LRBb0544/1
MES&EKL:all
2019 - 2020 LEGISLATURE
SENATE AMENDMENT 5,
TO ASSEMBLY BILL 56
June 26, 2019 - Offered by Senators Ringhand, Schachtner, Shilling, Hansen,
Bewley, Risser, Carpenter, Wirch, L. Taylor, Erpenbach, Smith, Larson,
Miller and Johnson.
AB56-SA5,1,21 At the locations indicated, amend the bill, as shown by assembly substitute
2amendment 1, as follows:
AB56-SA5,1,3 31. Page 376, line 7: after that line insert:
AB56-SA5,1,4 4 Section 827m. 70.03 (1) of the statutes is amended to read:
AB56-SA5,2,45 70.03 (1) In chs. 70 to 76, 78, and 79, “real property," “real estate," and “land"
6include not only the land itself but all buildings and , fixtures, improvements thereon,
7and all fixtures and, leases, rights , and privileges appertaining thereto, including
8assets that cannot be taxed separately as real property, but are inextricably
9intertwined with the real property, enable the real property to achieve its highest and
10best use, and are transferable to future owners,
except as provided in sub. (2) and
11except that for the purpose of time-share property, as defined in s. 707.02 (32), real
12property does not include recurrent exclusive use and occupancy on a periodic basis
13or other rights, including, but not limited to, membership rights, vacation services,

1and club memberships. In this subsection, “lease” means a right in real estate that
2is related primarily to the property and not to the labor, skill, or business acumen of
3the property owner or tenant. In this subsection, “highest and best use” has the
4meaning given in s. 70.32 (1).
”.
AB56-SA5,2,5 52. Page 376, line 20: after that line insert:
AB56-SA5,2,6 6 Section 829m. 70.32 (1) of the statutes is amended to read:
AB56-SA5,3,27 70.32 (1) Real property shall be valued by the assessor in the manner specified
8in the Wisconsin property assessment manual provided under s. 73.03 (2a) at its
9highest and best use
from actual view or from the best information that the assessor
10can practicably obtain, at the full value which could ordinarily be obtained therefor
11at private sale. In determining the value, the assessor shall consider recent
12arm's-length sales of the property to be assessed if according to professionally
13acceptable appraisal practices those sales conform to recent arm's-length sales of
14reasonably comparable property; recent arm's-length sales of reasonably
15comparable property; and all factors that, according to professionally acceptable
16appraisal practices, affect the value of the property to be assessed. In this subsection,
17“arm's-length sale" means a sale between a willing buyer and willing seller, neither
18being under compulsion to buy or sell and each being familiar with the attributes of
19the property sold. In this subsection, “highest and best use" means the specific use
20of the property as of the current assessment date or a higher use to which the
21property can be expected to be put before the next assessment date, if the use is
22legally permissible, physically possible, not highly speculative, and financially
23feasible and provides the highest net return. When the current use of a property is
24the highest and best use of that property, value in the current use equals full market

1value. In this subsection, “legally permissible” does not include a conditional use
2that has not been granted as of the assessment date.
AB56-SA5,830m 3Section 830m. 70.32 (1b) of the statutes is created to read:
AB56-SA5,3,124 70.32 (1b) In determining the value of real property under sub. (1), the assessor
5shall consider, as part of the valuation under sub. (1), any lease provisions and actual
6rent pertaining to a property and affecting its value, including the lease provisions
7and rent associated with a sale and leaseback of the property, if all such lease
8provisions and rent are the result of an arm's-length transaction involving persons
9who are not related, as provided under section 267 of the Internal Revenue Code for
10the year of the transaction. In this subsection, an “arm's-length transaction" means
11an agreement between willing parties, neither being under compulsion to act and
12each being familiar with the attributes of the property.
AB56-SA5,831m 13Section 831m. 70.32 (1d) of the statutes is created to read:
AB56-SA5,3,1614 70.32 (1d) (a) To determine the value of property using generally accepted
15appraisal methods, the assessor shall consider all of the following as comparable to
16the property being assessed:
AB56-SA5,3,1917 1. Sales or rentals of properties exhibiting the same or a similar highest and
18best use, as defined in sub. (1), with placement in the same real estate market
19segment.
AB56-SA5,3,2420 2. Sales or rentals of properties that are similar to the property being assessed
21with regard to age, condition, use, type of construction, location, design, physical
22features, and economic characteristics, including similarities in occupancy and the
23potential to generate rental income. For purposes of this subdivision, such
24properties may be found locally, regionally, or nationally.
AB56-SA5,4,2
1(b) For purposes of par. (a), a property is not comparable if any of the following
2applies:
AB56-SA5,4,63 1. At or before the time of sale, the seller places any deed restriction on the
4property that changes the highest and best use, as defined in sub. (1), of the property,
5or prohibits competition, so that it no longer qualifies as a comparable property
6under par. (a) 1. or 2. and the property being assessed lacks such a restriction.
AB56-SA5,4,117 2. The property is dark property and the property being assessed is not dark
8property. In this subdivision, “dark property” means property that is vacant or
9unoccupied beyond the normal period for property in the same real estate market
10segment. For purposes of this subdivision, what is considered vacant or unoccupied
11beyond the normal period may vary depending on the property location.
AB56-SA5,4,1712 (c) For purposes of par. (a), “real estate market segment” means a pool of
13potential buyers and sellers that typically buy or sell properties similar to the
14property being assessed, including potential buyers who are investors or
15owner-occupants. For purposes of this paragraph, and depending on the type of
16property being assessed, the pool of potential buyers and sellers may be found locally,
17regionally, nationally, or internationally.
AB56-SA5,4,1918 (d) The department of revenue shall assist local assessors with implementing
19and applying this subsection.”.
AB56-SA5,4,20 203. Page 378, line 14: after that line insert:
AB56-SA5,4,21 21 Section 868f. 71.05 (6) (b) 43. d. of the statutes is amended to read:
AB56-SA5,4,2422 71.05 (6) (b) 43. d. For taxable years beginning after December 31, 2013, and
23before January 1, 2020,
up to $3,000 if the claimant has one qualified individual and
24up to $6,000 if the claimant has more than one qualified individual.”.
AB56-SA5,5,1
14. Page 379, line 13: after that line insert:
AB56-SA5,5,2 2 Section 883c. 71.07 (5me) of the statutes is created to read:
AB56-SA5,5,43 71.07 (5me) Family and individual reinvestment credit. (a) Definitions. In
4this subsection:
AB56-SA5,5,65 1. “Claimant" means an individual who is eligible to claim the credit under this
6subsection.
AB56-SA5,5,87 2. “Household" means a claimant and an individual related to the claimant as
8husband or wife.
AB56-SA5,5,109 3. “Net tax liability" means a claimant's income tax liability after he or she
10completes the computations for nonrefundable credits listed in s. 71.10 (4) (a) to (gy).
AB56-SA5,5,1411 (b) Filing claims. For taxable years beginning after December 31, 2018, and
12subject to the limitations provided in this subsection, a claimant may claim as a
13credit against the tax imposed under s. 71.02, up to the amount of those taxes, one
14of the following amounts:
AB56-SA5,5,1715 1. If the claimant is single or files as a head of household and his or her adjusted
16gross income is less than $80,000 in the year to which the claim relates, the greater
17of $100 or an amount equal to 10 percent of his or her net tax liability.
AB56-SA5,5,2018 2. If the claimant is single or files as a head of household and his or her adjusted
19gross income is at least $80,000 but less than $100,000 in the year to which the claim
20relates, an amount that is calculated as follows:
AB56-SA5,5,2321 a. Calculate the value of a fraction, the denominator of which is $20,000 and
22the numerator of which is the difference between the claimant's adjusted gross
23income and $80,000.
AB56-SA5,5,2424 b. Subtract from 1.0 the amount that is calculated under subd. 2. a.
AB56-SA5,6,1
1c. Multiply the amount that is calculated under subd. 2. b. by 10 percent.
AB56-SA5,6,32 d. Multiply the amount of the claimant's net income tax liability by the amount
3that is calculated under subd. 2. c.
AB56-SA5,6,74 3. If the claimant is married and filing jointly and the sum of the claimant's
5adjusted gross income and his or her spouse's adjusted gross income is less than
6$125,000 in the year to which the claim relates, the greater of $50 or an amount equal
7to 10 percent of the married couple's net tax liability.
AB56-SA5,6,118 4. If the claimant is married and filing jointly and the sum of the claimant's
9adjusted gross income and his or her spouse's adjusted gross income is at least
10$125,000 but less than $150,000 in the year to which the claim relates, an amount
11that is calculated as follows:
AB56-SA5,6,1412 a. Calculate the value of a fraction, the denominator of which is $25,000 and
13the numerator of which is the difference between the married couple's adjusted gross
14income and $125,000.
AB56-SA5,6,1515 b. Subtract from 1.0 the amount that is calculated under subd. 4. a.
AB56-SA5,6,1616 c. Multiply the amount that is calculated under subd. 4. b. by 10 percent.
AB56-SA5,6,1817 d. Multiply the amount of the married couple's net income tax liability by the
18amount that is calculated under subd. 4. c.
AB56-SA5,6,2119 5. If the claimant is married and filing separately and his or her adjusted gross
20income is less than $62,500 in the year to which the claim relates, the greater of $25
21or an amount equal to 10 percent of his or her net tax liability.
AB56-SA5,6,2422 6. If the claimant is married and filing separately and his or her adjusted gross
23income is at least $62,500 but less than $75,000 in the year to which the claim relates,
24an amount that is calculated as follows:
AB56-SA5,7,3
1a. Calculate the value of a fraction, the denominator of which is $12,500 and
2the numerator of which is the difference between the claimant's adjusted gross
3income and $75,000.
AB56-SA5,7,44 b. Subtract from 1.0 the amount that is calculated under subd. 6. a.
AB56-SA5,7,55 c. Multiply the amount that is calculated under subd. 6. b. by 10 percent.
AB56-SA5,7,76 d. Multiply the amount of the claimant's net income tax liability by the amount
7that is calculated under subd. 6. c.
Loading...
Loading...