Statutory authority
Staff time required
The amount of time needed for rule development by department staff and the amount of other resources necessary are indeterminable. The time needed to create the rule language itself will be minimal. However, the time involved with guiding the rule through the required rule promulgation process is fairly significant. The rule process takes more than six months to complete.
Revenue
Subject
Notice is hereby given, pursuant to s.
227.135, Wis. Stats., that the Department of Revenue plans to promulgate rules related to the administration of the 2004 use value assessment for agricultural land.
Objective of the rule. To ensure positive and stable 2004 assessments for agricultural land.
Policy analysis
Pursuant to s.
70.32 (2r) (c), agricultural land is assessed according to the income that could be generated from its rental for agricultural use. Wisconsin Chapter
Tax 18 specifies the formula that is used to estimate the net rental income per acre. The formula estimates the net income per acre of land in corn production based on a 5-year average corn price per bushel, cost of corn production per bushel and corn yield per acre. The net income is divided by a capitalization rate that is based on a 5-year average interest rate for a medium-sized, 1-year adjustable rate mortgage and net tax rate for the property tax levy two years prior to the assessment year.
For reasons of data availability, there is a three-year lag in determining the 5-year average. Thus, the 2003 use value is based on the 5-year average corn price, cost and yield for the 1996-2000 period, and the capitalization rate is based on the 5-year average interest rate for the 1998-2002 period. The 2004 use value is to be based on the 5-year average corn price, cost and yield for the 1997-2001 period, and the capitalization rate is to be based on the 1999-2003 period.
The data for the 1997-2001 period yields negative net income per acre due to declining corn prices and increasing costs of corn production. As a result, reliance on data for the 1997-2001 period will result in negative use values. The department has promulgated an emergency rule, effective October 3, 2003, that would hold the 2004 use values at 2003 levels. The department intends to promulgate a permanent rule to the same effect.
Statutory authority
Staff time required
The total anticipated time commitment to the development of the rule is 120 hours.
Tourism
Subject
Ch.
Tour 1 - relating to the joint effort marketing program.
Objective of rule. The objectives of the rule are to amend Ch.
Tour 1 to allow the secretary of the department to waive the requirement that a project be directed at a local area if that project will make a substantial impact upon the state's tourism economy.
Policy analysis
Description of existing policies relevant to the rule and of new policies proposed to be included in the rule, and an analysis of policy alternatives:
The Joint Effort Marketing program provides grants to non-profit organizations engaged in tourism activities that are directed at increasing tourism spending in a local area. Grant funds may be used for the development of publicity, the production and media placement of advertising and direct mailings that are part of a project and overall advertising plan of the applicant organization intended to increase tourism in Wisconsin.
Funding may be used for advertising of an event, for advertising of a sales promotion and for destination marketing advertising that is not tied to an event or promotion, but which is directed at extending the tourism market for the applicant and which has been identified by the Department as a market for the state.
The proposal would allow the secretary of the department to waive the requirement that a project be directed at a local area if that project will make a substantial impact upon the state's tourism economy.
The policy alternatives are to leave the program regulations as they are or to adopt the change being proposed.
Statutory authority
Staff time required
The Department estimates that it will take approximately 10 hours of staff time on the rule, which includes discussing the rule with the Council on Tourism and interested members of Wisconsin's tourism industry.
