RNK&JK:jld:ph
2009 - 2010 LEGISLATURE
April 15, 2010 - Introduced by Representative Schneider. Referred to Committee
on Forestry.
AB959,1,6 1An Act to amend 74.25 (1) (a) 6., 74.25 (1) (a) 8., 74.30 (1) (f), 74.30 (1) (h), 77.87
2(3), 77.88 (5) (a) 1., 77.88 (5) (a) 2., 77.88 (5) (ar) 1., 77.88 (5) (ar) 2., 77.88 (5)
3(b) 1., 77.88 (5) (b) 2. and 77.89 (2) (a); and to create 77.84 (2m) and 77.87 (3m)
4of the statutes; relating to: the due date for payment of yield taxes on
5merchantable timber cut on damaged managed forest land and the assessment
6of 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 1Section 1. 74.25 (1) (a) 6. of the statutes is amended to read:
AB959,2,52 74.25 (1) (a) 6. Pay to the county treasurer 20% of collections of occupational
3taxes on coal docks, 20% of collections of the taxes imposed under ss. 77.04 and 77.84
4(2) (a) and (am) and (2m), and all collections of payments for closed lands under s.
577.84 (2) (b) and (bm) and (2m).
AB959, s. 2 6Section 2. 74.25 (1) (a) 8. of the statutes is amended to read:
AB959,2,97 74.25 (1) (a) 8. Retain for the taxation district all woodland tax law collections
8under s. 77.16 and 80% of collections of the taxes imposed under ss. 77.04 and 77.84
9(2) (a) and (am) and (2m).
AB959, s. 3 10Section 3. 74.30 (1) (f) of the statutes is amended to read:
AB959,3,211 74.30 (1) (f) Pay to the county treasurer 20% of collections of occupational taxes
12on coal docks, 20% of collections of the taxes imposed under ss. 77.04 and 77.84 (2)

1(a) and (am) and (2m), and all collections of payments for closed lands under s. 77.84
2(2) (b) and (bm) and (2m).
AB959, s. 4 3Section 4. 74.30 (1) (h) of the statutes is amended to read:
AB959,3,64 74.30 (1) (h) Retain for the taxation district all woodland tax law collections
5under s. 77.16 and 80% of collections of the taxes imposed under ss. 77.04 and 77.84
6(2) (a) and (am) and (2m).
AB959, s. 5 7Section 5. 77.84 (2m) of the statutes is created to read:
AB959,3,88 77.84 (2m) Damaged areas. (a) In this subsection:
AB959,3,99 1. "Catastrophic event" has the meaning given in s. 77.87 (3m) (a) 1.
AB959,3,1010 2. "Tract" means a quarter-quarter-quarter section of managed forest land.
AB959,3,1711 (b) Notwithstanding the amounts specified under sub. (2), if the department
12determines that an owner's managed forest land qualifies for an extension of the due
13date for the payment of yield taxes under s. 77.87 (3m), and if that determination is
14based on a catastrophic event that occurred within the 15 years immediately
15preceding the expiration of the managed forest land order for the land, the owner
16shall pay the amounts specified in this subsection instead of the amounts specified
17under sub. (2).
AB959,3,2518 (c) For 10 years following the expiration of the managed forest land order in
19effect at the time of the catastrophic event, an owner of managed forest land
20described under par. (b) shall pay, for those tracts that qualify for an extension of the
21due date of yield taxes under s. 77.87 (3m), the annual per acre amount established
22under the order in effect at the time of the catastrophic event, provided that the
23managed forest land continues to be subject to a managed forest land order. During
24the 10-year period described in this paragraph, sub. (2) (c) and (cm) does not apply
25to the amount that is due and payable under this subsection.
AB959, s. 6
1Section 6. 77.87 (3) of the statutes is amended to read:
AB959,4,72 77.87 (3) Payment. A Except as provided under sub. (3m), a tax assessed under
3sub. (1) or (2) is due and payable to the department on the last day of the month
4following the date the certificate is mailed to the owner. The department shall collect
5interest at the rate of 12% per year on any tax that is paid later than the applicable
6due date under this subsection or sub. (3m) (c). Amounts received shall be credited
7to the conservation fund.
AB959, s. 7 8Section 7. 77.87 (3m) of the statutes is created to read:
AB959,4,99 77.87 (3m) Extension. (a) In this subsection:
AB959,4,1110 1. "Catastrophic event" means damage caused by fire, ice, snow, wind, flooding,
11insects, or disease.
AB959,4,1212 2. "Tract" means a quarter-quarter-quarter section of managed forest land.
AB959,4,1513 (b) An owner of managed forest land may file a petition with the department
14to extend the due date for the payment of a tax assessed under sub. (1) or (2) on
15merchantable timber cut on one or more tracts if all of the following apply:
AB959,4,1816 1. A catastrophic event caused a 50 percent or more reduction in the total
17stumpage value of the merchantable timber on all of the tracts for which the petition
18is filed.
AB959,4,2019 2. The tracts for which the petition is filed constitute at least 15 percent of the
20land under the owner's managed forest land order.
AB959,5,521 (c) A petition under par. (b) shall be signed by the owner and a department
22forester who certifies that the owner is eligible for an extension as provided under
23par. (b). The department may deny a petition that meets the requirements under par.
24(b) only if the owner has failed to comply with the management plan that is in effect
25on the date that the owner files the petition for extension or if there are delinquent

1property or yield taxes on the land. If the petition is denied, the department shall
2state the reason for the denial in writing. If the petition is approved, the department
3shall extend the due date for the payment of taxes assessed under sub. (1) or (2) for
4a period of 10 years following the date on which the department mails a copy of the
5certificate of assessment to the owner.
AB959, s. 8 6Section 8. 77.88 (5) (a) 1. of the statutes is amended to read:
AB959,5,107 77.88 (5) (a) 1. An amount equal to the past tax liability multiplied by the
8number of years the land was designated as managed forest land, less any amounts
9paid by the owner under ss. 77.84 (2) (a) and (am) and (2m) and 77.87 and less any
10amounts payable by the owner under s. 77.87 (3m)
.
AB959, s. 9 11Section 9. 77.88 (5) (a) 2. of the statutes is amended to read:
AB959,5,1412 77.88 (5) (a) 2. Five percent of the stumpage value of the merchantable timber
13on the land, less any amounts paid by the owner under ss. 77.84 (2) (a) and (am) and
14(2m)
and 77.87 and less any amounts payable by the owner under s. 77.87 (3m).
AB959, s. 10 15Section 10. 77.88 (5) (ar) 1. of the statutes is amended to read:
AB959,5,2316 77.88 (5) (ar) 1. For the portion of the land that is designated as managed forest
17land under the original order, an amount equal to the product of the total net
18property tax rate in the municipality in the year prior to the year in which the
19expanded order is approved and the assessed value of the land for the same year, as
20computed by the department of revenue, multiplied by the number of years under the
21original order, less any amounts paid by the owner under ss. 77.84 (2) (a) and (2m)
22and 77.87, and less any amounts payable by the owner under s. 77.87 (3m), during
23the time the land was designated as managed forest land under the original order.
AB959, s. 11 24Section 11. 77.88 (5) (ar) 2. of the statutes is amended to read:
AB959,6,7
177.88 (5) (ar) 2. An amount equal to the product of the total net property tax
2rate in the municipality in the year prior to this withdrawal and the assessed value
3of the land for the same year, as computed by the department of revenue, multiplied
4by the number of years the land was designated as land under the expanded order,
5less any amounts paid by the owner under ss. 77.84 (2) (am) and (2m) and 77.87, and
6less any amounts payable by the owner under s. 77.87 (3m),
during the time the land
7is designated as managed forest land under the expanded order.
AB959, s. 12 8Section 12. 77.88 (5) (b) 1. of the statutes is amended to read:
AB959,6,129 77.88 (5) (b) 1. An amount equal to the past tax liability multiplied by the
10number of years since the renewal, less any amounts paid by the owner under ss.
1177.84 (2) (a) and (am) and (2m) and 77.87 and less any amounts payable by the owner
12under s. 77.87 (3m)
.
AB959, s. 13 13Section 13. 77.88 (5) (b) 2. of the statutes is amended to read:
AB959,6,1614 77.88 (5) (b) 2. Five percent of the stumpage value of the merchantable timber
15on the land, less any amounts paid by the owner under ss. 77.84 (2) (a) and (am) and
16(2m)
and 77.87 and less any amounts payable by the owner under s. 77.87 (3m).
AB959, s. 14 17Section 14. 77.89 (2) (a) of the statutes is amended to read:
AB959,6,2418 77.89 (2) (a) Each municipal treasurer shall pay 20% of each payment received
19under sub. (1) and under ss. 77.84 (2) (a) and (am) and (2m), 77.85, and 77.876 to the
20county treasurer and shall deposit the remainder in the municipal treasury. The
21payment to the county treasurer for money received before November 1 of any year
22shall be made on or before the November 15 after its receipt. For money received on
23or after November 1 of any year, the payment to the county treasurer shall be made
24on or before November 15 of the following year.
AB959, s. 15 25Section 15. Initial applicability.
AB959,7,2
1(1) This act first applies to merchantable timber damaged on land that is
2subject to a managed forest land order on the effective date of this subsection.
AB959,7,33 (End)
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