County and Municipal Levy Limits
County and Municipal Levy Limits
- What is the maximum amount a county, town, village or city can levy?
- Where do I report the actual levy on the levy limit worksheet?
- Does the levy limit worksheet have to be completed if there are no adjustments to our allowable levy?
- What will our allowable levy be next year?
- What is the penalty for exceeding the levy limit?
- Does the provision apply to a municipality that decides in 2013 to begin paying for a covered service by a fee instead of tax levy?
- Does the provision apply to a municipality that pays for a covered service partly by a fee and partly by tax levy in 2013?
- Does the provision apply when a municipality that has had a covered service for several years, such as a storm water utility, decides to increase its fee?
- Does the provision apply when a municipality for the first time provides one of the covered services, such as street sweeping, and chooses to fund that service 100% through fee?
- Who should I contact at the Wisconsin Department of Revenue (DOR) with questions regarding levy limits?
County and Municipal Levy Limits
- What is the maximum amount a county, town, village or city can levy?
The maximum allowable levy for a county, town, village or city without potentially receiving a penalty under state law (sec. 66.0602, Wis. Stats.), is calculated using the levy limit worksheet.
- Where do I report the actual levy on the levy limit worksheet?
You report the actual levy on the Statement of Taxes, not on the levy limit worksheet. You must use the levy limit worksheet to calculate and report the allowable levy, after adjustments.
- Does the levy limit worksheet have to be completed if there are no adjustments to our allowable levy?
Yes, each county and municipality must submit a levy limit worksheet to DOR. If there are no adjustments, you carry the amount on line 7 to line 9.
- What will our allowable levy be next year?
Use the levy limit worksheet to calculate the maximum allowable levy. The starting number in this calculation is the prior year's actual levy (except if there was an excess levy in the prior year). The allowable adjustments may vary.
Complete the appropriate levy limit worksheet:
- County Levy Limit Worksheet
- Municipal Levy Limit Worksheet
The 2013 Levy Limit Worksheets will be available in September 2013
- What is the penalty for exceeding the levy limit?
The penalty is a loss of shared revenue. This is a dollar for dollar penalty. For example, if a municipality exceeds its levy limit by $1,000.00, its state shared revenue payment will be reduced by $1,000.00. If the amount of the penalty is greater than the state shared revenue amount for that year, the remaining penalty amount is deducted from subsequent state shared revenue payments until the penalty is paid in full.
- Does the provision apply to a municipality that decides in 2013 to begin paying for a covered service by a fee instead of tax levy?
Yes, if a covered service was funded in whole or in part by the tax levy in 2013, and a municipality adopts a fee on or after July 2, 2013, the municipality would be required to adjust (reduce) its levy limit.
- Does the provision apply to a municipality that pays for a covered service partly by a fee and partly by tax levy in 2013?
Yes. The statute applies to covered services that were funded in whole or in part by the tax levy in 2013. A municipality that funds a covered service in part by a fee and in part by the tax levy, would be required to adjust (reduce) its levy limit, if it adopts the fee increase on or after July 2, 2013.
- Does the provision apply when a municipality that has had a covered service for several years, such as a storm water utility, decides to increase its fee?
Storm water management is a covered service. If the service was funded in whole or in part by the tax levy in 2013, the statute applies to any fee increase adopted on or after July 2, 2013.
- Does the provision apply when a municipality for the first time provides one of the covered services, such as street sweeping, and chooses to fund that service 100% through fee?
No. The statute only applies to covered services that were provided by the municipality in 2013 and funded in whole or in part by levy.
- Who should I contact at the Wisconsin Department of Revenue (DOR) with questions regarding levy limits?
Contact Sue Nelson at (608) 266-8618 or sue.nelson@revenue.wi.gov.
FOR MORE INFORMATION PLEASE CONTACT:
WISCONSIN DEPARTMENT OF REVENUE
Division of State & Local Finance
Local Government Services Bureau 6-97
P.O. Box 8971
Madison, WI 53708-8971
Phone: (608) 266-8618
Fax: (608) 264-6887
E-Mail Additional Questions
Last updated August 7, 2013