116 (d) Within 14 days after the referendum, the district board shall certify the
7results of the referendum to the department of revenue. The limit otherwise
8applicable to the district under sub. (2) is increased for the next fiscal year by the
9amount approved by a majority of those voting on the question. If the resolution
10specifies that the increase is for one year only, the amount of the increase shall be
11subtracted from the base used to calculate the limit for the 2nd succeeding fiscal year.
AB507,5,16 12(5) Penalty. The department of revenue shall notify the board of any amount
13levied by a district board that exceeds the district's limit under this section. The
14board shall reduce the district's state aid under s. 38.28 in the same fiscal year in
15which the excess levy occurred by an amount equal to the amount of the excess levy.
16The amount of the reduction shall lapse to the general fund.
AB507, s. 2 17Section 2. 66.0602 (1) (am) of the statutes is created to read:
AB507,5,2018 66.0602 (1) (am) "Joint fire department" means a joint fire department
19organized under s. 61.65 (2) (a) 3. or 62.13 (2m), or a joint fire department organized
20by any combination of 2 or more cities, villages, or towns under s. 66.0301 (2).
AB507, s. 3 21Section 3. 66.0602 (1) (at) of the statutes is created to read:
AB507,5,2222 66.0602 (1) (at) "Municipality" means a city, village or town.
AB507, s. 4 23Section 4. 66.0602 (1) (b) of the statutes is amended to read:
AB507,6,3
166.0602 (1) (b) "Penalized excess" means the levy over the limit under sub. (2)
2for the political subdivision, not including any amount that is excepted from the limit
3under subs. (3), (4), and (5).
AB507, s. 5 4Section 5. 66.0602 (1) (d) of the statutes is renumbered 66.0602 (1) (d) (intro.)
5and amended to read:
AB507,6,76 66.0602 (1) (d) (intro.) "Valuation factor" means a percentage equal to the
7greater of either 2 percent or
the percentage one of the following:
AB507,6,19 81. For a municipality, the sum of the change in the political subdivision's
9January 1 equalized value due to new construction less improvements removed
10between the previous year and the current year, but not less than 2. Except as
11provided in subs. (3), (4), and (5), no political subdivision may increase its levy in any
12year by a percentage that exceeds the political subdivision's valuation factor. In
13determining its levy in any year, a city, village, or town shall subtract any tax
14increment that is calculated under s. 60.85 (1) (L) or 66.1105 (2) (i)
and, if the
15department of revenue does not certify a value increment for a tax incremental
16district for the current year due to the district's termination, 50 percent of the value
17increment of such a district in the municipality, calculated for the previous year; and
18that sum is divided by the municipality's equalized value for the previous year to
19which the levy relates
.
AB507, s. 6 20Section 6. 66.0602 (1) (d) 2. of the statutes is created to read:
AB507,6,2321 66.0602 (1) (d) 2. For a county, a percentage equal to the percentage change in
22the county's January 1 equalized value due to new construction less improvements
23removed between the previous year and the current year.
AB507, s. 7 24Section 7. 66.0602 (2) of the statutes is created to read:
AB507,7,7
166.0602 (2) Levy limit. Except as provided in subs. (3), (4), and (5), no political
2subdivision may increase its levy in 2007 or 2008 by a percentage that exceeds the
3political subdivision's valuation factor. The base amount in any year, to which the
4limit under this section applies, shall be the political subdivision's levy for the
5immediately preceding year. In determining its levy in any year, a political
6subdivision shall subtract any tax increment that is calculated under s. 59.57 (3) (a),
760.85 (1) (L), or 66.1105 (2) (i).
AB507, s. 8 8Section 8. 66.0602 (3) (d) 2. of the statutes is amended to read:
AB507,7,159 66.0602 (3) (d) 2. The limit otherwise applicable under this section does not
10apply to amounts levied by a political subdivision for the payment of any general
11obligation debt service, including debt service on debt issued or reissued to fund or
12refund outstanding obligations of the political subdivision, interest on outstanding
13obligations of the political subdivision, or the payment of related issuance costs or
14redemption premiums, authorized on or after July 1, 2005, and before July 1, 2007,
15and secured by the full faith and credit of the political subdivision.
AB507, s. 9 16Section 9. 66.0602 (3) (d) 4. of the statutes is created to read:
AB507,7,2217 66.0602 (3) (d) 4. If the amount of a lease payment related to a lease revenue
18bond for a political subdivision in the preceding year is less than the amount of the
19lease payment needed in the current year, as a result of the issuance of a lease
20revenue bond before July 1, 2005, the levy increase limit otherwise applicable under
21this section to the political subdivision in the current year is increased by the
22difference between these 2 amounts.
AB507, s. 10 23Section 10. 66.0602 (3) (d) 5. of the statutes is created to read:
AB507,8,524 66.0602 (3) (d) 5. The limit otherwise applicable under this section does not
25apply to amounts levied by a political subdivision for the payment of any general

1obligation debt service, including debt service on debt issued or reissued to fund or
2refund outstanding obligations of the political subdivision, interest on outstanding
3obligations of the political subdivision, or the payment of related issuance costs or
4redemption premiums, authorized by referendum on or after July 1, 2007, and
5secured by the full faith and credit of the political subdivision.
AB507, s. 11 6Section 11. 66.0602 (3) (e) of the statutes is renumbered 66.0602 (3) (e) (intro.)
7and amended to read:
AB507,8,108 66.0602 (3) (e) (intro.) The limit otherwise applicable under this section does
9not apply to the amount that a county levies in that year for a county children with
10disabilities education board.
any of the following:
AB507, s. 12 11Section 12. 66.0602 (3) (e) 1. of the statutes is created to read:
AB507,8,1312 66.0602 (3) (e) 1. The amount that a county levies in that year for a county
13children with disabilities education board.
AB507, s. 13 14Section 13. 66.0602 (3) (e) 2. of the statutes is created to read:
AB507,8,1615 66.0602 (3) (e) 2. The amount that a 1st class city levies in that year for school
16purposes.
AB507, s. 14 17Section 14. 66.0602 (3) (e) 3. of the statutes is created to read:
AB507,8,1918 66.0602 (3) (e) 3. The amount that a county levies in that year under s. 82.08
19(2) for bridge and culvert construction and repair.
AB507, s. 15 20Section 15. 66.0602 (3) (e) 6. of the statutes is created to read:
AB507,8,2221 66.0602 (3) (e) 6. The amount that a county levies in that year for a countywide
22emergency medical system.
AB507, s. 16 23Section 16. 66.0602 (3) (e) 7. of the statutes is created to read:
AB507,9,224 66.0602 (3) (e) 7. The amount that a village levies in that year for police
25protection services, but this subdivision applies only to a village's levy for the year

1immediately after the year in which the village changes from town status and
2incorporates as a village, and only if the town did not have a police force.
AB507, s. 17 3Section 17. 66.0602 (3) (f) of the statutes is repealed.
AB507, s. 18 4Section 18. 66.0602 (3) (h) 1. of the statutes is amended to read:
AB507,9,105 66.0602 (3) (h) 1. Subject to subd. 2., the limit otherwise applicable under this
6section does not apply to the amount that a city, village, or town levies in that year
7to pay for charges assessed by a joint fire department organized under s. 61.65 (2)
8(a) 3. or 62.13 (2m)
, but only to the extent that the amount levied to pay for such
9charges would cause the city, village, or town to exceed the limit that is otherwise
10applicable under this section.
AB507, s. 19 11Section 19. 66.0602 (4) (a) of the statutes is amended to read:
AB507,9,2312 66.0602 (4) (a) A political subdivision may exceed the levy increase limit under
13sub. (2)
if its governing body adopts a resolution to that effect and if the resolution
14is approved in a referendum. The resolution shall specify the proposed amount of
15increase in the levy beyond the amount that is allowed under sub. (2), and shall
16specify whether the proposed amount of increase is for the next fiscal year only or if
17it will apply on an ongoing basis. With regard to a referendum relating to the 2005
18levy, or any levy in an odd-numbered year thereafter, the political subdivision may
19call a special referendum for the purpose of submitting the resolution to the electors
20of the political subdivision for approval or rejection. With regard to a referendum
21relating to the 2006 levy, or any levy in an even-numbered year thereafter, the
22referendum shall be held at the next succeeding spring primary or election or
23September primary or general election.
AB507, s. 20 24Section 20. 66.0602 (4) (d) of the statutes is amended to read:
AB507,10,7
166.0602 (4) (d) Within 14 days after the referendum, the clerk of the political
2subdivision shall certify the results of the referendum to the department of revenue.
3The levy increase limit otherwise applicable to the political subdivision under this
4section
is increased in the next fiscal year by the percentage approved by a majority
5of those voting on the question. If the resolution specifies that the increase is for one
6year only, the amount of the increase shall be subtracted from the base used to
7calculate the limit for the 2nd succeeding fiscal year.
AB507, s. 21 8Section 21. 66.0602 (5) of the statutes is amended to read:
AB507,10,179 66.0602 (5) Exception, certain towns. A town with a population of less than
102,000 may exceed the levy increase limit otherwise applicable under this section to
11the town if the town board adopts a resolution supporting an increase and places the
12question on the agenda of an annual town meeting or a special town meeting and if
13the annual or special town meeting adopts a resolution endorsing the town board's
14resolution. The limit otherwise applicable to the town under this section is increased
15in the next fiscal year by the percentage approved by a majority of those voting on
16the question. Within 14 days after the adoption of the resolution, the town clerk shall
17certify the results of the vote to the department of revenue.
AB507, s. 22 18Section 22. 66.0602 (6) (intro.) of the statutes is amended to read:
AB507,10,2119 66.0602 (6) Penalties. (intro.) If Except as provided in sub. (6m), if the
20department of revenue determines that a political subdivision has a penalized excess
21in any year, the department of revenue shall do all of the following:
AB507, s. 23 22Section 23. 66.0602 (6) (c) of the statutes is amended to read:
AB507,10,2523 66.0602 (6) (c) Ensure that the amount of the penalized excess is not included
24in determining the limit described under sub. (2) for the political subdivision for the
25following year.
AB507, s. 24
1Section 24. 66.0602 (6m) of the statutes is created to read:
AB507,11,142 66.0602 (6m) Mistakes in levies. The department of revenue may issue a
3finding that a political subdivision is not liable for a penalty that would otherwise
4be imposed under sub. (6) if a taxation district clerk or a county clerk, through
5mistake or inadvertence in preparing or delivering the tax roll, causes a political
6subdivision's actual levy in the year before the current year to be different from the
7amount intended by the political subdivision's governing body. The political
8subdivision shall use the intended levy as its base amount in determining its
9maximum allowable levy for the current year if the department of revenue
10determines that the final action taken by the political subdivision, in setting its levy
11for the year before the current year, was to set the levy at the intended amount and
12not at the actual amount. If the department makes such a determination it may issue
13a finding that the political subdivision is not liable for a penalty that would otherwise
14be imposed under sub. (6).
AB507, s. 25 15Section 25. 66.0602 (7) of the statutes is repealed.
AB507,11,1616 (End)
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