1. Elimination of farmland preservation agreements as a farmland preservation
tool and a method for landowners to obtain farmland preservation credits.
2. Reduction 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 no longer protected under exclusive agricultural zoning.
3. Conversion of the farmland preservation credit from an income-based formula
to a straight percentage of property taxes accrued, with a $7,500 cap on the maximum
amount of the credit.
4. Repeal of the farmland tax relief credit.
5. Creation of guidelines for the designation of agricultural preservation areas by
counties and for the rezoning of land in an exclusive agricultural zone to residential use.
6. Establishment of linkages between county agricultural preservation plans and
other current statutes with land use implications, including subdivision plat approval,
sewer extensions, land condominiums, annexation and condemnation of land.
For detailed information about the provisions of this bill, see the
Notes throughout
the bill.
SB370, s. 1
3Section
1. 20.115 (7) (g) of the statutes is amended to read:
SB370,3,2
420.115 (7) (g) (title) Agricultural impact statements Effect of condemnation on
5farm operators. All moneys received by the department under s. 32.035 from the
6preparation of agricultural impact statements and under s. 32.036 from determining
1whether condemnation conforms with county agricultural preservation plans, for
2general program operations.
Note: Allows the department of agriculture, trade and consumer protection
(DATCP) to expend the fees collected for review of condemnation actions, in order to
determine conformity with county agricultural preservation plans.
SB370, s. 2
3Section
2. 20.835 (2) (dm) of the statutes is amended to read:
SB370,3,6
420.835 (2) (dm) (title) Farmland preservation credit supplement. A sum
5sufficient to pay the aggregate claims approved under subch. IX of ch. 71 that exceed
6the amount appropriated under par. (r).
SB370, s. 3
7Section
3
. 20.835 (2) (r) of the statutes is created to read:
SB370,3,11
820.835 (2) (r) Farmland preservation credit. From the lottery fund, a sum
9sufficient, not to exceed, in a fiscal year, $16,300,000, less the amounts expended
10under par. (q) in that fiscal year, to pay the aggregate claims approved under subch.
11IX of ch. 71.
Note: Transfers the funding for the farmland tax relief credit, which is terminated
under this bill, except for payments to persons who refile their tax returns, to fund the
farmland preservation credit. The farmland tax relief credit is funded by a sum sufficient
appropriation from the lottery fund, and in fiscal year 1994-95 the amount estimated for
this credit was $16,300,000. This bill makes an appropriation from the lottery fund with
a cap of $16,300,000, to first fund any payments for refilers for the farmland tax relief
credit, with the remainder to fund the farmland preservation credit. The remainder of
the funding for the farmland preservation credit is a sum sufficient appropriation from
the general fund, as under current law.
SB370, s. 4
12Section
4. 32.036 of the statutes is created to read:
SB370,3,14
1332.036 Conformity with county agricultural preservation plan. (1)
14Definitions. In this section:
SB370,3,16
15(a) "Department" means the department of agriculture, trade and consumer
16protection.
SB370,3,17
17(b) "Farm operation" has the meaning given in s. 32.035 (1) (b).
SB370,3,19
18(2) Applicability. This section does not apply to a project located entirely
19within the boundaries of a city or village.
SB370,4,7
1(3) Procedure
. The condemnor shall notify the department of any project
2involving the actual or potential exercise of the powers of eminent domain affecting
3a farm operation. The notice required under s. 32.035 (3) shall be considered notice
4under this subsection. The department may require the condemnor to compile and
5submit information about an affected farm operation. The department shall charge
6the condemnor a fee approximating the actual costs of the review and determination
7under this section.
SB370,4,12
8(4) Review and determination
. The department shall review the project and
9determine whether it conforms with any county agricultural preservation plan that
10is certified under s. 91.06. If the department determines that the project does not
11conform with a certified county agricultural preservation plan, the condemnor may
12not proceed with the project unless one of the following occurs:
SB370,4,15
13(a) The county amends the agricultural preservation plan, the land and water
14conservation board certifies the amended plan under s. 91.06 and the department
15determines that the project conforms with the amended plan.
SB370,4,18
16(b) The condemnor submits a petition to the land and water conservation board
17and the land and water conservation board determines that one or more of the
18conditions listed in s. 91.55 (2) exist with respect to the project.
SB370,4,23
19(c) If the project consists of the creation of or an addition to a park, the
20condemnor submits a petition for review to the land and water conservation board
21and the land and water conservation board determines that the project is consistent
22with the statement of policy in the county agricultural preservation plan as required
23under s. 91.55 (1) (a).
SB370,5,3
1(5) Preparation time. The department shall complete the review and
2determination under this section within 60 days after receiving the information
3requested from the condemnor under sub. (3).
Note: Requires the DATCP to review each project involving the actual or potential
exercise of the powers of eminent domain and affecting a farm operation, to determine
whether the project is in conformance with the applicable county agricultural
preservation plan. A "condemnor" is any entity with the power of eminent domain, and
includes state agencies, general purpose local units of government, special purpose
districts and public utilities.
If the DATCP determines that the project is not in conformance with a county
agricultural preservation plan, the condemnor may either seek to have the county plan
amended or petition the land and water conservation board (LWCB) for a determination
regarding the existence of any of the conditions in s. 91.55 (2) for excluding land from a
county agricultural preservation plan. The conditions for excluding land from a county
agricultural preservation plan are as follows:
1. Existing or planned activities adjacent to the identified agricultural area are
incompatible with agricultural use.
2. The area is not economically viable for agricultural use.
3. Substantial urban growth in the area or planned urban expansion has created
a public need to convert agricultural land use to other uses.
4. Maintenance of the area in agricultural use is not consistent with the goals and
objectives of a county agricultural preservation plan.
If the project consists of a new or expanded park, and the project is not in
conformance with the county agricultural preservation plan, the condemnor may petition
the LWCB for approval of the project. The LWCB may approve the project if it is
consistent with the general statements of policy in the county agricultural preservation
plan, even though the project may not conform with the specific requirements of the plan.
SB370, s. 5
4Section
5. 66.021 (11) (title) and (a) of the statutes are amended to read:
SB370,5,11
566.021 (11) (title) Review and approval of annexations. (a) (title) Annexations
6within populous counties Notice of annexation
. No annexation proceeding within a
7county having a population of 50,000 or more shall be valid unless the person causing
8a notice of annexation to be published under sub. (3) shall within 5 days of the
9publication mail a copy of the notice, legal description and a scale map of the proposed
10annexation to the clerk of each municipality affected and the department of
11administration.
SB370,6,7
12(b) (title) Review of annexations within populous counties. The department
of
13administration may, within 20 days after receipt of the notice under par. (a)
14regarding an annexation proceeding within a county having a population of 50,000
1or more, mail to the clerk of the town within which the territory lies and to the clerk
2of the proposed annexing village or city a notice that in its opinion the annexation
3is against the public interest. No later than 10 days after mailing the notice, the
4department shall advise the clerk of the town in which the territory is located and
5the clerk of the village or city to which the annexation is proposed of the reasons the
6annexation is against the public interest as defined, as that term is used in par. (c).
7The annexing municipality shall review the advice before final action is taken.
SB370, s. 6
8Section
6
. 66.021 (11) (b) of the statutes, as affected by 1995 Wisconsin Act ....
9(this act), is amended to read:
SB370,6,19
1066.021 (11) (b) Review of annexations within populous counties. The
11department of administration development may, within 20 days after receipt of the
12notice under par. (a) regarding an annexation proceeding within a county having a
13population of 50,000 or more, mail to the clerk of the town within which the territory
14lies and to the clerk of the proposed annexing village or city a notice that in its opinion
15the annexation is against the public interest. No later than 10 days after mailing the
16notice, the department shall advise the clerk of the town in which the territory is
17located and the clerk of the village or city to which the annexation is proposed of the
18reasons the annexation is against the public interest, as that term is used in par. (c).
19The annexing municipality shall review the advice before final action is taken.
SB370, s. 7
20Section
7. 66.021 (11) (c) (intro.) of the statutes is amended to read:
SB370,6,23
2166.021 (11) (c) Definition of public interest. (intro.) For purposes of this
22subsection par. (b), the public interest is determined by the department of
23administration after consideration of the following:
SB370, s. 8
24Section
8
. 66.021 (11) (d) of the statutes is created to read:
SB370,7,14
166.021 (11) (d) Approval of annexations. The department of administration
2shall, within 20 days after receipt of the notice under par. (a), mail to the clerk of the
3town within which the territory lies and to the clerk of the proposed annexing village
4or city a notice as to whether in the department's opinion the annexation conforms
5with a county agricultural preservation plan that is certified under s. 91.06. The
6department shall determine whether the annexation of territory located in any
7transition area of a county agricultural preservation plan conforms with the county
8agricultural preservation plan. No later than 10 days after mailing the notice, the
9department shall advise the clerk of the town in which the territory is located and
10the clerk of the village or city to which the annexation is proposed of the reasons that
11the annexation does or does not conform with the county agricultural preservation
12plan. If the department determines that the annexation does not conform with the
13county agricultural preservation plan, the city or village may not proceed with the
14annexation.
SB370, s. 9
15Section
9
. 66.021 (11) (d) of the statutes, as affected by 1995 Wisconsin Act ....
16(this act), is amended to read:
SB370,8,5
1766.021 (11) (d) Approval of annexations. The department of administration
18development shall, within 20 days after receipt of the notice under par. (a), mail to
19the clerk of the town within which the territory lies and to the clerk of the proposed
20annexing village or city a notice as to whether in the department's opinion the
21annexation conforms with a county agricultural preservation plan that is certified
22under s. 91.06. The department shall determine whether the annexation of territory
23located in any transition area of a county agricultural preservation plan conforms
24with the county agricultural preservation plan. No later than 10 days after mailing
25the notice, the department shall advise the clerk of the town in which the territory
1is located and the clerk of the village or city to which the annexation is proposed of
2the reasons that the annexation does or does not conform with the county
3agricultural preservation plan. If the department determines that the annexation
4does not conform with the county agricultural preservation plan, the city or village
5may not proceed with the annexation.
Note: The preceding 5
Sections direct the department of administration (DOA)
to review all annexations and determine whether the annexations conform with the
certified county agricultural preservation plan. A determination that an annexation does
not conform with the county plan means that the city or village may not proceed with the
annexation, unless the county amends the agricultural preservation plan, and the
amendment is approved by the LWCB.
Sections 6 and 9 transfer this function to the
department of development effective July 1, 1996, in accordance with the reorganization
of state government accomplished by
1995 Wisconsin Act 27.
SB370, s. 10
6Section
10
. 71.05 (6) (a) 17. of the statutes is amended to read:
SB370,8,8
771.05 (6) (a) 17. The amount received under s. 71.07 (3m) (c) or 71.60, or both,
8that is not included in federal adjusted gross income.
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
9Section
11
. 71.05 (6) (b) 22. of the statutes is created to read:
SB370,8,12
1071.05 (6) (b) 22. All amounts received as a farmland preservation credit under
11subch. IX to the extent that the amounts are included in federal adjusted gross
12income.
SB370, s. 12
13Section
12
. 71.07 (3m) (e) of the statutes is created to read:
SB370,8,15
1471.07 (3m) (e) Sunset. No claim may be filed under this subsection for a taxable
15year 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
16Section
13
. 71.26 (1) (i) of the statutes is created to read:
SB370,9,2
171.26 (1) (i) Farmland preservation credit. Any amount received as a farmland
2preservation credit under subch. IX.
SB370, s. 14
3Section
14
. 71.28 (2m) (e) of the statutes is created to read:
SB370,9,5
471.28 (2m) (e) Sunset. No claim may be filed under this subsection for a taxable
5year that begins on or after January 1, 1996.
SB370, s. 15
6Section
15
. 71.47 (2m) (e) of the statutes is created to read:
SB370,9,8
771.47 (2m) (e) Sunset. No claim may be filed under this subsection for a taxable
8year that begins on or after January 1, 1996.
SB370, s. 16
9Section
16. 71.58 (1) (h) of the statutes is created to read:
SB370,9,12
1071.58 (1) (h) For purposes of filing a claim under this subchapter, "claimant"
11does not include a person who has transferred farmland to a new owner and who was
12not 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
13Section
17. 71.58 (8) of the statutes is amended to read:
SB370,9,23
1471.58 (8) "Property taxes accrued" means property taxes, exclusive of special
15assessments, delinquent interest and charges for service, levied on the farmland and
16improvements owned by the claimant or any member of the claimant's household in
17any calendar year under ch. 70, less the tax credit, if any, afforded in respect of the
18property by s. 79.10. "Property taxes accrued" shall not exceed $6,000 for claims filed
19under s. 71.60. If farmland is owned by a tax-option corporation, a limited liability
20company or by 2 or more persons or entities as joint tenants, tenants in common or
21partners or is marital property or survivorship marital property and one or more
22such persons, entities or owners is not a member of the claimant's household,
23"property taxes accrued" is that part of property taxes levied on the farmland,
1reduced by the tax credit under s. 79.10, that reflects the ownership percentage of
2the claimant and the claimant's household. For purposes of this subsection, property
3taxes are "levied" when the tax roll is delivered to the local treasurer for collection.
4If farmland is sold during the calendar year of the levy the "property taxes accrued"
5for the seller is the amount of the tax levy, reduced by the tax credit under s. 79.10,
6prorated to each in the closing agreement pertaining to the sale of the farmland,
7except that if the seller does not reimburse the buyer for any part of those property
8taxes there are no "property taxes accrued" for the seller, and the "property taxes
9accrued" for the buyer is the property taxes levied on the farmland, reduced by the
10tax credit under s. 79.10, minus, if the seller reimburses the buyer for part of the
11property taxes, the amount prorated to the seller in the closing agreement. With the
12claim for credit under this subchapter, the seller shall submit a copy of the closing
13agreement and the buyer shall submit a copy of the closing agreement and a copy of
14the 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
15Section
18. 71.59 (1) (a) of the statutes is amended to read:
SB370,11,2
1671.59 (1) (a) Subject to the limitations provided in this subchapter and s. 71.80
17(3) and (3m), a claimant may claim as a credit against Wisconsin income or franchise
18taxes otherwise due, the amount derived under s. 71.60 or 71.605. If the allowable
19amount of claim exceeds the income or franchise taxes otherwise due on or measured
20by the claimant's income or if there are no Wisconsin income or franchise taxes due
21on or measured by the claimant's income, the amount of the claim not used as an
22offset against income or franchise taxes shall be certified to the department of
1administration for payment to the claimant by check, share draft or other draft
2drawn on the general fund.
SB370, s. 19
3Section
19
. 71.59 (1) (d) 5. and (2) (b) and (c) of the statutes are amended to
4read:
SB370,11,11
571.59 (1) (d) 5. That soil and water conservation standards applicable to the
6land are established and approved as required under s. 92.105 (1) to (3) and that no
7notice of noncompliance is in effect under s. 92.105 (5) with respect to the claimant
8at the time the certificate is issued end of the taxable year for which the claim is
9made. A zoning authority shall not issue a zoning certificate for property for any year
10at the end of which a notice of noncompliance under s. 92.104 (4) or 92.105 (5) is in
11effect for the property.
SB370,11,14
12(2) (b) If a notice of noncompliance with an applicable soil and water
13conservation plan under s. 92.104 is in effect with respect to the claimant at the time
14the claim is filed end of the taxable year for which the claim is made.
SB370,11,17
15(c) If a notice of noncompliance with applicable soil and water conservation
16standards under s. 92.105 is in effect with respect to the claimant at the time the
17claim 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
18Section
20
. 71.60 (title), (1) (intro.) and (2) of the statutes are amended to read:
SB370,11,23
1971.60 (title) Computation; farmland preservation agreements. (1)
20(intro.) Except as provided in sub. (2), for farmland that is subject to a farmland
21preservation agreement under subch. II of ch. 91 at the close of the year to which the
22claim relates, the amount of any claim filed in calendar years based upon property
23taxes accrued in the preceding calendar year shall be determined as follows:
SB370,12,4
1(2) If the farmland is subject to
a certified ordinance under subch. V of ch. 91,
2or an agreement under subch. II of ch. 91, in effect at the close of the year
for to which
3the
credit is claimed claim relates, the amount of the claim is 10% of the property
4taxes 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
5Section
21
. 71.605 of the statutes is created to read:
SB370,12,11
671.605 Computation; exclusive agricultural zoning. (1) For farmland
7that, at the close of the year to which the claim relates, is in an area zoned for
8exclusive agricultural use under subch. V of ch. 91 by a city, village, town or county
9and is not subject to a farmland preservation agreement under subch. II of ch. 91, the
10amount of any claim filed in a calendar year based upon property taxes accrued in
11the preceding calendar year shall be determined as follows:
SB370,12,12
12(a) Except as provided in par. (b), 50% of the property taxes accrued.
SB370,12,14
13(b) If the farmland is in a transition area identified under s. 91.55 (1) (b), 25%
14of the property taxes accrued.
SB370,12,16
15(2) The maximum credit for a claim filed under this section is $7,500 for each
16claimant.
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
1Section
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
2Section
23. 91.06 of the statutes is amended to read:
SB370,13,7
391.06 Certification. The board shall review farmland county agricultural
4preservation plans and exclusive agricultural use zoning ordinances submitted to it
5under ss. 91.61 and 91.78 and shall certify to the appropriate zoning authority
6whether the plans and ordinances meet the standards of subchs. IV and V,
7respectively. 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
8Section
24. 91.19 (7) and (8) of the statutes are amended to read: