AB843: Bill Text

LRB-4640/1

KRP&JK:ahe

2015 - 2016 LEGISLATURE

2015 Assembly BILL 843

February 2, 2016 - Introduced by Representative Novak, cosponsored by Senator Gudex. Referred to Committee on Ways and Means.

AB843,1,4 An Act to renumber and amend 74.41 (4) (b); to consolidate, renumber and amend 74.41 (4) (intro.) and (a); to amend 74.41 (1) (intro.), 74.41 (5) (a) and 74.41 (5) (b); and to create 74.41 (1m) and 74.41 (4r) of the statutes; relating to: the charge-back of rescinded or refunded property taxes.

Analysis by the Legislative Reference Bureau

This bill requires the Department of Revenue, upon application by a taxation district, to "charge back," to the taxing jurisdictions within the taxation district, property taxes that the taxation district rescinded or refunded to taxpayers, so that each taxing jurisdiction pays back its share of the taxes to the taxation district. Under the bill, DOR also must determine whether the total value of all taxable property (equalized value) in the taxation district was affected by the rescinded or refunded property taxes and, if the equalized value was affected, adjust the equalized value. Under current law, DOR orders a charge-back or adjustment only after determining that the taxation district's equalized value was affected, and then DOR orders either, but not both, of the options.

Under the bill, taxes levied on property within a tax incremental district are not eligible for a charge-back or adjustment.

The bill applies retroactively to an application submitted by a taxation district to DOR before the effective date of the bill if DOR has not issued a final determination, if the final determination is still subject to judicial review, or if DOR has not certified the amount of the charge-back or adjustment to the taxation district.

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:

AB843,1 Section 1. 74.41 (1) (intro.) of the statutes is amended to read:

AB843,2,6 74.41 (1) Submission of refunded or rescinded taxes to department. (intro.) By October 1 of each year, the clerk of a taxation district may submit to the department of revenue, on a form prescribed by the department of revenue, a listing of all general property taxes on the taxation district's tax roll which that, subject to sub. subs. (1m) and (2), meet any of the following conditions:

AB843,2 Section 2. 74.41 (1m) of the statutes is created to read:

AB843,2,13 74.41 (1m) Amount collected from property in a tax incremental district. A tax may not be included on a form submitted under sub. (1) if the tax was levied on property within a tax incremental district, as defined in s. 66.1105 (2) (k), unless the tax incremental district is in a decrement situation, as defined in s. 66.1105 (2) (aj), in the year in which the tax was refunded, rescinded, collected, or corrected under sub. (1) (a) to (d).

AB843,3 Section 3. 74.41 (4) (intro.) and (a) of the statutes are consolidated, renumbered 74.41 (4) and amended to read:

AB843,2,20 74.41 (4) Amount determined Adjustment of equalized value. If the department of revenue determines under sub. (3) that the equalized value of the taxation district is changed as a result of consideration of the valuation represented by the taxes under sub. (1), the department of revenue shall do one of the following: (a) Adjust adjust the equalized value of the taxation district under s. 70.57.

AB843,4 Section 4. 74.41 (4) (b) of the statutes is renumbered 74.41 (4g) and amended to read:

AB843,3,12 74.41 (4g) Charge-back amount determined . Determine The department of revenue shall, by the November 15 following submission of the form under sub. (1), determine the amount of rescinded or refunded taxes to be charged back to, and collected from, each taxing jurisdiction for which taxes were collected by the taxation district, and determine the amount of taxes collected under s. 74.33 to be shared with each taxing jurisdiction for which taxes were collected by the taxation district. Except for interest on refunds under s. 70.511 (2) (b) that is paid with respect to property that was assessed under s. 70.995 and that is not paid by the department of administration under s. 70.511 (2) (bm), the amount determined may not include any interest.

AB843,5 Section 5. 74.41 (4r) of the statutes is created to read:

AB843,3,17 74.41 (4r) Charge back to taxing jurisdictions. If the department of revenue determines under sub. (4g) that rescinded or refunded taxes are attributable to certain taxing jurisdictions, the department of revenue shall charge back the amounts as provided in sub. (5).

AB843,6 Section 6. 74.41 (5) (a) of the statutes is amended to read:

AB843,3,22 74.41 (5) (a) The department of revenue shall certify to the clerk of the taxation district the amount determined amounts to be adjusted or charged back under sub. (4) (a) or (b) (4r) and shall furnish a copy of the certification to each affected taxing jurisdiction.

AB843,7 Section 7. 74.41 (5) (b) of the statutes is amended to read:

AB843,4,4 74.41 (5) (b) Each taxing jurisdiction to which an amount is charged back under sub. (4) (b) (4r) shall pay the amount certified under par. (a) to the taxation district treasurer by February 15 of the year following the determination under sub. (3) (4g). By February 15 of the year following the determination under sub. (3) (4g), the taxation district treasurer shall pay the amounts to be shared with other taxing jurisdictions.

AB843,8 Section 8 . Nonstatutory provisions.

AB843,4,12 (1) With respect to a form submitted under section 74.41 (1), 2013 stats., before the effective date of this subsection to which any of the following applies, the department of revenue shall make the determination under section 74.41 (4g), as affected by this act, in addition to the determination under section 74.41 (3), 2013 stats., and, depending on the outcome of those determinations, take the applicable actions under section 74.41 (4), as affected by this act, and section 74.41 (4r), as created by this act:

AB843,4,14 (a) The department of revenue has not made a final determination under section 74.41 (3), 2013 stats., with respect to the taxes included on the form.

AB843,4,16 (b) The department of revenue's final determination under section 74.41 (3), 2013 stats., is being reviewed under section 227.53.

AB843,4,19 (c) The department of revenue has not certified, under section 74.41 (5) (a), 2013 stats., to the clerk of the taxation district the amount determined under section 74.41 (4) (a) or (b), 2013 stats.

AB843,9 Section 9. Initial applicability.

AB843,4,23 (1) Except as provided in Section 8 of this act, this act first applies to a form submitted by a taxation district under section 74.41 (1) on the effective date of this subsection, regardless of the taxable year to which the form relates.

AB843,4,24 (End)