SB370: Bill Text

Note: This Section and Sections 11, 13 and 22 exclude farmland preservation credits from the calculation of income for purposes of income and franchise taxes.

SB370, s. 11 Section 11 . 71.05 (6) (b) 22. of the statutes is created to read:

SB370,8,12 71.05 (6) (b) 22. All amounts received as a farmland preservation credit under subch. IX to the extent that the amounts are included in federal adjusted gross income.

SB370, s. 12 Section 12 . 71.07 (3m) (e) of the statutes is created to read:

SB370,8,15 71.07 (3m) (e) Sunset. No claim may be filed under this subsection for a taxable year that begins on or after January 1, 1996.

Note: This Section and Sections 14 and 15 end the filing of new claims under the farmland tax relief credit with tax returns for calendar year 1995. The farmland tax relief credit is a credit against a farmer's income taxes equal to 10% of net property taxes levied on the farmer's land, up to a maximum credit of $1,000. The credit does not apply to taxes levied on buildings and improvements to the land. Eligible farmland must meet the same agricultural use and minimum size requirements as for the farmland preservation credit. The farmland tax relief credit is funded by the lottery fund and approximately $16,000,000 per year is expended for this program.

SB370, s. 13 Section 13 . 71.26 (1) (i) of the statutes is created to read:

SB370,9,2 71.26 (1) (i) Farmland preservation credit. Any amount received as a farmland preservation credit under subch. IX.

SB370, s. 14 Section 14 . 71.28 (2m) (e) of the statutes is created to read:

SB370,9,5 71.28 (2m) (e) Sunset. No claim may be filed under this subsection for a taxable year that begins on or after January 1, 1996.

SB370, s. 15 Section 15 . 71.47 (2m) (e) of the statutes is created to read:

SB370,9,8 71.47 (2m) (e) Sunset. No claim may be filed under this subsection for a taxable year that begins on or after January 1, 1996.

SB370, s. 16 Section 16. 71.58 (1) (h) of the statutes is created to read:

SB370,9,12 71.58 (1) (h) For purposes of filing a claim under this subchapter, "claimant" does not include a person who has transferred farmland to a new owner and who was not able to provide the certification under s. 71.59 (1) (b) 2. at the time of the transfer.

Note: Prevents a person who is ineligible for a farmland preservation tax credit because of outstanding property taxes due on the farmland from receiving the credit after the outstanding taxes have been paid by a subsequent landowner, for example, in a foreclosure proceeding or tax sale.

SB370, s. 17 Section 17. 71.58 (8) of the statutes is amended to read:

SB370,9,23 71.58 (8) "Property taxes accrued" means property taxes, exclusive of special assessments, delinquent interest and charges for service, levied on the farmland and improvements owned by the claimant or any member of the claimant's household in any calendar year under ch. 70, less the tax credit, if any, afforded in respect of the property by s. 79.10. "Property taxes accrued" shall not exceed $6,000 for claims filed under s. 71.60. If farmland is owned by a tax-option corporation, a limited liability company or by 2 or more persons or entities as joint tenants, tenants in common or partners or is marital property or survivorship marital property and one or more such persons, entities or owners is not a member of the claimant's household, "property taxes accrued" is that part of property taxes levied on the farmland, reduced by the tax credit under s. 79.10, that reflects the ownership percentage of the claimant and the claimant's household. For purposes of this subsection, property taxes are "levied" when the tax roll is delivered to the local treasurer for collection. If farmland is sold during the calendar year of the levy the "property taxes accrued" for the seller is the amount of the tax levy, reduced by the tax credit under s. 79.10, prorated to each in the closing agreement pertaining to the sale of the farmland, except that if the seller does not reimburse the buyer for any part of those property taxes there are no "property taxes accrued" for the seller, and the "property taxes accrued" for the buyer is the property taxes levied on the farmland, reduced by the tax credit under s. 79.10, minus, if the seller reimburses the buyer for part of the property taxes, the amount prorated to the seller in the closing agreement. With the claim for credit under this subchapter, the seller shall submit a copy of the closing agreement and the buyer shall submit a copy of the closing agreement and a copy of the property tax bill.

Note: This Section and the following Section modify cross-references to conform with the changes made by Sections 20 and 21.

SB370, s. 18 Section 18. 71.59 (1) (a) of the statutes is amended to read:

SB370,11,2 71.59 (1) (a) Subject to the limitations provided in this subchapter and s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income or franchise taxes otherwise due, the amount derived under s. 71.60 or 71.605. If the allowable amount of claim exceeds the income or franchise taxes otherwise due on or measured by the claimant's income or if there are no Wisconsin income or franchise taxes due on or measured by the claimant's income, the amount of the claim not used as an offset against income or franchise taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft drawn on the general fund.

SB370, s. 19 Section 19 . 71.59 (1) (d) 5. and (2) (b) and (c) of the statutes are amended to read:

SB370,11,11 71.59 (1) (d) 5. That soil and water conservation standards applicable to the land are established and approved as required under s. 92.105 (1) to (3) and that no notice of noncompliance is in effect under s. 92.105 (5) with respect to the claimant at the time the certificate is issued end of the taxable year for which the claim is made. A zoning authority shall not issue a zoning certificate for property for any year at the end of which a notice of noncompliance under s. 92.104 (4) or 92.105 (5) is in effect for the property.

SB370,11,14 (2) (b) If a notice of noncompliance with an applicable soil and water conservation plan under s. 92.104 is in effect with respect to the claimant at the time the claim is filed end of the taxable year for which the claim is made.

SB370,11,17 (c) If a notice of noncompliance with applicable soil and water conservation standards under s. 92.105 is in effect with respect to the claimant at the time the claim is filed end of the taxable year for which the claim is made.

Note: Requires that recipients of the farmland preservation tax credit be in compliance with soil and water conservation standards at the end of the year for which the credit is claimed, rather than at the time the claim is filed.

SB370, s. 20 Section 20 . 71.60 (title), (1) (intro.) and (2) of the statutes are amended to read:

SB370,11,23 71.60 (title) Computation; farmland preservation agreements. (1) (intro.) Except as provided in sub. (2), for farmland that is subject to a farmland preservation agreement under subch. II of ch. 91 at the close of the year to which the claim relates, the amount of any claim filed in calendar years based upon property taxes accrued in the preceding calendar year shall be determined as follows:

SB370,12,4 (2) If the farmland is subject to a certified ordinance under subch. V of ch. 91, or an agreement under subch. II of ch. 91, in effect at the close of the year for to which the credit is claimed claim relates, the amount of the claim is 10% of the property taxes accrued or the amount determined under sub. (1), whichever is greater.

Note: Provides that farmland preservation credits for farmland subject to farmland preservation agreements that are in effect on the effective date of this bill will continue to be calculated under the current formula.

SB370, s. 21 Section 21 . 71.605 of the statutes is created to read:

SB370,12,11 71.605 Computation; exclusive agricultural zoning. (1) For farmland that, at the close of the year to which the claim relates, is in an area zoned for exclusive agricultural use under subch. V of ch. 91 by a city, village, town or county and is not subject to a farmland preservation agreement under subch. II of ch. 91, the amount of any claim filed in a calendar year based upon property taxes accrued in the preceding calendar year shall be determined as follows:

SB370,12,12 (a) Except as provided in par. (b), 50% of the property taxes accrued.

SB370,12,14 (b) If the farmland is in a transition area identified under s. 91.55 (1) (b), 25% of the property taxes accrued.

SB370,12,16 (2) The maximum credit for a claim filed under this section is $7,500 for each claimant.

Note: Provides for a payment of either 50% or 25% of the property taxes on agricultural land as the means of calculating the amount of the farmland preservation credit, with a maximum credit of $7,500. The new method of calculating farmland preservation credits begins with 1996 income tax returns for property taxes accrued in calendar year 1995. The bill provides a 50% credit for farmland that is in an area zoned by a city, village, town or county for exclusive agricultural use at the close of the calendar year, and a credit of 25% of property taxes accrued for land that is subject to exclusive agricultural zoning but that is in a transition area identified in a county agricultural preservation plan, with both amounts capped at $7,500.

This and the preceding Section also specify that the amount of the farmland preservation tax credit for farmland that is subject to both a farmland preservation agreement and an exclusive agricultural zoning ordinance is either the amount for farmland subject to only an agreement or the 10% minimum credit. The intent of this provision is to create an incentive for the holders of farmland preservation agreements to relinquish the agreements when the farmland becomes subject to an exclusive agricultural zoning ordinance, as a part of the phase-out of agreements under s. 91.25, created by this bill.

SB370, s. 22 Section 22 . 71.61 (2) of the statutes is repealed.

Note: Repeals the requirement that farmland preservation credits be treated as income for purposes of income and franchise taxes.

SB370, s. 23 Section 23. 91.06 of the statutes is amended to read:

SB370,13,7 91.06 Certification. The board shall review farmland county agricultural preservation plans and exclusive agricultural use zoning ordinances submitted to it under ss. 91.61 and 91.78 and shall certify to the appropriate zoning authority whether the plans and ordinances meet the standards of subchs. IV and V, respectively. Certifications may be in whole or in part.

Note: Corrects terminology to correspond with the terms used in subch. IV of ch. 91.

SB370, s. 24 Section 24. 91.19 (7) and (8) of the statutes are amended to read:

SB370,14,2 91.19 (7) Whenever a farmland preservation agreement is relinquished under sub. (2) or (6t) or all or part of the land is released from a farmland preservation agreement under sub. (2) or (6p) or a transition area agreement is relinquished under sub. (2) or, subject to subs. (12) and (13), a transition area agreement is relinquished under sub. (1) or (1m), the department shall cause to be prepared and recorded a lien against the property formerly subject to the agreement for the total amount of all credits received by all owners of such lands under subch. IX of ch. 71 during the last 10 5 years that the land was eligible for such credit, plus interest at the rate of 9.3% per year compounded annually on the credits received from the time the credits were received until the lien is paid for farmland preservation agreements relinquished under sub. (6t) and 6% per year compounded annually on the credits received from the time the credits were received until the lien is paid for other agreements. No interest shall be compounded for any period during which the farmland is subject to a subsequent farmland preservation agreement or transition area agreement or is zoned for exclusive agricultural use under an ordinance certified under subch. V.

SB370,14,12 (8) Subject to subs. (12) and (13), upon the relinquishment of a farmland preservation agreement under sub. (1) or (1m), the department shall cause to be prepared and recorded a lien against the property formerly subject to the farmland preservation agreement for the total amount of the credits received by all owners thereof under subch. IX of ch. 71 during the last 10 5 years that the land was eligible for such credit, plus 6% interest per year compounded from the time of relinquishment. No interest shall be compounded for any period during which the farmland is subject to a subsequent farmland preservation agreement or transition area agreement or is zoned for exclusive agricultural use under an ordinance certified under subch. V.

Note: Reduces from 10 to 5 the number of years for which farmland preservation credits must be repaid when a farmland preservation agreement is relinquished or when farmland is rezoned from an exclusive agricultural use zone or land in such a zone is granted a special exception or conditional use permit for a nonagricultural use.

SB370, s. 25 Section 25. 91.21 (1) of the statutes is amended to read:

SB370,14,22 91.21 (1) If the owner or a successor in title of the land upon which a farmland preservation agreement has been recorded under this chapter changes the use of the land to a prohibited use without first acting under ss. s. 91.17 and, 91.19 or 91.25 (3) or (4) and the land is not relinquished under s. 91.19 (6p) or (6t), the owner or successor in title may be enjoined by the state, acting through the attorney general, or by the local governing body having jurisdiction, acting through its attorney, and is subject to a civil penalty for actual damages, but in no case to exceed double the value of the land as established at the time the application for the agreement was approved.

SB370, s. 26 Section 26 . 91.25 of the statutes is created to read:

SB370,15,4 91.25 Phase-out of agreements. (1) The department may not enter into a farmland preservation agreement for land after the date for recertification of exclusive agricultural zoning ordinances in the county in which the land is located, as established under s. 91.78 (2).

SB370,15,8 (2) Notwithstanding s. 91.13 (10), a farmland preservation agreement entered into after the effective date of this subsection .... [revisor inserts date], shall expire no later than the date for recertification of exclusive agricultural zoning ordinances in the county in which the land is located, as established under s. 91.78 (2).

SB370,15,12 (3) The department shall release land from a farmland preservation agreement after the date for recertification of exclusive agricultural zoning ordinances in the county in which the land is located, as established under s. 91.78 (2), if the owner of the land so requests.

SB370,15,15 (4) The department shall release land that is subject to a certified exclusive agricultural zoning ordinance from a farmland preservation agreement if the owner of the land so requests.

Note: Phases out use of farmland preservation agreements by prohibiting the DATCP from entering into new agreements after and from extending existing agreements beyond a deadline date. The deadline date is the date set in proposed DATCP rules by which time counties must recertify existing exclusive agricultural zoning ordinances. The date varies for each county. This Section also encourages the termination of existing agreements by authorizing the DATCP to relinquish agreements under 2 circumstances: (1) after the date when no new agreements will be entered into; and (2) before that date, if the farmland subject to the agreement is also subject to an exclusive agricultural zoning ordinance. The landowner is not required to repay the credits received under agreements relinquished under this provision.

SB370, s. 27 Section 27. 91.51 of the statutes is amended to read:

SB370,16,2 91.51 (title) Purpose Planning. The purpose of this subchapter is to specify standards for county agricultural preservation plans required to enable farmland owners to enter into farmland preservation agreements under this chapter. Agricultural preservation planning shall be undertaken in accordance with s. 59.97 and agricultural preservation plans shall be a component of and consistent with any county development plan prepared under s. 59.97 (3).

SB370, s. 28 Section 28. 91.52 of the statutes is created to read:

SB370,16,7 91.52 Guidelines. The department and the board shall promulgate rules establishing guidelines for agricultural preservation planning. The guidelines shall establish priorities for the preservation of agricultural land, recognizing regional differences and the unique conditions in the various counties.

Note: Requires DATCP and the LWCB to promulgate rules establishing guidelines for agricultural preservation planning. These rules will be binding on both counties, in developing county agricultural preservation plans or plan amendments, and the LWCB, in certifying agricultural preservation plans.

SB370, s. 29 Section 29. 91.55 (1) (b) of the statutes is amended to read:

SB370,16,11 91.55 (1) (b) Maps identifying agricultural areas to be preserved, areas of special environmental, natural resource or open space significance and, if any, transition areas.

SB370,16,13 (1m) (b) Transition areas mapped shall be areas in predominantly agricultural use which the plan identifies for future development.

SB370,16,15 (c) Any agricultural preservation areas mapped must be a minimum of 100 acres.

SB370,16,16 (d) Any transition areas mapped must be a minimum of 35 acres.

SB370,16,20 (e) In mapping agricultural preservation areas, the maps identifying preliminary agricultural preservation areas prepared under s. 91.05 shall be considered if the map is provided to the county at least 12 months prior to adoption of the agricultural preservation plan.

Note: Renumbers the current statute regarding the maps that are part of county agricultural preservation plans, to allow for addition of the criterion regarding agricultural preservation areas and transition areas in the following Section.

SB370, s. 30 Section 30. 91.55 (1m) (intro.) and (a) of the statutes are created to read:

SB370,17,2 91.55 (1m) (intro.) Maps prepared under sub. (1) (b) shall comply with the following conditions:

SB370,17,4 (a) Agricultural preservation areas and transition areas shall be consistent with the guidelines in rules promulgated under s. 91.52.

Note: Adds to the criteria for the maps included in county agricultural preservation planning. The maps must be consistent with rules promulgated by the DATCP and the LWCB under new s. 91.52, created in this bill.

SB370, s. 31 Section 31. 91.55 (3) of the statutes is renumbered 91.55 (1) (c).

Note: The text of current s. 91.55 (3) is: "Statements regarding the coordination requirements of s. 91.59.". There is no introductory phrase in s. 91.55 that connects with s. 91.55 (3), so it is obvious that this provision is misplaced. This provision was adopted in its present form in ch. 27, laws of 1977, and has not been amended since then. Section 91.55 (3) is renumbered as one of the requirements for agricultural preservation plans in s. 91.55 (1), consistent with s. 91.59, which requires county agricultural preservation plans to indicate how the plans compare with regional plans and to incorporate agricultural preservation plans adopted by municipalities.

SB370, s. 32 Section 32. 91.63 of the statutes is amended to read:

SB370,17,16 91.63 Revisions. Counties shall continually review and evaluate the agricultural preservation plan in light of changing needs and conditions and changes to this subchapter or rules promulgated under this subchapter and shall provide for periodic revision of the agricultural preservation plan set forth in this subchapter. If a preliminary or final subdivision plat that requires approval under s. 236.13 does not comply with a certified agricultural preservation plan, the county may not approve the plat unless the agricultural preservation plan is revised so that the plat is in compliance with the plan, and the revised plan is certified under s. 91.06. Revisions shall be made in the same manner as adoption of the plan , including submission to the board for certification under s. 91.06.

Note: Requires counties to modify agricultural preservation plans to reflect the guidelines under s. 91.52, as created by this bill, and any future amendments to statutes or rules related to agricultural preservation planning. Also, requires a certified plan to be revised, and the revision certified by the LWCB, as a condition of plat approval for preliminary or final subdivision plats that are not in compliance with the agricultural preservation plan.

SB370, s. 33 Section 33. 91.72 of the statutes is created to read:

SB370,18,3 91.72 Guidelines. The department and the board shall promulgate rules establishing guidelines for rezoning of agricultural land for residential uses.

Note: Requires DATCP and the LWCB to promulgate rules establishing guidelines for counties, cities, villages and towns to use in rezoning agricultural land zoned for exclusive agricultural use to allow residential uses. These guidelines will be in addition to the current criteria for rezoning areas zoned for exclusive agricultural use in s. 91.77 (1), which require consideration of the following:

"91.77 (1) (a) Adequate public facilities to accommodate development either exist or will be provided within a reasonable time.

(b) Provision of public facilities to accommodate development will not place an unreasonable burden on the ability of affected local units of government to provide them.

(c) The land proposed for rezoning is suitable for development and development will not result in undue water or air pollution, cause unreasonable soil erosion or have an unreasonably adverse effect on rare or irreplaceable natural areas.".

SB370, s. 34 Section 34. 91.73 (2) of the statutes is amended to read:

SB370,18,9 91.73 (2) Exclusive An exclusive agricultural zoning ordinances ordinance shall be consistent with a county agricultural preservation plans plan and may not be certified by the board unless a county agricultural preservation plan is established under subch. IV and is certified under s. 91.06. This subsection does not apply in a county with a population greater than 750,000.

Note: Provides that the county must adopt an agricultural preservation plan in order for the LWCB to approve an exclusive agricultural preservation ordinance adopted by a city, village, town or county. An exception to this requirement is provided for Milwaukee County.

SB370, s. 35 Section 35. 91.75 (8) (b) of the statutes is amended to read:

SB370,18,15 91.75 (8) (b) A farm family business may be permitted as a special exception or conditional use under sub. (5) if limited to existing farm residences or structures or portions of the existing farmstead that are not dedicated to agricultural uses. No more than 2 5 persons who are not members of the resident farm family may be employed in the farm family business.

Note: Increases from 2 to 5 the number of nonfamily employes that may be employed by a farm family business allowed as a special or conditional use on land zoned for exclusive agricultural use.

SB370, s. 36 Section 36. 91.75 (10) of the statutes is created to read:

SB370,19,4 91.75 (10) The ordinance includes standards for rezoning of agricultural land for residential uses, which are at least as stringent as the guidelines in rules promulgated under s. 91.72.

Note: Requires exclusive agricultural zoning ordinances to include standards for rezoning to residential uses. The standards must be at least as stringent as the guidelines promulgated by the DATCP and the LWCB under s. 91.72, which is created by this bill.