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WI AB986
WI AB986Levy increase limits in political subdivisions with qualifying infill housing development. (FE)
summary
Introduced
01/30/2026
01/30/2026
In Committee
01/30/2026
01/30/2026
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
Generally, under current law, local levy limits are applied to the property tax levies that are imposed by political subdivisions. A political subdivision may not increase its levy by a percentage that exceeds its “valuation factor,” which is the greater of 0 percent or the percentage change in the political subdivision’s equalized value due to new construction, less improvements removed (net new construction). This bill changes the net new construction component of the valuation factor by adding valuation increases due to qualified infill construction but omitting any removals of improvements due to such infill construction in the net new construction calculation. For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
AI Summary
This bill modifies how local governments, referred to as "political subdivisions," calculate the allowable increase in their property tax levies. Currently, this increase is limited by a "valuation factor," which is based on the net change in property value due to new construction minus any removed improvements. This bill changes that calculation by adding the value of new construction from "qualifying infill housing projects" to the valuation factor, while specifically excluding any improvements removed as part of those infill projects. A qualifying infill housing project is defined as a construction project on a parcel that has been developed for at least 10 years, where 90% of other parcels in the area are already built upon, and the project will add between two and six new dwelling units that use existing infrastructure and are not located in a tax incremental district. This change aims to encourage infill housing development by allowing local governments to potentially increase their tax levies to a greater extent when such projects are completed.
Committee Categories
Government Affairs
Sponsors (15)
Margaret Arney (D)*,
Jodene Emerson (D)*,
Russell Goodwin (D)*,
Tara Johnson (D)*,
Supreme Moore Omokunde (D)*,
Amaad Rivera-Wagner (D)*,
Ann Roe (D)*,
Christine Sinicki (D)*,
Angela Stroud (D)*,
Shelia Stubbs (D)*,
Kristin Dassler-Alfheim (D),
LaTonya Johnson (D),
Chris Larson (D),
Kelda Roys (D),
Mark Spreitzer (D),
Last Action
Fiscal estimate received (on 02/19/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://docs.legis.wisconsin.gov/2025/proposals/reg/asm/bill/ab986 |
| Fiscal Note - AB986: Fiscal Estimate From DOR | https://docs.legis.wisconsin.gov/2025/related/fe/ab986/ab986_dor.pdf |
| BillText | https://docs.legis.wisconsin.gov/document/proposaltext/2025/REG/AB986.pdf |
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