SB 181

Generally, under current law, local levy limits are applied to the property tax levies that are imposed by political subdivisions. A political subdivision may not increase its levy by a percentage that exceeds its “valuation factor,” which is the greater of 0 percent or the percentage change in the political subdivision’s equalized value due to new construction, less improvements removed. Current law also 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. This bill creates an additional exception to local levy limits. Under the bill, the amounts a city, village, town, or county levies for costs associated with regional emergency medical services, either through participation in a joint emergency services district or through one or more intergovernmental agreements to provide emergency medical services, or both, are exempt. Under the bill, “regional” means consisting of a service area that is at least 232 square miles or includes at least eight municipalities.

The bill also excludes expenditures of amounts levied for a regional emergency medical system that are exempt from local levy limits under the bill from being considered in determining eligibility for an expenditure restraint incentive program payment. Under current law, a municipality is eligible to receive an expenditure restraint incentive program payment if its property tax levy is greater than 5 mills and if the annual increase in its municipal budget, subject to certain exceptions, is less than the sum of factors based on inflation and the increased value of property in the municipality as a result of new construction.