LRB-3105/1
MES:kjf:jf
2013 - 2014 LEGISLATURE
November 22, 2013 - Introduced by Representatives Weatherston, Bies, T.
Larson
, A. Ott and Smith, cosponsored by Senators Tiffany, Hansen, Lehman
and Schultz. Referred to Committee on State and Local Finance.
AB522,1,3 1An Act to create 66.0629 of the statutes; relating to: requiring a city, village,
2town, or county to share with overlying taxation jurisdictions certain payments
3for potential services received from a tax-exempt entity.
Analysis by the Legislative Reference Bureau
This bill requires a city, village, town, or county (political subdivision) that
receives a payment from a nonprofit entity, for a service it might render to
tax-exempt property owned by the entity, to share that payment with all of the
overlying taxation jurisdictions. Under the bill, the political subdivision and each
of the overlying taxation jurisdictions may retain only the same proportional amount
that they would have received from the entity if the property in question was not
tax-exempt and had in fact paid property taxes to all of the relevant taxation
jurisdictions.
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:
AB522,1 4Section 1. 66.0629 of the statutes is created to read:
AB522,1,5 566.0629 Payments for potential services. (1) Definitions. In this section:
AB522,2,4
1(a) "Agreement" means any type of agreement entered into between an entity
2and a political subdivision under which the entity agrees to make payments to the
3political subdivision for a service that the political subdivision may provide to the
4property that is owned by the entity and subject to the property tax exemption.
AB522,2,65 (b) "Entity" means a nonprofit entity that claims a property tax exemption
6under s. 70.11 (4), (4a), or (4d) for property owned by the entity.
AB522,2,77 (c) "Political subdivision" means a city, village, town, or county.
AB522,2,88 (d) "Service" has the meaning given in s. 66.0627 (1) (c).
AB522,2,17 9(2) Payments for services. (a) If a political subdivision receives any payment
10from an entity under an agreement, the political subdivision may not retain the
11entire amount of the payment. The political subdivision may retain the amount
12received multiplied by a fraction, the denominator of which is the total amount of
13property taxes that the entity would have paid, in the taxable year to which the
14exemption applies, on the property to which the agreement applies if the entity did
15not claim the tax exemption, and the numerator of which is the amount of property
16taxes the political subdivision would have received from the entity for that property
17in that taxable year.
AB522,3,318 (b) Any payment received by a political subdivision, as described under par. (a),
19that the political subdivision may not retain shall be forwarded to the overlying
20taxation jurisdictions that would have collected property taxes on the property in
21that taxable year if the entity did not claim the tax exemption. Each overlying
22taxation jurisdiction may retain the amount received by the political subdivision
23multiplied by a fraction, the denominator of which is the total amount of property
24taxes that the entity would have paid, in the taxable year to which the exemption
25applies, on the property to which the agreement applies if the entity did not claim

1the tax exemption, and the numerator of which is the amount of property taxes the
2overlying taxation jurisdiction would have received from the entity for that property
3in that taxable year.
AB522,2 4Section 2. Initial applicability.
AB522,3,65 (1) This act first applies to an agreement that is entered into on the effective
6date of this subsection.
AB522,3,77 (End)
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