LRB-3802/1
JK:wlj:jf
2001 - 2002 LEGISLATURE
January 28, 2002 - Introduced by Representatives Townsend, Lippert, Musser, J.
Lehman, Hundertmark, Owens, Petrowski and Freese, cosponsored by
Senators Hansen, Roessler, Grobschmidt, Breske, Plache and Welch.
Referred to Committee on Ways and Means.
AB755,1,10
1An Act to repeal 70.05 (5) (f) and 73.08;
to renumber and amend 70.365;
to
2amend 20.566 (2) (a), 70.05 (5) (a) 3., 70.05 (5) (d), 70.05 (5) (g), 70.36 (1m),
370.36 (2), 70.75 (1) (a) 1., 73.09 (4) (c), 75.521 (7) (a) 1., 75.521 (10), 75.521 (12)
4(a), 75.521 (14a), 79.095 (3) and 79.095 (4); and
to create 70.365 (2) of the
5statutes;
relating to: the notice of changed property tax assessments, the
6monitoring of property tax assessments, the filing deadline for property tax
7reassessment petitions, the recertification of local assessment personnel, the
8procedure for challenging tax lien foreclosures on property that is exempt from
9taxation, the administration of the property tax exemption for computers, and
10providing a penalty.
Analysis by the Legislative Reference Bureau
Property tax assessments
Under current law, the department of revenue (DOR) monitors the property tax
assessments in all taxation districts. Under current law, a major class of property
is property with an assessed value representing more than 5% of the total assessed
value of all property in the taxation district in which the major class of property is
located. If DOR determines that a major class of property in a taxation district has
not been assessed at a value that is within 10% of the full value of such property at
least once during the most recent four years, DOR notifies the taxation district that
the assessment staff in that district must participate in an assessment education
program. Under current law, if DOR determines that a major class of property in the
taxation district has not been assessed at a value that is within 10% of the full value
of such property in the year that the taxation district's assessment staff participated
in an assessment education program and in the following year, DOR must supervise
the taxation district's next property tax assessment. Under current law, a class of
property includes residential property, commercial property, swampland, and
productive forest land.
Under the bill, a major class of property is property with an assessed value
representing more than 15% of the total assessed value of all property in the taxation
district in which the major class of property is located. Under the bill, if DOR
determines that a major class of property in a taxation district has not been assessed
at a value that is within 10% of the full value of such property at least once during
the most recent three years, DOR notifies the taxation district that DOR may
supervise a subsequent taxation district assessment. If DOR determines that a
major class of property in the taxation district has not been assessed at a value that
is within 10% of the full value of such property in the year after the taxation district
receives such notice, DOR must supervise the taxation district's next property tax
assessment. Under the bill, the assessment staff of the taxation district does not
participate in an assessment education program prior to DOR's supervision of the
taxation district assessment.
Under current law, owners of property that have an aggregate assessed value,
for property tax purposes, of at least 5% of the assessed value of all the property in
the taxation district in which the property is located may petition to review the
assessment of the property. DOR may order a reassessment of the owners' property
if it finds that the original assessment does not comply substantially with the law or
if a reassessment would promote the public interest.
Under current law, there is no deadline for property owners to file a petition for
reassessment. Under this bill, property owners must file a petition for reassessment
that is postmarked by February 15 of the year following the year of the assessment
that the property owners want to have reviewed by DOR.
Under current law, if property is assessed, for property tax purposes, at a value
that is different than the value of the property in the previous year, the property tax
assessor must notify the property owner of that difference at least 15 days before the
meeting of the taxation district's board of review or board of assessors. After the
taxation district assessor has completed the property tax assessment roll, which
specifies the assessments of all property located in the taxation district, the property
tax assessment roll is available for public inspection.
Under this bill, if property is assessed, for property tax purposes, at a value that
is different than the value of the property in the previous year, the property tax
assessor shall not notify the property owner of that difference, if the changed
assessment is made by the assessor with the property owner's consent and while the
property tax assessment roll is available for public inspection.
Local assessment personnel
Under current law, DOR educates and certifies local property tax assessment
employees. A local property tax assessment employee certification issued before
January 1, 1981, is valid for ten years. A certification issued after December 31,
1980, but before August 15, 1991, expires on the sixth June 1 following the date of
certification. A certification issued after August 14, 1991, expires five years from the
date of certification.
Under current law, a local property tax assessment employee must apply for
recertification by submitting a notarized application for renewal to DOR at least 60
days before the employee's current certification expires. For recertification, an
employee must either pass a certification examination or attend at least four of the
last five annual meetings for the conference and instruction of all local assessors.
Under this bill, a local property tax assessment employee's application for
renewal of certification is not required to be notarized and may be submitted at any
time prior to the expiration of the employee's current certification. Under the bill,
a local property tax assessment employee may submit an application for renewal up
to one year after the expiration of the employee's current certification, if the
employee has attended at least four of the last five annual meetings for the
conference and instruction of all local assessors.
Foreclosure
Under current law, a county may commence an action in court to foreclose a tax
lien on property for which taxes are delinquent. A person who has an interest in such
property may respond to the county's foreclosure action by alleging that the property
was not subject to taxation at the time a tax was levied on the property; that the tax
levied on the property was paid; or that the tax lien is barred by the statute of
limitations.
Under the bill, a person who responds to the county's foreclosure action by
alleging that the property was not subject to taxation at the time a tax was levied
because the property was exempt from taxation must also establish that the person
filed a claim with the taxation district in which the property is located alleging that
the taxation district levied and collected an unlawful tax on the property. However,
if the person alleges that the property was exempt from taxation because it was
either exempt waste treatment facility property or exempt manufacturing property,
the person is not required to establish that the person filed a claim for unlawful taxes.
Computer exemption
Under current law, computer equipment, generally, is exempt from the tax on
personal property, if the property owner files a return with the taxation district
assessor that provides information about the computer equipment, including the
equipment's fair market value. If a person who is required to file a return fails to
report information about any exempt computer equipment owned by the person, the
person is subject to a penalty of $10 for every $100 of value of such equipment and
the taxation district collects the penalty.
Under current law, the state compensates a taxation district for the tax revenue
that the district loses as a result of exempting computer equipment from the tax on
personal property.
Under this bill, if a person who is required to file a return fails to report
information about any exempt computer equipment owned by the person, the person
is subject to a penalty of $10 for every $1,000 of value of such equipment, and DOR
collects the penalty. Under the bill, DOR may audit returns that are related to
exempt computer equipment and, as the result of such an audit, adjust the payments
made to taxation districts to compensate for the tax revenue that the district loses
as a result of exempting computer equipment from the tax on personal property.
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:
AB755, s. 1
1Section
1. 20.566 (2) (a) of the statutes is amended to read:
AB755,4,52
20.566
(2) (a)
General program operations. The amounts in the schedule for
3administration of property tax laws, public utility tax laws
and, distribution of state
4taxes,
and administration of general program operations under s. 73.10
and
5administration of the assessor educational program under s. 73.08.
AB755, s. 2
6Section
2. 70.05 (5) (a) 3. of the statutes is amended to read:
AB755,4,87
70.05
(5) (a) 3. "Major class of property" means any class of property that
8includes more than
5% 15% of the full value of the taxation district.
AB755, s. 3
9Section
3. 70.05 (5) (d) of the statutes is amended to read:
AB755,5,410
70.05
(5) (d) If the department of revenue determines that the assessed value
11of each major class of property of a taxation district, including 1st class cities, has not
12been established within 10% of the full value of the same major class of property
13during the same year at least once during the
4-year
3-year period consisting of the
14current year and the
3 2 preceding years, the department shall notify the clerk of the
15taxation district of its intention to proceed under par.
(f) (g) if the taxation district's
1assessed value of each major class of property for the subsequent year is not within
210% of the full value of the same major class of property. The department's notice
3shall be in writing and mailed to the clerk of the taxation district on or before
4November 1 of the year of the determination.
AB755, s. 4
5Section
4. 70.05 (5) (f) of the statutes is repealed.
AB755, s. 5
6Section
5. 70.05 (5) (g) of the statutes is amended to read:
AB755,5,157
70.05
(5) (g) If, in
both the year
after the year in which
a the clerk of a taxation
8district's assessment staff participates in the program under s. 73.08 and in the next
9year district receives notice from the department under par. (d), the department of
10revenue determines that the assessed value of each major class of property is not
11within 10% of the full value of the same major class of property, the department shall
12order special supervision under s. 70.75 (3) for that taxation district for the
13succeeding year's assessment. That order shall be in writing and shall be mailed to
14the clerk of the taxation district on or before November 1 of the year of the
15determination.
AB755,5,2118
70.36
(1m) Any person, firm or corporation that fails to include information on
19property that is exempt under s. 70.11 (39) and (39m) on the report under s. 70.35
20shall
forfeit pay to the department of revenue $10 for every
$100 $1,000 or major
21fraction thereof that is not reported.
AB755, s. 7
22Section
7. 70.36 (2) of the statutes is amended to read:
AB755,6,623
70.36
(2) It is hereby made the duty of the district attorney of any county, upon
24complaint made to the district attorney by the assessor or by a member of the board
25of review of the assessment district in which it is alleged that property has been so
1withheld from the knowledge of such assessor or board of review, or not included in
2any return required by s. 70.35, to investigate the case forthwith and bring an action
3in the name of the state against the person, firm
, or corporation so complained of.
4All Except as provided in sub. (1m), forfeitures collected under the provisions of this
5section shall be paid into the treasury of the taxation district in which such property
6had its situs for taxation.
AB755, s. 8
7Section
8. 70.365 of the statutes is renumbered 70.365 (1) and amended to
8read:
AB755,7,29
70.365
(1) When Except as provided under sub. (2), when the assessor assesses
10any taxable real property, or any improvements taxed as personal property under s.
1177.84 (1), and arrives at a different total than the assessment of it for the previous
12year, the assessor shall notify the person assessed if the address of the person is
13known to the assessor, otherwise the occupant of the property. The notice shall be
14in writing and shall be sent by ordinary mail at least 15 days before the meeting of
15the board of review or before the meeting of the board of assessors in 1st class cities
16and in 2nd class cities that have a board of assessors under s. 70.075 and shall
17contain the amount of the changed assessment and the time, date
, and place of the
18meeting of the local board of review or of the board of assessors. However, if the
19assessment roll is not complete, the notice shall be sent by ordinary mail at least 15
20days prior to the date to which the board of review has adjourned. The assessor shall
21attach to the assessment roll a statement that the notices required by this section
22have been mailed
, and failure to receive the notice shall not affect the validity of the
23changed assessment, the resulting changed tax, the procedures of the board of review
24or of the board of assessors
, or the enforcement of delinquent taxes by statutory
25means. The secretary of revenue shall by rule prescribe the form of the notice
1required under this section. The form shall include information notifying the
2taxpayer of the procedures to be used to object to the assessment.
AB755, s. 9
3Section
9. 70.365 (2) of the statutes is created to read:
AB755,7,64
70.365
(2) An assessor shall not send a notice under sub. (1), if the change of
5assessment is made by the assessor with the property owner's consent and while the
6assessment roll is available for examination under s. 70.45.
AB755, s. 10
7Section
10. 70.75 (1) (a) 1. of the statutes is amended to read:
AB755,7,198
70.75
(1) (a) 1. The owners of taxable property in any taxation district, other
9than an assessment district within the corporate limits of any 1st class city, whose
10property has an aggregate assessed valuation of not less than 5% of the assessed
11valuation of all of the property in the district according to the assessment
that is 12sought to be corrected, may submit to the department of revenue a written petition
13concerning the assessed valuation of their property
that is postmarked by February
1415 of the year following the year of the assessment that is sought to be corrected.
15Subject to subd. 2. and sub. (1m), if the department finds that the assessment of
16property in the taxation district is not in substantial compliance with the law and
17that the interest of the public will be promoted by a reassessment, the department
18may order a reassessment of all or of any part of the taxable property in the district
19to be made by one or more persons appointed for that purpose by the department.
AB755, s. 11
20Section
11. 73.08 of the statutes is repealed.
AB755, s. 12
21Section
12. 73.09 (4) (c) of the statutes is amended to read:
AB755,8,522
73.09
(4) (c) Recertification is contingent upon submission of
a notarized an 23application for renewal,
at least 60 days before the expiration date of the current
24certificate, attesting to the completion of the requirements specified in par. (b).
The
25department of revenue may, for good cause, accept an application for renewal up to
1one year after the expiration date of the current certificate, if the applicant has
2satisfied the meeting-attendance requirements specified in par. (b). Persons
3applying for renewal on the basis of attendance at the meetings called by the
4department under s. 73.06 (1) and by meeting continuing education requirements
5shall submit a $20 recertification fee with their applications.
AB755, s. 13
6Section
13. 75.521 (7) (a) 1. of the statutes is amended to read:
AB755,8,137
75.521
(7) (a) 1. That the lands in which such person is interested, described
8in such list of tax liens, were not liable to taxation, special assessment, special
9charge
, or special tax at the time the tax, special assessment, special charge
, or
10special tax for the nonpayment of which the tax lien arises, was levied
and, for an
11allegation that lands were exempt from taxation, except an allegation that the lands
12were exempt under s. 70.11 (21) (a) or (27), that the person complied with s. 74.35
13with respect to the lands.
AB755, s. 14
14Section
14. 75.521 (10) of the statutes is amended to read:
AB755,9,515
75.521
(10) Contested issues and trial thereof. If a duly verified answer is
16served upon the county treasurer within the period mentioned in sub. (7), the court
17shall hear and determine the issues raised by the petition and answer in the same
18manner and under the same rules as it hears and determines civil actions, except as
19in this section otherwise provided. Upon such trial, proof that such tax, special
20assessment, special charge
, or special tax, together with any interest or penalty
21which may have been due was paid
,; or that the property was not subject to tax,
22special assessment, special charge
, or special tax
, and, for property that is alleged
23to be exempt from taxation, except property that is alleged to be exempt under s.
2470.11 (21) (a) or (27), that the answering defendant complied with s. 74.35 with
25respect to the property; or that such tax lien is barred by the statute of limitations,
1shall constitute a complete defense. Whenever an answer is interposed as herein
2provided, there shall be a severance of the proceeding as to any parcel or parcels of
3land in which such answering defendant has any right, title
, or interest as alleged
4in his or her answer, and as to the other parcels in such list, the proceeding shall
5proceed as provided in sub. (8).
AB755, s. 15
6Section
15. 75.521 (12) (a) of the statutes is amended to read:
AB755,9,187
75.521
(12) (a) The county need not plead or prove the various steps,
8proceedings
, and notices for the assessment and levy of the taxes, assessments
, or
9other lawful charges against the lands set forth in the list of tax liens and all such
10taxes, assessments
, or other lawful charges and the lien thereof shall be presumed
11to be valid. A defendant alleging any jurisdictional defect or invalidity in the tax,
12special assessment, special charge
, or special tax, because of which said land was not
13liable to taxation, special assessment
, or other lawful charge, must particularly
14specify in the defendant's answer such jurisdictional defect or invalidity and must
15affirmatively establish such defense
and, for a defendant alleging that lands are
16exempt from taxation, except lands that are alleged to be exempt under s. 70.11 (21)
17(a) or (27), must particularly specify such allegation and affirmatively establish
18compliance with s. 74.35 with respect to the lands.
AB755, s. 16
19Section
16. 75.521 (14a) of the statutes is amended to read: