LRB-1430/3
JK:pgt:hmh
1999 - 2000 LEGISLATURE
March 8, 1999 - Introduced by Representatives M. Lehman, Kaufert, Musser,
Staskunas, Grothman, F. Lasee
and Jeskewitz, cosponsored by Senators
Drzewiecki and Grobschmidt. Referred to Committee on Ways and Means.
AB186,1,9 1An Act to amend 70.511 (2) (b), 70.995 (5), 70.995 (6), 70.995 (8) (b), 70.995 (8)
2(c), 70.995 (8) (d), 70.995 (12) (a), 70.995 (12) (b), 70.995 (12) (c), 74.35 (3) (c) and
374.37 (3) (c); and to create 20.835 (2) (bm), 70.511 (2) (bm), 70.511 (2) (br), 74.23
4(1) (a) 5., 74.25 (1) (a) 4m., 74.30 (1) (dm), 74.35 (3) (cm) and 74.37 (3) (cm) of
5the statutes; relating to: instalment payments of refunds of taxes on
6manufacturing property, appeals of manufacturing property taxes, distribution
7of taxes on manufacturing property and the interest on refunded and additional
8taxes on manufacturing property, the deadline for classification of property as
9manufacturing, manufacturers' reports and making an appropriation.
Analysis by the Legislative Reference Bureau
The department of revenue (DOR) currently assesses manufacturing property
for property taxes. DOR has sole discretion to determine what property is classified
as manufacturing property for property tax purposes. If a reviewing authority for
property assessments reduces a manufacturing property's assessed value or
determines that manufacturing property is exempt from property tax, an affected
taxpayer may file a claim with the municipality for a property tax refund. The
municipality pays the refund to the taxpayer in one sum that includes interest on the
refund amount, paid at the rate of 0.8% a month.

Currently, a manufacturer may file an objection to a property tax assessment
of its manufacturing property with the state board of assessors within 60 days of
receiving notice from DOR of the assessment of the manufacturer's property.
Under this bill, property may be classified as manufacturing property in any
year only if on or before March 1 of that year DOR has classified it as manufacturing
or the owner has requested that classification and DOR has complied with the
request. Under the bill, a municipality may pay a property tax refund to an owner
of manufacturing property in five annual instalments rather than all at once, and
the interest on the refund amount is paid either at a rate of 10% a year or at a rate
determined by the last auction of six-month U.S. treasury bills, whichever is less.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB186, s. 1 1Section 1. 20.835 (2) (bm) of the statutes is created to read:
AB186,2,32 20.835 (2) (bm) Payments of interest on overassessments of manufacturing
3property.
A sum sufficient to make the payments under s. 70.511 (2) (br).
AB186, s. 2 4Section 2. 70.511 (2) (b) of the statutes is amended to read:
AB186,3,125 70.511 (2) (b) If the reviewing authority reduces the value of the property in
6question, or determines that manufacturing property is exempt, the taxpayer may
7file a claim for refund of taxes resulting from the reduction in value or determination
8that the property is exempt. If Except as provided in par. (bm), if a claim for refund
9is filed with the clerk of the municipality on or before the November 1 following the
10decision of the reviewing authority, the claim shall be payable to the taxpayer from
11the municipality no later than January 31 of the succeeding year. A Except as
12provided in par. (bm), a
claim filed after November 1 shall be paid to the taxpayer by
13the municipality no later than the 2nd January 31 after the claim is filed. Interest
14on the claim at the rate of 0.8% per month; or for property assessed under s. 70.995
15at the average annual discount interest rate determined by the last auction of

16-month U.S. treasury bills before the appeal or objection is filed or 10% per year,
2whichever is less;
shall be paid to the taxpayer when the claim is paid. If the taxpayer
3requests a postponement of proceedings before the reviewing authority, interest on
4the claim shall permanently stop accruing at the date of the request. If the hearing
5is postponed at the request of the taxpayer, the reviewing authority shall hold a
6hearing on the appeal within 30 days after the postponement is requested unless the
7taxpayer agrees to a longer delay. If the reviewing authority postpones the hearing
8without a request by the taxpayer, interest on the claim shall continue to accrue. No
9interest may be paid if the reviewing authority determines under s. 70.995 (8) (a) that
10the value of the property was reduced because the taxpayer supplied false or
11incomplete information. If taxes are refunded, the municipality may proceed under
12s. 74.41.
AB186, s. 3 13Section 3. 70.511 (2) (bm) of the statutes is created to read:
AB186,3,1814 70.511 (2) (bm) A municipality may pay a refund under par. (b) of the taxes on
15property that is assessed under s. 70.995 in 5 annual instalments, each of which
16except the last is equal to at least 20% of the sum of the refund and the interest on
17the refund that is due, beginning on the date under par. (b), if all of the following
18conditions exist:
AB186,3,2019 1. The municipality's property tax levy for its general operations for the year
20for which the taxes to be refunded are due is less than $100,000,000.
AB186,3,2221 2. The refund is at least 0.0025 of the municipality's levy for its general
22operations for the year for which the taxes to be refunded are due.
AB186,3,2323 3. The refund is more than $10,000.
AB186, s. 4 24Section 4. 70.511 (2) (br) of the statutes is created to read:
AB186,4,6
170.511 (2) (br) From the appropriation under s. 20.835 (2) (bm), the department
2of administration shall pay to each municipality that pays a refund under par. (b) for
3property that is assessed under s. 70.995 or that pays a refund under par. (bm) an
4amount equal to the interest that is paid by the municipality in the previous
5biennium and that has accrued up to the date of the determination by the tax appeals
6commission of the municipality's obligation.
AB186, s. 5 7Section 5. 70.995 (5) of the statutes is amended to read:
AB186,4,178 70.995 (5) Commencing January 1, 1974, and annually thereafter, the The
9department of revenue shall assess all property of manufacturing establishments
10included under subs. (1) and (2) as of the close of January 1 of each year, if on or before
11March 1 of that year either the department has classified the property as
12manufacturing or the owner of the property has requested, in writing, the
13department to make such a classification and the department later does so. A change
14in ownership, location or name does not necessitate a new request
. In assessing
15lands from which metalliferous minerals are being extracted and valued for purposes
16of the tax under s. 70.375, the value of the metalliferous mineral content of such
17lands shall be excluded.
AB186, s. 6 18Section 6. 70.995 (6) of the statutes is amended to read:
AB186,4,2219 70.995 (6) Prior to February 15 of each year the department of revenue shall
20notify each municipal assessor of the manufacturing property within the taxation
21district that, as of that date,will be assessed by the department during the current
22assessment year.
AB186, s. 7 23Section 7. 70.995 (8) (b) of the statutes is amended to read:
AB186,5,1324 70.995 (8) (b) The department of revenue shall annually notify each
25manufacturer assessed under this section and the municipality in which the

1manufacturing property is located of the full value of all real and personal property
2owned by the manufacturer. The notice shall be in writing and shall be sent by 1st
3class mail. In addition, the notice shall specify that objections to valuation, amount
4or taxability must be filed with the state board of assessors within 60 50 days of
5issuance of the notice of assessment, that objections to a change from assessment
6under this section to assessment under s. 70.32 (1) must be filed within 60 50 days
7after receipt of the notice, that the fee under par. (c) or (d) must be paid and that the
8objection is not filed until the fee is paid. A statement shall be attached to the
9assessment roll indicating that the notices required by this section have been mailed
10and failure to receive the notice does not affect the validity of the assessments, the
11resulting tax on real or personal property, the procedures of the tax appeals
12commission or of the state board of assessors or the enforcement of delinquent taxes
13by statutory means.
AB186, s. 8 14Section 8. 70.995 (8) (c) of the statutes is amended to read:
AB186,6,615 70.995 (8) (c) All objections to the amount, valuation, taxability or change from
16assessment under this section to assessment under s. 70.32 (1) of property shall be
17first made in writing on a form prescribed by the department of revenue and shall
18be filed with the state board of assessors within the time prescribed in par. (b). A $45
19fee shall be paid when the objection is filed unless a fee has been paid in respect to
20the same piece of property and that appeal has not been finally adjudicated. The
21objection is not filed until the fee is paid. Neither the state board of assessors nor the
22tax appeals commission may waive the requirement that objections be in writing.
23The objection shall specify the reasons for the objection, the property owner's
24estimate of the correct assessment and the basis, under s. 70.32 (1), for the property
25owner's estimated assessment. The state board of assessors or the tax appeals

1commission may deny an assessment redetermination if a property owner's objection
2does not comply with the requirements of this paragraph.
Persons who own land and
3improvements to that land may object to the aggregate value of that land and
4improvements to that land, but no person who owns land and improvements to that
5land may object only to the valuation of that land or only to the valuation of
6improvements to that land.
AB186, s. 9 7Section 9. 70.995 (8) (d) of the statutes is amended to read:
AB186,6,208 70.995 (8) (d) A municipality may file an objection with the state board of
9assessors to the amount, valuation or taxability under this section or to the change
10from assessment under this section to assessment under s. 70.32 (1) of a specific
11property having a situs in the municipality, whether or not the owner of the specific
12property in question has filed an objection. Objection shall be made on a form
13prescribed by the department and filed with the board within 60 50 days of the date
14of the issuance of the assessment in question, except that, if the person assessed files
15an objection and the municipality affected does not file an objection, the municipality
16affected, within 15 days after the person's objection is filed, may file an appeal
. A $45
17filing fee shall be paid when the objection is filed unless a fee has been paid in respect
18to the same piece of property and that appeal has not been finally adjudicated. The
19objection is not filed until the fee is paid. The board shall forthwith notify the person
20assessed of the objection filed by the municipality.
AB186, s. 10 21Section 10. 70.995 (12) (a) of the statutes is amended to read:
AB186,7,2022 70.995 (12) (a) The department of revenue shall prescribe a standard
23manufacturing property report form that shall be submitted annually for each real
24estate parcel and each personal property account on or before March 1 by all
25manufacturers whose property is assessed under this section. The report form shall

1contain all information deemed necessary by the department and shall include,
2without limitation, income and operating statements, fixed asset schedules and a
3report of new construction or demolition. Failure to submit the report shall result
4in denial of any right of redetermination by the state board of assessors or the tax
5appeals commission. If any property is omitted or understated in the assessment roll
6in any of the next 5 previous years, the assessor shall enter the value of the omitted
7or understated property once for each previous year of the omission or
8understatement. The assessor shall designate each additional entry as omitted or
9understated for the year [....] of omission or understatement.
The assessor shall affix
10a just valuation to each entry for a former year as it should have been assessed
11according to the assessor's best judgment. Taxes shall be apportioned and collected
12on the tax roll for each entry, on the basis of the net tax rate for the year of the
13omission, taking into account credits under s. 79.10, and. In the case of omitted
14property,
interest shall be added at the rate of 0.0267% per day for the period of time
15between the date when the form is required to be submitted and the date when the
16assessor affixes the just valuation. In the case of underpayments determined after
17an objection under s. 70.995 (8) (d), interest shall be added at the average annual
18discount interest rate determined by the last auction of 6-month U.S. treasury bills
19before the objection, between the date when the tax was due and the date when it is
20is paid.
AB186, s. 11 21Section 11. 70.995 (12) (b) of the statutes is amended to read:
AB186,7,2522 70.995 (12) (b) The department of revenue shall allow an extension to April 1
23of the due date
of 30 days for filing the report forms required under par. (a) if a written
24application for an extension, stating the reason for the request, is filed with the
25department on or before March 1.
AB186, s. 12
1Section 12. 70.995 (12) (c) of the statutes is amended to read:
AB186,8,182 70.995 (12) (c) Unless the taxpayer shows that the failure is due to reasonable
3cause, if a taxpayer fails to file any form required under par. (a) for property that the
4department of revenue assessed during the previous year by the due date or by any
5extension of the due date that has been granted, the taxpayer shall pay to the
6department of revenue a penalty of the greater of $10 or 0.05% of the previous year's
7full value assessment not to exceed $1,000. If the form required under par. (a) for
8property that the department of revenue assessed during the previous year is not
9filed within 30 days after the due date or within 30 days after any extension, the
10taxpayer shall pay to the department of revenue a 2nd penalty of the greater of $10
11or 0.05% of the previous year's full value assessment not to exceed $1,000
$50 if the
12form is filed 1 to 10 days late; $50 or 0.05% of the previous year's assessment,
13whichever is greater, but not more than $250, if the form is filed 11 to 30 days late;
14and $100 or 0.1% of the previous year's assessment, whichever is greater, but not
15more than $500, if the form is filed more than 30 days late
. Penalties are due 30 days
16after they are assessed and are delinquent if not paid on or before that date. The
17department may refund all or part of any penalty it assesses under this paragraph
18if it finds reasonable grounds for late filing.
AB186, s. 13 19Section 13. 74.23 (1) (a) 5. of the statutes is created to read:
AB186,8,2120 74.23 (1) (a) 5. Pay to each taxing jurisdiction within the district its
21proportionate share of the taxes and interest under s. 70.995 (12) (a).
AB186, s. 14 22Section 14. 74.25 (1) (a) 4m. of the statutes is created to read:
AB186,8,2423 74.25 (1) (a) 4m. Pay to each taxing jurisdiction within the district its
24proportionate share of the taxes and interest under s. 70.995 (12) (a).
AB186, s. 15 25Section 15. 74.30 (1) (dm) of the statutes is created to read:
AB186,9,2
174.30 (1) (dm) Pay to each taxing jurisdiction within the district its
2proportionate share of the taxes and interest under s. 70.995 (12) (a).
AB186, s. 16 3Section 16. 74.35 (3) (c) of the statutes is amended to read:
AB186,9,84 74.35 (3) (c) If the governing body of the taxation district determines that an
5unlawful tax has been paid and that the claim for recovery of the unlawful tax has
6complied with all legal requirements, the governing body shall allow the claim. The
7Except as provided in par. (cm), the taxation district treasurer shall pay the claim
8not later than 90 days after the claim is allowed.
AB186, s. 17 9Section 17. 74.35 (3) (cm) of the statutes is created to read:
AB186,9,1410 74.35 (3) (cm) A municipality may pay a refund under par. (c) of the taxes on
11property that is assessed under s. 70.995 in 5 annual instalments, each of which
12except the last is equal to at least 20% of the sum of the refund and the interest on
13the refund, beginning in the year of the determination, if all of the following
14conditions exist:
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