2015 - 2016 LEGISLATURE
February 2, 2016 - Introduced by Representative Novak, cosponsored by Senator
Gudex. Referred to Committee on Ways and Means.
1An Act to renumber and amend
74.41 (4) (b); to consolidate, renumber and
74.41 (4) (intro.) and (a); to amend
74.41 (1) (intro.), 74.41 (5) (a) and 3
74.41 (5) (b); and to create
74.41 (1m) and 74.41 (4r) of the statutes; relating
4to: the charge-back of rescinded or refunded property taxes.
Analysis by the Legislative Reference Bureau
This bill requires the Department of Revenue, upon application by a taxation
district, to "charge back," to the taxing jurisdictions within the taxation district,
property taxes that the taxation district rescinded or refunded to taxpayers, so that
each taxing jurisdiction pays back its share of the taxes to the taxation district.
Under the bill, DOR also must determine whether the total value of all taxable
property (equalized value) in the taxation district was affected by the rescinded or
refunded property taxes and, if the equalized value was affected, adjust the
equalized value. Under current law, DOR orders a charge-back or adjustment only
after determining that the taxation district's equalized value was affected, and then
DOR orders either, but not both, of the options.
Under the bill, taxes levied on property within a tax incremental district are not
eligible for a charge-back or adjustment.
The bill applies retroactively to an application submitted by a taxation district
to DOR before the effective date of the bill if DOR has not issued a final
determination, if the final determination is still subject to judicial review, or if DOR
has not certified the amount of the charge-back or adjustment to the taxation
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:
74.41 (1) (intro.) of the statutes is amended to read:
74.41 (1) Submission of refunded or rescinded taxes to department.
By October 1 of each year, the clerk of a taxation district may submit to the 4
department of revenue, on a form prescribed by the department of revenue, a listing 5
of all general property taxes on the taxation
district's tax roll which that
, subject to 6sub. subs. (1m) and
(2), meet any of the following conditions:
74.41 (1m) of the statutes is created to read:
74.41 (1m) Amount collected from property in a tax incremental district.
A tax may not be included on a form submitted under sub. (1) if the tax was levied 10
on property within a tax incremental district, as defined in s. 66.1105 (2) (k), unless 11
the tax incremental district is in a decrement situation, as defined in s. 66.1105 (2) 12
(aj), in the year in which the tax was refunded, rescinded, collected, or corrected 13
under sub. (1) (a) to (d).
74.41 (4) (intro.) and (a) of the statutes are consolidated, 15
renumbered 74.41 (4) and amended to read:
74.41 (4) Amount determined
Adjustment of equalized value.
If the 17
department of revenue determines under sub. (3) that the equalized value of the 18
taxation district is changed as a result of consideration of the valuation represented 19
by the taxes under sub. (1), the department of revenue shall do one of the following:
20(a) Adjust adjust
the equalized value of the taxation district under s. 70.57.
74.41 (4) (b) of the statutes is renumbered 74.41 (4g) and amended 2
74.41 (4g) Charge-back amount determined
. Determine The department of
4revenue shall, by the November 15 following submission of the form under sub. (1),
the amount of rescinded or refunded taxes to be charged back to, and 6
collected from, each taxing jurisdiction for which taxes were collected by the taxation 7
and determine the amount of taxes collected under s. 74.33 to be shared with 8
each taxing jurisdiction for which taxes were collected by the taxation district. 9
Except for interest on refunds under s. 70.511 (2) (b) that is paid with respect to 10
property that was assessed under s. 70.995 and that is not paid by the department 11
of administration under s. 70.511 (2) (bm), the amount determined may not include 12
74.41 (4r) of the statutes is created to read:
74.41 (4r) Charge back to taxing jurisdictions.
If the department of revenue 15
determines under sub. (4g) that rescinded or refunded taxes are attributable to 16
certain taxing jurisdictions, the department of revenue shall charge back the 17
amounts as provided in sub. (5).
74.41 (5) (a) of the statutes is amended to read:
(a) The department of revenue shall certify to the clerk of the taxation 20
district the amount determined amounts to be adjusted or charged back
under sub. 21
or (b) (4r)
and shall furnish a copy of the certification to each affected taxing 22
74.41 (5) (b) of the statutes is amended to read:
(b) Each taxing jurisdiction to which an amount is charged back under 25
sub. (4) (b) (4r)
shall pay the amount certified under par. (a) to the taxation district
treasurer by February 15 of the year following the determination under sub. (3) (4g)
By February 15 of the year following the determination under sub.
, the 3
taxation district treasurer shall pay the amounts to be shared with other taxing 4
(1) With respect to a form submitted under section 74.41 (1), 2013 stats., before 7
the effective date of this subsection to which any of the following applies, the 8
department of revenue shall make the determination under section 74.41 (4g), as 9
affected by this act, in addition to the determination under section 74.41 (3), 2013 10
stats., and, depending on the outcome of those determinations, take the applicable 11
actions under section 74.41 (4), as affected by this act, and section 74.41 (4r), as 12
created by this act:
(a) The department of revenue has not made a final determination under 14
section 74.41 (3), 2013 stats., with respect to the taxes included on the form.
(b) The department of revenue's final determination under section 74.41 (3), 16
2013 stats., is being reviewed under section 227.53.
(c) The department of revenue has not certified, under section 74.41 (5) (a), 18
2013 stats., to the clerk of the taxation district the amount determined under section 19
74.41 (4) (a) or (b), 2013 stats.
(1) Except as provided in Section
8 of this act, this act first applies to a form 22
submitted by a taxation district under section 74.41 (1) on the effective date of this 23
subsection, regardless of the taxable year to which the form relates.