Register March 2013 No. 687
Chapter Tax 18
ASSESSMENT OF AGRICULTURAL PROPERTY
Subchapter I — Assessment of Agricultural Property in 1996 and in 1997
Tax 18.03 Assessment of agricultural property in 1996 and in 1997.
Subchapter II — Assessment of Agricultural Property in 1998 and Thereafter
Tax 18.06 Land classified agricultural; categories of agricultural land.
Tax 18.08 Assessment of agricultural land.
Tax 18.09 Assessment of other property.
Ch. Tax 18 Note
Note: Chapter Tax 18 was created as an emergency rule effective January 29, 1986. Chapter Tax 18 was repealed and recreated by emergency rule effective December 6, 1995. Chapter Tax 18 as it existed on August 31, 1996 was repealed and a new chapter Tax 18 was created effective September 1, 1996.
Tax 18.01
Tax 18.01
Purpose. The purpose of this subchapter is to establish definitions and provide criteria that will facilitate implementation of
1995 Wis. Act 27 with regard to the assessment of agricultural land in 1996 and in 1997.
Tax 18.01 History
History: Cr.
Register, August, 1996, No. 488, eff. 9-1-96; am.
Register, September, 1997, No. 501, eff. 10-1-97.
Tax 18.02
Tax 18.02
Definitions. In this subchapter:
Tax 18.02(1)
(1) "Land devoted primarily to agricultural use" means land classified agricultural in 1995 that is not in a use that is incompatible with agricultural use on the assessment date. Swamp or waste or productive forest land located in villages and cities is not devoted primarily to agricultural use, and agricultural buildings and improvements and the land necessary for their location and convenience are not devoted primarily to agricultural use.
Tax 18.02 Note
Note: Under prior law, swamp or waste or productive forest land located in villages and cities was classified agricultural because villages and cities were not permitted to classify land swamp or waste or productive forest land. Since
1995 Wis. Act 27 requires villages and cities to use the swamp or waste and productive forest land classifications, all such land located in villages or cities is to be reclassified swamp or waste or productive forest, according to the Wisconsin Property Assessment Manual.
Tax 18.02 Note
Example: Twenty acres of agricultural land were sold and recorded as a legal description in April 1995 and commercial construction began in October 1995. Although the land was in agricultural use in 1995, this legal description is not devoted primarily to agricultural use due to the construction on the property.
Tax 18.02 Note
Example: Under a conditional use permit, an owner opens a 15-acre sand and gravel quarry on a 40-acre legal description in October 1996. Although the 15 acres were in agricultural use during 1996, extraction of sand and gravel is incompatible with agricultural use. Therefore, the 15 acres are not devoted primarily to agricultural use and are not classified agricultural in 1997.
Tax 18.02(2)
(2) "Other" means agricultural buildings and improvements and the land necessary for their location and convenience.
Tax 18.02 Note
Example: A legal description of 40 acres is located in a village and includes a house and other agricultural buildings and improvements on 2 acres of land, 18 acres of forest, and 20 acres in corn. Although all 40 acres were classified agricultural in 1995, only the 20 acres of cropland are devoted primarily to agricultural use and are classified agricultural in 1996 and 1997; the house, agricultural buildings and improvements and 2 acres are classified "Other", and 18 acres are classified productive forest.
Tax 18.02(3)
(3) "Parcel of agricultural land" means land devoted primarily to agricultural use within a single legal description.
Tax 18.02 Note
Note: The definition of "parcel of agricultural land" used here implements the intent of the legislature in only freezing the assessment of agricultural land. If a "parcel of agricultural land" were defined as the complete legal description of a tract which was predominantly agricultural, the assessment of non-agricultural land within the legal description would be frozen. Similarly, the assessment of agricultural land within a legal description which was not predominantly agricultural would not be frozen.
Tax 18.02 Note
Example: A farmer sells 5 acres of a 40-acre legal description in February 1996 and the 5 acres are recorded as a separate legal description. The farmer rents back the 5 acres and continues working the entire 40 acres. The 5 acres are a parcel of agricultural land. Had residential construction begun on the 5-acre legal description by January 1, 1997, it would not be a parcel of agricultural land.
Tax 18.02 Note
Example: A residence and a 1-acre vegetable garden are located on a 2-acre legal description that was classified residential in 1995. Although the owner produces vegetables and may sell some at a farmer's market, the 2-acres do not constitute a parcel of agricultural land.
Tax 18.02 History
History: Cr.
Register, August, 1996, No. 488, eff. 9-1-96; am. (intro.),
Register, September, 1997, No. 501, eff. 10-1-97.
Tax 18.03
Tax 18.03
Assessment of agricultural property in 1996 and in 1997. Tax 18.03(1)(1) For assessments as of January 1, 1996 and January 1, 1997, the assessed value of each parcel of agricultural land is the assessed value of that parcel as of January 1, 1995.
Tax 18.03(2)
(2) For assessments as of January 1, 1996 and January 1, 1997, property classified Other is assessed according to s.
70.32 (1), Stats.
Tax 18.03 Note
Example: Thirty-seven acres of a 40-acre legal description are devoted primarily to agricultural use and are assessed as provided in sub. (1). The remaining 3 acres are needed for the location and convenience of a residence, barn, farm buildings, and well. The 3 acres, residence, buildings and facilities are assessed according to s.
70.32 (1), Stats., on January 1, 1996 since they are classified "Other".
Tax 18.03 History
History: Cr.
Register, August, 1996, No. 488, eff. 9-1-96.
Tax 18.04
Tax 18.04
Purpose. The purpose of this subchapter is to provide definitions and procedures for the department and municipal assessors to classify certain real property as agricultural or other, and to value such property for property tax purposes, beginning in 1998.
Tax 18.04 History
History: Cr.
Register, September, 1997, No. 501, eff. 10-1-97.
Tax 18.05
Tax 18.05
Definitions. In this subchapter:
Tax 18.05(1)
(1) "Agricultural use" means any of the following:
Tax 18.05(1)(a)
(a) Activities included in subsector 111 Crop Production, set forth in the North American Industry Classification System (NAICS), United States, 1997, published by the executive office of the president, U.S. office of management and budget. "Agricultural use" does not include growing short rotation woody trees with a growing and harvesting cycle of 10 years or less for pulp or tree stock under NAICS industry 111421.
Tax 18.05(1)(b)
(b) Activities included in subsector 112 Animal Production, set forth in the North American Industry Classification System, United States, 1997, published by the executive office of the president, U.S. office of management and budget.
Tax 18.05 Note
Note: Subsector 111 Crop Production and subsector 112 Animal Production, set forth in the North American Industry Classification System, United States, 1997, published by the executive office of the president, U.S. office of management and budget, are reproduced in full in the Wisconsin property assessment manual under s.
73.03 (2a), Stats. In addition, copies are on file with the department and the legislative reference bureau.
Tax 18.05(1)(d)
(d) Land enrolled in any of the following federal agriculture programs: the conservation reserve program under
7 CFR 1410; the conservation reserve program 1986-1990 under
7 CFR 704; the water bank program under
7 CFR 752; the agricultural conservation program under
7 CFR 701; or, provided that the land was in agricultural use under
par. (a),
(b) or
(c) at the time of enrollment, the environmental quality incentives program under
7 CFR 1466 or the conservation contract program under
7 CFR 1951, Subpt. S, Exh. H.
Tax 18.05(1)(e)
(e) Land that is subject to an easement under any of the following programs provided that the land was in agricultural use under
par. (a),
(b) or
(c) at the time the easement was acquired: the stream bank protection program under s.
23.094, Stats.; the conservation reserve enhancement program under s.
93.70, Stats.; or the nonpoint source water pollution abatement program under s.
281.65, Stats.
Tax 18.05 Note
Note: The versions of pars. (a), (b), (d) and (e) are effective for the assessments as of January 1, 2001.
Tax 18.05(3)
(3) "Department" means the department of revenue.
Tax 18.05(4)
(4) "Land devoted primarily to agricultural use" means land in an agricultural use for the production season of the prior year, and not in a use that is incompatible with agricultural use on January 1 of the assessment year.
Tax 18.05(5)
(5) "Other" means agricultural buildings and improvements and the land necessary for their location and convenience.
Tax 18.05(6)
(6) "Parcel of agricultural land" means land, contained within a single legal description, that is devoted primarily to agricultural use.
Tax 18.05 History
History: Cr.
Register, September, 1997, No. 501, eff. 10-1-97; am. (1) (a), (b) and (d), cr. (1) (e),
Register, July, 2000, No. 535, eff. 1-1-01.
Tax 18.06
Tax 18.06
Land classified agricultural; categories of agricultural land. Tax 18.06(1)(1) An assessor shall classify as agricultural land devoted primarily to agricultural use. Land devoted primarily to agricultural use shall typically bear physical evidence of agricultural use, such as furrows, crops, fencing or livestock, appropriate to the production season. If physical evidence of agricultural use is not sufficient to determine agricultural use, the assessor may request of the owner or agent of the owner such information as is necessary to determine if the land is devoted primarily to agricultural use.
Tax 18.06(2)
(2) For each legal description of property that includes a parcel of agricultural land, the assessor shall indicate on the property record card, by acreage, the category of agricultural land. Categories of agricultural land are the following:
