WI AB986

Modifies how Wisconsin political subdivisions calculate their property tax levy limits by changing the "valuation factor" formula used to determine allowable levy increases

Excludes demolished improvements from the net new construction calculation when a qualifying infill housing project is completed, allowing municipalities to capture the full value increase from such projects

Defines qualifying infill housing projects as 2-6 new dwelling units on parcels in established subdivisions (90% built out for at least 10 years), using existing infrastructure, and not in tax incremental districts

Retains existing rules for tax incremental districts created after December 31, 2024, which include 90% of new construction value but exclude removed improvements

Takes effect one year after publication