Friday, August 7, 2020
The SFS Team has received the following information from the Department of Revenue:
By August 14, 2020, the Wisconsin Department of Revenue (DOR) will be sending 2021 estimates for Personal Property Aid (PPA). Because of a court-ordered correction to 2019 PPA payments, the estimated May 2021 PPA payment may be lower or higher than this year's payment.
PPA for 2019 was calculated using a ratio due to the lack of available information and tight timeline. DOR worked to collect the required information from every Wisconsin municipality. Subsequently, PPA for 2020 was based on that reported information. The difference between 2020 and 2019 is the 2019 correction that DOR will apply to the 2021 PPA payment.
Example: School district A
- Received $8,000 in 2019
- Received $5,000 in 2020
- 2019 correction equals $5,000 - $8,000 = -$3,000
- 2021 estimate will equal $5,000 (normal PPA) plus the 2019 correction (-$3,000) = $2,000
Next week, by August 14, 2020, DOR will post the 2021 PPA estimates, which will be incorporated into school district revenue limits. Absent additional law changes, PPA in 2022 will return to the amount paid in 2020.
The SFS Team will update our Revenue Limit worksheets as soon as we are able.
For questions about this information, contact DOR Local Government Services (608) 261-5360