SB40: Bill Text

SB40, s. 2508 Section 2508. 79.05 (7) of the statutes is created to read:

SB40,1194,2 79.05 (7) Beginning in 2009, no municipality may receive a payment under this section.

SB40, s. 2509 Section 2509. 79.051 of the statutes is created to read:

SB40,1194,4 79.051 Municipal levy restraint program. (1) Definitions. In this section:

SB40,1194,7 (a) "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.

SB40,1194,11 (b) "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.

SB40,1194,15 (c) "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.

SB40,1194,20 (d) "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.

SB40,1194,22 (e) "Municipal tax rate" means the municipal tax levy divided by the taxable value.

SB40,1194,25 (f) "Taxable value" means 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.

SB40,1195,4 (g) "Valuation factor" means a percentage equal to 60 percent of the percentage change in the municipality'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.

SB40,1195,6 (2) Eligibility. A municipality is eligible to receive a payment under sub. (4) if it fulfills all of the following requirements:

SB40,1195,8 (a) The municipality's municipal tax rate for the year before the statement under s. 79.015 is greater than 5 mills.

SB40,1195,10 (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.

SB40,1195,13 (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.

SB40,1195,15 (4) Payments. (a) Beginning in 2009, each municipality that is eligible under sub. (2) shall receive a payment calculated by the department of revenue as follows:

SB40,1195,16 1. Subtract 5 mills from the municipality's municipal tax rate.

SB40,1195,18 2. Multiply the amount determined under subd. 1. by the municipality's taxable value.

SB40,1195,20 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).

SB40,1195,21 4. Multiply the amount determined under subd. 3. by $58,145,700.

SB40,1195,23 (b) Each municipality that is eligible under sub. (2) shall receive an additional payment calculated by the department of revenue as follows:

SB40,1195,25 1. Subtract the municipal tax levy, as determined under par. (a) 1., from the municipality's maximum allowable levy.

SB40,1196,2 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).

SB40,1196,3 3. Multiply the amount determined under subd. 2. by $10,000,000.

SB40,1196,5 (5) Adjustments. For purposes of determining eligibility for and the amount of the payments under this section:

SB40,1196,10 (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.

SB40,1196,14 (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.

SB40,1196,18 (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.

SB40,1196,24 (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.

SB40, s. 2510 Section 2510. 79.052 of the statutes is created to read:

SB40,1197,1 79.052 County levy restraint program. (1) Definitions. In this section:

SB40,1197,5 (a) "County tax levy" means the sum for all municipalities in the county of the amounts reported as total county taxes levied on the statement of taxes filed with the department of revenue under s. 73.10, not including any taxes levied under s. 115.817 (9).

SB40,1197,8 (b) "County tax rate" means the county tax levy divided by 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.

SB40,1197,11 (bm) "Debt service" includes debt service on debt issued or reissued to fund or refund outstanding county obligations, interest on outstanding county obligations, and related issuance costs and redemption premiums.

SB40,1197,15 (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 before the statement under s. 79.015.

SB40,1197,19 (d) "Maximum allowable levy" means the county 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.

SB40,1197,23 (e) "Valuation factor" means a percentage equal to 60 percent of the percentage change in the county'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.

SB40,1198,3 (2) Eligibility. A county is eligible to receive a payment under sub. (4) if the county's county tax levy for the year of the statement under s. 79.015 is no greater than the county's maximum allowable levy.

SB40,1198,6 (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.

SB40,1198,8 (4) Payments. (a) Beginning in 2009, each county that is eligible under sub. (2) shall receive a payment calculated by the department of revenue as follows:

SB40,1198,9 1. Determine the county tax levy for the county.

SB40,1198,11 2. Divide the amount determined under subd. 1. by the total of the amounts under subd. 1. for all counties that are eligible for a payment under sub. (2).

SB40,1198,12 3. Multiply the amount determined under subd. 2. by $25,000,000.

SB40,1198,14 (b) Beginning in 2009, each county that is eligible under sub. (2) shall receive an additional payment calculated by the department of revenue as follows:

SB40,1198,16 1. Subtract the county tax levy, as determined under par. (a) 1., from the county's maximum allowable levy.

SB40,1198,18 2. Divide the amount determined under subd. 1. by the total of the amounts under subd. 1. for all counties that are eligible for a payment under sub. (2).

SB40,1198,19 3. Multiply the amount determined under subd. 2. by $10,000,000.

SB40,1198,21 (5) Adjustments. For purposes of determining eligibility for and the amount of the payments under this section:

SB40,1198,25 (a) If a county transfers to another governmental unit responsibility for providing any service that the county provided in the preceding year, its county tax levy for the preceding year shall be decreased to reflect the amount that the county levied to provide that service, as determined by the department of revenue.

SB40,1199,4 (b) If a county increases the services that it provides by adding responsibility for providing a service transferred to it from another governmental unit in any year, its county tax levy for the preceding year shall be increased to reflect the cost of that service, as determined by the department of revenue.

SB40,1199,7 (c) If in any year a county's distribution under s. 79.043 (5) is less than the county's distribution under s. 79.043 (5) in the previous year, the county's maximum allowable levy shall be increased to reflect the reduction in the distribution.

SB40,1199,13 (d) The maximum allowable levy otherwise applicable under this section does not apply to amounts levied by a county 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 county, interest on outstanding obligations of the county, or the payment of related issuance costs or redemption premiums, secured by the full faith and credit of the county.

SB40, s. 2511 Section 2511. 79.10 (1m) (b) of the statutes is amended to read:

SB40,1199,17 79.10 (1m) (b) Counties and municipalities shall submit to the department of revenue all data related to the lottery and gaming credit and the first dollar credit as requested by the department of revenue.

SB40, s. 2512 Section 2512. 79.10 (2) of the statutes is renumbered 79.10 (2) (a) and amended to read:

SB40,1200,2 79.10 (2) (a) Notice to municipalities. On or before December 1 of the year preceding the distribution under sub. (7m) (a), the department of revenue shall notify the clerk of each town, village and city of the estimated fair market value, as determined under sub. (11) (c), to be used to calculate the lottery and gaming credit under sub. (5) and of the amount to be distributed to it under sub. (7m) (a) on the following 4th Monday in July. The anticipated receipt of such distribution shall not be taken into consideration in determining the tax rate of the municipality but shall be applied as tax credits.

SB40, s. 2513 Section 2513. 79.10 (2) (b) of the statutes is created to read:

SB40,1200,10 79.10 (2) (b) On or before December 1 of the year preceding the distribution under sub. (7m) (c), the department of revenue shall notify the clerk of each town, village, and city of the estimated fair market value, as determined under sub. (11) (d), used to calculate the first dollar credit under sub. (5m) and of the amount to be distributed to it under sub. (7m) (c) on the following 4th Monday in July. The anticipated receipt of such distribution shall not be taken into consideration in determining the tax rate of the municipality but shall be applied as tax credits.

SB40, s. 2514 Section 2514. 79.10 (4) of the statutes is amended to read:

SB40,1200,14 79.10 (4) School levy tax credit. The Except as provided in sub. (5m), the amount appropriated under s. 20.835 (3) (b) shall be distributed to municipalities in proportion to their share of the sum of average school tax levies for all municipalities.

SB40, s. 2515 Section 2515. 79.10 (5) of the statutes is amended to read:

SB40,1200,21 79.10 (5) Lottery and gaming credit. Each municipality shall receive, from the appropriation under s. 20.835 (3) (q), an amount determined by multiplying the school tax rate by the estimated fair market value, not exceeding the value determined under sub. (11) (c), of every principal dwelling that is located in the municipality and for which a claim for the credit under sub. (9) (bm) is made by the owner of the principal dwelling.

SB40, s. 2516 Section 2516. 79.10 (5m) of the statutes is created to read:

SB40,1201,2 79.10 (5m) First dollar credit. Each municipality shall receive, from the appropriation under s. 20.835 (3) (b), an amount determined by multiplying the school tax rate by the estimated fair market value, not exceeding the value determined under sub. (11) (d), of every parcel of real property with improvements that is located in the municipality.

SB40, s. 2517 Section 2517. 79.10 (6m) (a) of the statutes is amended to read:

SB40,1201,17 79.10 (6m) (a) Except as provided in pars. (b) and (c), if the department of administration or the department of revenue determines by October 1 of the year of any distribution under subs. (4) and, (5), and (5m) that there was an overpayment or underpayment made in that year's distribution by the department of administration to municipalities, as determined under subs. (4) and, (5), and (5m), because of an error by the department of administration, the department of revenue or any municipality, the overpayment or underpayment shall be corrected as provided in this paragraph. Any overpayment shall be corrected by reducing the subsequent year's distribution, as determined under subs. (4) and, (5), and (5m), by an amount equal to the amount of the overpayment. Any underpayment shall be corrected by increasing the subsequent year's distribution, as determined under subs. (4) and, (5), and (5m), by an amount equal to the amount of the underpayment. Corrections shall be made in the distributions to all municipalities affected by the error. Corrections shall be without interest.

SB40, s. 2518 Section 2518. 79.10 (7m) (c) of the statutes is created to read:

SB40,1201,21 79.10 (7m) (c) First dollar credit. 1. The amount determined under sub. (5m) shall be distributed from the appropriation under s. 20.835 (3) (b) by the department of administration on the 4th Monday in July.

SB40,1202,2 2. The town, village, or city treasurer shall settle for the amounts distributed on the 4th Monday in July under this paragraph with the appropriate county treasurer not later than August 15. Failure to settle timely under this subdivision subjects the town, village, or city treasurer to the penalties under s. 74.31. On or before August 20, the county treasurer shall settle with each taxing jurisdiction, including towns, villages, and cities except 1st class cities, in the county.

SB40, s. 2519 Section 2519. 79.10 (9) (bn) of the statutes is created to read:

SB40,1202,8 79.10 (9) (bn) First dollar credit. Except as provided in ss. 79.175 and 79.18, and subject to s. 79.15, the first dollar credit shall be allocated to every parcel of real estate on which improvements are located in an amount determined by multiplying the amount determined by the department of revenue under sub. (11) (d), by the school tax rate.

SB40, s. 2520 Section 2520. 79.10 (9) (c) 3. of the statutes is created to read:

SB40,1202,11 79.10 (9) (c) 3. The credit under par. (bn) shall reduce the property taxes otherwise payable.

SB40, s. 2521 Section 2521. 79.10 (11) (d) of the statutes is created to read:

SB40,1202,15 79.10 (11) (d) Before December 1, the department of revenue shall calculate, to the nearest $100, the estimated fair market value necessary to distribute the total amount available for distribution under s. 79.15.

SB40, s. 2522 Section 2522. 79.14 of the statutes is amended to read:

SB40,1202,20 79.14 School levy tax credit. The appropriation under s. 20.835 (3) (b), for the payments under s. 79.10 (4), is $319,305,000 in 1994, 1995, and 1996; $469,305,000 beginning in 1997 and ending in 2006; and $593,050,000 in each year thereafter.

SB40, s. 2523 Section 2523. 79.15 of the statutes is created to read:

SB40,1202,24 79.15 Improvements credit. Beginning in 2009, the total amount paid each year to municipalities from the appropriation account under s. 20.835 (3) (b) for the payments under s. 79.10 (5m) is $100,000,000.

SB40, s. 2524 Section 2524. 84.01 (13) of the statutes is amended to read:

SB40,1203,13 84.01 (13) Engineering services. The department may engage such engineering, consulting, surveying, or other specialized services as it deems advisable. Any engagement of services under this subsection is exempt from ss. 16.70 to 16.75, 16.755 to 16.77, 16.78 to 16.82, and 16.85 to 16.87, and 16.875 to 16.89, but ss. 16.528, 16.752, 16.753, and 16.754, 16.771, and 16.871 apply to such engagement. Any engagement involving an expenditure of $3,000 or more shall be by formal contract approved by the governor. The department shall conduct a uniform cost-benefit analysis, as defined in s. 16.70 (3g), of each proposed engagement under this subsection that involves an estimated expenditure of more than $25,000 in accordance with standards prescribed by rule of the department. The department shall review periodically, and before any renewal, the continued appropriateness of contracting pursuant to each engagement under this subsection that involves an estimated expenditure of more than $25,000.

SB40, s. 2525 Section 2525. 84.014 (5m) (a) of the statutes is renumbered 84.014 (5m) (am).

SB40, s. 2526 Section 2526. 84.014 (5m) (ag) of the statutes is created to read:

SB40,1203,16 84.014 (5m) (ag) In this subsection:

SB40,1203,24 1. "I 94 north-south corridor" means the Mitchell interchange of I 43, I 94, and I 894 in Milwaukee County, I 94 from the Illinois-Wisconsin state line in Kenosha County proceeding northerly through the Mitchell interchange to Howard Avenue in Milwaukee County, I 43/894 from the Mitchell interchange proceeding westerly to 35th Street in Milwaukee County, the STH 119 Airport Spur Parkway between I 94 and General Mitchell International Airport in Milwaukee County, and all freeways, roadways, shoulders, interchange ramps, frontage roads, and collector road systems adjacent or related to these routes or interchanges.

SB40,1204,6 2. "Zoo interchange" means all freeways, including related interchange ramps, roadways, and shoulders, and all adjacent frontage roads and collector road systems, encompassing I 94, I 894, and USH 45 in Milwaukee County within the area bordered by I 894/USH 45 at the Union Pacific railroad underpass near Burnham Street in Milwaukee County to the south, I 94 at 76th Street to the east, I 94 at 116th Street to the west, and USH 45 at Center Street to the north.

SB40, s. 2527 Section 2527. 84.014 (5m) (b) 1. of the statutes is repealed.

SB40, s. 2528 Section 2528. 84.014 (5m) (b) 2. and 3. of the statutes are created to read:

SB40,1204,9 84.014 (5m) (b) 2. Reconstruction of the Zoo interchange.