Assembly Bill 986 proposes amendments to the property tax levy limits for political subdivisions in Wisconsin, specifically addressing the inclusion of qualifying infill housing developments in the calculation of net new construction. The bill modifies the existing law by changing the definition of the valuation factor, which now incorporates valuation increases from qualified infill construction while excluding any removals of improvements associated with such developments. This adjustment aims to provide local governments with greater flexibility in increasing their property tax levies in response to new housing projects.

Additionally, the bill establishes criteria for what constitutes a qualifying infill housing project, which must be located in a residential area with existing infrastructure and result in a net increase of 2 to 6 new dwelling units. The annual development percentage, which is used to calculate the valuation factor, will now include increases in equalized value from these qualifying projects without deducting any improvements removed. The bill also specifies that for certain tax incremental districts, a portion of the equalized value increase will be included in the annual development percentage calculation. The act is set to take effect one year after publication.

Statutes affected:
Bill Text: 66.0602(1)(d), 66.0602