Telephone: (608) 266-8253
Analysis by the Department of Revenue
Statute interpreted
Sections 73.10 (2) (b) 1. and 79.05, Stats.
Explanation of agency authority
c. That the statements, notes, and schedules under subd. 1. a. be audited in accordance with generally accepted auditing standards."
Related statute or rule
There are no other applicable statutes or rules.
Plain language analysis
Amends s. 16.06 (4) to reflect current address information.
The department is not aware of a similar rule in an adjacent state.
Summary of factual data and analytical methodologies
This rule order makes changes to reflect current law and current department policy. It makes no policy or other changes having an effect on small business.
Anticipated costs incurred by private sector
Agency Contact Person
Text of Proposed Rule
Tax 16.04 (2) The required schedules shall be prepared on the forms provided by the department and in accordance with instructions issued by the department. Local governments may elect to submit the required schedules on their own forms so long as those forms meet the specifications established by the department. Local governments electing to submit their own forms shall submit an example of their forms for review and approval by the department prior to December 31 of the year for which the schedules are to be prepared.
Tax 16.06 (4) (Note 1) Copies of the draft schedules required by s. Tax 16.04 (1) and the specifications referenced in s. Tax 16.04 (2) may be obtained from:
Wisconsin Department of Revenue
125 South Webster Street
P.O. Box 8933 8971
Madison, WI 53708-8971
These schedules are new forms that substitute for the current annual financial report form filed by governmental units with the department of revenue.
SECTION 3. Tax 19.03 (1) (c) (intro.) is amended to read:
Tax 19.03 (1) (c) (intro.) "Municipal operating budget increase" means an amount, expressed as a percentage and rounded to 2 places beyond the decimal, which results from dividing:
Summary
The proposal makes a number of updates and technical corrections to certain DOR administrative rules. These changes have no fiscal effect on municipalities, counties, or the DOR.
Detail of provisions
Revenue
NOTICE IS HEREBY GIVEN that, pursuant to ss. 70.32 (2) (c) 1i. and 73.09 (1), Stats., the Department of Revenue will hold a public hearing to consider permanent rules revising Chapters Tax 12 and 18, relating to property tax and assessment of agricultural property.
Hearing Information
Date: Friday, July 12, 2013
Time:
11:00 a.m.
Location:
Events Room
State Revenue Building
2135 Rimrock Road
Madison, WI 53713
Dale Kleven
Mail Stop 6-40
P.O. Box 8933
Telephone: (608) 266-8253
Sections 70.32 (2) (c) 1i. and 73.09 (1), Stats.
Explanation of agency authority
Section 70.32 (2) (c) 1i. Stats., provides that agricultural use "means agricultural use as defined by the department of revenue by rule..." This provision applies to the proposed change to ch. Tax 18.
Related statute or rule
There are no other applicable statutes or rules.
The proposed rule makes the following changes:
Revises s. Tax 12.065 (2) (b) to remove a dated reference to a transitional period.
Revises s. Tax 12.07 to provide for more frequent update of assessment districts through the Wisconsin Property Assessment Manual.
Repeals subchapter I of Chapter Tax 18 and removes other references throughout the chapter to an agricultural assessment transitional period that lasted from 1996 to 1997.
There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
Analysis and supporting documents used to determine effect on small business
This rule order makes changes to reflect current law and current department policy. It makes no policy or other changes having an effect on small business.
Anticipated costs incurred by private sector
This rule order does not have a fiscal effect on the private sector.
Effect on Small Business
This rule order does not affect small business.
Text of Proposed Rule
SECTION 1. Tax 12.05 (1) (b) and (c) (intro.) are amended to read:
SECTION 4. Tax 12.06 (1) (b) 1. (intro.) is renumbered Tax 12.06 (1) (b) 1. and amended to read:
SECTION 6. Tax 12.065 (1) (c), (2) (b), and (6) are amended to read:
(2) (b) The program shall be attended and completed not earlier than 5 years preceding the expiration of the applicant's current certification period. For certifications issued after January 1, 1981, the earliest program attended may not begin prior to the date of issuance of the applicant's current certification.
(6) Address. All correspondence to the department shall be sent to:
Wisconsin Department of Revenue
c/o Assessor Certification and Training Unit
PO Box 8933 8971
Madison, WI 53708-8933 53708-8971
(a) Assessor 1
(b) Assessor 2
(c) Assessor 3
SECTION 8. Tax 12.075, 12.08, and 12.10 are repealed.
SECTION 10. Tax 12.50 (1) and (3) (b) are amended to read:
(3) (b) The claim for exemption shall be submitted to the assessor no later than the April March 1 immediately following the assessment date for which the exemption is claimed.
SECTION 12. Subchapter I of ch. Tax 18 is repealed.
SECTION 13. Subchapter II (title) of ch. Tax 18 is repealed.
SECTION 14. Tax 18.04 is amended to read:
Tax 18.04 Purpose. The purpose of this subchapter chapter 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.
(1) (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 18.07 (2) Not later than January 1, 1998, and each January 1 thereafter of each year, the department shall provide assessors with the use value per acre for each category of agricultural land in each municipality, calculated under sub. (1). The use value per acre for each category of agricultural land in each municipality shall be published annually in the Wisconsin property assessment manual.
SECTION 17. Tax 18.08 is repealed.
SECTION 18. Effective date. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats.
ADMINISTRATIVE RULES
Fiscal Estimate & Economic Impact Analysis
Type of Estimate and Analysis
X Original Updated Corrected
Administrative Rule Chapter, Title and Number
Chapters Tax 12 and 18 — Property tax and assessment of agricultural property
Subject
Property tax and assessment of agricultural property
Fund Sources Affected
Chapter 20 , Stats. Appropriations Affected
GPR FED PRO PRS SEG SEG-S
Fiscal Effect of Implementing the Rule
X No Fiscal Effect
Indeterminate
Increase Existing Revenues
Decrease Existing Revenues
Increase Costs
Could Absorb Within Agency's Budget
Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
State's Economy
Local Government Units
Specific Businesses/Sectors
Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes X No
Policy Problem Addressed by the Rule
The rule does not create or revise policy, other than to reflect current law and department policy.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
As indicated in the attached fiscal estimate, the proposed rule has no fiscal effect on municipalities, counties, or the Department of Revenue.
No comments concerning the economic effect of the rule were submitted in response to the department's solicitation.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Clarifications and guidance provided by administrative rules may lower the compliance costs for municipalities and counties.
If the rule is not implemented, Chapters Tax 12 and 18 will be incomplete in that they will not reflect current law or department policy.
Long Range Implications of Implementing the Rule
No long-range implications are anticipated.
Compare With Approaches Being Used by Federal Government
N/A
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
N/A
FISCAL ESTIMATE FORM
2013 Session
X ORIGINAL UPDATED
LRB #
INTRODUCTION #
CORRECTED SUPPLEMENTAL
Admin rule #
Tax 12: Property Tax
Tax 18: Assessment of Agricultural Property
Subject
Proposed order of the Department of Revenue relating to property tax and assessment of agricultural property
Fiscal Effect
State: X No State Fiscal Effect
Check columns below only if bill makes a direct appropriation or
affects a sum sufficient appropriation
Increase Existing Appropriation Increase Existing Revenues
Decrease Existing Appropriation Decrease Existing Revenues
Create New Appropriation
Increase Costs — May be Possible to Absorb Within Agency's Budget Yes No
Decrease Costs
Local: X No Local Government Costs
1. Increase Costs
3. Increase Revenues
5. Types of Local Governmental Units Affected:
Permissive Mandatory
Permissive Mandatory
Towns Villages Cities
2. Decrease Costs
4. Decrease Revenues
Counties Others
Permissive Mandatory
Permissive Mandatory
School Districts WTCS Districts
Fund Sources Affected
GPR FED PRO PRS SEG SEG-S
Affected Ch. 20 Appropriations
Assumptions Used in Arriving at Fiscal Estimate
Summary
Detail of provisions
Sections 2 to 5 of the proposal update the descriptions of what an assessment technician and a property appraiser are allowed to do in the property assessment process. The current rule does not reflect the range of duties that persons in such positions are permitted to do under the Wisconsin Property Assessment Manual.
Sections 7 and 8 of the proposal relate to the licensure level (there are 3 such levels) required by assessors. The levels are set such that the more complex a job the assessor must complete, the higher level of licensure that is needed. These levels are currently specified in rule by county and for certain municipalities. The revision would no longer specify these levels in rule, but instead require DOR to publish these levels in the Wisconsin Property Assessment Manual, and to change these levels every 10 years to reflect changes in local populations as determined by the decennial federal census.
Sections 9 and 10 of the proposal repeal rules regarding notification of increased assessment, county review of equalized values, the confidentiality of manufacturing assessment forms, and the waste treatment exemption. These repeals remove obsolete and unnecessary provisions. Current statutes provide sufficient direction to carry out these duties.
Sections 11 and 12 of the proposal deal with the rules on the exemption for solar and wind energy systems. The proposal deletes a reference to a department of commerce certification that no longer exists, changes the exemption request date to conform to current law, and deletes an obsolete sunset provision.
Section 15 of the proposal deletes a reference to the growing of short rotation woody trees since the statutes have been changed so that such activity now qualifies for agricultural assessment.
Notice of Hearing
Revenue
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