- 2020 LEGISLATURE LRBs0120/1LRB-1468/1 EVM:amn&cjsEVM:amn SENATE SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 235 OctoberMay 8,23, 2019 - OfferedIntroduced by SenatANGGAARDRepresentatives K ERKMAN , SNYDER , SPIROS and S TEFFEN , cosponsored by Senator W ANGGAARD .

AReferred N A CT to createCommittee 66.0602on (3)Energy (n)and ofUtilities. the statutes;

A N A CT to create 66.0602 (3) (e) 10.

of the statutes;

Analysis by the Legislative Reference Bureau This bill creates a levy limit exception for political subdivisions that receive certain utility aid payments.

Generally under current law, local levy limits are applied to the property tax levies that are imposed by a political subdivision in December of each year.

Current law prohibits any political subdivision from increasing its levy by a percentage that exceeds its “valuation factor," which is defined as the greater of either zero percent or the percentage change in the political subdivision's equalized value due to new construction, less improvements removed.

Current law contains a number of exceptions to the levy limit, such as amounts a county levies for a countywide emergency medical system, for a county children with disabilities education board, and for certain bridge and culvert construction and repair.

In addition, a political subdivision may exceed the levy limit that is otherwise applicable if its governing body adopts a resolution to do so and if that resolution is approved by the electors in a referendum.

Also under current law, if a power plant that is exempt from property taxes is decommissioned or closed, and therefore becomes taxable, the county and municipality where the plant is located receive a utility aid payment from the state for the first five years in which the plant is subject to the property tax in an amount equal to a percentage of the utility aid payment that the county or municipality received for the last year in which the plant was exempt.

The percentage decreases by 20 percent each year.

- 2020 Legislature - 2 - LRB-1468/1 EVM:amn ASSEMBLY BILL 235 This bill creates a levy limit exception for a political subdivision that is receiving these utility aid payments.

The amount that is exempt from the levy limit is equal to the full amount of the utility aid in the first year less the amount of the utility aid to be paid to the political subdivision in the year in which the levy is imposed.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

SECTIONS ECTION 1.

66.0602 (3) (n)(e) of10. the statutes is created to read:

66.0602of (3)the (n)statutes 1.is created to read:

For66.0602 a(3) political(e) subdivision10. that receives a payment under s.

79.04For (5)a (a) or (b), the limit otherwise applicable under this section is increased by the amount that the political subdivision levies in that yearwill toreceive replace a revenuepayment reduction incurred under s.

79.04 (5) (a) or (b), the amount that the political subdivision levies in that year to replace a revenue reduction incurred under s.

SubjectThe amount levied under this subdivision may not exceed the amount paid to subd.the political subdivision under s.

2., the amount levied under this paragraph for a particular property may not exceed the amount paid to the political subdivision under s.

79.04 (5) (a) or (b) in the year in which the levy is imposedimposed. and less any amounts previously levied under this paragraph.

A revenue LRBs0120/1 - 2020 Legislature - 2 - EVM:amn&cjs SECTION 1 reduction is incurred under this paragraphsubdivision only when thea amountpolitical receivedsubdivision byreceives a politicalpayment subdivision under s.

79.04 (5) (a) or (b) in the current year that is less than the amountpayment received under s.

2.

This paragraph applies to revenue reductions for which a payment under s.

79.04 (5) (a) or (b) is made after the effective date of this subdivision ....

[LRB inserts date].

If the first payment made under s.

79.04 (5) (a) or (b) after the effective date of this subdivision ....

[LRB inserts date], is under s.

79.04 (5) (a) 2.

to 5.

or (b) 2.

to 5., the amount of the payment made under s.

79.04 (5) (a) or (b) in the previous year shall be used in determining the maximum amount of revenue reduction incurred.

SECTION 2.0Initial applicability.

(1) This act first applies to a levy that is imposed in December 2020.