AB703: Bill Text

LRB-3852/1

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2009 - 2010 LEGISLATURE

2009 Assembly BILL 703

February 5, 2010 - Introduced by Representatives Hixson, Davis, Kaufert, Turner, Benedict and Townsend, cosponsored by Senators Robson, Schultz, Lassa, Erpenbach and Coggs. Referred to Committee on Urban and Local Affairs.

AB703,1,3 An Act to amend 70.57 (1) (d); and to create 70.57 (1) (e) and 70.57 (2) (c) of the statutes; relating to: correcting errors in the assessment of counties and taxation districts by the Department of Revenue.

Analysis by the Legislative Reference Bureau

Under current law, the Department of Revenue (DOR) annually completes an assessment of the property located in each county or taxation district. That assessment becomes the county's and taxation district's "equalized value" for the year of the assessment. If DOR discovers an error in its equalized value for any county or municipality, DOR, generally, corrects the error by adjusting the equalized value for the year after the year in which the error occurred.

Under this bill, DOR must recertify a taxation district's equalized value in the same year that an error is discovered if all of the following apply:

1. DOR discovers the error before October 1 of the year for which the error relates.

2. The amount of the error increases or decreases the equalized value by more than $10,000,000.

3. The amount of the error exceeds an amount equal to 7.5 percent of the taxation district's corrected equalized value, excluding any value attributable to value increments in tax incremental districts.

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:

AB703, s. 1 Section 1. 70.57 (1) (d) of the statutes is amended to read:

AB703,2,10 70.57 (1) (d) In Except as provided in par. (e), in any case where the department, through mistake or inadvertence, has assessed to any county or taxation district, in the current year or in the previous year, a greater or less valuation for any year than should have been assessed, it shall correct the error. The department shall add or subtract, as the case may be, from the valuation of the county or taxation district, as determined by the department at the assessment in the year after the error is discovered, the amount omitted from or added to the true valuation of the county in the former assessment in consequence of the error. The result shall be taken as the full value of the county for the latter year and a final correction of the error.

AB703, s. 2 Section 2. 70.57 (1) (e) of the statutes is created to read:

AB703,2,14 70.57 (1) (e) The department shall recertify a taxation district's equalized value in the same year that an error is discovered in the taxation district's equalized value if all of the following apply:

AB703,2,16 1. The department discovers the error before October 1 of the year for which the error relates.

AB703,2,18 2. The amount of the error increases or decreases the equalized value by more than $10,000,000.

AB703,2,21 3. The amount of the error exceeds an amount equal to 7.5 percent of the taxation district's corrected equalized value, excluding any value attributable to value increments in tax incremental districts.

AB703, s. 3 Section 3. 70.57 (2) (c) of the statutes is created to read:

AB703,3,4 70.57 (2) (c) If the department recertifies a taxation district's equalized value under sub. (1) (e), the department shall recertify the value of all underlying school districts.

AB703, s. 4 Section 4. Initial applicability.

AB703,3,6 (1) This act first applies to assessments made in 2010.

AB703,3,7 (End)