August 2, 2018
To: Municipal Clerks and Treasurers
County Clerks and Treasurers
As a result of law changes, the Wisconsin Department of Revenue (DOR) would like to inform you of adjustments to the 2018 county and municipal allowable levy limit calculation.
TID Subtraction Percentage
- Included in 2017 Act 223, municipalities and counties will receive a levy limit increase after the subtraction of territory from a tax incremental district (TID)
- The calculation is similar to the levy limit increase allowed for the termination of a TID
- Allowable percentage increase equals the prior year value increment of the subtracted TID territory divided by the municipality's prior year equalized value TID Out, multiplied by 50 percent
Subtracted TID value increment for prior year
________________________________________ x 50%
Municipality's prior year equalized value TID Out
- This percentage will be calculated for each municipality and county and shown on Lines 5 and 6 of the 2018 Levy Limit Worksheet
Personal Property Aid
- Included in 2017 Act 59, 2018 municipal and county levy limits will be reduced by their upcoming 2019 personal property aid distribution
- The first personal property aid distribution will be May 6, 2019 (i.e., first Monday in May each year)
- DOR will post the estimated 2019 personal property aid distribution amounts online by August 15, 2018
2018 Allowable Levy Limit Calculation
The example below shows the allowable levy limit calculation for a municipality or county with:
- Terminated TID percentage of 0.214 percent
- TID subtraction percentage of 0.157 percent
- 2019 personal property aid of $11,275
| Determination of 2018 Payable 2019 Allowable Levy Limit (Section A of Levy Limit Worksheet) |
|---|
| 1. 2017 payable 2018 actual levy (not including tax increment) | $1,585,000 |
| 2. Exclude prior year levy for unreimbursed expenses related to an emergency | $15,000 |
| 3. Exclude prior year levy for new general obligation debt authorized after July 1, 2005 | $8,500 |
| 4. 2017 payable 2018 adjusted actual levy (Line 1 less Lines 2 and 3) | $1,561,500 |
| 5. 0.00% growth plus terminated TID % (0.214) plus TID subtraction % (0.157) applied to 2017 adjusted actual levy | $1,567,293 |
| 6. Net new construction % (1.487) plus terminated TID % (0.214) plus TID subtraction % (0.157) applied to 2017 adjusted actual levy | $1,590,513 |
| 7. Greater of Line 5 or 6 | $1,590,513 |
| 8. 2018 levy limit before adjustments less 2019 personal property aid ($11,275) | $1,579,238 |
| 9. Total adjustments (reported in Sec. D of Levy Limit Worksheet) | $0 |
| 10. 2018 payable 2019 allowable levy (sum of Lines 8 and 9) | $1,579,238 |
Note: If your municipality or county is planning to exceed its allowable levy limit by resolution or referendum, Line 8 provides the state's allowable levy limit before adjustments.
The calculation above applies to 2018 county and municipal levy limits. Other law changes require additional adjustments to the 2019 levy limit calculation.
If you have questions, contact us at lgs@wisconsin.gov.