2019 - 2020 LEGISLATURE
January 21, 2020 - Offered by Senators Ringhand, Risser, Erpenbach, Carpenter,
Schachtner, Smith, Johnson, Wirch, Bewley, Shilling, Miller, Hansen and
SB96-SA1,1,11 At the locations indicated, amend the bill as follows:
SB96-SA1,1,3 21. Page 1, line 4: after “assessments" insert “, assessments regarding leased
3property, and assessments based on comparable sales and market segments".
SB96-SA1,1,4 42. Page 2, line 1: before that line insert:
SB96-SA1,1,5 5 Section 1b. 70.03 (1) of the statutes is amended to read:
SB96-SA1,2,56 70.03 (1) In chs. 70 to 76, 78, and 79, “real property," “real estate," and “land"
7include not only the land itself but all buildings and , fixtures, improvements thereon,
8and all fixtures and, leases, rights , and privileges appertaining thereto, including
9assets that cannot be taxed separately as real property, but are inextricably
10intertwined with the real property, enable the real property to achieve its highest and
11best use, and are transferable to future owners,
except as provided in sub. (2) and
12except that for the purpose of time-share property, as defined in s. 707.02 (32), real
13property does not include recurrent exclusive use and occupancy on a periodic basis

1or other rights, including, but not limited to, membership rights, vacation services,
2and club memberships. In this subsection, “lease” means a right in real estate that
3is related primarily to the property and not to the labor, skill, or business acumen of
4the property owner or tenant. In this subsection, “highest and best use” has the
5meaning given in s. 70.32 (1).
SB96-SA1,1c 6Section 1c. 70.32 (1) of the statutes is amended to read:
SB96-SA1,3,27 70.32 (1) Real property shall be valued by the assessor in the manner specified
8in the Wisconsin property assessment manual provided under s. 73.03 (2a) at its
9highest and best use
from actual view or from the best information that the assessor
10can practicably obtain, at the full value which could ordinarily be obtained therefor
11at private sale. In determining the value, the assessor shall consider recent
12arm's-length sales of the property to be assessed if according to professionally
13acceptable appraisal practices those sales conform to recent arm's-length sales of
14reasonably comparable property; recent arm's-length sales of reasonably
15comparable property; and all factors that, according to professionally acceptable
16appraisal practices, affect the value of the property to be assessed. In this subsection,
17“arm's-length sale" means a sale between a willing buyer and willing seller, neither
18being under compulsion to buy or sell and each being familiar with the attributes of
19the property sold. In this subsection, “highest and best use" means the specific
20current use of the property or a higher use for which the property may be used as of
21the current assessment date, if the property is marketable for that use and the use
22is legally permissible, physically possible, not highly speculative, and financially
23feasible and provides the highest net return. When the current use of a property is
24the highest and best use of that property, value in the current use equals full market

1value. In this subsection, “legally permissible” does not include a conditional use
2that has not been granted as of the assessment date.
SB96-SA1,1d 3Section 1d. 70.32 (1b) of the statutes is created to read:
SB96-SA1,3,164 70.32 (1b) In determining the value of real property under sub. (1), the assessor
5may consider, as part of the valuation under sub. (1), any lease provisions and actual
6rent pertaining to a property and affecting its value, including the lease provisions
7and rent associated with a sale and leaseback of the property, if all such lease
8provisions and rent are the result of an arm's-length transaction involving persons
9who are not related, as provided under section 267 of the Internal Revenue Code for
10the year of the transaction. The assessor shall reconcile the results of such
11consideration with the professionally acceptable appraisal practices regarding
12reasonably comparable sales, the cost approach, and other methods specified in the
13Wisconsin property assessment manual provided under s. 73.03 (2a). In this
14subsection, an “arm's-length transaction" means an agreement between willing
15parties, neither being under compulsion to act and each being familiar with the
16attributes of the property.
SB96-SA1,1e 17Section 1e. 70.32 (1d) of the statutes is created to read:
SB96-SA1,3,2018 70.32 (1d) (a) To determine the value of property using generally accepted
19appraisal methods, the assessor shall consider all of the following as comparable to
20the property being assessed:
SB96-SA1,3,2221 1. Sales or rentals of properties exhibiting the same or a similar highest and
22best use with placement in the same real estate market segment.
SB96-SA1,4,223 2. Sales or rentals of properties that are similar to the property being assessed
24with regard to age, condition, use, type of construction, location, design, physical
25features, and economic characteristics, including similarities in occupancy and the

1the potential to generate rental income. For purposes of this subdivision, such
2properties may be found locally, regionally, or nationally.
SB96-SA1,4,43 (b) For purposes of par. (a), a property is not comparable if any of the following
SB96-SA1,4,85 1. At or before the time of sale, the seller places any deed restriction on the
6property that changes the highest and best use of the property, or prohibits
7competition, so that it no longer qualifies as a comparable property under par. (a) 1.
8or 2. and the property being assessed lacks such a restriction.
SB96-SA1,4,139 2. The property is dark property and the property being assessed is not dark
10property. In this subdivision, “dark property” means property that is vacant or
11unoccupied beyond the normal period for property in the same real estate market
12segment. For purposes of this subdivision, what is considered vacant or unoccupied
13beyond the normal period may vary depending on the property location.
SB96-SA1,4,1514 (c) For purposes of par. (a), “highest and best use" has the meaning given in s.
1570.32 (1).
SB96-SA1,4,2116 (d) For purposes of par. (a), “real estate market segment” means a pool of
17potential buyers and sellers that typically buy or sell properties similar to the
18property being assessed, including potential buyers who are investors or
19owner-occupants. For purposes of this paragraph, and depending on the type of
20property being assessed, the pool of potential buyers and sellers may be found locally,
21regionally, nationally, or internationally.”.
SB96-SA1,4,22 223. Page 4, line 18: after that line insert:
SB96-SA1,4,23 23 Section 11d. Effective date.
1(1) The treatment of ss. 70.03 (1) and 70.32 (1), (1b), and (1d) takes effect on
2January 1, 2020.”.
SB96-SA1,5,33 (End)