Amendment SSA1-SB104

SB104-SSA1, s. 21 Section 21. 77.22 (2m) of the statutes is created to read:

SB104-SSA1,8,11 77.22 (2m) If the property conveyed is or contains agricultural land, the register of deeds shall provide to the person who submits the return notice of the amount of the penalty under s. 74.48 that will be due because of the sale and of the time by which that penalty is required to be paid.

SB104-SSA1, s. 22 Section 22. 77.84 (2) (c) of the statutes is amended to read:

SB104-SSA1,8,19 77.84 (2) (c) In 1992 and each 5th year thereafter, the department of revenue shall adjust the amounts under pars. (a) and (b) by multiplying the amount specified by a ratio using as the denominator the department of revenue's estimate of the average statewide tax per acre of property classes under s. 70.32 (2) (b) 4., 1993 stats., s. 70.32 (2) (b) 5., 1993 stats., and s. 70.32 (2) (b) 6., 1993 stats., for 1986 and, as the numerator, the department of revenue's estimate of the average tax per acre for the same classes of property for the year in which the adjustment is made.

SB104-SSA1, s. 23 Section 23. Subchapter X of chapter 77 [precedes 77.994] of the statutes is created to read:

SB104-SSA1,8,22 CHAPTER 77

SB104-SSA1,8,25 SUBCHAPTER X PENALTY ON SALES OF CERTAIN AGRICULTURAL LAND

SB104-SSA1,9,3 77.994 Penalty for change in use. (1) Except as provided in sub. (1m), if land that has been assessed under s. 70.32 (2r) while owned by the seller is sold, there is imposed on the seller a penalty, which shall be calculated as follows:

SB104-SSA1,9,8 (a) Multiply the number of acres previously subject to assessment under s. 70.32 (2r) that are included in the sale by the per-acre value guidelines for the category of agricultural land to which the land that is sold belongs, as determined by the department of revenue under s. 73.03 (2a) for the year that the property was last subject to assessment under s. 70.32 (2r).

SB104-SSA1,9,11 (b) Divide the assessed value of the improvements sold for the most recent year before the sale by the average level of assessment in the taxation district, as shown on the property tax bill under s. 74.09.

SB104-SSA1,9,13 (c) Subtract the amount under par. (b) from the sales price, as shown on the return under s. 77.22.

SB104-SSA1,9,14 (d) Subtract the amount under par. (a) from the amount under par. (c).

SB104-SSA1,9,21 (e) If the amount under par. (d) is a positive number, multiply that amount by 0.02 if the land was assessed under s. 70.32 (2r) for one year after acquisition by the seller, by 0.04 if the land was assessed under s. 70.32 (2r) for 2 years after acquisition by the seller, by 0.06 if the land was assessed under s. 70.32 (2r) for 3 years after acquisition by the seller, by 0.08 if the land was assessed under s. 70.32 (2r) for 4 years after acquisition by the seller and by 0.1 if the land was assessed under s. 70.32 (2r) for at least 5 years after acquisition by the seller.

SB104-SSA1,9,23 (1m) The penalty under sub. (1) does not apply if the seller sells the land to a lineal descendent of the seller.

SB104-SSA1,10,3 (1r) If the seller has owned the property less than 5 years and acquired the property from a seller who was exempt under sub. (1m) from the penalty under sub. (1), the penalty is calculated as if the current seller were the previous owner.

SB104-SSA1,10,6 (2) Any person who is subject to the penalty under sub. (1) shall complete and submit to the department of revenue, along with the payment under sub. (3), a form prescribed by that department.

SB104-SSA1,10,11 (3) Any amount due under sub. (1) shall be paid to the department of revenue along with the next payment of taxes under ch. 71 by the person who owes the penalty. If taxes under ch. 71 on the gain on the sale that results in the penalty may be paid in instalments, the person who owes the penalty may pay it in the same number of instalments.

SB104-SSA1,10,14 (4) Sections 71.82 (1) (a) and (2) (a) and 71.83 (1) (a) 1. and 2. and (b) 1. and 2., as they apply to the taxes under ch. 71, apply to the penalty and form under this section.

SB104-SSA1,10,17 (5) If the department of revenue believes that a sale was made at a price below market value and if the land is resold shortly thereafter, the department may adjust the amount under sub. (1) (c) to reflect the land's market value.

SB104-SSA1,10,18 (6) The department of revenue shall administer the penalty under this section.

SB104-SSA1, s. 24 Section 24. 452.05 (1m) (a) 2. of the statutes is amended to read:

SB104-SSA1,10,21 452.05 (1m) (a) 2. "Commercial real property" means real property that is classified as commercial under s. 70.32 (2) (a) 2. or (b) 2.

SB104-SSA1, s. 25 Section 25. 895.52 (6) (d) 3. of the statutes is amended to read:

SB104-SSA1,10,25 895.52 (6) (d) 3. Property within 300 feet of a building or structure on land that is classified as mercantile commercial or manufacturing under s. 70.32 (2) (b) (a) 2. or 3.

SB104-SSA1, s. 26 Section 26. Nonstatutory provisions; public instruction.

SB104-SSA1,11,5 (1) Equalized valuation of school districts. Notwithstanding section 121.004 (2) of the statutes, the computation of general equalization aid payable to each school district in the 1997-98 school year under section 121.08 of the statutes shall be based on the equalized valuation of the school district in 1997.

SB104-SSA1, s. 27 Section 27. Nonstatutory provisions; revenue.

SB104-SSA1,11,18 (1) Rules. On or before January 1, 1997, the department of revenue shall submit to the legislative council staff under section 227.15 (1) of the statutes proposed rules to implement use value assessment of agricultural land. The rules shall designate categories of agricultural land based upon agricultural use, soil productivity and location. The rules shall also include guidelines to be used by property tax assessors in classifying land as agricultural land, including guidelines on ways to distinguish, particularly with respect to small acreage parcels, land devoted primarily to agricultural use from land devoted primarily to residential, recreational or commercial use. The rules shall specify methods for calculating the per-acre values based on the income that could be generated from renting for agricultural use of each category of land. After they are promulgated, the rules shall be incorporated into the assessment manual under section 73.03 (2a) of the statutes.

SB104-SSA1,11,22 (2) Report on estimates. On or before June 15, 1997, the department of revenue shall provide to the department of public instruction estimates of the values under section 70.57 of the statutes for the purpose of complying with the general aid estimates required under section 121.15 (4) of the statutes.

SB104-SSA1,12,2 (3) Shared revenue maximum payments. For 1998 shared revenue calculations, a municipality or county is excluded from the maximum payment provisions of section 79.06 (2) of the statutes if the reduction in value between 1996 and 1997 due to the valuation methods under section 70.32 (2r) of the statutes, as created by this act, exceeds 10% of the municipality's or county's equalized value for 1996.

SB104-SSA1,12,5 (4) Nonseverability. Notwithstanding section 990.001 (11) of the statutes, if it is finally adjudicated that any provision of this act is unconstitutional, the entire act is void.

SB104-SSA1,12,14 (5) Legislative intent. Article VIII, section 1, of the Wisconsin Constitution authorizes the legislature to define by law a classification of agricultural land that may be taxed in a manner that is not uniform with the taxation of other property. The legislature intends that land devoted primarily to agricultural use, but not other uses, shall be valued for property tax purposes based on the income that can be generated from its use for agricultural purposes. To accomplish this intent, the legislature finds that it is necessary and is consistent with article VIII, section 1, to include within the definition of agricultural land a minimum acreage requirement and, for smaller parcels, a gross profits requirement.

SB104-SSA1, s. 28 Section 28. Effective dates. This act takes effect on the day after publication, except as follows:

SB104-SSA1,12,21 (1) The treatment of sections 70.05 (5) (a) 1m., 70.32 (1r), (2) (a) (intro.) and 5. to 7., (b) and (c) 1. and 1m., (2m) and (2r), 70.47 (7) (a), 70.57 (3), 73.03 (2a) and (49), 76.125 (1), 77.22 (2) (em) and (er) and (2m), 77.84 (2) (c), 452.05 (1m) (a) 2. and 895.52 (6) (d) 3., chapter 77 (title) and subchapter X of chapter 77 of the statutes takes effect on January 1, 1997.

SB104-SSA1,12,23 (2) The treatment of section 38.27 (1m) and (2) (b) and (g) of the statutes takes effect on July 1, 1997.

SB104-SSA1,12,25 (End)