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LRB-4640/1
KRP&JK:ahe
2015 - 2016 LEGISLATURE
February 2, 2016 - Introduced by Representative Novak, cosponsored by Senator
Gudex. Referred to Committee on Ways and Means.
AB843,1,4 1An Act to renumber and amend 74.41 (4) (b); to consolidate, renumber and
2amend
74.41 (4) (intro.) and (a); to amend 74.41 (1) (intro.), 74.41 (5) (a) and
374.41 (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the charge-back of rescinded or refunded property taxes.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property taxes that the taxation district rescinded or refunded to taxpayers, so that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property (equalized value) in the taxation district was affected by the rescinded or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
district.

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:
AB843,1 1Section 1. 74.41 (1) (intro.) of the statutes is amended to read:
AB843,2,62 74.41 (1) Submission of refunded or rescinded taxes to department. (intro.)
3By October 1 of each year, the clerk of a taxation district may submit to the
4department of revenue, on a form prescribed by the department of revenue, a listing
5of 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:
AB843,2 7Section 2. 74.41 (1m) of the statutes is created to read:
AB843,2,138 74.41 (1m) Amount collected from property in a tax incremental district.
9 A tax may not be included on a form submitted under sub. (1) if the tax was levied
10on property within a tax incremental district, as defined in s. 66.1105 (2) (k), unless
11the 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
13under sub. (1) (a) to (d).
AB843,3 14Section 3. 74.41 (4) (intro.) and (a) of the statutes are consolidated,
15renumbered 74.41 (4) and amended to read:
AB843,2,2016 74.41 (4) Amount determined Adjustment of equalized value. If the
17department of revenue determines under sub. (3) that the equalized value of the
18taxation district is changed as a result of consideration of the valuation represented
19by 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.
AB843,4
1Section 4. 74.41 (4) (b) of the statutes is renumbered 74.41 (4g) and amended
2to read:
AB843,3,123 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),
5determine
the amount of rescinded or refunded taxes to be charged back to, and
6collected from, each taxing jurisdiction for which taxes were collected by the taxation
7district, and determine the amount of taxes collected under s. 74.33 to be shared with
8each taxing jurisdiction for which taxes were collected by the taxation district.
9Except for interest on refunds under s. 70.511 (2) (b) that is paid with respect to
10property that was assessed under s. 70.995 and that is not paid by the department
11of administration under s. 70.511 (2) (bm), the amount determined may not include
12any interest.
AB843,5 13Section 5. 74.41 (4r) of the statutes is created to read:
AB843,3,1714 74.41 (4r) Charge back to taxing jurisdictions. If the department of revenue
15determines under sub. (4g) that rescinded or refunded taxes are attributable to
16certain taxing jurisdictions, the department of revenue shall charge back the
17amounts as provided in sub. (5).
AB843,6 18Section 6. 74.41 (5) (a) of the statutes is amended to read:
AB843,3,2219 74.41 (5) (a) The department of revenue shall certify to the clerk of the taxation
20district the amount determined amounts to be adjusted or charged back under sub.
21(4) (a) or (b) (4r) and shall furnish a copy of the certification to each affected taxing
22jurisdiction.
AB843,7 23Section 7. 74.41 (5) (b) of the statutes is amended to read:
AB843,4,424 74.41 (5) (b) Each taxing jurisdiction to which an amount is charged back under
25sub. (4) (b) (4r) shall pay the amount certified under par. (a) to the taxation district

1treasurer by February 15 of the year following the determination under sub. (3) (4g).
2By February 15 of the year following the determination under sub. (3) (4g), the
3taxation district treasurer shall pay the amounts to be shared with other taxing
4jurisdictions.
AB843,8 5Section 8 . Nonstatutory provisions.
AB843,4,126 (1) With respect to a form submitted under section 74.41 (1), 2013 stats., before
7the effective date of this subsection to which any of the following applies, the
8department of revenue shall make the determination under section 74.41 (4g), as
9affected by this act, in addition to the determination under section 74.41 (3), 2013
10stats., and, depending on the outcome of those determinations, take the applicable
11actions under section 74.41 (4), as affected by this act, and section 74.41 (4r), as
12created by this act:
AB843,4,1413 (a) The department of revenue has not made a final determination under
14section 74.41 (3), 2013 stats., with respect to the taxes included on the form.
AB843,4,1615 (b) The department of revenue's final determination under section 74.41 (3),
162013 stats., is being reviewed under section 227.53.
AB843,4,1917 (c) The department of revenue has not certified, under section 74.41 (5) (a),
182013 stats., to the clerk of the taxation district the amount determined under section
1974.41 (4) (a) or (b), 2013 stats.
AB843,9 20Section 9. Initial applicability.
AB843,4,2321 (1) Except as provided in Section 8 of this act, this act first applies to a form
22submitted by a taxation district under section 74.41 (1) on the effective date of this
23subsection, regardless of the taxable year to which the form relates.
AB843,4,2424 (End)
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