AB783: Bill Text

LRB-4152/1

JK:kjf:jf

2003 - 2004 LEGISLATURE

2003 Assembly BILL 783

January 29, 2004 - Introduced by Representatives Bies, F. Lasee, McCormick and Hahn, cosponsored by Senator A. Lasee. Referred to Joint Survey Committee on Tax Exemptions.

AB783,1,2 An Act to create 70.11 (29p) of the statutes; relating to: creating a property tax exemption for outdoor theaters.

Analysis by the Legislative Reference Bureau

Under current law, the property owned by a nonprofit organization that operates a theater is exempt from the property tax, if the property includes one or more buildings that are listed on the National Register of Historic Places and one or more theaters that have a total seating capacity of at least 800 persons.

Under this bill, the property owned by a nonprofit organization that operates an outdoor theater is exempt from the property tax, if the organization's federal income tax-exempt status is confirmed by a determination letter issued by the Internal Revenue Service no later than July 31, 1969 and the property includes one or more outdoor theaters that have a total seating capacity of at least 400 persons. However, if the property is ever sold, the seller must pay property taxes on the property in an amount equal to the property taxes that would have been levied on the property, had it been taxable, from the date that the bill takes effect to the date that the property is transferred to the buyer.

This bill will be referred to the Joint Survey Committee on Tax Exemptions for a detailed analysis, which will be printed as an appendix to this bill.

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:

AB783, s. 1 Section 1. 70.11 (29p) of the statutes is created to read:

AB783,2,16 70.11 (29p) Nonprofit outdoor theaters. All the property owned or leased by an organization that is exempt from taxation under section 501 (c) (3) of the Internal Revenue Code, as confirmed by a determination letter issued by the Internal Revenue Service no later than July 31, 1969, if all of the property is used for the purposes for which the exemption was granted, the property includes one or more outdoor theaters for performing theater arts which have a total seating capacity of not less than 400 persons, and the organization operates the theater or theaters. If the property described in this subsection is sold after the effective date of this subsection .... [revisor inserts date], the seller shall pay property taxes on the property in an amount equal to the property taxes that would have been levied on the property, had the property been taxable, from the effective date of this subsection .... [revisor inserts date], to the date on which the property is transferred to the buyer. Taxes owed under this subsection shall be paid on or before the date on which the property is transferred to the buyer and taxes not paid on or before that date are subject to interest and penalties under s. 74.47.

AB783, s. 2 Section 2. Initial applicability.

AB783,2,18 (1) This act first applies to the property tax assessments as of January 1, 2004.

AB783,2,19 (End)