AB 321

Generally under current law, and subject to a number of exceptions, a city,

village, town, or county (political subdivision) may not increase 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. The base amount of a

political subdivision's levy, on which the levy limit is imposed, is the actual levy for

the immediately preceding year.

Because of an error by the village of Shorewood assessor in reporting the

valuation of Tax Incremental District (TID) Number 1 in the village, should the

village impose its intended 2011 levy, the resulting tax rate would lead to the

collection of higher than intended revenues for TID Number 1. If the village reduces

its levy and resulting tax rate, however, the levy will be less than initially intended

and the levy limit for 2012 would be based at the reduced levy for 2011. Under this

bill, the levy limits applicable to the village of Shorewood are increased by: 1) for

2012, the amount by which the village reduces its levy from the amount it would have

levied in 2011 if not for an error in the valuation of the village's TID Number 1 to

compensate for that error, and 2) for 2012 and 2013, a combined amount equal to the

amount of funds applied from the village's general fund in 2011 to replace funds that

would have been levied if not for the error in valuation. The actual levy limit increase

amounts are determined by the Department of Revenue.