Chapter Tax 19

Tax 19.01   Purpose.

Tax 19.02   Scope.

Tax 19.03   General.

Tax 19.04   Expenditure restraint worksheet.

Tax 19.05   Budgets.

Tax 19.01 Tax 19.01 Purpose. The purpose of this chapter is to establish standards and procedures for determining whether a town, village, or city is eligible for an expenditure restraint payment under s. 79.05, Stats., and the computation of the payment.

Tax 19.01 History History: Cr. Register, July, 1991, No. 427, eff. 8-1-91; am. Register, December, 1998, No. 516, eff. 1-1-99.

Tax 19.02 Tax 19.02 Scope. This chapter applies to all towns, villages and cities.

Tax 19.02 History History: Cr. Register, July, 1991, No. 427, eff. 8-1-91.

Tax 19.03 Tax 19.03 General.

Tax 19.03(1) (1) Definitions. In this section:

Tax 19.03(1)(b) (b) “Excess property tax levy rate” means the amount by which the property tax levy rate for a municipality exceeds 5 mills.

Tax 19.03(1)(c) (c) “Municipal operating budget increase” means an amount, expressed as a percentage and rounded to 2 places beyond the decimal, which results from dividing:

Tax 19.03(1)(c)1. 1. The difference between the amount of the municipal operating budget for the year of the statement and the amount of the municipal operating budget, including any adjustment under s. 79.05 (6), Stats., for the year before the year of the statement; by

Tax 19.03(1)(c)2. 2. The amount of the municipal operating budget, including any adjustment under s. 79.05 (6), Stats., for the year before the year of the statement.

Tax 19.03(1)(f) (f) “Property tax levy rate” means an amount, expressed as a decimal and rounded to 9 places beyond the decimal, which results from dividing:

Tax 19.03(1)(f)1. 1. Municipal taxes only less the tax increment under s. 66.1105, Stats.; by

Tax 19.03(1)(f)2. 2. The municipal full value less the tax incremental value under s. 66.1105, Stats.

Tax 19.03(1)(i) (i) “Tax increment” means the sum of tax increments for all taxing jurisdictions as reported on the statement of taxes on the line entitled “tax increment.”

Tax 19.03(1)(j) (j) “Taxing jurisdiction” has the same meaning as in s. 74.01 (7), Stats.

Tax 19.03(1)(k) (k) “Inflation factor” means an amount expressed as a percentage and rounded to one place beyond the decimal, which results from dividing:

Tax 19.03(1)(k)1. 1. The difference between the sum of the 12 monthly indexes of the U.S. consumer price index for all urban consumers, U.S. city average, for the year before the year of the statement and the sum of the 12 monthly indexes of the U.S. consumer price index for all urban consumers, U.S. city average, for the year prior to that year; by

Tax 19.03(1)(k)2. 2. The sum of the 12 monthly indexes of the U.S. consumer price index for all urban consumers, U.S. city average, for the year before the year of the statement.

Tax 19.03(1)(L) (L) “The year of the statement” means the calendar year in which the statement under s. 79.015, Stats., is issued and is the year prior to the calendar year in which the expenditure restraint payment is to be made.

Tax 19.03(1)(m) (m) “Total property tax levy” means the amount reported on the statement of taxes as “total town, village or city taxes levied.”

Tax 19.03(1)(n) (n) “Valuation factor” has the same meaning as in s. 79.05 (1) (d), Stats.

Tax 19.03(2) (2) Eligibility. Any town, village, or city shall receive an expenditure restraint payment if all of the following requirements are met:

Tax 19.03(2)(a) (a) Its property tax levy rate established during the year before the year of the statement is greater than 5 mills.

Tax 19.03(2)(c) (c) Its municipal operating budget increase is less than the percentage change under s. 79.05 (2) (c), Stats.

Tax 19.03(3) (3) Eligibility under sub. (2) (a). The department of revenue shall determine whether a municipality meets the eligibility requirement under sub. (2) (a). If a municipality meets this eligibility, the department of revenue shall send the expenditure restraint worksheet to the municipality which, when returned to the department of revenue, shall be used to determine if the municipality meets the requirement in sub. (2) (c).

Tax 19.03 Note Note: See s. Tax 19.04 for information about the expenditure restraint worksheet.

Tax 19.03(4) (4) Payment. If the department of revenue determines that a municipality meets the requirements in sub. (2), it shall receive an expenditure restraint payment calculated by the department of revenue as follows:

Tax 19.03(4)(a) (a) Subtract 5 mills from the municipality’s property tax levy rate.

Tax 19.03(4)(b) (b) Multiply the amount under par. (a) by the municipality’s full value including the value increment under s. 66.1105, Stats.

Tax 19.03(4)(c) (c) Divide the amount under par. (b) by the total of the amounts under par. (b) for all municipalities that qualify.

Tax 19.03(4)(d) (d) Multiply the amount under par. (c) by the amount of the appropriation under s. 79.01 (1), Stats.

Tax 19.03(5) (5) Corrections to payments. The department of revenue will increase or decrease the subsequent year’s distribution under subch. I of ch. 79, Stats., for any overpayments and underpayments.

Tax 19.03 History History: Cr. Register, July, 1991, No. 427, eff. 8-1-91; r. (1) (a), (d), (e), (g), (h) and (2) (b), cr. (1) (am) and (4) (d), am. (1) (b), (c), (k), (L), (2) (intro.), (a), (c), (3) and (4) (intro.) and (a), Register, December, 1998, No. 516, eff. 1-1-99; correction in (1) made under s. 13.93 (2m) (b) 1., Stats., Register, December, 1998, No. 516; corrections in (1) (f) 1., 2. and (4) (b) made under s. 13.93 (2m) (b) 7., Stats., Register September 2006 No. 609; CR 13-035: am. (1) (c) (intro.) Register December 2013 No. 696, eff. 1-1-14; CR 23-062: am. (1) (k) 1., 2. Register July 2024 No. 823, eff. 8-1-24.

Tax 19.04 Tax 19.04 Expenditure restraint worksheet.

Tax 19.04(1) (1) General. Each municipality that meets the requirement in s. Tax 19.03 (2) (a) shall receive from the department of revenue an expenditure restraint worksheet. The completed expenditure restraint worksheet shall be electronically filed to the department along with the budgets described in s. Tax 19.05.

Tax 19.04(2) (2) Purpose. The expenditure restraint worksheet shall be used by the department of revenue to determine if the municipality meets the eligibility requirement in s. Tax 19.03 (2) (c).

Tax 19.04(3) (3) Due date. For purposes of the 1992 and subsequent years’ expenditure restraint payments, the department’s expenditure restraint worksheet shall be completed and returned to the department of revenue on or before May 1 of the year of the statement.

Tax 19.04 History History: Cr. Register, July, 1991, No. 427, eff. 8-1-91; am. (1), (2), (3) (b) and (c), r. (3) (a) and (4), Register, December, 1998, No. 516; CR 23-062: am. (1), r. (3) (c) Register July 2024 No. 823, eff. 8-1-24; renum. (3) (b) to (3) under s. 13.92 (4) (b) 1., Stats., Register July 2024 No. 823.

Tax 19.05 Tax 19.05 Budgets.

Tax 19.05(1) (1) Definitions. In this chapter:

Tax 19.05(1)(a) (a) “Long-term debt” means general obligation debt payable over a period that exceeds one year.

Tax 19.05(1)(b) (b) “Municipal operating budget” means the total adopted general fund budgeted expenditures, including inter-fund transfers out to other funds and less any principal and interest payments on long-term debt budgeted in the general fund.

Tax 19.05(2) (2) General. Municipalities that receive an expenditure restraint worksheet shall submit to the department of revenue the municipal operating budgets for the year of the statement and the preceding year. These budgets are due on or before the same dates as the expenditure restraint worksheet.

Tax 19.05(3) (3) Content.

Tax 19.05(3)(a) (a) The budgets shall include all of the following except as provided in par. (b):

Tax 19.05(3)(a)1. 1. All revenues, by major revenue source.

Tax 19.05(3)(a)2. 2. All expenditures, by major expenditure category.

Tax 19.05(3)(a)3. 3. Any financing source and use not included under subds. 1. and 2.

Tax 19.05(3)(b) (b) For 1994 and subsequent years’ payments, the budgets described in sub. (1) shall be summarized in compliance with s. 65.90, Stats., and in the format prescribed by the department of revenue.

Tax 19.05 History History: Cr. Register, July, 1991, No. 427, eff. 8-1-91; am. (1) (intro.), (b) and (2), Register, December, 1998, No. 516, eff. 1-1-99.