Friday, September 30, 2005

Limits on Property Tax Levies

State law now limits municipal and county property tax levies
"The state budget signed into law as Act 25 includes property tax levy limits prohibiting municipalities and counties from increasing their total property tax levy by more than a specified percentage for each of the next two years. The law allows levies to increase by either two percent or the percentage change in the municipality's or county's equalized value due to net new construction, whichever is greater. The Department of Revenue (DOR) has posted 2004-05 net new construction values for each Wisconsin municipality and county on its website at These figures will be used to determine levy limits for next year.

Please note that the levy limits are based on the total municipal or county levy, not separately to the level of library funding provided by a municipality or county. An individual department or service could receive a higher appropriation, as long as the total increase for the municipality or county does not exceed the total levy limit.

Amounts levied for debt service are generally exempt from the levy limits. In addition, levies can be increased above the allowable limits if the amount is approved by referendum. The DOR has a FAQ page on the levy limits at"

Source: Channel Weekly (Vol. 8, No. 3 -- Sept. 15, 2005)