Register

Statutory authority: ss. 70.32 (2) (c) 1 and 70.32 (2r) (b) (intro), Stats., and 1995 Wis. Act 27, s. 9148 (1x)

Statutes interpreted: ss. 70.05 (5), 70.32 (2), 70.32 (2r) (b) and (c), 70.57 (3), Stats., and 1995 Wis. Act 27, s. 9148 (1x)

The rule provides definitions needed to implement use value assessment of agricultural land. The rule requires the assessor to record the category of agricultural land, by acreage, for each legal description that contains a parcel of agricultural land. Categories of agricultural land include first grade tillable cropland, second grade tillable cropland, third grade tillable cropland, pasture, and specialty land.

Beginning in 1997 and each year thereafter, the Farmland Advisory Council and the Department of Revenue shall determine the net rental income per acre by category of agricultural land for each municipality by subtracting average total production cost per acre from gross income per acre. Use value per acre for each category of agricultural land in each municipality shall be calculated by dividing the net rental income per acre by the capitalization rate for that municipality. Not later than January 1, 1998, and each January 1 thereafter, the Department shall provide assessors with the use value per acre for each category of agricultural land in each municipality, to be used for assessing agricultural land. The use value per acre for each category of agricultural land in each municipality shall be published annually in the Wisconsin Property Assessment Manual.

The assessor shall determine the use value of each parcel of agricultural land based on the use values per acre provided by the Department, which may be adjusted by the assessor to reflect more accurately the use value of that parcel of agricultural land.

The rule provides for transition from the current, frozen assessments of agricultural land to assessments based on use value. Each year from 1998 to 2007, the assessed value of each parcel of agricultural land will be adjusted by an amount based on the number of years the parcel has been assessed under subchapter II of this rule and the difference between the 1996 assessment and the then-current use value. In 2008 and thereafter, the assessed value of each parcel of agricultural land is its use value. Property classified “Other” is assessed under s. 70.32 (1), Stats.

Initial Regulatory Flexibility Analysis

The rule is not expected to directly affect small business and, therefore, under s. 227.114 (8) (b), a regulatory flexibility analysis is not required.

Fiscal Estimate

Prior to 1996, agricultural land was assessed at market value. Under current law, the 1996 and 1997 assessments of agricultural land are frozen at their 1995 assessments and, beginning in 1998, assessments of agricultural land based on value in agricultural use will be phased in. In 2008 and thereafter, agricultural land will be assessed at use value.

The proposed rule recodifies ch. Tax 18 as subchapter I, providing for 1996 and 1997 assessments of agricultural land.

Under subchapter II of the proposed rule, the Department of Revenue will provide local assessors with recommended use values for different categories of agricultural land. Based on these values, adjusted for local conditions, assessors shall determine the use value of agricultural land. The assessed value of parcels of agricultural land is determined according to a statutory formula, based on the 1995 assessment for that parcel and its use value in the current year.

Since the taxable value of agricultural land is likely to be lower under use value assessment than under market value assessment, property taxes will be shifted from agricultural land to other classes of property, state equalization aids will be reallocated and state forestry taxes will be lower. The property tax shift will affect state costs for tax credit programs and state tax revenues. In addition, the state and municipalities will incur costs to implement the new assessment system.

Local Fiscal Effect

Property Tax Shifts. The equalized value of agricultural land is about $9 billion. Assuming its use value is about $6 billion, assessments of agricultural land will decline by about $3 billion over the period 1998 to 2007 or by $300 million per year. Assuming a statewide tax rate of $23 per $1,000 of value, an amount of property taxes that increases by $6.9 million ($300 million x 0.023) per year will be shifted from agricultural land to other classes of property each year from 1998 to 2007.

Administrative Costs. Property assessors will incur costs to implement the new assessment system for agricultural land. Also, the number of objections filed with Boards of Review may increase as the new system is implemented. The implementation costs of assessors and boards of review required under the new system cannot be reliably estimated.

State Fiscal Effect

Revenue and Expenditure Effects. The property tax shift from agricultural land to other classes of property would also affect state revenues and expenditures. The major effects are:

1.   Farmland Preservation Credits will decline since claimants' property taxes will be lower and household incomes will be higher than under prior law.

2.   The Farmland Tax Relief Credit of 10% on up to $10,000 in property tax paid on agricultural land will decline as property taxes on agricultural land decline. The decline in Farmland Tax Relief Credit will increase the amount available for the lottery credit.

3.   The State Forestry Tax, levied at $0.20 per $1,000, will be lower due to the reductions in the assessed value of agricultural land.

Administrative Costs. The Department of Revenue will have to determine agricultural land rents and capitalization rates to calculate use values of agricultural land in each municipality each year. In addition, the Department will have to update equalization databases for property reclassifications and for changes in acreages. The Department will also have to change a number of property tax reporting forms and systems. In addition, the Wisconsin Property Assessment Manual will require revision to incorporate the substance of this rule.

Copies of Rule and Contact Person

Following the public hearing, the hearing record will remain open until March 24, 1997, for additional written comments.

Copies of the complete rule text and fiscal estimate are available at no charge on request from Gregory Landretti at the address listed below. An interpreter for the hearing-impaired will be available on request for the hearing. Please make reservations for a hearing interpreter by March 10, 1997, either by writing:

Gregory Landretti

Office of Assessment Practices

Wis. Dept. of Revenue

125 S. Webster St.

Madison, WI 53702

by calling [phone], or via the Office's fax telephone [phone].

Notice of Hearing

Workforce Development

(Economic Support, Chs. DWD 11-59)

Notice is given that pursuant to ss. 49.132 (2) (b), (2r) (d), (4) (d) and (e) 2 and (5) (e), and 49.155 (5), Stats., the Department of Workforce Development proposes to hold a public hearing to consider rule ch. DWD 56, Wis. Adm. Code, relating to the administration of child care funds and required copayments.

Hearing Information

The public hearing is scheduled as follows:

March 18, 1997   Room B139

Tuesday   State Office Bldg.

1:30 p.m. to   One West Wilson St.

3:30 p.m.   MADISON, WI

This hearing will be held in an accessible facility. If you have special needs or circumstances which may make communication or accessibility difficult at the hearing, please call [phone] or, if you are deaf or hard-of-hearing [phone], at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators or materials in audio tape format will, to the fullest extent possible, be made available on request by a person with a disability.

Written Comments

Interested people are invited to appear at the hearing and will be afforded the opportunity of making oral presentations of their positions. People making oral presentations are requested to submit their facts, views and suggested rewording in writing. Written comments from people unable to attend the public hearing, or who wish to supplement testimony offered at the hearing may be submitted no later than Tuesday, March 25, 1997, for inclusion in the summary of public comments submitted to the Legislature. Any such comments should be submitted to:

Bonnie Kendell, Division of Economic Support

Dept. of Workforce Development

FAX [phone]

1 West Wilson Street

P. O. Box 7935

Madison, WI 53707-7935

Written comments will be given the same consideration as testimony presented at the hearing. People submitting comments will not receive individual responses.

Analysis

This rule contains a schedule of required copayments for parents who receive state child care funds. Under the schedule, a parent who receives a child care subsidy will not be required to pay more than 16% of gross income as a copayment. The copayments for licensed child care are 30% more than the copayments for certified child care.

The rule also provides that the schedule may be adjusted in the future to reflect changes in the costs or other economic factors.

Text of Rule

SECTION 1. Subchapter VII of HSS 55 is renumbered ch. DWD 56.

SECTION 2. DWD 56.08 is created to read:

DWD 56.08 Parent copayments. (1) SCHEDULE. The department shall set a schedule for parent copayment responsibilities which meets the following criteria:

(a) All families will have a copayment responsibility.

(b) Copayment amounts will be based on family size, family gross income, the number of children in child care, and the type of child care selected.

(c) The initial schedule is Table DWD 56.08 (1) (c).

(2) APPLICATION. (a) This paragraph applies before the sunset of s. 49.132, Stats., takes effect in accordance with s. 49.132 (6), Stats. The copayment schedule applies to the following parents:

  1. Parents who receive low-income child care funds under s. 49.132 (3) and (4), Stats.

  2. Parents who receive at-risk child care funds under s. 49.132 (2m) and (2r), Stats.

  3. Parents who receive child care funds as former AFDC recipients under s. 49.191 (2), Stats.

  4. Parents who receive child care funds as participants in the food stamp employment and training program under s. 49.124, Stats.

(b) This paragraph applies upon the implementation of the Wisconsin works program under s. 49.141 (2) (b), Stats. The copayment schedule applies to all parents who receive public child care funds.

(3) ADJUSTMENTS. The department may adjust the amounts in the schedule to reflect one or more of the following factors:

(a) A change in child care prices or in the rates paid by county or tribal agencies.

(b) A change in the amount of funds available for child care assistance.

(c) A change in costs due to inflation.

(d) A change in the federal poverty level.

(e) A change in economic factors affecting the cost of child care to the state, such as an increase in the demand for subsidized child care.

Copies of Table DWD 56.08 (1) (c)

If you would like a copy of Table DWD 56.08 (1) (c), you may contact Bonnie Kendell at the address listed earlier in this notice.

Initial Regulatory Flexibility Analysis

S. DWD 56.08 -- Relating to administration of child care funds and required copayments.

1.   Types of small businesses that will be affected by the rules:

  This rule will have little direct impact upon small child care businesses.

2.   Reporting, bookkeeping and other procedures required for compliance with the rules:

  The rule is intended to make possible a streamlined statewide child care payment system which is automated to reduce small business paperwork and to require more timely payments to child care providers. A simple attendance report will be required from small child care businesses which will trigger prompt automated payments.

3.   Types of professional skills necessary for compliance with the rules: