SB 487

Generally under current law, local levy limits are applied to the property tax

levies that are imposed in December of each year. Current law prohibits any city,

village, town, or county (political subdivision) from increasing its levy by a

percentage that exceeds its “valuation factor," which is defined as the greater of

either 0 percent or the percentage change in the political subdivision's equalized

value due to new construction, less improvements removed. In addition, the

calculation of a political subdivision's levy does not include any tax increment that

is generated by a tax incremental district.

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.

Another current law exception (the joint fire department exception) is for the

amount that a city, village, or town (municipality) levies to pay for charges assessed

by a joint fire department, but only to the extent that the amount levied to pay for

such charges would cause the municipality to exceed the otherwise applicable levy

limit. This exception to the levy limit applies only if the charges assessed by a joint

fire department increase in the current year by an amount equal to or less than the

rate of inflation over the preceding year, plus 2 percent, and if the municipality's

governing body adopts a resolution in favor of exceeding the otherwise applicable

levy limit.

Under this bill, the joint fire department exception is expanded so that it also

applies to the amount that a municipality levies to pay for charges assessed by a joint

emergency medical services district, subject to the same conditions and limitations

as current apply to a joint fire department. The bill first applies to a levy that is

imposed in December 2019.