70.11(27)
(27) Manufacturing machinery and specific processing equipment. 70.11(27)(a)1.
1. "Building" means any structure used for sheltering people, machinery, animals or plants; storing property; or working, office, parking, sales or display space.
70.11(27)(a)2.
2. "Machinery" means a structure or assemblage of parts that transmits forces, motion or energy from one part to another in a predetermined way by electrical, mechanical or chemical means, but "machinery" does not include a building.
70.11(27)(a)3.
3. "Manufacturing" means engaging in an activity classified as manufacturing under
s. 70.995.
70.11(27)(a)4.
4. "Power wiring" means bus duct, secondary service wiring or other wiring that is used exclusively to provide electrical service to production machines that are exempt under
par. (b). "Power wiring" does not include transformers.
70.11(27)(a)5.
5. "Production process" means the manufacturing activities beginning with conveyance of raw materials from plant inventory to a work point of the same plant and ending with conveyance of the finished product to the place of first storage on the plant premises, including conveyance of work in process directly from one manufacturing operation to another in the same plant, including the holding for 3 days or less of work in process to ensure the uninterrupted flow of all or part of the production process and including quality control activities during the time period specified in this subdivision but excluding storage, machine repair and maintenance, research and development, plant communication, advertising, marketing, plant engineering, plant housekeeping and employee safety and fire prevention activities; and excluding generating, transmitting, transforming and furnishing electric current for light or heat; generating and furnishing steam; supplying hot water for heat, power or manufacturing; and generating and furnishing gas for lighting or fuel or both.
70.11(27)(a)6.
6. "Specific processing equipment" means containers for chemical action, mixing or temporary holding of work in process to ensure the uninterrupted flow of all or part of the production process, process piping, tools, implements and quality control equipment.
70.11(27)(a)6m.
6m. "Storage" means the holding or safekeeping of raw materials or components before introduction into the production process; the holding, safekeeping or preservation of work in process or of components outside the production process; and the holding or safekeeping of finished products or of components after completion of the production process; whether or not any natural processes occur during that holding, safekeeping or preservation; but "storage" does not include the holding for 3 days or less of work in process to ensure the uninterrupted flow of all or part of the production process.
70.11(27)(a)7.
7. "Used directly" means used so as to cause a physical or chemical change in raw materials or to cause a movement of raw materials, work in process or finished products.
70.11(27)(a)8.
8. "Used exclusively" means to the exclusion of all other uses except for other use not exceeding 5% of total use.
70.11(27)(b)
(b) Machinery and specific processing equipment; and repair parts, replacement machines, safety attachments and special foundations for that machinery and equipment; that are used exclusively and directly in the production process in manufacturing tangible personal property, regardless of their attachment to real property, but not including buildings. The exemption under this paragraph shall be strictly construed.
70.11(28)
(28) Humane societies. Property owned and operated by a humane society organized primarily for the care and shelter of homeless, stray or abused animals, on a nonprofit basis, no part of the net income of which inures to the benefit of any member, officer or shareholder, if the property is used exclusively for the primary purposes of the humane society.
70.11(29)
(29) Nonprofit radio stations. Property owned by a radio station that is exempt from taxation under section
501 of the internal revenue code as amended to December 31, 1980, if the property is used for the purposes for which the exemption was granted.
70.11(29m)
(29m) Nonprofit theaters. All of the property owned or leased by a corporation, organization or association exempt from taxation under section
501 (c) (3) of the internal revenue code, if all of the property is used for the purposes for which the exemption was granted, the property includes one or more buildings listed on the national register of historic places, the property includes one or more theaters for performing theater arts which have a total seating capacity of not less than 800 persons and the corporation, organization or association operates the theater or theaters.
70.11(29p)
(29p) Nonprofit outdoor theaters. All the property owned or leased by an organization that is exempt from taxation under section
501 (c) (3) of the Internal Revenue Code, as confirmed by a determination letter issued by the Internal Revenue Service no later than July 31, 1969, if all of the property is used for the purposes for which the exemption was granted, the property includes one or more outdoor theaters for performing theater arts which have a total seating capacity of not less than 400 persons, and the organization operates the theater or theaters.
70.11(30)
(30) Crops. All perennial plants that produce an annual crop.
70.11(31)
(31) Sports and entertainment facilities. Real and personal property consisting of or contained in a sports and entertainment facility, including related or auxiliary structures, constructed by a nonprofit corporation for the purpose of donation to the state or to an instrumentality of the state, if the state indicates by legislative or executive action that it will accept the facility. This exemption shall apply during construction and operation if the facility is owned by a nonprofit corporation, the state or an instrumentality of the state.
70.11(31m)
(31m) Railroad historical societies. Right-of-way and rolling stock owned by railroad historical societies.
70.11(32)
(32) Nonprofit youth hockey associations. Land not exceeding 13 acres, the buildings on that land and personal property if the land is owned or leased by and the buildings and personal property are owned by, and all the property is used exclusively for the purposes of, a nonprofit youth hockey association, except that the exemption under this subsection does not apply to the property of a nonprofit youth hockey association if any of its property was funded in whole or in part by industrial revenue bonds unless that association's facilities were placed in operation after January 1, 1988. Leasing all or a portion of the property does not render that property taxable if all of the leasehold income is used for maintenance of the leased property.
70.11(33)
(33) Camps for mentally or physically disabled persons. Land, not exceeding 50 acres, and the buildings on that land used as a residential campground exclusively for mentally or physically disabled persons and their families as long as the property is used for that purpose and not for the pecuniary profit of any individual.
70.11(34)(a)(a) Real property all of which fulfills all of the following requirements:
70.11(34)(a)1.
1. Is listed on the national register of historic places in Wisconsin or the state register of historic places.
70.11(34)(a)3.
3. Is owned or leased by an organization that is exempt from taxation under section
501 of the internal revenue code as amended to December 31, 1986.
70.11(34)(a)4.
4. Is used for civic, governmental, cultural or educational purposes.
70.11(34)(a)5.
5. Is subject to an easement, covenant or similar restriction running with the land that is held by or approved by the state historical society or by an entity approved by the state historical society, that protects the historic features of the property and that will remain effective for at least 20 years after January 1, 1989.
70.11(35)
(35) Cultural and architectural landmarks. Property described in s.
234.935 (1), 1997 stats.
70.11(36)
(36) Professional sports and entertainment home stadiums. 70.11(36)(a)(a) Property consisting of or contained in a sports and entertainment home stadium, except a football stadium as defined in
s. 229.821 (6); including but not limited to parking lots, garages, restaurants, parks, concession facilities, entertainment facilities, transportation facilities, and other functionally related or auxiliary facilities and structures; including those facilities and structures while they are being built; constructed by, leased to or primarily used by a professional athletic team that is a member of a league that includes teams that have home stadiums in other states, and the land on which that stadium and those structures and facilities are located. Leasing or subleasing the property; regardless of the lessee, the sublessee and the use of the leasehold income; does not render the property taxable.
70.11(36)(b)
(b) Property consisting of or contained in a football stadium, as defined in
s. 229.821 (6), and related facilities and structures, including those facilities and structures while they are being built or constructed, primarily used by a professional football team described in
s. 229.823, and the land, including parking lots, on which that stadium and those facilities and structures are located. Related facilities and structures are limited to improvements that share common structural supports with the stadium or are physically attached to the stadium. Using the property for garages, restaurants, parks, concession facilities, entertainment facilities, transportation facilities, or other functionally related or auxiliary facilities does not render the property taxable. Leasing or subleasing the property; regardless of the lessee, the sublessee and the use of the leasehold income; does not render the property taxable.
70.11(37)
(37) Local exposition district. The property of a local exposition district under
subch. II of ch. 229.
70.11(38)
(38) University of Wisconsin Hospitals and Clinics Authority. Notwithstanding the provisions of
s. 70.11 (intro.) that relate to leased property, all property owned by the University of Wisconsin Hospitals and Clinics Authority and all property leased to the University of Wisconsin Hospitals and Clinics Authority that is owned by the state, provided that use of the property is primarily related to the purposes of the authority.
70.11(39)
(39) Computers. If the owner of the property fulfills the requirements under
s. 70.35, mainframe computers, minicomputers, personal computers, networked personal computers, servers, terminals, monitors, disk drives, electronic peripheral equipment, tape drives, printers, basic operational programs, systems software, and prewritten software. The exemption under this subsection does not apply to custom software, fax machines, copiers, equipment with embedded computerized components or telephone systems, including equipment that is used to provide telecommunications services, as defined in
s. 76.80 (3). For the purposes of
s. 79.095, the exemption under this subsection does not apply to property that is otherwise exempt under this chapter.
70.11(39m)
(39m) If the owner of the property fulfills the requirements under
s. 70.35, cash registers and fax machines, excluding fax machines that are also copiers.
70.11(40)
(40) Local cultural arts district. Property of a local cultural arts district under
subch. V of ch. 229, except any of the following:
70.11(40)(a)
(a) Property that is not a part of the physical structure of a cultural arts facility, as defined under
s. 229.841 (5), if that property is used for a retail business or a restaurant, unless the retail business or restaurant is operated by the local cultural arts district or by a corporation, organization or association described in section
501 (c)
3 of the Internal Revenue Code that is exempt from taxation under section
501 (a) of the Internal Revenue Code.
70.11(40)(b)
(b) A parking lot or parking structure that is not used to support the operation of a cultural arts facility, as defined under
s. 229.841 (5).
70.11(41)
(41) Fox River Navigational System Authority. All property owned by the Fox River Navigational System Authority, provided that use of the property is primarily related to the purposes of the authority.
70.11(42)(a)1.
1. "Air carrier company" means any person engaged in the business of transportation in aircraft of persons or property for hire on regularly scheduled flights. In this subdivision, "aircraft" has the meaning given in
s. 76.02 (1).
70.11(42)(a)2.a.
a. A facility at an airport from which an air carrier company operated at least 45 common carrier departing flights each weekday in the prior year and from which it transported passengers to at least 15 nonstop destinations, as defined by rule by the department of revenue, or transported cargo to nonstop destinations, as defined by rule by the department of revenue.
70.11(42)(a)2.b.
b. An airport or any combination of airports in this state from which an air carrier company cumulatively operated at least 20 common carrier departing flights each weekday in the prior year, if the air carrier company's headquarters, as defined by rule by the department of revenue, is in this state.
70.11(42)(b)
(b) Property owned by an air carrier company that operates a hub facility in this state, if the property is used in the operation of the air carrier company.
70.11 History
History: 1971 c. 152,
154,
312;
1973 c. 90;
1973 c. 333 s.
201m;
1973 c. 335 s.
13;
1975 c. 39;
1975 c. 94 s.
91 (10);
1975 c. 199;
1977 c. 29 ss.
745m,
1646 (3),
1647 (5), (7);
1977 c. 83 s.
26;
1977 c. 273,
282,
391,
418,
447;
1979 c. 34 s.
2102 (39) (g);
1979 c. 221,
225;
1979 c. 310 s.
12;
1981 c. 20;
1983 a. 27 ss.
1177,
1178,
1179f;
1983 a. 189 s.
329 (16);
1983 a. 201,
327;
1985 a. 26,
29,
316,
332;
1987 a. 10,
27,
395,
399;
1987 a. 403 s.
256;
1989 a. 25,
31,
307;
1991 a. 37,
39,
269;
1993 a. 263,
307,
399,
490;
1995 a. 27 ss.
3344 to
3348m,
9126 (19);
1995 a. 201,
227,
247,
366;
1997 a. 27,
35,
134,
147,
164,
184,
237;
1999 a. 9,
32,
63,
65;
1999 a. 150 ss.
624,
672;
1999 a. 167,
185;
2001 a. 16,
38,
59,
103;
2003 a. 195,
291.
70.11 Cross-reference
Cross Reference: For other exemptions from property taxation, see s.
1.04, U.S. sites; s.
70.112, specially taxed property; s.
70.41, stored grain; s.
70.42, coal docks; s.
70.421, petroleum; s.
76.23, utilities.
70.11 Annotation
A building used as a residence by various missionaries for rest and recreation falls within the housing exemption under sub. (4). Evangelical Alliance Mission v. Williams Bay,
54 Wis. 2d 187,
194 N.W.2d 646 (1972).
70.11 Annotation
Voting machines leased by a city with an option to purchase are city property and exempt. Milwaukee v. Shoup Voting Machine Corp.
54 Wis. 2d 549,
196 N.W.2d 694 (1972).
70.11 Annotation
An educational institution under sub. (4) must be substantially and primarily devoted to educational purposes, the determination of which requires a careful analysis of the property's use. National Foundation v. Brookfield,
65 Wis. 2d 263,
222 N.W.2d 608 (1974).
70.11 Annotation
"Owned" under sub. (2) cannot be equated with paper title only. When a corporate lessee was the beneficial and true owner of improvements made to a structure, the lessee was the owner for personal property assessment purposes. State ex rel. Mitchell Aero v. Bd. of Review,
74 Wis. 2d 268,
246 N.W.2d 521 (1976).
70.11 Annotation
"Used exclusively" under sub. (4m) means to physically employ the tangible characteristics of the property. Although medical equipment was leased commercially, it was "used exclusively" for hospital purposes and was exempt. First National Leasing Corp. v. Madison,
81 Wis. 2d 205,
260 N.W.2d 251 (1977).
70.11 Annotation
Religious persons whose housing is exempt under sub. (4) include only those who have official leadership roles in the activities of the congregation. Midtown Church of Christ v. City of Racine,
83 Wis. 2d 72,
264 N.W.2d 281 (1978).
70.11 Annotation
Indicia of true and beneficial ownership of leased property under sub. (1) are discussed. Gebhardt v. City of West Allis,
89 Wis. 2d 103,
278 N.W.2d 465 (1979).
70.11 Annotation
The residence of a hospital chaplain was exempt under sub. (4) as housing for a pastor and under sub. (4m) because it was reasonably necessary for the hospital to have a priest located near the hospital to serve the spiritual needs of its patients and staff. Sisters of St. Mary v. City of Madison,
89 Wis. 2d 372,
278 N.W.2d 814 (1979).
70.11 Annotation
To qualify as an educational association under sub. (4), an organization must be devoted to "traditional" educational activities, which must include traditional charitable objectives and which must benefit the public directly and lessen the burden of government in some way. International Foundation v. City of Brookfield,
95 Wis. 2d 444,
290 N.W.2d 720 (Ct. App. 1980).
70.11 Annotation
A "function or use" test, rather than a "physical appearance" test, was applied to determine whether building-like structures were eligible for the machinery and equipment exemption under sub. (27). Ladish Malting Co. v. DOR,
98 Wis. 2d 496,
297 N.W.2d 56 (Ct. App. 1980).
70.11 Annotation
Under an "integrated plant test" for classifying property directly used in manufacturing, graving docks were exempt under sub. (27). The exemption was not destroyed by incidental use of the dock for a nonexempt purpose. Manitowoc Co., Inc. v. Sturgeon Bay,
122 Wis. 2d 406,
362 N.W.2d 432 (Ct. App. 1984).
70.11 Annotation
Property leased by an institution for the care of dependent children was not exempt under sub. (19). Chileda Institute, Inc. v. La Crosse,
125 Wis. 2d 554,
373 N.W.2d 43 (Ct. App. 1985).
70.11 Annotation
A day care center devoted primarily to educational purposes was exempt under sub. (4). Janesville Community Day Care v. Spoden,
126 Wis. 2d 231,
376 N.W.2d 78 (Ct. App. 1985).
70.11 Annotation
Property exempted under sub. (21) (a) need not have a "primary purpose" of eliminating pollution. Owens-Illinois v. Town of Bradley,
132 Wis. 2d 310,
392 N.W.2d 104 (Ct. App. 1986).
70.11 Annotation
Non-adjoining property may constitute "grounds" of a college or university under sub. (3) (a). Indiana University v. Town of Rhine,
170 Wis. 2d 293,
488 N.W.2d 128 (Ct. App. 1992).
70.11 Annotation
A lease provision between a county-lessor and a lessee that the lessee was responsible for taxes was not determinative of the taxability of buildings constructed on the leased premises. The county, as beneficial owner of the property, was exempt from taxation. City of Franklin v. Crystal Ridge,
180 Wis. 2d 561,
509 N.W.2d 730 (1994).
70.11 Annotation
A benevolent association under sub. (4) is not required to provide free services or to be affordable by all in the community and may pay its officers reasonable compensation for their services; housing for "aged" under sub. (4) requires occupancy by one person at least 55 years old. Friendship Village Milwaukee v. Milwaukee,
181 Wis. 2d 207,
511 N.W.2d 345 (Ct. App. 1993).
70.11 Annotation
The legislature may not delegate the power to grant tax exemptions to a county board. UW-LaCrosse Foundation v. Town of Washington,
182 Wis. 2d 490,
513 N.W.2d 417 (Ct. App. 1994).
70.11 Annotation
The determination of "land necessary for location and convenience of buildings" under sub. (4) is discussed. Friendship Village v. Milwaukee,
194 Wis. 2d 787,
535 N.W.2d 111 (Ct. App. 1995).
70.11 Annotation
A youth soccer association failed to establish that it was substantially and primarily devoted to educational purposes. Although its program had educational elements, it was not entitled to tax exempt status as an educational association. Kickers of Wisconsin, Inc. v. Milwaukee,
197 Wis. 2d 675,
541 N.W.2d 193 (Ct. App. 1995).
70.11 Annotation
No notice of claim under s. 893.80 is ever required on a claim arising from a county board determination under sub. (20) (d). Little Sissabagama Lake Shore Owners Assoc. v. Town of Edgewater,
208 Wis. 2d 259,
559 N.W.2d 914 (Ct. App. 1997).
70.11 Annotation
Whether a clinic building is a "doctor's office" under is sub. (4m) is not dependent on whether or not it is operated as part of a for profit practice owned by physicians or as a nonprofit corporation. A clinic operated by a nonprofit corporation that contains offices for doctors, provides outpatient care only, and is open for regular business hours is a "doctors office." St. Clare Hospital v. City of Monroe,
209 Wis. 2d 364,
563 N.W.2d 170 (Ct. App. 1997).
70.11 Annotation
The exemption under sub. (13m) will not be applied to reduce the value of a remaining taxable property not a part of the exempt archeological site. Wrase v. City of Neenah,
220 Wis. 2d 166,
582 N.W.2d 457 (Ct. App. 1998).
70.11 Annotation
The exclusivity requirement under sub. (4) does not prohibit occasional commercial use. The question is how consequential the use is compared to the total use of the property. The party seeking the exemption must present more than "recollections" and "observations" of use. Deutches Land, Inc. v. City of Glendale,
225 Wis. 2d 70,
591 N.W.2d 583 (1999).
70.11 Annotation
The sub. (4) exemption of up to 10 acres of land is tied to and follows from the exemption of buildings. It does not allow for the exemption of buildings necessary for the use of the land. Deutches Land, Inc. v. City of Glendale,
225 Wis. 2d 70,
591 N.W.2d 583 (1999).
70.11 Annotation
Section 70.11 (intro.), and not s. 70.1105, applies if an exempt organization leases part of its property to a for-profit entity. Section 70.1105 applies when the exempt organization engages in for-profit activities. However the methodology for determining exemptions under each is the same. Deutches Land, Inc. v. City of Glendale,
225 Wis. 2d 70,
591 N.W.2d 583 (1999).
70.11 Annotation
Property that on the assessment date was wholly vacant and unoccupied, and on which no construction had commenced, was not being readied for a benevolent use and was properly determined as not being used exclusively for benevolent purposes under sub. (4). Group Health Cooperative of Eau Claire v. DOR,
229 Wis. 2d 846,
601 N.W.2d 1 (Ct. App. 1999).
70.11 Annotation
In applying the exempt lessee condition in the section introduction, a housing authority that subsidized low-income tenant's rent payments to a benevolent organization property owner cannot be found to be the tenant, which as a governmental entity would be entitled to property tax exemption. Under the established legal definition of lessee, the lessees are the low-income individuals to whom the benevolent organization rents. Columbus Park Housing Corp. v. City of Kenosha, 2003 WI 143,
267 Wis. 2d 59,
671 N.W.2d 633,
02-0699.
70.11 Annotation
The standard under Sisters of Saint Mary that properties that are "reasonably necessary" to the operation of an exempt use are also exempt is restricted to hospitals subject to sub. (4m). UW Medical Foundation, Inc. v. City of Madison, 2003 WI App 204,
267 Wis. 2d 504,
671 N.W.2d 292,
02-1473.
70.11 Annotation
Benevolent ownership of property is not enough to satisfy sub. (4); benevolent use is also required. A property owner must detail its use of the property so that tax assessors know what type of activities, if any, are occurring on the property. Unsupported opinion testimony and generalized assertions about the purportedly benevolent use will not suffice. UW Medical Foundation, Inc. v. City of Madison, 2003 WI App 204,
267 Wis. 2d 504,
671 N.W.2d 292,
02-1473.
70.11 Annotation
All provision of medical care is not "benevolent" merely because it makes the recipients better members of society by improving their physical and mental condition. A benevolent foundation that charged market rates for medical services, advertised extensively to promote them, and typically forbore collecting for its services only when accounts were deemed uncollectible was not engaged in a benevolent us of its clinic properties. UW Medical Foundation, Inc. v. City of Madison, 2003 WI App 204,
267 Wis. 2d 504,
671 N.W.2d 292,
02-1473.
70.11 Annotation
For a claim under sub. (25) to survive summary judgment, the property owner must establish in the summary judgment record that there is, at a minimum, a factual dispute that the main purpose to which the properties were primarily devoted was one or more of medical research, physician education, or care for destitute individuals. UW Medical Foundation, Inc. v. City of Madison, 2003 WI App 204,
267 Wis. 2d 504,
671 N.W.2d 292,
02-1473.
70.11 Annotation
The property tax exemption for pollution control facilities provided in sub. (21) (a) applies to pollution control facilities incorporated into new plants to be constructed, in addition to those installed to abate or eliminate existing pollution sources. 60 Atty. Gen. 154.
70.11 Annotation
Standards for determining whether a nonprofit corporation qualifies for tax exempt status as a retirement home under sub. (4) are discussed. 66 Atty. Gen. 232.
70.11 Annotation
Preferential tax treatment may not be given to any organization that discriminates on the basis of race. Pitts v. Dept. of Revenue,
333 F. Supp. 662.
70.11 Annotation
The property tax exemption and nonprofit homes for the aged. 53 MLR 140.
