AB866: Bill Text

LRB-5596/1

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2021 - 2022 LEGISLATURE

2021 Assembly BILL 866

January 18, 2022 - Introduced by Representatives Kurtz, VanderMeer and Oldenburg, cosponsored by Senator Marklein. Referred to Committee on Local Government.

AB866,1,3 An Act to create 20.566 (2) (bc) and 73.03 (77) of the statutes; relating to: providing grants to municipalities to compensate for loss of revenues resulting from flood destruction and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill requires the Department of Revenue to establish a program to provide grants to cities and villages to compensate for the loss of property tax revenue, and revenue from water or sewerage fees, as a result of flooding and the actions of the Federal Emergency Management Agency with regard to that flooding. A city or village with a population of less than 700 is eligible to receive a grant, generally, if property in the city or village that is subject to the property tax or to the assessment of water or sewerage fees has been destroyed by flooding that occurred after December 31, 2017. In addition, owners of the property destroyed by flooding must have accepted a buyout from FEMA, and FEMA must have prohibited improvements on the land on which the property destroyed by flooding was located.

Under the bill, an eligible municipality receives a grant in an amount equal to a percentage of the three-year average of property taxes and water or sewerage fees assessed to flood-destroyed property in the three years preceding the flood. The municipality receives a payment for five years that decreases in each year from a 100 percent payment in the first year to a 20 percent payment in the fifth year.

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:

AB866,1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB866,2 Section 2. 20.566 (2) (bc) of the statutes is created to read:

AB866,2,6 20.566 (2) (bc) Flood loss grant program. The amounts in the schedule to pay grants to cities and villages under s. 73.03 (77) for loss of revenues resulting from flooding.

AB866,3 Section 3. 73.03 (77) of the statutes is created to read:

AB866,2,13 73.03 (77) (a) To establish a grant program for providing grants to cities and villages to compensate for the loss of property tax revenue, and revenue from water or sewerage fees and special charges, as a result of flooding and the actions of the federal emergency management agency with regard to that flooding. A city or village is eligible to receive a grant under this subsection if it satisfies all of the following conditions:

AB866,2,14 1. The population of the city or village is less than 700.

AB866,3,3 2. Property in the city or village that was subject to taxation under ch. 70 or to the assessment of water or sewerage fees and special charges has been destroyed by flooding that occurred after December 31, 2017.

AB866,3,5 3. Owners of the destroyed property described in subd. 2. accepted a buyout from the federal emergency management agency.

AB866,3,7 4. The federal emergency management agency has prohibited improvements on the land on which the destroyed property described in subd. 2. was located.

AB866,3,14 (b) The governing body of a city or village that wishes to receive a grant under this subsection shall apply to the department in the manner prescribed by the department. A city or village that is eligible to receive a grant under this subsection, as determined by the department, shall receive in each year for 5 years an amount equal to the following percentages of the 3-year average of property tax revenues and water and sewerage fees and special charges collected from the destroyed property described in par. (a) 2. in the 3 years preceding the year of the flooding:

AB866,3,15 1. For the first year of the payments, 100 percent.

AB866,3,16 2. For the 2nd year of the payments, 80 percent.

AB866,3,17 3. For the 3rd year of the payments, 60 percent.

AB866,3,18 4. For the 4th year of the payments, 40 percent.

AB866,3,19 5. For the 5th year of the payments, 20 percent.

AB866,3,24 (c) The department may not provide a grant under this subsection on the basis of property included in any hazard mitigation conducted by the federal emergency management agency. No city or village that receives a grant under this subsection may increase water or sewerage fees or special charges to compensate for the loss of revenue from the destroyed property described in par. (a) 2.

AB866,4,5 (d) Beginning in fiscal year 2023-24, the total amount of the grants provided under this subsection in each fiscal year shall not exceed $50,000. If the moneys available for grants under this subsection in a fiscal year are insufficient to pay all amounts determined under par. (b), the department shall establish a system to prorate the grants.

AB866,4,6 (End)