Tax 12.50 (1) Applicability
. The general property tax exemption applies whether the solar and wind energy systems certified by the department of commerce under s. 101.57 (4), Stats.,
are deemed personal property or are so affixed to the realty as to be classified as real estate.
(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 11. Tax 12.50 (4) is repealed.
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 Tax 18 is repealed.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 Tax 18 is repealed.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.
SECTION 15. Tax 18.05 (intro.) and (1) (a) are amended to read:
Tax 18.05 (intro.) Definitions. In this subchapter chapter:
(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.
SECTION 16. Tax 18.07 (2) is amended to read:
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 Tax 18.08 is repealed.
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.)
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
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
⍽ 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
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
FISCAL ESTIMATE FORM
X ORIGINAL ⍽ UPDATED
⍽ CORRECTED ⍽ SUPPLEMENTAL
Admin rule #
Tax 12: Property Tax
Tax 18: Assessment of Agricultural Property
Proposed order of the Department of Revenue relating to property tax and assessment of agricultural property
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:
⍽ Towns ⍽ Villages⍽ Cities
2. ⍽ Decrease Costs
4. ⍽ Decrease Revenues
⍽ Counties ⍽ Others
⍽ School Districts ⍽ WTCS Districts
Fund Sources Affected
⍽ GPR ⍽FED
⍽PRS ⍽SEG ⍽SEG-S
Affected Ch. 20 Appropriations
Assumptions Used in Arriving at Fiscal Estimate
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
Section 1 of the proposal replaces a reference to a bureau in the Department of Revenue (DOR) that no longer exists with a reference to the department.
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.
Section 6 of the proposal updates the list of persons who sit on the advisory committee that makes recommendations to the DOR on continuing education requirements for licensed assessors and assessment staff.
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 13 of the proposal deletes the rules which governed how agricultural land was to be assessed for 1996 and 1997. These rules are no longer needed. Sections 14 and 16 remove obsolete effective date references.
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.
Section 17 of the proposal deletes a redundant provision.
Notice of Hearing
NOTICE IS HEREBY GIVEN that, pursuant to ss. 15.03
, 70.395 (2) (hg)
, 76.07 (5) (b)
, and 77.30
, Stats., the Department of Revenue will hold a public hearing to consider permanent rules revising Chapters Tax 6
, and 15
, relating to public utility taxation, investment and local impact fund, and real estate transfer fee.
Date: Friday, July 12, 2013
Time: 9:00 a.m.
Location: Events Room
State Revenue Building
2135 Rimrock Road
Madison, WI 53713
Handicap access is available at the hearing location.
Appearances at the Hearing and Submittal of Written Comments
Interested persons are invited to appear at the hearing and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the department at the hearing. Written comments may also be submitted to the contact person listed below or to adminrules.wisconsin.gov no later than July 12, 2013, and will be given the same consideration as testimony presented at the hearing.
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
Telephone: (608) 266-8253
Analysis by the Department of Revenue
Explanation of agency authority
The Investment and Local Impact Fund Board, as created by s. 15.435
, Stats., and attached to the department under s. 15.03
, Stats., is required under s. 70.395 (2) (hg)
, Stats., to "…
by rule, establish fiscal guidelines and accounting procedures for the use of payments under pars. (d), (f), (fm) and (g), sub. (3) and s. 293.65 (5)
." These provisions apply to the proposed revision to s. Tax 13.05 (1) (b)
Section 76.07 (5) (b)
, Stats., provides "[t]he department shall promulgate rules relating to the general principles of the indicators of value..." This provision applies to the proposed changes to Chapter Tax 6
, Stats., provides "[t]he secretary of revenue may adopt, pursuant to ch. 227
, such rules as the secretary deems necessary in the administration of this subchapter…
" This provision applies to the proposed repeal of ss. Tax 15.03 (2) (b)
and 15.05 (5)
Related statute or rule
There are no other applicable statutes or rules.
Plain language analysis
The proposed rule makes the following changes:
Amends s. Tax 6.50 (4) (b)
to be consistent with national unit valuation standards.
Updates department contact and form references throughout Chapter Tax 6
Summary of, and comparison with, existing or proposed federal regulation
There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.
Comparison with rules in adjacent states
The department is not aware of a similar rule in an adjacent state.
Summary of factual data and analytical methodologies
2012 Executive Order 61
and 2011 Wisconsin Act 46
requires state agencies to work with the Small Business Regulatory Review Committee to review the agency's administrative rules that may be particularly onerous to small businesses in Wisconsin. In response, the department initiated a comprehensive review of all of its administrative rules. The changes described above were identified as part of that review. No other data was used in the preparation of this rule order or this analysis.
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.
Agency Contact Person
Text of Proposed Rule
SECTION 1. Tax 6.02 is amended to read:
Tax 6.02 Returns for public utilities.
Forms that are used in the administration of the various taxes levied according to ch. 76
, Stats., may be obtained from the Wisconsin Department of Revenue, Bureau of Utility and Special Taxes Division of State and Local Finance
, P.O. Box 8933 8971
, Madison, WI 53708-8971
SECTION 2. Tax 6.40 (2) (a) and (b) are amended to read:
Tax 6.40 (2) (a) Requests for approval by public utilities subject to taxation under s. 76.13
, Stats., for each waste treatment facility shall be made by completing the form entitled "Application for Exemption of Report of Exempted
Waste Treatment Facility-Utility." All actual costs of purchase or construction of the facility must be reflected on this form. The completed form is due January 15 of each year and is to be filed annually except in years subsequent to purchase or construction where no capital changes have occurred to the waste treatment facility, in which case a summary sheet may be submitted for these facilities. For good cause shown upon application by the applicant, the department may grant an extension of time not exceeding 120 days in which to file the application form.
(b) The completed form "Application for Exemption of Report of Exempted Waste Treatment Facility-Utility" should be sent to the Bureau of Utility and Special Taxes Division of State and Local Finance.
Note: The address for mailing the application form is Wisconsin Department of Revenue, Bureau of Utility and Special Taxes, Division of State and Local Finance, PO Box 8971, Madison WI 53708-8971.
SECTION 3. Tax 6.50 (4) (b) is amended to read:
Tax 6.50 (4) (b) The department shall make adequate and reasonable allowances for loss of value due to all causes including physical depreciation, functional and economic obsolescence, regulatory required write-offs and utility plant acquisition adjustments. The department shall also make required allowances for property which is not taxable under ch. 76, Stats., which includes but is not limited to, future use property, except when included in the rate base, approved waste treatment facilities, licensed motor vehicles, nonoperating property, property allocable outside the state and property leased to others.
The cost indicator for regulated public utilities shall recognize that an asset's value generally is limited by its value for ratemaking purposes. The cost indicator shall include construction work in-progress regardless of the treatment for ratemaking purposes.
SECTION 4. Tax 13.05 (1) (intro.) is renumbered Tax 13.05 (1) and amended to read:
Tax 13.05 (1) Net proceeds tax. Fifteen days after collection of the tax, the department of administration, upon certification of the department of revenue, shall transfer the amount collected as follows: first dollar payment and the taxes collected to the impact fund.
SECTION 5. Tax 13.05 (1) (b) is repealed.
SECTION 6. Tax 15.03 (2) (intro.) is renumbered Tax 15.03 (2) and amended to read:
Tax 15.03 (2) Conveyances by means of a sheriff's sale: where the grantee is a third party with no prior interest in the deed or mortgage.