AB75: Bill Text

AB75,1007,8 71.58 (1) (intro.) "Claimant" means an owner of farmland, as defined in s. 91.01 (9), 2007 stats., of farmland, domiciled in this state during the entire year for which a credit under this subchapter ss. 71.57 to 71.61 is claimed, except as follows:

AB75, s. 1746 Section 1746. 71.58 (1) (b) of the statutes is amended to read:

AB75,1007,13 71.58 (1) (b) If any person in a household has claimed or will claim credit under subch. VIII, all persons from that household are ineligible to claim any credit under this subchapter ss. 71.57 to 71.61 for the year to which the credit under subch. VIII pertained.

AB75, s. 1747 Section 1747. 71.58 (1) (d) of the statutes is amended to read:

AB75,1007,21 71.58 (1) (d) For purposes of filing a claim under this subchapter ss. 71.57 to 71.61, the personal representative of an estate and the trustee of a trust shall be deemed owners of farmland. "Claimant" does not include the estate of a person who is a nonresident of this state on the person's date of death, a trust created by a nonresident person, a trust which receives Wisconsin real property from a nonresident person or a trust in which a nonresident settlor retains a beneficial interest.

AB75, s. 1748 Section 1748. 71.58 (1) (e) of the statutes is amended to read:

AB75,1007,25 71.58 (1) (e) For purposes of filing a claim under this subchapter ss. 71.57 to 71.61, when land is subject to a land contract, the claimant shall be the vendee under the contract.

AB75, s. 1749 Section 1749. 71.58 (1) (f) of the statutes is amended to read:

AB75,1008,4 71.58 (1) (f) For purposes of filing a claim under this subchapter ss. 71.57 to 71.61, when a guardian has been appointed in this state for a ward who owns the farmland, the claimant shall be the guardian on behalf of the ward.

AB75, s. 1750 Section 1750. 71.58 (3) of the statutes is amended to read:

AB75,1008,14 71.58 (3) "Farmland" means 35 or more acres of real property in this state owned by the claimant or any member of the claimant's household during the taxable year for which a credit under this subchapter ss. 71.57 to 71.61 is claimed if the farmland, during that year, produced not less than $6,000 in gross farm profits resulting from the farmland's agricultural use, as defined in s. 91.01 (1), 2007 stats., or if the farmland, during that year and the 2 years immediately preceding that year, produced not less than $18,000 in such profits, or if at least 35 acres of the farmland, during all or part of that year, was enrolled in the conservation reserve program under 16 USC 3831 to 3836.

AB75, s. 1751 Section 1751. 71.58 (4) of the statutes is amended to read:

AB75,1008,21 71.58 (4) "Gross farm profits" means gross receipts, excluding rent, from agricultural use, as defined in s. 91.01 (1), 2007 stats., including the fair market value at the time of disposition of payments in kind for placing land in federal programs or payments from the federal dairy termination program under 7 USC 1446 (d), less the cost or other basis of livestock or other items purchased for resale which are sold or otherwise disposed of during the taxable year.

AB75, s. 1752 Section 1752. 71.58 (8) of the statutes is amended to read:

AB75,1009,20 71.58 (8) "Property taxes accrued" means property taxes, exclusive of special assessments, delinquent interest and charges for service, levied on the farmland and improvements owned by the claimant or any member of the claimant's household in any calendar year under ch. 70, less the tax credit, if any, afforded in respect of the property by s. 79.10. "Property taxes accrued" shall not exceed $6,000. If farmland is owned by a tax-option corporation, a limited liability company or by 2 or more persons or entities as joint tenants, tenants in common or partners or is marital property or survivorship marital property and one or more such persons, entities or owners is not a member of the claimant's household, "property taxes accrued" is that part of property taxes levied on the farmland, reduced by the tax credit under s. 79.10, that reflects the ownership percentage of the claimant and the claimant's household. For purposes of this subsection, property taxes are "levied" when the tax roll is delivered to the local treasurer for collection. If farmland is sold during the calendar year of the levy the "property taxes accrued" for the seller is the amount of the tax levy, reduced by the tax credit under s. 79.10, prorated to each in the closing agreement pertaining to the sale of the farmland, except that if the seller does not reimburse the buyer for any part of those property taxes there are no "property taxes accrued" for the seller, and the "property taxes accrued" for the buyer is the property taxes levied on the farmland, reduced by the tax credit under s. 79.10, minus, if the seller reimburses the buyer for part of the property taxes, the amount prorated to the seller in the closing agreement. With the claim for credit under this subchapter ss. 71.57 to 71.61, the seller shall submit a copy of the closing agreement and the buyer shall submit a copy of the closing agreement and a copy of the property tax bill.

AB75, s. 1753 Section 1753. 71.59 (1) (a) of the statutes is amended to read:

AB75,1010,5 71.59 (1) (a) Subject to the limitations provided in this subchapter ss. 71.57 to 71.61 and s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income or franchise taxes otherwise due, the amount derived under s. 71.60. If the allowable amount of claim exceeds the income or franchise taxes otherwise due on or measured by the claimant's income or if there are no Wisconsin income or franchise taxes due on or measured by the claimant's income, the amount of the claim not used as an offset against income or franchise taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft drawn on the general fund.

AB75, s. 1754 Section 1754. 71.59 (1) (b) (intro.) of the statutes is amended to read:

AB75,1010,9 71.59 (1) (b) (intro.) Every claimant under this subchapter ss. 71.57 to 71.61 shall supply, at the request of the department, in support of the claim, all of the following:

AB75, s. 1755 Section 1755. 71.59 (1) (b) 4. of the statutes is amended to read:

AB75,1010,13 71.59 (1) (b) 4. Certification by the claimant that each county land conservation committee with jurisdiction over the farmland has been notified that the claimant intends to submit a claim under this subchapter ss. 71.57 to 71.61.

AB75, s. 1756 Section 1756. 71.59 (1) (c) of the statutes is amended to read:

AB75,1010,21 71.59 (1) (c) A farmland preservation agreement submitted under par. (b) 3. shall contain provisions specified under s. 91.13 (8), 2007 stats., including either a provision requiring farming operations to be conducted in substantial accordance with a soil and water conservation plan prepared under s. 92.104, 2007 stats., or a provision requiring farming operations to be conducted in compliance with reasonable soil and water conservation standards established under s. 92.105, 2007 stats.

AB75, s. 1757 Section 1757. 71.59 (1) (d) 1. of the statutes is amended to read:

AB75,1010,25 71.59 (1) (d) 1. That the lands are within the boundaries of an agricultural zoning district which is part of an adopted ordinance meeting the standards of subch. V of ch. 91, 2007 stats., and certified under s. 91.06, 2007 stats.

AB75, s. 1758 Section 1758. 71.59 (1) (d) 5. of the statutes is amended to read:

AB75,1011,5 71.59 (1) (d) 5. That soil and water conservation standards applicable to the land are established and approved as required under s. 92.105 (1) to (3), 2007 stats., and that no notice of noncompliance is in effect under s. 92.105 (5) , 2007 stats., with respect to the claimant at the time the certificate is issued.

AB75, s. 1759 Section 1759. 71.59 (2) (intro.) of the statutes is amended to read:

AB75,1011,8 71.59 (2) Ineligible claims. (intro.) No credit shall be allowed under this subchapter ss. 71.57 to 71.61:

AB75, s. 1760 Section 1760. 71.59 (2) (b) of the statutes is amended to read:

AB75,1011,12 71.59 (2) (b) If a notice of noncompliance with an applicable soil and water conservation plan under s. 92.104, 2007 stats., is in effect with respect to the claimant at the time the claim is filed.

AB75, s. 1761 Section 1761. 71.59 (2) (c) of the statutes is amended to read:

AB75,1011,16 71.59 (2) (c) If a notice of noncompliance with applicable soil and water conservation standards under s. 92.105, 2007 stats., is in effect with respect to the claimant at the time the claim is filed.

AB75, s. 1762 Section 1762. 71.59 (2) (d) of the statutes is amended to read:

AB75,1011,21 71.59 (2) (d) For property taxes accrued on farmland zoned for exclusive agricultural use under an ordinance certified under subch. V of ch. 91, 2007 stats., which is granted a special exception or conditional use permit for a use which is not an agricultural use, as defined in s. 91.01 (1), 2007 stats.

AB75, s. 1763 Section 1763. 71.59 (2) (e) of the statutes is amended to read:

AB75,1011,25 71.59 (2) (e) If the department determines that ownership of the farmland has been transferred to the claimant primarily for the purpose of maximizing benefits under this subchapter ss. 71.57 to 71.61.

AB75, s. 1764 Section 1764. 71.60 (1) (b) of the statutes is amended to read:

AB75,1012,10 71.60 (1) (b) The credit allowed under this subchapter ss. 71.57 to 71.61 shall be limited to 90% of the first $2,000 of excessive property taxes plus 70% of the 2nd $2,000 of excessive property taxes plus 50% of the 3rd $2,000 of excessive property taxes. The maximum credit shall not exceed $4,200 for any claimant. The credit for any claimant shall be the greater of either the credit as calculated under this subchapter ss. 71.57 to 71.61 as it exists at the end of the year for which the claim is filed or as it existed on the date on which the farmland became subject to a current agreement under subch. II or III of ch. 91, 2007 stats., using for such calculations household income and property taxes accrued of the year for which the claim is filed.

AB75, s. 1765 Section 1765. 71.60 (1) (c) 1. of the statutes is amended to read:

AB75,1012,16 71.60 (1) (c) 1. If the farmland is located in a county which has a certified agricultural preservation plan under subch. IV of ch. 91, 2007 stats., at the close of the year for which credit is claimed and is in an area zoned by a county, city or village for exclusive agricultural use under ch. 91, 2007 stats., at the close of such year, the amount of the claim shall be that as specified in par. (b).

AB75, s. 1766 Section 1766. 71.60 (1) (c) 2. of the statutes is amended to read:

AB75,1013,2 71.60 (1) (c) 2. If the farmland is subject to a transition area agreement under subch. II of ch. 91, 2007 stats., on July 1 of the year for which credit is claimed, or the claimant had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, and the farmland is located in a city or village which has a certified exclusive agricultural use zoning ordinance under subch. V of ch. 91, 2007 stats., in effect at the close of the year for which credit is claimed, or in a town which is subject to a certified county exclusive agricultural use zoning ordinance under subch. V of ch. 91, 2007 stats., in effect at the close of the year for which credit is claimed, the amount of the claim shall be that as specified in par. (b).

AB75, s. 1767 Section 1767. 71.60 (1) (c) 3. of the statutes is amended to read:

AB75,1013,17 71.60 (1) (c) 3. If the claimant or any member of the claimant's household owns farmland which is ineligible for credit under subd. 1. or 2. but was subject to a farmland preservation agreement under subch. III of ch. 91, 2007 stats., on July 1 of the year for which credit is claimed, or the owner had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, and if the owner has applied by the end of the year in which conversion under s. 91.41, 2007 stats., is first possible for conversion of the agreement to a transition area agreement under subch. II of ch. 91, 2007 stats., and the transition area agreement has subsequently been executed, and the farmland is located in a city or village which has a certified exclusive agricultural use zoning ordinance under subch. V of ch. 91, 2007 stats., in effect at the close of the year for which credit is claimed, or in a town which is subject to a certified county exclusive agricultural use zoning ordinance under subch. V of ch. 91, 2007 stats., in effect at the close of the year for which credit is claimed, the amount of the claim shall be that specified in par. (b).

AB75, s. 1768 Section 1768. 71.60 (1) (c) 4. of the statutes is amended to read:

AB75,1013,25 71.60 (1) (c) 4. If the claimant or any member of the claimant's household owns farmland which is ineligible for credit under subd. 1. or 2. but which is subject to a farmland preservation agreement or a transition area agreement under subch. II of ch. 91, 2007 stats., on July 1 of the year for which credit is claimed, or the owner had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, the amount of the claim shall be limited to 80% of that specified in par. (b).

AB75, s. 1769 Section 1769. 71.60 (1) (c) 5. of the statutes is amended to read:

AB75,1014,11 71.60 (1) (c) 5. If the claimant or any member of the claimant's household owns farmland which is ineligible for credit under subds. 1. to 4. but was subject to a farmland preservation agreement under subch. III of ch. 91, 2007 stats., on July 1 of the year for which credit is claimed, or the owner had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, and if the owner has applied by the end of the year in which conversion under s. 91.41, 2007 stats., is first possible for conversion of the agreement to an agreement under subch. II of ch. 91, 2007 stats., and the agreement under subch. II of ch. 91, 2007 stats., has subsequently been executed, the amount of the claim shall be limited to 80% of that specified in par. (b).

AB75, s. 1770 Section 1770. 71.60 (1) (c) 6. of the statutes is amended to read:

AB75,1014,18 71.60 (1) (c) 6. If the farmland is located in an agricultural district under a certified county agricultural preservation plan under subch. IV of ch. 91, 2007 stats., at the close of the year for which credit is claimed, and is located in an area zoned for exclusive agricultural use under a certified town ordinance under subch. V of ch. 91, 2007 stats., at the close of such year, the amount of the claim shall be the amount specified in par. (b).

AB75, s. 1771 Section 1771. 71.60 (1) (c) 6m. of the statutes is amended to read:

AB75,1015,3 71.60 (1) (c) 6m. If the farmland is located in an agricultural district under a certified county agricultural preservation plan under subch. IV of ch. 91, 2007 stats., at the close of the year for which credit is claimed, and is located in an area zoned for exclusive agricultural use under a certified county or town ordinance under subch. V of ch. 91, 2007 stats., for part of a year but not at the close of that year because the farmland became subject to a city or village extraterritorial zoning ordinance under s. 62.23 (7a), the amount of the claim shall be equal to the amount that the claim would have been under this section if the farmland were subject to a certified county or town exclusive agricultural use ordinance at the close of the year.

AB75, s. 1772 Section 1772. 71.60 (1) (c) 7. of the statutes is amended to read:

AB75,1015,10 71.60 (1) (c) 7. If the farmland is located in an area zoned for exclusive agricultural use under a certified county, city or village ordinance under subch. V of ch. 91, 2007 stats., at the close of the year for which credit is claimed, but the county in which the farmland is located has not adopted an agricultural preservation plan under subch. IV of ch. 91, 2007 stats., by the close of such year, the amount of the claim shall be limited to 70% of that specified in par. (b).

AB75, s. 1773 Section 1773. 71.60 (1) (c) 8. of the statutes is amended to read:

AB75,1015,16 71.60 (1) (c) 8. If the farmland is subject to a farmland preservation agreement under subch. III of ch. 91, 2007 stats., on July 1 of the year for which credit is claimed or the claimant had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, the amount of the claim shall be limited to 50% of that specified in par. (b).

AB75, s. 1774 Section 1774. 71.60 (2) of the statutes is amended to read:

AB75,1015,22 71.60 (2) If the farmland is subject to a certified ordinance under subch. V of ch. 91, 2007 stats., or an agreement under subch. II of ch. 91, 2007 stats., in effect at the close of the year for which the credit is claimed, the amount of the claim is 10% of the property taxes accrued or the amount determined under sub. (1), whichever is greater.

AB75, s. 1775 Section 1775. 71.61 of the statutes is amended to read:

AB75,1016,2 71.61 General provisions. (1) Department may apply credit against any tax liability. The amount of any claim otherwise payable under this subchapter ss. 71.57 to 71.61 may be applied by the department against any amount certified to the department under s. 71.93 or 71.935 or may be credited under s. 71.80 (3) or (3m).

AB75,1016,5 (2) Credits are income. All amounts allowed as credits under this subchapter ss. 71.57 to 71.61 constitute income for income and franchise tax purposes and are reportable as such in the year of receipt.

AB75,1016,7 (3) Interest not allowed. No interest may be allowed on any payment made to a claimant under this subchapter ss. 71.57 to 71.61.

AB75,1016,10 (3m) Administration. The income tax provisions in this chapter relating to assessments, refunds, appeals and collection apply to the credit under this subchapter ss. 71.57 to 71.61.

AB75,1016,13 (4) Penalties. Unless specifically provided in this subchapter ss. 71.57 to 71.61, the penalties under subch. XIII apply for failure to comply with this subchapter ss. 71.57 to 71.61 unless the context requires otherwise.

AB75,1016,15 (5) Table prepared by department. The department shall prepare a table under which claims under this subchapter ss. 71.57 to 71.61 shall be determined.

AB75, s. 1776 Section 1776. 71.61 (6) of the statutes is created to read:

AB75,1016,23 71.61 (6) Prohibition of new claims. For taxable years beginning after December 31, 2009, no new claims for a credit may be filed under ss. 71.57 to 71.61, but if an otherwise eligible claimant is subject to a farmland preservation agreement, as defined in s. 91.01 (7), 2007 stats., that is in effect on July 1, 2010, the claimant may continue to file a claim for the credit under ss. 71.57 to 71.61 until the farmland preservation agreement expires, except that no claimant who files a claim under ss. 71.57 to 71.61 may file a claim under s. 71.613.

AB75, s. 1777 Section 1777. 71.613 of the statutes is created to read:

AB75,1017,2 71.613 Farmland preservation credit, 2010 and beyond. (1) Definitions. In this section:

AB75,1017,3 (a) "Agricultural use" has the meaning given in s. 91.01 (2).

AB75,1017,6 (b) "Claimant" means an owner, as defined in s. 91.01 (9), 2007 stats., of farmland, domiciled in this state during the entire taxable year to which the claim under this section relates, who files a claim under this section, except as follows:

AB75,1017,10 1. When 2 or more individuals of a household are able to qualify individually as a claimant, they may determine between them who the claimant shall be. If they are unable to agree, the matter shall be referred to the secretary of revenue, whose decision is final.

AB75,1017,13 2. If any person in a household has claimed or will claim credit under subch. VIII, all persons from that household are ineligible to claim any credit under this section for the year to which the credit under subch. VIII pertains.

AB75,1017,15 3. For partnerships except publicly traded partnerships treated as corporations under s. 71.22 (1k), "claimant" means each individual partner.

AB75,1017,17 4. For limited liability companies, except limited liability companies treated as corporations under s. 71.22 (1k), "claimant" means each individual member.

AB75,1017,23 5. For purposes of filing a claim under this section, the personal representative of an estate and the trustee of a trust shall be considered owners of farmland. "Claimant" does not include the estate of a person who is a nonresident of this state on the person's date of death, a trust created by a nonresident person, a trust which receives Wisconsin real property from a nonresident person or a trust in which a nonresident settlor retains a beneficial interest.

AB75,1017,25 6. For purposes of filing a claim under this section, when land is subject to a land contract, the claimant shall be the vendee under the contract.

AB75,1018,3 7. For purposes of filing a claim under this section, when a guardian has been appointed in this state for a ward who owns the farmland, the claimant shall be the guardian on behalf of the ward.

AB75,1018,4 8. For a tax-option corporation, "claimant" means each individual shareholder.

AB75,1018,5 (c) "Department" means the department of revenue.

AB75,1018,9 (d) "Farm" means a farm, as defined in s. 91.01 (13), that has produced at least $6,000 in gross farm revenues during the taxable year to which the claim relates or, in the taxable year to which the claim relates and the 2 immediately preceding taxable years, at least $18,000 in gross farm revenues.

AB75,1018,10 (e) "Farmland preservation agreement" has the meaning given in s. 91.01 (15).

AB75,1018,12 (f) "Farmland preservation zoning district" has the meaning given in s. 91.01 (18).

AB75,1018,16 (g) "Gross farm revenues" means gross receipts from agricultural use of a farm, excluding rent receipts, less the cost or other basis of livestock or other agricultural items purchased for resale which are sold or otherwise disposed of during the taxable year.

AB75,1018,18 (ge) "Household" means an individual and his or her spouse and all minor dependents.

AB75,1018,21 (h) "Qualifying acres" means the number of acres of a farm that correlate to a claimant's percentage of ownership interest in a farm to which one of the following applies:

AB75,1018,25 1. The farm is wholly or partially covered by a farmland preservation agreement, except that if the farm is only partially covered, the qualifying acres calculation includes only those acres which are covered by a farmland preservation agreement.

AB75,1019,2 2. The farm is located in a farmland preservation zoning district at the end of the taxable year to which the claim relates.