LRB-4949/2
JS:kmg:km
1995 - 1996 LEGISLATURE
February 7, 1996 - Introduced by Law Revision Committee. Referred to Committee
on Ways and Means.
AB866,1,15 1An Act to repeal 70.995 (7) (c) and (d) and 70.995 (14); and to amend 59.20 (4m),
270.85 (7) (b), 70.995 (4), 74.30 (1) (intro.), 74.30 (2) (b), 74.33 (2), 74.37 (4) (c),
374.41 (1) (bn), 78.70 (7), 78.75 (1m) (c), 139.092, 139.39 (6) and 139.84 of the
4statutes; relating to: including property tax refunds made due to errors in the
5listing submitted to the department of revenue; deleting the prohibition on
6refunding or rescinding a property tax if the property is exempt from taxation;
7the statute of limitations for motor vehicle fuel, alcohol beverage and cigarette
8taxes; the date by which a county treasurer is required to furnish completed tax
9roll settlement sheets to the department of revenue; the settlement of the state's
10share of property taxes in taxation districts that allow multiple payments of
11those taxes; the deadline for settlement of property taxes in certain taxation
12districts; claims for property tax refunds; the length of time that certain motor
13vehicle fuel tax and aviation fuel tax records must be kept; outdated references
14to an assessment; and correcting obsolete phrasing for the tobacco products tax
15(suggested as remedial legislation by the department of revenue).
Analysis by the Legislative Reference Bureau
Under current law, the period during which the department of revenue (DOR)
is required to give notice of an additional assessment of motor vehicle fuel taxes,

alcohol beverage taxes and cigarette taxes begins on the day when the tax report is
filed. Under this bill, that period begins on the date when the tax report is due.
Under current law, a county treasurer is required to file completed tax roll
settlement sheets with DOR by April 15th of each year. This date was selected
because property tax settlement was done in March. 1987 Wisconsin Act 378 moved
the settlement date from March to February.
Under this bill, taxation districts that allow multiple payments of property
taxes pay the state's share of those taxes to counties, which, on or before August 20,
send that money to this state.
Under current law, a person who succeeds in an appeal to DOR about property
taxes after the local tax rate is determined may make a claim against the taxation
district for the excessive assessment. Under this bill, those persons may file a claim
with the taxation district under a different procedure.
Under current law, purchasers who send a list of fuel purchases to DOR must
keep the invoices for 3 years. This bill lengthens that period to 4 years.
This bill changes the deadline for settlement of property taxes in taxation
districts that allow multiple payments of those taxes. The current deadline is
February 15; under the bill, the deadline is February 20.
This bill deletes references to an assessment of manufacturing machinery and
equipment that occurred in 1974.
This bill corrects phrasing related to the tobacco products tax to reflect phrasing
changes made to the motor vehicle fuel tax.
For further information, see the Notes provided by the law revision committee
of the joint legislative council.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
Law revision committee prefatory note: This bill is a remedial legislation
proposal, requested by the department of revenue and introduced by the law revision
committee under s. 13.83 (1) (c) 4., stats. After careful consideration of the various
provisions of the bill, the law revision committee has determined that this bill makes
minor substantive changes in the statutes, and that these changes are desirable as a
matter of public policy.
AB866, s. 1 1Section 1. 59.20 (4m) of the statutes is amended to read:
AB866,2,32 59.20 (4m) Annually by April March 15th, furnish to the department of revenue
3the completed tax roll settlement sheets prescribed under s. 70.09 (3).
Note: Under current law, a county treasurer is required to file completed tax roll
settlement sheets with the department of revenue by April 15 of each year. This date was
selected because property tax settlement used to be done in March and in municipalities
that allow payment of taxes in more than 2 instalments, taxes are settled by the 15th day
of each month after an instalment payment is due, which would be April 15th for property

tax settlements done in March. 1987 Wisconsin Act 378 moved the settlement date from
March to February. However, the filing date was not changed to correspond with the
change in settlement date.
This amendment changes the date by which a county treasurer is required to file
completed tax roll settlement sheets with the department of revenue to March 15 of each
year, to correspond to the change in settlement date from March to February.
AB866, s. 2 1Section 2. 70.85 (7) (b) of the statutes is amended to read:
AB866,3,82 70.85 (7) (b) If the department of revenue has not completed the revaluation
3prior to the time of the tax levy, the tax upon property with respect to which the
4revaluation has not been completed shall be computed on the basis of the contested
5value of the property. The taxpayer shall pay in full the tax based upon the contested
6valuation. If the department of revenue reduces the valuation of the property, the
7taxpayer may file a claim under s. 74.37 70.511 (2) (b) for a refund of taxes resulting
8from the reduction in value.
Note: Under current law, a person who succeeds in an appeal with the department
of revenue about property taxes after the local tax rate is determined, may make a tax
claim against the taxation district for the excessive assessment. Currently, that claim is
made under s. 74.37 of the statutes relating to claims on excessive assessments. This is
an improper reference because the taxpayer is not seeking appeal but is seeking a
resolution of his or her appeal through a refund.
This amendment changes this cross-reference to s. 70.511 (2) (b), which relates to
delayed action of a reviewing authority, which stipulates the dates by which refunds must
be paid and the amount of interest owed.
AB866, s. 3 9Section 3. 70.995 (4) of the statutes is amended to read:
AB866,4,1310 70.995 (4) Whenever real property or tangible personal property is used for one,
11or some combination, of the processes mentioned in sub. (3) and also for other
12purposes, the department of revenue, if satisfied that there is substantial use in one
13or some combination of such processes, may assess the property under this section.
14For all purposes of this section the department of revenue shall have sole discretion
15for the determination of what is substantial use and what description of real property
16or what unit of tangible personal property shall constitute "the property" to be
17included for assessment purposes, and, in connection herewith, the department may

1include in a real property unit, real property owned by different persons. Vacant
2property designed for use in manufacturing, assembling, processing, fabricating,
3making or milling tangible property for profit may be assessed under this section or
4under s. 70.32 (1), and the period of vacancy may not be the sole ground for making
5that determination. In those specific instances where a portion of a description of
6real property includes manufacturing property rented or leased and operated by a
7separate person which does not satisfy the substantial use qualification for the entire
8property, the local assessor shall assess the entire real property description and all
9personal property not exempt under s. 70.11 (27). The manufacturing machinery and
10equipment shall be valued by the department of revenue under sub. (7) (c) and shall
11qualify for exemption under s. 70.11 (27).
The applicable portions of the standard
12manufacturing property report form under sub. (12) as they relate to manufacturing
13machinery and equipment shall be submitted by such person.
AB866, s. 4 14Section 4. 70.995 (7) (c) and (d) of the statutes are repealed.
Note: Between 1974 and 1978, the state made payments to municipalities based
on the value of property exempt from tax under the manufacturing machinery and
equipment exemption. Under current law, these payments no longer exist. However, the
statutes still contain language requiring a May 1, 1974 valuation of exempt
manufacturing machinery and equipment and a related penalty to manufacturers who
overstate the property value. This amendment deletes references to an assessment of
manufacturing machinery and equipment that occurred in 1974.
AB866, s. 5 15Section 5. 70.995 (14) of the statutes is repealed.
Note: Between 1974 and 1978, the state made payments to municipalities based
on the value of property exempt from tax under the manufacturing machinery and
equipment exemption. Under current law, these payments no longer exist. However, the
statutes still contain language requiring a May 1, 1974 valuation of exempt
manufacturing machinery and equipment and a related penalty to manufacturers who
overstate the property value. This amendment deletes references to an assessment of
manufacturing machinery and equipment that occurred in 1974.
AB866, s. 6 16Section 6. 74.30 (1) (intro.) of the statutes is amended to read:
AB866,4,1817 74.30 (1)February settlement. (intro.) On or before February 15 20, the
18taxation district treasurer shall do all of the following:

Note: Under current law, for jurisdictions that allow payment of taxes in 2
instalments, the property tax settlement date is February 20th. This date was changed
from February 15th by 1991 Wisconsin Act 39 in order to allow these districts to have
more time for the settlement process. However, 1991 Wisconsin Act 39 did not change the
February 15th settlement date for taxing jurisdictions with more than 2 property tax
instalments.
This amendment changes the settlement date for all multiple payment districts
from February 15th to February 20th, to promote uniform treatment of all taxation
districts that collect instalments.
AB866, s. 7 1Section 7. 74.30 (2) (b) of the statutes is amended to read:
AB866,5,82 74.30 (2) (b) Pay to each taxing jurisdiction within the district its proportionate
3share of real property taxes collected and, as, except that the taxation district
4treasurer shall pay the state's proportionate share to the county, and the county
5treasurer shall settle for that share under s. 74.29. As
part of that distribution, the
6taxation district treasurer shall
retain for the taxation district and for each tax
7incremental district within the taxation district its proportionate share of real
8property taxes.
Note: Under current law, multiple instalment taxation districts are required to
settle with each taxing jurisdiction a proportional share of the property taxes collected,
except that the taxation district pays the state's share of taxes to the county, which then
remits these taxes to the state. Two-payment districts also pay the state's share to the
county. However, in subsequent settlements by multiple instalment taxation districts,
there is no provision in current law that directs the taxation district to pay the state's
share of taxes to the county. As a result, the state receives payment from every multiple
instalment tax district for each subsequent settlement. Under this amendment, it is
provided that the state's share of taxes are always paid to the county, so that the state
receives one payment from each county that allows multiple payments at the time of the
county settlement, rather than 2 or more payments from the multiple instalment
taxation districts.
AB866, s. 8 9Section 8. 74.33 (2) of the statutes is amended to read:
AB866,5,1310 74.33 (2) Exceptions. The governing body of a taxation district may not refund
11or rescind any tax under this section if the alleged error may be appealed under s.
1270.995 (8) (c) or if the alleged error is solely that the assessor placed a valuation on
13the property that is excessive or that the property is exempt from taxation.
Note: One of the grounds for refunding property taxes in s. 74.33 (1) is if the
property is exempt by law from taxation, except as provided under s. 74.33 (2). However,
s. 74.33 (2) provides, in part, that a governing body of a taxation district may not refund

or rescind a property tax if the property is exempt from taxation. This amendment deletes
this conflicting language from s. 74.33 (2).
AB866, s. 9 1Section 9. 74.37 (4) (c) of the statutes is amended to read:
AB866,6,62 74.37 (4) (c) Except as provided in s. 70.85 (7) (b), no No claim or action for an
3excessive assessment may be brought or maintained under this section if the
4assessment of the property for the same year is contested under s. 70.47 (13) or 70.85.
5No assessment may be contested under s. 70.47 (13) or 70.85 if a claim is brought and
6maintained under this section based on the same assessment.
Note: Under current law, s. 74.37 of the statutes provides a procedure for making
a claim against a taxation district for an excessive assessment of property. This
amendment deletes an erroneous cross-reference to s. 70.85 (7) (b) of the statutes which
exists in s. 74.37 (4) (c) of the statutes. This cross-reference is improper, because s. 70.85
(7) (b) relates not to a claim for excessive assessment, but to a taxpayer seeking a refund
of taxes resulting from a reduction in valuation of property by the department of revenue.
AB866, s. 10 7Section 10. 74.41 (1) (bn) of the statutes is amended to read:
AB866,6,98 74.41 (1) (bn) Have been rescinded or refunded to taxpayers under s. 70.74 or
975.25 (2)
.
Note: Under current law, certain errors in property tax assessments are corrected
through taxpayer refunds or tax rescission. Section 74.41 outlines the process whereby
the cost of these corrections may be shared with overlying taxing jurisdictions. However,
this provision does not include refunds made under s. 75.25, which result from errors
discovered when property is officially listed as tax delinquent. This means that taxation
districts are not compensated for erroneous property assessments in this particular
instance, even though they are compensated for a variety of similar errors that are
discovered earlier in the tax processing year. This amendment adds property tax
payments that are refunded under s. 75.25 to the process whereby the cost of these
corrections may be shared with overlying taxing jurisdictions.
Loading...
Loading...