Under current law, property owned and used exclusively by benevolent
associations, including benevolent nursing homes and retirement homes for the
aged, is exempt from the property tax, if the property is not used for profit. This
substitute amendment modifies the property tax exemption under current law for
property owned by benevolent associations, including benevolent nursing homes and
retirement homes for the aged by setting forth the specific types of property owned
by a benevolent association that are exempt from property taxes.
Under the substitute amendment, the types of property owned by a benevolent
association that are exempt from the property tax are:
1. Nursing homes licensed under s. 50.03.
2. Community based residential facilities licensed under s. 50.03.
3. Adult family homes certified under s. 50.032 or licensed under s. 50.033.
4. Residential care apartment complexes registered or certified under s. 50.034.

5. Domestic abuse shelters.
6. Shelters for the homeless, including transitional housing facilities.
7. Housing for low-income persons that is operated in compliance with income
eligibility limits for federal low-income housing programs.
8. A residential facility that provides alcohol or other drug abuse (AODA)
treatment services or housing for persons with or recovering from AODA problems.
9. Residential housing for persons with permanent disabilities.
10. Housing for older persons, if the housing is affiliated with a
community-based residential facility, nursing home, or residential care apartment
complex.
11. Property that is not residential housing.
Under the substitute amendment, property owned by a benevolent association
that is residential housing is subject to the property tax if it does not fit within any
of the categories described above.
Under current law, nonresidential property owned and used exclusively by a
benevolent association is exempt from the property tax. Under the substitute
amendment, nonresidential property owned by a church or religious association is
exempt from the property tax.
Under current law, if property that is exempt from property taxes is leased, the
property retains its tax exemption only if the owner uses all of the leasehold income
for maintenance of the leased property or construction debt retirement of the leased
property or both.
The substitute amendment provides that leasing property owned by benevolent
associations and certain education associations as residential housing does not
render the property taxable if the property owner uses all of the lease income to
support its benevolent or educational activities, or in the case of a church or religious
association, to support the activities of the church or association. In addition, the
substitute amendment provides that a property owner may not discriminate based
on race.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB573-ASA2, s. 1 1Section 1. 70.11 (intro.) of the statutes is amended to read:
AB573-ASA2,3,22 270.11 Property exempted from taxation. (intro.) The property described
3in this section is exempted from general property taxes if the property is exempt
4under sub. (1), (2), (18), (21), (27) or (30); if it was exempt for the previous year and
5its use, occupancy or ownership did not change in a way that makes it taxable; if the
6property was taxable for the previous year, the use, occupancy or ownership of the

1property changed in a way that makes it exempt and its owner, on or before March 1,
2files with the assessor of the taxation district where the property is located a form
3that the department of revenue prescribes or if the property did not exist in the
4previous year and its owner, on or before March 1, files with the assessor of the
5taxation district where the property is located a form that the department of revenue
6prescribes. Leasing a part of the property described in this section does not render
7it taxable if, except for property described in sub. (4), the lessor uses all of the
8leasehold income for maintenance of the leased property or construction debt
9retirement of the leased property, or both, and, except for residential housing, if the
10lessee would be exempt from taxation under this chapter if it owned the property.
11Leasing property described in sub. (4) as residential housing does not render it
12taxable if the property owner uses all of the leasehold income to support the
13benevolent or educational activities of the owner, or, in the case of a church or
14religious association, to support the activities of the church or association, and the
15activities are undertaken in the county where the tax-exempt property is located or
16in a contiguous county. In addition, leasing property described in sub. (4) (c) 7. or (i)
17as residential housing does not render it taxable if the property owner uses all of the
18leasehold income to support the provision of similar housing anywhere in this state.

19Any lessor who claims that leased property is exempt from taxation under this
20chapter shall, upon request by the tax assessor, provide records relating to the
21lessor's use of the income from the leased property. Property exempted from general
22property taxes is:
AB573-ASA2, s. 2 23Section 2. 70.11 (4) of the statutes is renumbered 70.11 (4) (intro.) and
24amended to read:
AB573-ASA2,4,18
170.11 (4) (intro.) Property owned and used exclusively by educational any of the
2entities described in this subsection while such property is used not for profit.
3Property that is exempt from taxation under this subsection and is leased remains
4exempt from taxation only if, in addition to the requirements specified in the
5introductory phrase of this section, the property owner and the lessee do not
6discriminate on the basis of race. The amount of land exempt under this subsection
7may not exceed 10 acres of land necessary for location and convenience of buildings,
8except as provided in par. (b). This subsection does not include property owned by
9an organization that is organized under s. 185.981 or ch. 611, 613, or 614 and that
10offers a health maintenance organization as defined in s. 609.01 (2) or a limited
11service health organization as defined in s. 609.01 (3) or by an organization that is
12issued a certificate of authority under ch. 618 and that offers a health maintenance
13organization or a limited service health organization or by any nonstock, nonprofit
14corporation which services guaranteed student loans for others or on its own account.
15For purposes of this subsection, "benevolent association" means an organization that
16is described in section 501 (c) of the Internal Revenue Code and that is exempt from
17taxation under section 501 (a) of the Internal Revenue Code. The property of the
18following entities is exempt from taxation under this subsection:
AB573-ASA2,4,20 19(a) Educational institutions offering regular courses 6 months in the year; or
20by churches
and educational associations.
AB573-ASA2,5,12 21(b) Churches or religious, educational or benevolent associations, including
22benevolent nursing homes and retirement homes for the aged but not including an
23organization that is organized under s. 185.981 or ch. 611, 613 or 614 and that offers
24a health maintenance organization as defined in s. 609.01 (2) or a limited service
25health organization as defined in s. 609.01 (3) or an organization that is issued a

1certificate of authority under ch. 618 and that offers a health maintenance
2organization or a limited service health organization and not including property
3owned by any nonstock, nonprofit corporation which services guaranteed student
4loans for others or on its own account, and also
including property owned and used
5for housing for pastors and their ordained assistants, members of religious orders
6and communities, and ordained teachers, whether or not contiguous to and a part of
7other property owned and used by such associations or churches; or by women's, but
8not other types of residential housing except for the property described in par. (c).
9Property owned by churches or religious associations necessary for location and
10convenience of buildings, used for educational purposes and not for profit, shall not
11be subject to the 10-acre limitation under this subsection but shall be subject to a
1230-acre limitation.
AB573-ASA2,5,13 13(e) Women's clubs; or by domestic,.
AB573-ASA2,5,14 14(f) Domestic incorporated historical societies; or by domestic,.
AB573-ASA2,5,15 15(g) Domestic incorporated, free public library associations; or by fraternal.
AB573-ASA2,5,25 16(h) Fraternal societies operating under the lodge system (except university,
17college and high school fraternities and sororities), but not exceeding 10 acres of land
18necessary for location and convenience of buildings while such property is not used
19for profit. Property owned by churches or religious associations necessary for
20location and convenience of buildings, used for educational purposes and not for
21profit, shall not be subject to the 10-acre limitation but shall be subject to a 30-acre
22limitation. Property that is exempt from taxation under this subsection and is leased
23remains exempt from taxation only if, in addition to the requirements specified in the
24introductory phrase of this section, the lessee does not discriminate on the basis of
25race
, except university, college, and high school fraternities and sororities.
AB573-ASA2, s. 3
1Section 3. 70.11 (4) (c) of the statutes is created to read:
AB573-ASA2,6,32 70.11 (4) (c) Benevolent associations, churches, or religious associations, if the
3property is used for any or any combination of the following purposes:
AB573-ASA2,6,44 1. A nursing home licensed under s. 50.03.
AB573-ASA2,6,55 2. A community-based residential facility licensed under s. 50.03.
AB573-ASA2,6,66 3. An adult family home certified under s. 50.032 or licensed under s. 50.033.
AB573-ASA2,6,77 4. A residential care apartment complex registered or certified under s. 50.034.
AB573-ASA2,6,88 5. A domestic abuse shelter.
AB573-ASA2,6,99 6. A shelter for the homeless, including transitional housing facilities.
AB573-ASA2,6,1910 7. Housing for low-income persons that is operated in compliance with sections
113.01 and 3.02 (1), (2), and (3), or that is provided as part of a program described in
12section 4.02 (4) or 4.02 (9), of the Internal Revenue Service revenue procedure 96-32.
13In order to claim the exemption under this subdivision, the property owner shall
14provide the assessor an affidavit stating that the property meets the requirements
15under this subdivision. For the purposes of this subdivision, "project", as used in
16Internal Revenue Service revenue procedure 96-32, includes property located on
17more than one tax parcel, if the parcels are owned or operated by the same person
18and are adjacent, separated only by a street or other public right-of-way, or within
19the same condominium development.
AB573-ASA2,6,2220 8. A residential facility, the primary purpose of which is to provide alcohol or
21other drug abuse treatment or services or housing for persons with, or who are
22recovering from, alcohol or other drug abuse problems.
AB573-ASA2,7,223 9. Residential housing that is occupied by one or more persons with permanent
24disabilities, for whom evidence is available that demonstrates that these persons

1meet the medical definition of permanent disability used to determine eligibility for
2programs administered by the federal social security administration.
AB573-ASA2,7,103 10. Housing for older persons that is affiliated with a community-based
4residential facility or nursing home licensed under s. 50.03 or a residential care
5apartment complex registered or certified under s. 50.034, any one of which is located
6within the same county or a contiguous county. Housing for older persons will be
7considered affiliated if it meets the definition of an affiliate under s. 180.0103 (1) and
8the affiliated entity is not for profit. For purposes of this subdivision, "housing for
9older persons" means housing that is solely intended for and primarily occupied by
10persons who are 62 years of age or older.
AB573-ASA2, s. 4 11Section 4. 70.11 (4) (d) of the statutes is created to read:
AB573-ASA2,7,1212 70.11 (4) (d) Benevolent associations, if the property is not residential.
AB573-ASA2, s. 5 13Section 5. 70.11 (4) (i) of the statutes is created to read:
AB573-ASA2,7,1614 70.11 (4) (i) All property owned by an eligible sponsor, as defined in s. 234.01
15(5), that is used exclusively to provide housing for persons and families of low and
16moderate income.
AB573-ASA2, s. 6 17Section 6. Initial applicability.
AB573-ASA2,7,1918 (1) This act first applies retroactively to the property tax assessments as of
19January 1, 2004.
AB573-ASA2, s. 7 20Section 7. Effective date.
AB573-ASA2,7,2121 (1) This act takes effect retroactively on January 1, 2004.
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