LRB-2068/1
RNK&JK:wlj:md
2011 - 2012 LEGISLATURE
June 10, 2011 - Introduced by Senators Lassa, Holperin and Hansen, cosponsored
by Representatives Spanbauer, Turner and Berceau. Referred to Committee
on Agriculture, Forestry, and Higher Education.
SB126,1,6 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 MFL program in exchange for the
landowner's payment of an acreage share, which is lower than the municipal
property tax, and for the landowner's compliance with approved forestry and other
conservation practices. The acreage share is generally determined based on an
amount equal to a percentage of the average statewide property tax per acre. The
duration of an MFL order may be either 25 or 50 years. Current law also requires
an MFL owner who cuts merchantable timber on the land to pay a yield tax that is
equal to 5 percent of the stumpage value of that timber. "Stumpage value" is the
value of timber before it is cut as established in rules promulgated by DNR.
This bill allows an MFL owner to request that DNR extend the due date for the
payment of yield taxes on the land under certain circumstances. An owner is eligible

for an extension if a catastrophic event caused at least a 50 percent reduction in the
total stumpage value of the merchantable timber on all of the tracts of land for which
the owner requests an extension, if the tracts of land for which the extension is
requested constitute at least 15 percent of the land under the owner's MFL order, and
if a DNR forester certifies that the owner is eligible for the extension. The bill defines
a "catastrophic event" as damage caused by fire, ice, snow, wind, flooding, insects, or
disease. If the request is approved, DNR must extend the due date for the payment
of the yield taxes on the affected land for ten years.
The bill also allows an MFL owner whose land was affected by a catastrophic
event to pay, for ten years, the annual per acreage amount established at the time
of the catastrophic event rather than the amount that would otherwise be payable.
Under the bill, an MFL owner may pay this alternative amount if the land qualifies
for an extension of the due date for the payment of yield taxes based on a catastrophic
event, if the catastrophic event occurred within the 15 years immediately preceding
the expiration of the owner's MFL order for the land, and if the land continues to be
subject to an MFL order for the relevant ten years.
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:
SB126, s. 1 1Section 1. 74.25 (1) (a) 6. of the statutes is amended to read:
SB126,2,52 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).
SB126, s. 2 6Section 2. 74.25 (1) (a) 8. of the statutes is amended to read:
SB126,2,97 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).
SB126, s. 3 10Section 3. 74.30 (1) (f) of the statutes is amended to read:
SB126,3,211 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).
SB126, s. 4 3Section 4. 74.30 (1) (h) of the statutes is amended to read:
SB126,3,64 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).
SB126, s. 5 7Section 5. 77.84 (2m) of the statutes is created to read:
SB126,3,88 77.84 (2m) Damaged areas. (a) In this subsection:
SB126,3,99 1. "Catastrophic event" has the meaning given in s. 77.87 (3m) (a) 1.
SB126,3,1010 2. "Tract" has the meaning given in s. 77.87 (3m) (a) 2.
SB126,3,1711 (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
16may pay the amount specified in this subsection instead of the amount specified
17under sub. (2).
SB126,3,2518 (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) may 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.
SB126, s. 6
1Section 6. 77.87 (3) of the statutes is amended to read:
SB126,4,72 77.87 (3) Payment. A Except as provided in sub. (3m), a tax assessed under
3sub. (1) or (2) is due and payable to the department on the last day of the next 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.
SB126, s. 7 8Section 7. 77.87 (3m) of the statutes is created to read:
SB126,4,99 77.87 (3m) Extension. (a) In this subsection:
SB126,4,1110 1. "Catastrophic event" means damage caused by fire, ice, snow, wind, flooding,
11insects, or disease.
SB126,4,1212 2. "Tract" means a quarter-quarter-quarter section of managed forest land.
SB126,4,1513 (b) An owner of managed forest land may file a request 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:
SB126,4,1816 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 request
18is filed.
SB126,4,2019 2. The tracts for which the request is filed constitute at least 15 percent of the
20land under the owner's managed forest land order.
SB126,5,521 (c) A request 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 request 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 request for extension or if there are delinquent

1property or yield taxes on the land. If the request is denied, the department shall
2state the reason for the denial in writing. If the request is approved, the department
3shall extend the due date for the payment of taxes assessed under sub. (1) or (2) for
410 years following the date on which the department mails a copy of the certificate
5of assessment to the owner.
SB126, s. 8 6Section 8. 77.88 (5) (a) 1. of the statutes is amended to read:
SB126,5,107 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)
.
SB126, s. 9 11Section 9. 77.88 (5) (a) 2. of the statutes is amended to read:
SB126,5,1412 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).
SB126, s. 10 15Section 10. 77.88 (5) (ar) 1. of the statutes is amended to read:
SB126,5,2316 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.
SB126, s. 11 24Section 11. 77.88 (5) (ar) 2. of the statutes is amended to read:
SB126,6,7
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.
SB126, s. 12 8Section 12. 77.88 (5) (b) 1. of the statutes is amended to read:
SB126,6,129 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)
.
SB126, s. 13 13Section 13. 77.88 (5) (b) 2. of the statutes is amended to read:
SB126,6,1614 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).
SB126, s. 14 17Section 14. 77.89 (2) (a) of the statutes is amended to read:
Loading...
Loading...