77.88(2)(c)
(c) If the remaining land does not meet the eligibility requirements under
s. 77.82 (1) (a) 2. and
(b), the department shall issue an order withdrawing the land and shall assess against the owner the tax under
sub. (5). Notwithstanding
s. 77.90, the owner is not entitled to a hearing on an order withdrawing land under this paragraph.
77.88(2)(d)
(d) Within 10 days after a transfer of ownership, the former owner shall, on a form provided by the department, file with the department a report of the transfer signed by the former owner and the transferee. The report shall be accompanied by a $20 fee which shall be deposited in the conservation fund and credited to the appropriation under
s. 20.370 (1) (cr). The department shall immediately notify each person entitled to notice under
s. 77.82 (8).
77.88(2)(e)
(e) The transferred land shall remain managed forest land if the transferee, within 30 days after the transfer, certifies to the department an intent to comply with the existing management plan for the land and with any amendments agreed to by the department and the transferee, and provides proof that each person holding any encumbrance on the land agrees to the designation. The transferee may designate an area of the transferred land closed to public access as provided under
s. 77.83. The department shall issue an order continuing the designation of the land as managed forest land under the new ownership.
77.88(2)(f)
(f) If the transferee does not provide the department with the certification required under
par. (e), the department shall issue an order withdrawing the land and shall assess against the transferee the tax under
sub. (5). Notwithstanding
s. 77.90, the transferee is not entitled to a hearing on an order withdrawing land under this paragraph.
77.88(3)
(3) Voluntary withdrawal. An owner may request that the department withdraw all or any part of the owner's land meeting one of the requirements specified under
sub. (2) (a) 1. to
3. If any remaining land meets the eligibility requirements under
s. 77.82 (1), the department shall issue an order withdrawing the land subject to the request and shall assess against the owner the tax under
sub. (5).
77.88(4)
(4) Nonrenewal. If an owner does not petition the department to renew a managed forest land order, the department shall order the land withdrawn at the expiration of the order. No withdrawal tax under
sub. (5) shall be assessed.
77.88(5)
(5) Withdrawal tax. The withdrawal tax shall be determined as follows:
77.88(5)(a)
(a) Except as provided in
par. (am), for land withdrawn during an initial managed forest land order, the withdrawal tax shall be the higher of the following:
77.88(5)(a)1.
1. An amount equal to the product of the total net property tax rate in the municipality in the year prior to the 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 managed forest land, less any amounts paid by the owner under
ss. 77.84 (2) (a) and
77.87.
77.88(5)(a)2.
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
77.87.
77.88(5)(am)
(am) For land that is withdrawn within 10 years after the date on which an initial managed forest land order was issued under
s. 77.82 (8) for a petition approved under
s. 77.82 (7) (d), the withdrawal tax shall be the higher of the following:
77.88(5)(am)2.
2. The amount calculated under
s. 77.10 (2) that would have applied to the land on the date on which the order was issued for the land under
s. 77.82 (8).
77.88(5)(b)
(b) For land withdrawn after the renewal of a managed forest land order, the withdrawal tax shall be the higher of the following:
77.88(5)(b)1.
1. An amount equal to the product of the total net property tax rate in the municipality in the year prior to the 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 since the renewal, less any amounts paid by the owner under
ss. 77.84 (2) (a) and
77.87.
77.88(5)(b)2.
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
77.87.
77.88(6)
(6) Determination of stumpage value. In determining the stumpage value of merchantable timber for purposes of this section, an estimator agreed upon by the parties or, if they cannot agree, a forester appointed by a judge of the circuit court in the county in which the land is located shall estimate the volume of merchantable timber on the land. The estimate obtained shall be final. The department shall determine the current stumpage value of the merchantable timber, based on the rule promulgated under
s. 77.91 (1). The owner shall pay the entire cost of obtaining the estimate.
77.88(7)
(7) Payment; delinquency. A tax under
sub. (5) is due and payable to the department on the last day of the month following the effective date of the withdrawal order. Amounts received shall be credited to the conservation fund. If the owner of the land fails to pay the tax, the department shall certify to the taxation district clerk the amount due. The taxation district clerk shall enter the delinquent amount on the property tax roll as a special charge.
77.88(8)
(8) Exception. No withdrawal tax may be assessed against an owner who transfers ownership of managed forest land for a public road or railroad or utility right-of-way. No withdrawal tax may be assessed against an owner who transfers ownership of managed forest land for a park, recreational trail, wildlife or fish habitat area or a public forest to the federal government, the state or a local governmental unit, as defined in
s. 66.0131 (1) (a). The department may not order withdrawal of the remainder of the land unless the remainder fails to meet the eligibility requirements under
s. 77.82 (1).
77.88(9)
(9) Order; miscellaneous provisions. 77.88(9)(a)(a) Each withdrawal order issued under this section shall include the legal description of the land withdrawn.
77.88(9)(b)
(b) The department shall notify the owner in writing of the withdrawal order, stating the reason for the withdrawal.
77.88(9)(c)
(c) The department shall mail a copy of the withdrawal order to each person specified under
s. 77.82 (8).
77.88(9)(d)
(d) A withdrawal order issued before December 15 of any year takes effect on the January 1 after the date of issuance. A withdrawal order issued on or after December 15 of any year takes effect on the 2nd January 1 after the date of issuance.
77.88(9)(e)
(e) If less than a total parcel of managed forest land is withdrawn, the department shall amend the order under
s. 77.82 and the management plan to correct the description of the remaining land.
77.88(10)
(10) Applicable taxes. Chapter 70 applies to any land withdrawn from the managed forest land program under this section.
77.88(11)
(11) Liability for previous taxes. Withdrawal of land under this section does not affect the liability of the owner for previously levied taxes under
s. 77.84 or
77.87.
77.89
77.89
Distribution of moneys received. 77.89(1)
(1)
Payment to municipalities. By June 30 of each year, the department, from the appropriation under
s. 20.370 (5) (bv), shall pay 50% of each payment received under
s. 77.84 (3) (b),
77.87 (3) or
77.88 (7) to the treasurer of the municipality in which is located the land to which the payment applies.
77.89(2)
(2) Payment to counties. Each municipal treasurer shall pay 20% of each payment received under
sub. (1) or
s. 77.84 (2) (a) or
77.85 to the county treasurer and shall deposit the remainder in the municipal treasury. The payment to the county treasurer for money received before November 1 of any year shall be made on or before the November 15 after its receipt. For money received on or after November 1 of any year, the payment to the county treasurer shall be made on or before November 15 of the following year.
77.89(3)
(3) Conservation fund credit. The municipal treasurer shall pay all amounts received under
s. 77.84 (2) (b) to the county treasurer, as provided under
ss. 74.25 and
74.30. The county treasurer shall, by June 30 of each year, pay all amounts received under this subsection to the department. All amounts received by the department shall be credited to the conservation fund and shall be reserved for land acquisition and resource management activities.
77.90
77.90
Right to hearing. A petitioner under
s. 77.82 or an owner of managed forest land who is adversely affected by a decision of the department under this subchapter is entitled to a contested case hearing under
ch. 227.
77.90 History
History: 1985 a. 29.
77.905
77.905
Procedure in forfeiture actions. The procedure in
ss. 23.50 to
23.85 applies to actions to recover forfeitures brought under this subchapter.
77.905 History
History: 1989 a. 79.
77.91
77.91
Miscellaneous provisions. 77.91(1)
(1)
Rule making; stumpage value. Each year the department shall promulgate a rule establishing a reasonable stumpage value for the merchantable timber grown in the municipalities in which managed forest land is located. If the department finds that stumpage values vary in different parts of the state, it may establish different zones and specify the stumpage value for each zone. The rule shall take effect on November 1 of each year.
77.91(2)
(2) Publication of information. 77.91(2)(a)(a) The department, with the cooperation of the University of Wisconsin-Extension, shall publish and distribute information describing the managed forest land program, including the applicable taxes and penalties and the forestry and resource management practices that are acceptable as part of a management plan.
77.91(2)(b)
(b) The department shall prepare, update annually and, by March 31 of each year, offer for sale to the public information describing the location of managed forest land designated as open under
s. 77.83.
77.91(3)
(3) Study. The department and the University of Wisconsin-Extension shall study and evaluate the first 5 years of the operation of the managed forest land program to determine whether it has achieved the purposes specified under
s. 77.80 and shall, before January 1, 1992, submit a report of their findings and recommendations to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under
s. 13.172 (3). This subsection applies from July 1, 1989 to December 31, 1991.
77.91(3m)
(3m) Report to legislature. Beginning with calendar year 1992, the department shall calculate for each calendar year whether the amount of land exempt from penalty or tax under
s. 77.10 (2) (c),
77.16 (11m) or
77.88 (8) that is withdrawn during that calendar year under
s. 77.10 or
77.88 or declassified or withdrawn under
s. 77.16 (7) exceeds 1% of the total amount of land that is subject to contracts under
subch. I or subject to orders under this subchapter on December 31 of that calendar year. If the amount of withdrawn or classified land that is so exempt exceeds 1%, the department shall make a report of its calculations to the governor and the chief clerk of each house of the legislature for distribution to the appropriate standing committees under
s. 13.172 (3).
77.91(4)
(4) Expenses. Except as provided in
sub. (5), the department's expenses for the administration of this subchapter shall be paid from the appropriation under
s. 20.370 (1) (mu).
77.91(5)
(5) Recording. Each register of deeds who receives notice of an order under this subchapter shall record the action as provided under
s. 59.43 (1). The department shall pay the register of deeds the fee specified under
s. 59.43 (2) (ag) 1. from the appropriation under
s. 20.370 (1) (cr). If the amount in the appropriation under
s. 20.370 (1) (cr) in any fiscal year is insufficient to pay the full amount required under this subsection in that fiscal year, the department shall pay the balance from the appropriation under
s. 20.370 (1) (mu).
77.91(6)(a)(a) The signature of an official or an employee of the department may be stamped, printed or otherwise reproduced on an order under this subchapter after the official or employee adopts the stamped, printed or otherwise reproduced signature as his or her facsimile signature.
77.91(6)(b)
(b) The signature or the facsimile signature under
par. (a) of an official or an employee of the department meets the requirements under
s. 706.05 (2) (a).
RECYCLING SURCHARGE
77.92
77.92
Definitions. In this subchapter:
77.92(1)
(1) "Farming" has the meaning given in section
464 (e)
1 of the internal revenue code.
77.92(1m)
(1m) "File" means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.
77.92(3)
(3) "Gross tax liability" means a corporation's tax liability under
ch. 71, without regard to any tax credit.
77.92(4)
(4) "Net business income", with respect to a partnership, means taxable income as calculated under section
703 of the Internal Revenue Code; plus the items of income and gain under section
702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section
702 of the Internal Revenue Code, except items that are not deductible under
s. 71.21; plus guaranteed payments to partners under section
707 (c) of the Internal Revenue Code; plus the credits claimed under
s. 71.07 (2dd),
(2de),
(2di),
(2dj),
(2dL),
(2dr),
(2ds),
(2dx) and
(3s); and plus or minus, as appropriate, transitional adjustments, depreciation differences and basis differences under
s. 71.05 (13),
(15),
(16),
(17) and
(19); but excluding income, gain, loss and deductions from farming. "Net business income", with respect to a natural person, estate or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section
3121 (d) (3) of the Internal Revenue Code.
77.92(4m)
(4m) "Partnership" has the meaning given in section
761 (a) of the internal revenue code, except that "partnership" does not include entities that are excluded under the regulations interpreting section
761 (a) of the internal revenue code from the operation of all or part of subchapter K of chapter one of the internal revenue code. "Partnership" also includes an entity treated as a partnership under section
7701 of the Internal Revenue Code.
77.92(5)
(5) "Trade or business" has the meaning given in section
1402 (c) of the internal revenue code, except that "trade or business" does not include the following:
77.92(5)(b)
(b) Service performed by a person under section
1402 (c) (4) of the internal revenue code.
77.92(5)(c)
(c) Service performed, not as an employee, by a person under section
1402 (c) (5) of the internal revenue code.
77.93
77.93
Applicability. For the privilege of doing business in this state, there is imposed a recycling surcharge on the following entities:
77.93(1)
(1) All corporations required to file a return under
subch. IV or
V of ch. 71 that have at least $4,000,000 in gross receipts from all activities for the taxable year except corporations that are exempt from taxation under
s. 71.26 (1) and that have no unrelated business income reportable under
s. 71.24 (1m). The surcharge is imposed on the tax-option corporation, not on its shareholders, except that if a tax-option corporation's surcharge is delinquent, its shareholders are jointly and severally liable for it.
77.93(2)
(2) All natural persons, estates and trusts that are required to file a return under
subch. I or
II of ch. 71 for the taxable year and that either are an employee as defined in section
3121 (d) (3) of the internal revenue code or file a form indicating a profit or loss from a trade or business for federal income tax purposes for the taxable year. The surcharge is imposed on each such natural person regardless of
ch. 766 and regardless of whether or not the person files jointly under
ch. 71. The surcharge is not imposed on net business income of individuals for which the surcharge is imposed on a tax-option corporation of which an individual is a shareholder, a partnership of which an individual is a partner or a limited liability company of which an individual is a member.
77.93(3)
(3) All partnerships, except partnerships that have net business income only from farming, that derive income from business transacted in this state, from property in this state or from services performed in this state for the taxable year. The surcharge is imposed on the partnership, not on its partners, except that if a partnership's surcharge is delinquent the partners are jointly and severally liable for it.
77.93(4)
(4) All insurers that are required to file a return under
subch. VII of ch. 71 and that have at least $4,000,000 in gross receipts from all activities for the taxable year.
77.93(5)
(5) All natural persons, estates, trusts and partnerships that are engaged in farming. The surcharge is imposed on the partnership, not on its partners, except that if a partnership's or company's surcharge is delinquent the partners are jointly and severally liable for it.
77.93 Annotation
This section does not violate the constitutional guaranty of equal protection. Love, Voss & Murray v. DOR,
195 Wis. 2d 189,
536 N.W.2d 189 (Ct. App. 1995).
77.935
77.935
Single-owner entities. A single-owner entity that is disregarded as a separate entity under
ch. 71 is disregarded as a separate entity under this subchapter. The owner of that entity shall include the information from the entity on the owner's return under this subchapter.
77.935 History
History: 1997 a. 27.
77.94
77.94
Surcharge determination. 77.94(1)
(1) Except as provided in
sub. (2), for taxable years beginning after December 31, 1999, the surcharge imposed under
s. 77.93 is calculated as follows:
77.94(1)(a)
(a) On a corporation under
s. 77.93 (1) and
(4), an amount equal to the amount calculated by multiplying gross tax liability for the taxable year of the corporation by 3 %, or in the case of a tax-option corporation an amount equal to the amount calculated by multiplying net income under
s. 71.34 by 0.2 %, up to a maximum of $9,800, or $25, whichever is greater.
77.94(1)(b)
(b) On an entity under
s. 77.93 (2) or
(3), except an entity that has less than $4,000,000 of gross receipts, an amount equal to the amount calculated by multiplying net business income as allocated or apportioned to this state by means of the methods under
s. 71.04, for the taxable year of the entity by 0.2 %, up to a maximum of $9,800, or $25, whichever is greater.
77.94(1)(c)
(c) On an entity under
s. 77.93 (5), except an entity that has gross receipts from farming of no more than $1,000,000, a surcharge of $25, regardless of whether the entity is subject to a surcharge determined under
par. (b).
77.94(2)(a)1.
1. "Begins to do business" includes but is not limited to a change in corporate form and the occurrence of any event that creates a short taxable year for purposes of the taxes under
ch. 71.
77.94(2)(a)2.
2. "Ceases to do business" includes but is not limited to a change in corporate form, the death of an individual and the occurrence of any event that creates a short taxable year for purposes of the taxes under
ch. 71.
77.94(2)(b)
(b) If an entity under
s. 77.93 (1) to
(4) begins to do business in this state after the beginning of its taxable year or ceases to do business in this state before the end of its taxable year, subject to the maximum and minimum surcharge, the surcharge imposed on it under
s. 77.93 is calculated as follows:
77.94(2)(b)1.
1. Multiply its gross tax liability or net business income for the taxable year by a fraction the numerator of which is 365 and, if the entity begins to do business in this state after the beginning of its taxable year, the denominator of which is the number of days from the day that it begins to do business in this state until the end of its taxable year and, if the entity ceases to do business in this state before the end of its taxable year, the denominator of which is the number of days from the beginning of its taxable year until the day that it ceases to do business in this state and, if the entity both begins to do business in this state after the beginning of its taxable year and ceases to do business in this state before the end of its taxable year, the denominator of which is the number of days from the day that it begins to do business in this state to the day that it ceases to do business in this state.
77.94(2)(b)2.
2. Determine the surcharge that would be imposed under
sub. (1) on the amount calculated under
subd. 1.
77.947
77.947
Partnerships and limited liability companies; estimated payments. Partnerships and limited liability companies shall pay the surcharge under this subchapter in the manner applicable to the estimated payment of taxes and surcharges by individuals under
s. 71.09.
Section 71.84 (1) as it applies to underpayments of estimated taxes and surcharges by individuals applies to underpayments of estimated surcharges by partnerships and limited liability companies.
