Amendment SSA1-SB189

SENATE SUBSTITUTE AMENDMENT 1, TO SENATE BILL 189

June 21, 2021 - Offered by Senator Stroebel.

SB189-SSA1,2,4 An Act to repeal 60.85 (1) (f), 66.1105 (2) (d), 70.043 (2), 70.13 (3), 70.13 (7), 70.18, 70.19, 70.20, 70.21, 70.22, 70.29, 70.30, 70.34, 70.345, 70.35, 70.36, 70.47 (15), 70.65 (2) (a) 2., 70.68, 74.11 (4), 74.11 (11) (b), 74.11 (12) (a) 1g., 74.11 (12) (d), 74.12 (6), 74.12 (11) (a) 1g., 74.12 (11) (d), 74.30 (1) (i), 74.42, 74.47 (3) (e), 74.55 and 76.69; to renumber 70.043 (1) and 74.11 (11) (a); to consolidate, renumber and amend 70.65 (2) (a) (intro.) and 1.; to amend 17.14 (1) (g), 26.03 (1m) (b) (intro.), 33.01 (9) (a), 33.01 (9) (am), 33.01 (9) (ar) 1., 33.01 (9) (b) 1., 60.85 (1) (h) 1. c., 60.85 (1) (o), 66.1105 (2) (f) 1. c., 66.1106 (1) (k), 70.02, 70.05 (5) (a) 1., 70.17 (1), 70.174, 70.44 (1), 70.49 (2), 70.52, 70.65 (2) (b) (intro.), 70.73 (1) (b), 70.73 (1) (c), 70.73 (1) (d), 70.84, 70.855 (1) (intro.), 70.855 (1) (a), 70.855 (1) (b), 70.995 (1) (a), 70.995 (1) (b), 70.995 (4), 70.995 (7) (b), 70.995 (8) (b) 1., 70.995 (12) (a), 71.17 (2), 74.05 (1), 74.09 (2), 74.11 (6) (a), 74.11 (10) (a) 1., 74.11 (12) (a) (intro.), 74.11 (12) (b), 74.12 (7) (a), 74.12 (8) (a), 74.12 (9) (a), 74.12 (10) (a), 74.12 (11) (a) (intro.), 74.12 (11) (b), 74.29 (2), 74.30 (1m), 74.83, 74.87 (3), 77.84 (1), 174.065 (3), 815.18 (3) (intro.) and 978.05 (6) (a); and to create 66.1105 (5) (j), 70.111 (28) and 70.17 (3) of the statutes; relating to: eliminating the personal property tax.

Analysis by the Legislative Reference Bureau

Under current law, beginning with the property tax assessments as of January 1, 2018, machinery, tools, and patterns, not including those items used in manufacturing, are exempt from the personal property tax. However, beginning in 2019, the state pays each taxing jurisdiction an amount equal to the property taxes levied on those items of personal property for the property tax assessments as of January 1, 2017.

Under the bill, beginning with the property tax assessments as of January 1, 2022, no items of personal property will be subject to the property tax.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB189-SSA1,1 Section 1. 17.14 (1) (g) of the statutes is amended to read:

SB189-SSA1,2,10 17.14 (1) (g) Failure to use the “Wisconsin Property Assessment Manual" provided under s. 73.03 (2a) and as required by s. 70.32 (1) and 70.34. The certification of any assessor removed under this paragraph may for sufficient reason be reinstated by the secretary of revenue after one year upon formal application for reinstatement.

SB189-SSA1,2 Section 2. 26.03 (1m) (b) (intro.) of the statutes is amended to read:

SB189-SSA1,2,16 26.03 (1m) (b) (intro.) Paragraph (a) 1. does not apply to a person harvesting raw forest products on public lands, as defined in s. 70.13 (7), 2019 stats., to a person harvesting raw forest products for fuel wood for his or her home consumption, to a person harvesting for the purpose of clearing the land for agricultural use or to a person harvesting from the person's own land, any of the following:

SB189-SSA1,3 Section 3. 33.01 (9) (a) of the statutes is amended to read:

SB189-SSA1,3,5 33.01 (9) (a) For the purpose of receiving notice under this chapter, a person whose name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year.

SB189-SSA1,4 Section 4. 33.01 (9) (am) of the statutes is amended to read:

SB189-SSA1,3,8 33.01 (9) (am) For the purpose of petitioning under this chapter, any of the following:

SB189-SSA1,3,11 1. A person whose name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year.

SB189-SSA1,3,15 2. The spouse of a person whose name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year if the spouse is referred to on that tax roll.

SB189-SSA1,5 Section 5. 33.01 (9) (ar) 1. of the statutes is amended to read:

SB189-SSA1,3,19 33.01 (9) (ar) 1. The person's name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year.

SB189-SSA1,6 Section 6. 33.01 (9) (b) 1. of the statutes is amended to read:

SB189-SSA1,3,23 33.01 (9) (b) 1. Whose name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year; or

SB189-SSA1,7 Section 7. 60.85 (1) (f) of the statutes is repealed.

SB189-SSA1,8 Section 8. 60.85 (1) (h) 1. c. of the statutes is amended to read:

SB189-SSA1,4,4 60.85 (1) (h) 1. c. Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the town of real or personal property within a tax incremental district for consideration which is less than its cost to the town.

SB189-SSA1,9 Section 9. 60.85 (1) (o) of the statutes is amended to read:

SB189-SSA1,4,7 60.85 (1) (o) “Taxable property" means all real and personal taxable property located in a tax incremental district.

SB189-SSA1,10 Section 10. 66.1105 (2) (d) of the statutes is repealed.

SB189-SSA1,11 Section 11. 66.1105 (2) (f) 1. c. of the statutes is amended to read:

SB189-SSA1,4,12 66.1105 (2) (f) 1. c. Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the city of real or personal property within a tax incremental district for consideration which is less than its cost to the city.

SB189-SSA1,12 Section 12. 66.1105 (5) (j) of the statutes is created to read:

SB189-SSA1,4,20 66.1105 (5) (j) Upon receiving a written application from the city clerk, in a form prescribed by the department of revenue, the department shall recalculate the base value of a tax incremental district affected by 2021 Wisconsin Act .... (this act) to remove the value of the personal property. A request received under this paragraph no later October 31 is effective in the year following the year in which the request is made. A request received after October 31 is effective in the 2nd year following the year in which the request is made.

SB189-SSA1,13 Section 13. 66.1106 (1) (k) of the statutes is amended to read:

SB189-SSA1,4,23 66.1106 (1) (k) “Taxable property" means all real and personal taxable property located in an environmental remediation tax incremental district.

SB189-SSA1,14 Section 14. 70.02 of the statutes is amended to read:

SB189-SSA1,5,5 70.02 Definition of general property. General property is all the taxable real and personal property defined in ss. 70.03 and 70.04 except that which is taxed under ss. 70.37 to 70.395 and ch. 76 and subchs. I and VI of ch. 77. General property includes manufacturing property subject to s. 70.995, but assessment of that property shall be made according to s. 70.995.

SB189-SSA1,15 Section 15. 70.043 (1) of the statutes is renumbered 70.043.

SB189-SSA1,16 Section 16. 70.043 (2) of the statutes is repealed.

SB189-SSA1,17 Section 17. 70.05 (5) (a) 1. of the statutes is amended to read:

SB189-SSA1,5,11 70.05 (5) (a) 1. “Assessed value" means with respect to each taxation district the total values established under ss. s. 70.32 and 70.34, but excluding manufacturing property subject to assessment under s. 70.995.

SB189-SSA1,18 Section 18. 70.111 (28) of the statutes is created to read:

SB189-SSA1,5,15 70.111 (28) Business and manufacturing personal property. (a) Beginning with the property tax assessments as of January 1, 2022, all business and manufacturing personal property.

SB189-SSA1,5,18 (b) A taxing jurisdiction may include the most recent valuation of personal property described under par. (a) that is located in the taxing jurisdiction for purposes of complying with debt limitations applicable to the jurisdiction.

SB189-SSA1,19 Section 19 . 70.13 (3) of the statutes is repealed.

SB189-SSA1,20 Section 20 . 70.13 (7) of the statutes is repealed.

SB189-SSA1,21 Section 21 . 70.17 (1) of the statutes is amended to read:

SB189-SSA1,6,6 70.17 (1) Real property shall be entered in the name of the owner, if known to the assessor, otherwise to the occupant thereof if ascertainable, and otherwise without any name. The person holding the contract or certificate of sale of any real property contracted to be sold by the state, but not conveyed, shall be deemed the owner for such purpose. The undivided real estate of any deceased person may be entered to the heirs of such person without designating them by name. The real estate of an incorporated company shall be entered in the same manner as that of an individual. Improvements Except as provided in sub. (3), buildings, improvements, and fixtures on leased lands may be assessed either as real property or personal property.

SB189-SSA1,22 Section 22 . 70.17 (3) of the statutes is created to read:

SB189-SSA1,6,23 70.17 (3) Beginning with the property tax assessments as of January 1, 2022, manufactured and mobile homes, not otherwise exempt from taxation under s. 66.0435 (3), buildings, improvements, and fixtures on leased lands, buildings, improvements, and fixtures on exempt lands, buildings, improvements, and fixtures on forest croplands, and buildings, improvements, and fixtures on managed forest lands shall be assessed as real property. If buildings, improvements, and fixtures, but not the underlying land, are leased to a person other than the landowner or if the buildings, improvements, and fixtures are owned by a person other than the landowner, the assessor may create a separate tax parcel for the buildings, improvements, and fixtures and assess the buildings, improvements, and fixtures as real property to the lessee or owner of the buildings, improvements, and fixtures. The assessor may also create a tax parcel for buildings, improvements, and fixtures on exempt lands, buildings, improvements, and fixtures on forest croplands, and buildings, improvements, and fixtures on managed forest lands and assess the buildings, improvements, and fixtures as real property to the lessee or owner of the buildings, improvements, and fixtures.

SB189-SSA1,23 Section 23. 70.174 of the statutes is amended to read:

SB189-SSA1,7,5 70.174 Improvements on government-owned land. Improvements made by any person on land within this state owned by the United States may shall be assessed either as real or personal property to the person making the same, if ascertainable, and otherwise to the occupant thereof or the person receiving benefits therefrom.

SB189-SSA1,24 Section 24. 70.18 of the statutes is repealed.

SB189-SSA1,25 Section 25. 70.19 of the statutes is repealed.

SB189-SSA1,26 Section 26. 70.20 of the statutes is repealed.

SB189-SSA1,27 Section 27. 70.21 of the statutes is repealed.

SB189-SSA1,28 Section 28. 70.22 of the statutes is repealed.

SB189-SSA1,29 Section 29. 70.29 of the statutes is repealed.

SB189-SSA1,30 Section 30. 70.30 of the statutes is repealed.

SB189-SSA1,31 Section 31. 70.34 of the statutes is repealed.

SB189-SSA1,32 Section 32. 70.345 of the statutes is repealed.

SB189-SSA1,33 Section 33 . 70.35 of the statutes is repealed.

SB189-SSA1,34 Section 34 . 70.36 of the statutes is repealed.

SB189-SSA1,35 Section 35. 70.44 (1) of the statutes is amended to read:

SB189-SSA1,8,2 70.44 (1) Real or personal property omitted from assessment in any of the 2 next previous years, unless previously reassessed for the same year or years, shall be entered once additionally for each previous year of such omission, designating each such additional entry as omitted for the year of omission and affixing a just valuation to each entry for a former year as the same should then have been assessed according to the assessor's best judgment, and taxes shall be apportioned, using the net tax rate as provided in s. 70.43, and collected on the tax roll for such entry. This section shall not apply to manufacturing property assessed by the department of revenue under s. 70.995.

SB189-SSA1,36 Section 36 . 70.47 (15) of the statutes is repealed.

SB189-SSA1,37 Section 37. 70.49 (2) of the statutes is amended to read:

SB189-SSA1,8,9 70.49 (2) The value of all real and personal property entered into the assessment roll to which such affidavit is attached by the assessor shall, in all actions and proceedings involving such values, be presumptive evidence that all such properties have been justly and equitably assessed in proper relationship to each other.

SB189-SSA1,38 Section 38. 70.52 of the statutes is amended to read:

SB189-SSA1,8,22 70.52 Clerks to examine and correct rolls. Each city, village, and town clerk upon receipt of the assessment roll shall carefully examine the roll. The clerk shall correct all double assessments, imperfect descriptions, and other errors apparent on the roll, and correct the value of parcels of real property not liable to taxation. The clerk shall add to the roll any parcel of real property not listed on the assessment roll or item of personal property omitted from the roll and immediately notify the assessors of the additions and omissions. The assessors shall immediately view and value the omitted property and certify the valuation to the clerk. The clerk shall enter the valuation and property classification on the roll, and the valuation shall be final. To enable the clerk to properly correct defective descriptions, the clerk may request aid, when necessary, from the county surveyor, whose fees for the services rendered shall be paid by the city, village, or town.

SB189-SSA1,39 Section 39. 70.65 (2) (a) (intro.) and 1. of the statutes are consolidated, renumbered 70.65 (2) (a) and amended to read:

SB189-SSA1,8,25 70.65 (2) (a) As shown on the assessment roll:

SB189-SSA1,9,3 1. Identify, identify all the real property within the taxation district and, with respect to each description of real property, the name and address of the owner and the assessed value.

SB189-SSA1,40 Section 40. 70.65 (2) (a) 2. of the statutes is repealed.

SB189-SSA1,41 Section 41. 70.65 (2) (b) (intro.) of the statutes is amended to read:

SB189-SSA1,9,7 70.65 (2) (b) (intro.) With respect to each description of real property and each owner of taxable personal property:

SB189-SSA1,42 Section 42. 70.68 of the statutes is repealed.

SB189-SSA1,43 Section 43. 70.73 (1) (b) of the statutes is amended to read:

SB189-SSA1,9,15 70.73 (1) (b) If a town, village or city clerk or treasurer discovers that personal property has been assessed to the wrong person, or 2 or more parcels of land belonging to different persons have been erroneously assessed together on the tax roll, the clerk or treasurer shall notify the assessor and all parties interested, if the parties are residents of the county, by notice in writing to appear at the clerk's office at some time, not less than 5 days thereafter, to correct the assessment roll.

SB189-SSA1,44 Section 44. 70.73 (1) (c) of the statutes is amended to read:

SB189-SSA1,9,22 70.73 (1) (c) At the time and place designated in the notice given under par. (b), the assessment roll shall be corrected by entering the correct names of the persons liable to assessment, both as to real and personal property, describing each parcel of land and giving the proper valuation to each parcel separately owned. The total valuation given to the separate tracts of real estate shall be equal to the valuation given to the same property when the several parcels were assessed together.

SB189-SSA1,45 Section 45. 70.73 (1) (d) of the statutes is amended to read:

SB189-SSA1,9,25 70.73 (1) (d) The valuation of parcels of land or correction of names of persons whose personal property is assessed under this subsection may be made at any time before the tax roll is returned to the county treasurer for the year in which the tax is levied. The valuation or correction of names, when made under this subsection, shall be held just and correct and be final and conclusive.

SB189-SSA1,46 Section 46. 70.84 of the statutes is amended to read:

SB189-SSA1,10,24 70.84 Inequalities may be corrected in subsequent year. If any such reassessment cannot be completed in time to take the place of the original assessment made in such district for said year, the clerk of the district shall levy and apportion the taxes for that year upon the basis of the original assessment roll, and when the reassessment is completed the inequalities in the taxes levied under the original assessment shall be remedied and compensated in the levy and apportionment of taxes in such district next following the completion of said reassessment in the following manner: Each tract of real estate , and, as to personal property, each taxpayer, whose tax shall be determined by such reassessment to have been relatively too high, shall be credited a sum equal to the amount of taxes charged on the original assessment in excess of the amount which would have been charged had such reassessment been made in time; and each tract of real estate , and, as to personal property, each taxpayer, whose tax shall be determined by such reassessment to have been relatively too low, shall be charged, in addition to all other taxes, a sum equal to the difference between the amount of taxes charged upon such unequal original assessment and the amount which would have been charged had such reassessment been made in time. The department of revenue, or its authorized agent, shall at any time have access to all assessment and tax rolls herein referred to for the purpose of assisting the local clerk and in order that the results of the reassessment may be carried into effect.

SB189-SSA1,47 Section 47. 70.855 (1) (intro.) of the statutes is amended to read:

SB189-SSA1,11,3 70.855 (1) Applicability. (intro.) The department of revenue shall assess real and personal property assessed as commercial property under s. 70.32 (2) (a) 2. if all of the following apply:

SB189-SSA1,48 Section 48. 70.855 (1) (a) of the statutes is amended to read: