AB959: Bill Text

LRB-4319/1

RNK&JK:jld:ph

2009 - 2010 LEGISLATURE

2009 Assembly BILL 959

April 15, 2010 - Introduced by Representative Schneider. Referred to Committee on Forestry.

AB959,1,6 An Act to amend 74.25 (1) (a) 6., 74.25 (1) (a) 8., 74.30 (1) (f), 74.30 (1) (h), 77.87 (3), 77.88 (5) (a) 1., 77.88 (5) (a) 2., 77.88 (5) (ar) 1., 77.88 (5) (ar) 2., 77.88 (5) (b) 1., 77.88 (5) (b) 2. and 77.89 (2) (a); and to create 77.84 (2m) and 77.87 (3m) of the statutes; relating to: the due date for payment of yield taxes on merchantable timber cut on damaged managed forest land and the assessment of payments per acre for damaged managed forest land.

Analysis by the Legislative Reference Bureau

Under current law, the Department of Natural Resources (DNR) administers the managed forest land (MFL) program that exempts a landowner from payment of municipal property taxes on land in the program in exchange for the landowner's payment of an acreage share (acreage share payments), which is lower than the municipal property tax, and for the landowner's compliance with approved forestry and other conservation practices. The duration of an MFL order may be either 25 or 50 years.

Current law also provides that, when merchantable timber is cut from MFL, a yield tax of 5 percent is imposed on the stumpage value of the timber. "Stumpage value" is the value of timber before it is cut as estimated in rules promulgated by DNR.

This bill allows the owner of MFL to apply to DNR to extend the due date for the payment of yield taxes by an additional ten years from the date on which those taxes would ordinarily be due, under certain circumstances. An owner may apply for an extension if a catastrophic event caused a 50 percent or more reduction in the total stumpage value of the merchantable timber on all of the tracts of MFL for which the owner applies for an extension. The bill defines a "catastrophic event" as damage caused by fire, ice, snow, wind, flooding, insects, or disease. The bill provides that the owner is eligible for the extension only if the damaged tracts of MFL constitute at least 15 percent of the land under the owner's MFL order.

The bill also allows an owner of MFL to make acreage share payments in a reduced amount for a period of ten years following the expiration of the MFL order under certain limited circumstances. To be eligible for the reduced payments, the MFL owner must qualify for an extension of the due date for the payment of yield taxes on the MFL based on a catastrophic event that occurred within 15 years before the expiration of the MFL order for the land. The land must also be reenrolled in the MFL program. Under these circumstances, the owner may make acreage share payments in the amount required under the MFL order that was in effect at the time of the catastrophic event instead of the amount that would otherwise be due.

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:

AB959, s. 1 Section 1. 74.25 (1) (a) 6. of the statutes is amended to read:

AB959,2,5 74.25 (1) (a) 6. Pay to the county treasurer 20% of collections of occupational taxes on coal docks, 20% of collections of the taxes imposed under ss. 77.04 and 77.84 (2) (a) and (am) and (2m), and all collections of payments for closed lands under s. 77.84 (2) (b) and (bm) and (2m).

AB959, s. 2 Section 2. 74.25 (1) (a) 8. of the statutes is amended to read:

AB959,2,9 74.25 (1) (a) 8. Retain for the taxation district all woodland tax law collections under s. 77.16 and 80% of collections of the taxes imposed under ss. 77.04 and 77.84 (2) (a) and (am) and (2m).

AB959, s. 3 Section 3. 74.30 (1) (f) of the statutes is amended to read:

AB959,3,2 74.30 (1) (f) Pay to the county treasurer 20% of collections of occupational taxes on coal docks, 20% of collections of the taxes imposed under ss. 77.04 and 77.84 (2) (a) and (am) and (2m), and all collections of payments for closed lands under s. 77.84 (2) (b) and (bm) and (2m).

AB959, s. 4 Section 4. 74.30 (1) (h) of the statutes is amended to read:

AB959,3,6 74.30 (1) (h) Retain for the taxation district all woodland tax law collections under s. 77.16 and 80% of collections of the taxes imposed under ss. 77.04 and 77.84 (2) (a) and (am) and (2m).

AB959, s. 5 Section 5. 77.84 (2m) of the statutes is created to read:

AB959,3,8 77.84 (2m) Damaged areas. (a) In this subsection:

AB959,3,9 1. "Catastrophic event" has the meaning given in s. 77.87 (3m) (a) 1.

AB959,3,10 2. "Tract" means a quarter-quarter-quarter section of managed forest land.

AB959,3,17 (b) Notwithstanding the amounts specified under sub. (2), if the department determines that an owner's managed forest land qualifies for an extension of the due date for the payment of yield taxes under s. 77.87 (3m), and if that determination is based on a catastrophic event that occurred within the 15 years immediately preceding the expiration of the managed forest land order for the land, the owner shall pay the amounts specified in this subsection instead of the amounts specified under sub. (2).

AB959,3,25 (c) For 10 years following the expiration of the managed forest land order in effect at the time of the catastrophic event, an owner of managed forest land described under par. (b) shall pay, for those tracts that qualify for an extension of the due date of yield taxes under s. 77.87 (3m), the annual per acre amount established under the order in effect at the time of the catastrophic event, provided that the managed forest land continues to be subject to a managed forest land order. During the 10-year period described in this paragraph, sub. (2) (c) and (cm) does not apply to the amount that is due and payable under this subsection.

AB959, s. 6 Section 6. 77.87 (3) of the statutes is amended to read:

AB959,4,7 77.87 (3) Payment. A Except as provided under sub. (3m), a tax assessed under sub. (1) or (2) is due and payable to the department on the last day of the month following the date the certificate is mailed to the owner. The department shall collect interest at the rate of 12% per year on any tax that is paid later than the applicable due date under this subsection or sub. (3m) (c). Amounts received shall be credited to the conservation fund.

AB959, s. 7 Section 7. 77.87 (3m) of the statutes is created to read:

AB959,4,9 77.87 (3m) Extension. (a) In this subsection:

AB959,4,11 1. "Catastrophic event" means damage caused by fire, ice, snow, wind, flooding, insects, or disease.

AB959,4,12 2. "Tract" means a quarter-quarter-quarter section of managed forest land.

AB959,4,15 (b) An owner of managed forest land may file a petition with the department to extend the due date for the payment of a tax assessed under sub. (1) or (2) on merchantable timber cut on one or more tracts if all of the following apply:

AB959,4,18 1. A catastrophic event caused a 50 percent or more reduction in the total stumpage value of the merchantable timber on all of the tracts for which the petition is filed.

AB959,4,20 2. The tracts for which the petition is filed constitute at least 15 percent of the land under the owner's managed forest land order.

AB959,5,5 (c) A petition under par. (b) shall be signed by the owner and a department forester who certifies that the owner is eligible for an extension as provided under par. (b). The department may deny a petition that meets the requirements under par. (b) only if the owner has failed to comply with the management plan that is in effect on the date that the owner files the petition for extension or if there are delinquent property or yield taxes on the land. If the petition is denied, the department shall state the reason for the denial in writing. If the petition is approved, the department shall extend the due date for the payment of taxes assessed under sub. (1) or (2) for a period of 10 years following the date on which the department mails a copy of the certificate of assessment to the owner.

AB959, s. 8 Section 8. 77.88 (5) (a) 1. of the statutes is amended to read:

AB959,5,10 77.88 (5) (a) 1. An amount equal to the past tax liability multiplied by the number of years the land was designated as managed forest land, less any amounts paid by the owner under ss. 77.84 (2) (a) and (am) and (2m) and 77.87 and less any amounts payable by the owner under s. 77.87 (3m).

AB959, s. 9 Section 9. 77.88 (5) (a) 2. of the statutes is amended to read:

AB959,5,14 77.88 (5) (a) 2. Five percent of the stumpage value of the merchantable timber on the land, less any amounts paid by the owner under ss. 77.84 (2) (a) and (am) and (2m) and 77.87 and less any amounts payable by the owner under s. 77.87 (3m).

AB959, s. 10 Section 10. 77.88 (5) (ar) 1. of the statutes is amended to read:

AB959,5,23 77.88 (5) (ar) 1. For the portion of the land that is designated as managed forest land under the original order, an amount equal to the product of the total net property tax rate in the municipality in the year prior to the year in which the expanded order is approved and the assessed value of the land for the same year, as computed by the department of revenue, multiplied by the number of years under the original order, less any amounts paid by the owner under ss. 77.84 (2) (a) and (2m) and 77.87, and less any amounts payable by the owner under s. 77.87 (3m), during the time the land was designated as managed forest land under the original order.

AB959, s. 11 Section 11. 77.88 (5) (ar) 2. of the statutes is amended to read:

AB959,6,7 77.88 (5) (ar) 2. An amount equal to the product of the total net property tax rate in the municipality in the year prior to this withdrawal and the assessed value of the land for the same year, as computed by the department of revenue, multiplied by the number of years the land was designated as land under the expanded order, less any amounts paid by the owner under ss. 77.84 (2) (am) and (2m) and 77.87, and less any amounts payable by the owner under s. 77.87 (3m), during the time the land is designated as managed forest land under the expanded order.

AB959, s. 12 Section 12. 77.88 (5) (b) 1. of the statutes is amended to read:

AB959,6,12 77.88 (5) (b) 1. An amount equal to the past tax liability multiplied by the number of years since the renewal, less any amounts paid by the owner under ss. 77.84 (2) (a) and (am) and (2m) and 77.87 and less any amounts payable by the owner under s. 77.87 (3m).

AB959, s. 13 Section 13. 77.88 (5) (b) 2. of the statutes is amended to read:

AB959,6,16 77.88 (5) (b) 2. Five percent of the stumpage value of the merchantable timber on the land, less any amounts paid by the owner under ss. 77.84 (2) (a) and (am) and (2m) and 77.87 and less any amounts payable by the owner under s. 77.87 (3m).