DOR Update Municipal Treasurers WI Dept of Revenue

DOR Update Municipal Treasurers WI Dept. of Revenue I September 20, 2018 Wisconsin Department of Revenue 1

Presenter(s) Valeah Foy Director, Local Government Services 2018 Wisconsin Department of Revenue 2

Topics of Discussion • • • 2018 General calendar Law changes Levy limit worksheet State debt collection Resources Wisconsin Department of Revenue 3

General Calendar 2018 Wisconsin Department of Revenue 4

General Calendar September 1 • Post Tax Incremental Certification Report September 8 • Post county and municipal levy limit worksheets (SL-202 c and SL-202 m) online September 17 • Send revised and original shared revenue estimates 2018 Wisconsin Department of Revenue 5

General Calendar October 1 • Certify equalized values for school districts, technical colleges and special districts • Filing deadline – o PC-201: Chargeback Request o PC-205: Sharing Non-MFG Omitted Request o final Municipal Assessment Report (MAR) 2018 Wisconsin Department of Revenue 6

General Calendar October 9 • Equate manufacturing assessment values and produce final Statement of Assessment (SOA) – thru December October 12 • Post statistical report October 19 • Post apportionment forms o PC-400: State and County o PC-401 V: Technical College o PC-505: Special District 2018 Wisconsin Department of Revenue 7

General Calendar October 31 • Filing deadline – o Tax incremental district creations, territory amendments and base value redeterminations packets o PC-401 V: Technical College Apportionment form November 1 • Major class comparison (assessment compliance) – post report and send non-compliance notices to municipalities • Send expenditure restraint budget limit letters 2018 Wisconsin Department of Revenue 8

General Calendar November 9 • Send final special charge and non-primary residence reports to counties for lottery credit November 15 • Send PC-201 and PC-205 determinations • Filing deadline – o PC-400: State and County Apportionment form o PC-505: Special District Apportionment form 2018 Wisconsin Department of Revenue 9

General Calendar November 19 • Distribute shared revenue November 20 • Send max credit values for lottery and gaming and first dollar credits • Send school levy tax credit and estimated major state aids (full disclosure) 2018 Wisconsin Department of Revenue 10

General Calendar November 23 • Post Tax Increment Worksheet (TIW) November 28 • Post Statement of Taxes (SOT) 2018 Wisconsin Department of Revenue 11

Law Changes 2018 Wisconsin Department of Revenue 12

2017 Acts Complete list of 2017 Acts docs. legis. wisconsin. gov/2017/related/acts 2018 Wisconsin Department of Revenue 13

2017 Act 17 – Tax Administration Changes Chargeback changes – s. 74. 41 • Effective January 1, 2018 assessments • Requests must be $250 or more per property and for any of the last five assessment years • Exception – rescissions/refunds due to a court determination must be submitted to DOR within one year of the court determination docs. legis. wisconsin. gov/2017/related/acts/17 14

2017 Act 59 – State Budget Bill Exempt Computer Aid – s. 79. 095 • Effective for 2018 payments • 2018 payment equals 2017 payment multiplied by 1. 0147 • 2019 payment equals 2018 payment multiplied by one plus an inflation factor (CPI) • 2020 payment and thereafter will equal the prior year payment 15

2017 Act 59 – State Budget Bill Machinery, Tools and Patterns – s. 70. 111(27) • Effective January 1, 2018 • Machinery, tools, and patterns not including items used in manufacturing are exempt from property tax • Schedule C of the Statement of Personal Property (PA-003) • Local governments may include the most recent valuation of this personal property for purposes of complying with debt limitations 16

2017 Act 59 – State Budget Bill Personal Property Aid – s. 79. 096 • Starting in 2019, state will pay each taxing jurisdiction the amount of taxes levied on personal property – machinery, tools, and patterns – based on January 1, 2017 assessments • Payment on first Monday in May • 2019 payment estimates were posted August 15, 2018 Wisconsin Department of Revenue 17

2017 Act 59 – State Budget Bill Levy Limits • Effective for December 2018 tax levies • Calculation of levy limit increase – s. 66. 0602(2) • Subtract the personal property aid from the 2018 allowable levy limit • Starting in 2019, DOR will also adjust the PY actual levy (base) to include the personal property aid before the valuation factor is calculated docs. legis. wisconsin. gov/2017/related/acts/59 18

2017 Act 223 – TID Subtractions Levy Limits – s. 66. 0602(3)(ds) • • Effective December 2018 tax levies Levy limit increase for TID territory subtractions Similar to increase allowed for terminated TIDs Allowable percentage increase = Subtracted TID value increment (PY) x 50% Municipality's equalized value TID Out docs. legis. wisconsin. gov/2017/related/acts/223 19

2017 Act 243 – Fees and Development Levy Limits – s. 66. 0602(3)(m) • Effective December 2019 tax levies • Levy limit increase of $1, 000 for each single-family residential dwelling that an occupancy permit is issued for in the prior year, and: o Parcel is no more than 0. 25 acre in a city or village o Parcel is no more than 1. 0 acre in town o Property sold in the prior year for no more than 80 percent of the median price of a new residential dwelling in the municipality for the prior year 20

2017 Act 243 – Fees and Development (cont. ) Levy Limits – s. 66. 0602(3)(m) • Amounts levied must be used only for police protective services, fire protective services or emergency medical services • If amounts are levied, the municipality may not decrease its spending for police, fire, or emergency medical services below the amount spent in the prior year Additional municipal law changes https: //docs. legis. wisconsin. gov/2017/related/acts/243 21

Levy Limit Worksheet 2018 Wisconsin Department of Revenue 22

Levy Limit Worksheets • • 2018 Worksheets available early September Must file electronically Due date – December 15 Use as a tool during the budget process Wisconsin Department of Revenue 23

2018 Form Changes Personal Property Aid Adjustment • Subtract the personal property aid from the 2018 allowable levy limit • Section A, Line 8 – levy limit before adjustments less 2019 personal property aid 2018 Wisconsin Department of Revenue 24

2018 Form Changes TID Territory Subtraction Increase • Similar to increase allowed for terminated TIDs • Allowable percentage increase is shown in Section A, Lines 5 and 6 2018 Wisconsin Department of Revenue 25

Levy Limit Worksheets Section A • Lines 1 through 8 are auto-filled by DOR. You are unable to make an entry on these lines. • Line 1: 2017 Actual levy from Statement of Taxes (SOT) 2018 Wisconsin Department of Revenue 26

Levy Limit Worksheets Section A • Line 2: Prior year levy for unreimbursed emergency expenditures under sec. 323. 10. This line will have an amount on it if an adjustment was taken on sec. D, line G last year. • Line 3: Prior year debt service levy for g. o. debt authorized after July 1, 2005. This line will have an amount on it if an adjustment was taken on sec. D, line E last year. 2018 Wisconsin Department of Revenue 27

Levy Limit Worksheets Section A • Line 4: 2017 Adjusted actual levy o Unreimbursed expenses and debt adjustments are not “base building” • Line 5: Growth rate plus terminated TID % plus TID subtraction % o Growth rate is 0% (set by statute) o If a TID was terminated or had territory subtracted, this percentage would be displayed 2018 Wisconsin Department of Revenue 28

Levy Limit Worksheets Section A • Line 6: Net new construction plus terminated TID % plus TID subtraction % o Net new construction https: //www. revenue. wi. gov/Pages/EQU/nnc. aspx • Line 7: Greater of line 5 or line 6 o Note: Unless there is no new construction, net new construction will be the allowable increase for most municipalities. 2018 Wisconsin Department of Revenue 29

Levy Limit Worksheets Section A • Line 8: Levy limit before adjustments less 2019 personal property aid o Personal property aid will display on the worksheet o If no adjustments in sec. D, this is your municipality's allowable levy limit 2018 Wisconsin Department of Revenue 30

Levy Limit Worksheets Section A • Line 9: Total of all adjustments from Section D of the levy limit worksheet • Line 10: Sum of lines 8 and 9 = 2018 allowable levy limit • Line 11: Higher levy approved by Special Resolution o This can only be done in towns with a population of less than 3, 000 2018 Wisconsin Department of Revenue 31

Levy Limit Worksheets Higher levy by special resolution 1. Town board adopts a resolution in support of the increase 2. Post notice of special town meeting in 3 places at least 15 days beforehand 3. Special town elector meeting called. Electors adopt a resolution in support of the town board’s resolution. 4. Electors set the final levy by resolution 2018 Wisconsin Department of Revenue 32

Levy Limit Worksheets Higher levy by special resolution If approved, send documentation to DOR: 1. Resolution of town board proposing to exceed levy 2. Notice of special town meeting 3. Signed resolution of electors approval to exceed levy (with voting results) 2018 Wisconsin Department of Revenue 33

Levy Limit Worksheets Section B • Previous year’s unused levy available for carryover calculated as follows: 1. Previous Year’s Allowable levy 2. Previous Year’s Actual levy 3. Previous Year’s unused levy (Line 1 minus line 2) ______________ 4. Previous Year’s Actual levy x. 015 _______ 5. Allowable Increase (Lesser of Line 3 or Line 4 above) 2018 Wisconsin Department of Revenue ________ 34

Levy Limit Worksheets Section B • Adjustment for previous year's unused levy may only occur if approved by Town, Village, City or County's governing body • Method of approval is provided sec. 66. 0602(3)(f)3 a. Wis. Stats. 2018 Wisconsin Department of Revenue 35

Levy Limit Worksheets Section B Approval of Previous Year Unused Levy • City, Village or County (governing body of at least 5 members) o Majority vote if increase of. 5% or less o 3/4 majority vote if increase of more than. 5% up to 1. 5% • City, Village or County (governing body of fewer than 5 members) o Majority vote if increase of. 5% or less o 2/3 majority vote if increase of more than. 5% up to 1. 5% 2018 Wisconsin Department of Revenue 36

Levy Limit Worksheets Section B Approval of Previous Year Unused Levy • Towns – majority vote of the annual or special town meeting, if the town board has approved o Majority vote if increase is. 5% or less o 2/3 majority vote if increase of more than. 5% up to 1. 5% 2018 Wisconsin Department of Revenue 37

Levy Limit Worksheets Section C • Sec. 66. 0602(3)(fm), Wis. Stats. • Adjustment for unused levy carryforward from prior years 2018 Wisconsin Department of Revenue 38

Levy Limit Worksheets Section C Allowable increase • Difference between the valuation factor and percent increase in levy attributable to the valuation factor • Complete the calculation for each year • Allowable increase is the sum of the 5 prior years (cannot include a year before 2014) • Cannot exceed 5 percent • Section will be auto-filled on the worksheet 2018 Wisconsin Department of Revenue 39

Levy Limit Worksheets Section C • For 2017: 1. 2. 3. 4. 5. 2016 Adjusted Actual Levy 2017 Adjusted Actual Levy Percentage Increase 2017 Valuation Factor (NNC) 2017 Percentage $208, 000 $209, 500 0. 721% 1. 145% 0. 424% will be displayed in sec. C, line 1 for 2017 2018 Wisconsin Department of Revenue 40

Levy Limit Worksheets Section C • For 2016: 1. 2. 3. 4. 5. 2015 Adjusted Actual Levy 2016 Adjusted Actual Levy Percentage Increase 2016 Valuation Factor (NNC) 2016 Percentage $205, 000 $208, 000 1. 463% 1. 650% 0. 187% will be displayed in sec. C, line 2 for 2016 2018 Wisconsin Department of Revenue 41

Levy Limit Worksheets Section C • For 2015: 1. 2. 3. 4. 5. 2014 Adjusted Actual Levy 2015 Adjusted Actual Levy Percentage Increase 2015 Valuation Factor (NNC) 2015 Percentage $202, 300 $205, 000 1. 335% 1. 750% 0. 415% will be displayed in sec. C, line 3 for 2015 2018 Wisconsin Department of Revenue 42

Levy Limit Worksheets Section C • For 2014: 1. 2. 3. 4. 5. 2013 Adjusted Actual Levy 2014 Adjusted Actual Levy Percentage Increase 2014 Valuation Factor (NNC) 2014 Percentage $200, 000 $202, 300 1. 150% 1. 500% 0. 350% will be displayed in sec. C, line 4 for 2014 2018 Wisconsin Department of Revenue 43

Levy Limit Worksheets Section C • Allowable increase: • • 2017 percentage 2016 percentage 2015 Percentage 2014 Percentage Sum of 5 prior years 2017 Adjusted Actual Levy Allowable Increase 0. 424% 0. 187% 0. 415% 0. 350% 1. 376% $209, 500 $2, 883 Allowable Percentage (1. 376%) * 2017 Adjusted Levy ($209, 500) 2018 Wisconsin Department of Revenue 44

Levy Limit Worksheets Section C Approval of Prior Years' Carryforward • Governing body must approve by 2/3 majority vote • Outstanding general obligation debt in the current year must be less than or equal to the outstanding general obligation debt in the prior year • Can use either the allowable increase in Section B or Section C 2018 Wisconsin Department of Revenue 45

Levy Limit Worksheets Section D Line A • Adjustment available for previous year's unused levy • Allowable increase from section B, line 5 must be put on line A if this adjustment is being used • Note: If you report an amount on Line A, you cannot report an amount on Line R 2018 Wisconsin Department of Revenue 46

Levy Limit Worksheets Section D Line B • Negative adjustment for debt authorized prior to July 1, 2005 – "old" debt • If 2019 debt service levy is less than 2018 debt service levy, this negative adjustment must be taken o Note: There is no longer an exception to making the negative debt adjustment. It was removed for 2017 tax levies. 2018 Wisconsin Department of Revenue 47

Levy Limit Worksheets Section D Line C • Increase in old debt – authorized prior to July 1, 2005 • Must be a scheduled payment • Ex. balloon payment on old loan 2018 Wisconsin Department of Revenue 48

Levy Limit Worksheets Section D Line D • Chargeback of refunded or rescinded taxes – municipality's share, not the entire amount • Amount certified by DOR – November 15 approval letter • Note: DOR letter provides refund breakdown by taxing jurisdiction • Amount can be added to the current year tax levy or following year tax levy 2018 Wisconsin Department of Revenue 49

Levy Limit Worksheets Section D Line E • New debt – authorized after July 1, 2005 • Most commonly used line • Include 2019 scheduled principal and interest payments • Only report the amount your municipality plans to include in the current year tax levy • Reported amount will be deducted the following year 2018 Wisconsin Department of Revenue 50

Levy Limit Worksheets Section D Line F • Increase based on approved referendum • Required for counties, cities, villages and towns (with a population exceeding 3, 000) • All of the required information must be included in the referendum question • Approved increase can be for one year or ongoing 2018 Wisconsin Department of Revenue 51

Levy Limit Worksheets Section D Line F • If approved, provide the following to DOR within 14 days: o Copy of ballot o Voting results • Only report the amount of the approved increase 2018 Wisconsin Department of Revenue 52

Levy Limit Worksheets Section D Line G • Unreimbursed expenses related to an emergency under sec. 323. 10 • Must be declared by the Governor • Available for two years – year of emergency or the following year • Reported amount will be deducted the following year 2018 Wisconsin Department of Revenue 53

Levy Limit Worksheets Section D Line H • Increase/decrease in costs associated with an intergovernmental cooperative agreement • Agreement must already exist • For redistribution of costs 2018 Wisconsin Department of Revenue 54

Levy Limit Worksheets Section D Line I • Increase in charges assessed by a joint fire department • Total department increase has to be less than or equal to CPI plus 2% to take this adjustment • If the total department increase qualifies, enter the amount of your municipality's share of the increase 2018 Wisconsin Department of Revenue 55

Levy Limit Worksheets Section D Line J • Reduction for transfer of services out • Service that a municipality provided which was transferred to another governmental unit • Responsibility of providing the service and incurred costs must be transferred • Enter the amount you budgeted to provide the service in 2018 Wisconsin Department of Revenue 56

Levy Limit Worksheets Section D Line K • Increase for transfer of services in • Service that another governmental unit provided which was transferred to your municipality • Responsibility of providing the service and incurred costs must be transferred 2018 Wisconsin Department of Revenue 57

Levy Limit Worksheets Section D Line K • Enter the amount the other governmental unit budgeted to provide the service in 2018 • If proposed amount exceeds their 2018 budgeted amount, contact DOR 2018 Wisconsin Department of Revenue 58

Levy Limit Worksheets Section D Line L • Town reduction for an annexation by a city or village • For the annexed parcels, enter the local tax only from the prior year tax bills 2018 Wisconsin Department of Revenue 59

Levy Limit Worksheets Section D Line M • City or village increase for an annexation from a town • For the annexed parcels, enter the town's local tax from the prior year tax bills Note: Both adjustments on Lines L and M are one-year adjustments 2018 Wisconsin Department of Revenue 60

Levy Limit Worksheets Section D Line N • Lease payment for lease revenue bonds issued before July 1, 2005 • Uncommon – bonds issued before July 1, 2005 • Increase in lease payment – current year compared to prior year 2018 Wisconsin Department of Revenue 61

Levy Limit Worksheets Section D Line O • Amount of revenue shortfall for debt service on revenue bonds or special assessment B bonds 2018 Wisconsin Department of Revenue 62

Levy Limit Worksheets Section D Line P • Enter amount for revenue shortfall in general fund due to loss of revenue from the sale of water or other commodity to a manufacturer that has discontinued operations 2018 Wisconsin Department of Revenue 63

Levy Limit Worksheets Section D Line P • Requirements: o Manufacturer closes o Manufacturer was purchasing water or other commodity from municipality o Revenue was put into municipality's general fund 2018 Wisconsin Department of Revenue 64

Levy Limit Worksheets Section D Line Q • Decrease in levy for a new fee or fee increase adopted on or after July 2, 2013 (Sec. 66. 0602 (2 m)(b) Wis. Stats. ) • Reduction should not exceed the amount funded by levy in 2013 o 2017 Act 317 – effective April 18, 2018 Wisconsin Department of Revenue 65

Levy Limit Worksheets Section D Line Q • Covered services include: o Fire protection – not including the production, storage, transmission, sale and delivery, or furnishing of water for public fire protection purposes o Snow plowing o Street sweeping o Storm water management o Garbage collection – except for municipalities that owned/operated a landfill on January 1, 2013 2018 Wisconsin Department of Revenue 66

Levy Limit Worksheets Section D Line Q • Criteria: o Covered service? o Covered service funded by levy in 2013 (wholly or partially)? o Municipality adopted a new fee or fee increase after July 2, 2013? • If "yes" to all of the above, an adjustment is required 2018 Wisconsin Department of Revenue 67

Levy Limit Worksheets Section D Line Q • Enter the amount of expected new or additional fee revenue • No more than what was funded by tax levy in 2013, including prior year adjustments • Exception – municipality can pass a resolution providing the levy limit reduction is not required, which is approved by referendum 2018 Wisconsin Department of Revenue 68

Levy Limit Worksheets Section D Line R • Adjustment for unused levy carryforward from prior years • Allowable increase from section C, line 8 must be put on line R if this adjustment is being used • Note: If you report an amount on Line R, you cannot report an amount on Line A 2018 Wisconsin Department of Revenue 69

Levy Limit Worksheets Section D Line S • Total of adjustments A through R • Amount populates "Total Adjustments" in Section A, line 9 2018 Wisconsin Department of Revenue 70

Levy Limit Worksheets Summary • The purpose of the levy limit worksheet is calculating the allowable levy limit • The levy limit worksheet should always be completed before the levy is set • The current year actual levy (from the SOT) is compared to the allowable levy limit (from the levy limit worksheet) to determine whether or not there is an excess levy 2018 Wisconsin Department of Revenue 71

Levy Limit Worksheets Summary Actual Levy • The total local levy is reported in Section D on the Statement of Taxes (SOT) • The tax increment, state special charges and county special charges are not included when comparing actual levy to allowable levy 2018 Wisconsin Department of Revenue 72

Levy Limit Worksheets Excess Levy (Penalties) • If there is an excess levy, it will be deducted from the following year’s shared revenue payment • Any additional excess will be deducted from subsequent shared revenue payments • During our review, DOR works with each municipality and county to ensure all items are correctly reported 2018 Wisconsin Department of Revenue 73

Levy Limit Worksheets Excess Levy (Penalties) Common Reporting Issues • Incomplete documentation by Towns (with a population less than 3, 000) when approving an increased levy limit • Not accounting for special purpose districts (ex. , fire and utility districts) o Taxes are included in the local levy • For tax year 2017 – 43 municipalities and 1 county incurred a levy limit penalty 2018 Wisconsin Department of Revenue 74

State Debt Collection 2018 Wisconsin Department of Revenue 75

State Debt Collection (SDC) • DOR provides debt collection services to local governments • Over 280 municipalities currently participate • You may participate if: o The debt is owed directly to the local government o The debt is 90 days past due, and (new requirement) the debt is not older than 10 years • Thirty days prior to referral to DOR – send the debtor referral notice 2018 Wisconsin Department of Revenue 76

State Debt Collection (SDC) • Common examples: o o o o 2018 Personal property taxes Municipal utility bills Local police and fire dept. inspection/service fees Municipality-owned ambulance service debts Housing authority debts Municipal court debts Parking tickets Wisconsin Department of Revenue 77

State Debt Collection (SDC) • SDC Process o DOR utilizes tools to collect municipal debt, such as payment plans, wage garnishments, bank levies, income tax refund offset (i. e. , TRIP), unclaimed property setoffs, etc. o DOR assesses the debtor a fee o No charge to local governments for participating • For more information and/or to enroll: o Phone – (608) 264 -0344 o Email – DORAgency. Collections@wisconsin. gov 2018 Wisconsin Department of Revenue 78

Resources 2018 Wisconsin Department of Revenue 79

Email Updates • Stay Informed! • Receive email updates about law changes, filing reminders, updated reports and notifications • Subscribe at revenue. wi. gov/Pages/HTML/lists. aspx – click "Sign up for email updates" o Municipal Treasurer o Municipal Clerk 2018 Wisconsin Department of Revenue 80

Resources • DOR website: revenue. wi. gov • Online videos – see DOR Video Center o Select "Government" o Examples: My tax account, e. RETR, assessment topics (frac sand, use-value) • Annual calendar: revenue. wi. gov/DORReports/tvccal. pdf 2018 Wisconsin Department of Revenue 81

Resources, cont. • Wisconsin Property Assessment Manual: revenue. wi. gov/Pages/HTML/govpub. aspx • Publications: revenue. wi. gov/Pages/HTML/govpub. aspx • Reports: revenue. wi. gov/Pages/Report/Home. aspx • Common questions: revenue. wi. gov/Pages/FAQS/home-pt. aspx 2018 Wisconsin Department of Revenue 82

Resources, cont. Form CT Resources • Form instructions revenue. wi. gov/DORForms/sl-103. pdf • Tax roll reconciliation instructions revenue. wi. gov/DORForms/sl-103 tax-roll. pdf • Training videos revenue. wi. gov/Pages/Training/MFR-training-home. aspx 2018 Wisconsin Department of Revenue 83

Resources, cont. Open Book and Board of Review (BOR) calendar • Assessor or municipal clerk enters dates into calendar revenue. wi. gov/Pages/Municipalities/bor-calendar. aspx • Public can view: o o Open Book and BOR dates Links to Appeal Guide and Guide for Property Owners Municipal clerk and assessor contact information If dates are not listed, user can enter an email address to receive an update when the dates are added • Available in January for current year entries 2018 Wisconsin Department of Revenue 84

Thank you • Questions/comments/suggestions? 2018 Wisconsin Department of Revenue 85