Assembly Bill 985 proposes amendments to the property tax levy limits for political subdivisions in Wisconsin, specifically addressing the impact of parking lot redevelopment on the valuation factor used in calculating these limits. The bill modifies the existing law by deleting the previous definition of the valuation factor and inserting a new calculation method that includes an annual development percentage. This percentage will now account for increases in equalized value due to qualifying parking lot redevelopment, which is defined as the construction of commercial, multifamily residential, or mixed-use buildings on parcels that previously had a significant portion dedicated to paved parking.

Additionally, the bill stipulates that for certain tax incremental districts, the annual development percentage will include 90 percent of the equalized value increase from new construction, excluding any improvements removed. Notably, if qualifying parking lot redevelopment occurs, the increase in equalized value from this redevelopment will be multiplied by 1.5 and added to the new construction value when calculating the annual development percentage. The changes aim to provide local governments with greater flexibility in increasing their property tax levies in response to redevelopment efforts.

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