2019 - 2020 LEGISLATURE
ASSEMBLY AMENDMENT 6,
TO ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 56
June 25, 2019 - Offered by Representatives Hintz,
Subeck, Stuck, Ohnstad,
Doyle, Anderson, Billings, Bowen, Brostoff, Cabrera, Considine, Crowley,
Emerson, Fields, Goyke, Gruszynski, Haywood, Hebl, Hesselbein, Kolste,
McGuire, B. Meyers, Milroy, L. Myers, Neubauer, Pope, Riemer, Sargent,
Shankland, Sinicki, Spreitzer, Stubbs, C. Taylor, Vining, Vruwink and
In chs. 70 to 76, 78, and 79, “real property," “real estate," and “land" 5
include not only the land itself but all buildings and
improvements thereon, 6and all fixtures and, leases,
and privileges appertaining thereto,
7assets that cannot be taxed separately as real property, but are inextricably
8intertwined with the real property, enable the real property to achieve its highest and
9best use, and are transferable to future owners,
except as provided in sub. (2) and 10
except that for the purpose of time-share property, as defined in s. 707.02 (32), real 11
property does not include recurrent exclusive use and occupancy on a periodic basis 12
or other rights, including, but not limited to, membership rights, vacation services,
and club memberships. In this subsection, “lease” means a right in real estate that
2is related primarily to the property and not to the labor, skill, or business acumen of
3the property owner or tenant. In this subsection, “highest and best use” has the
4meaning given in s. 70.32 (1).
Real property shall be valued by the assessor in the manner specified 8
in the Wisconsin property assessment manual provided under s. 73.03 (2a) at its
9highest and best use
from actual view or from the best information that the assessor 10
can practicably obtain, at the full value which could ordinarily be obtained therefor 11
at private sale. In determining the value, the assessor shall consider recent 12
arm's-length sales of the property to be assessed if according to professionally 13
acceptable appraisal practices those sales conform to recent arm's-length sales of 14
reasonably comparable property; recent arm's-length sales of reasonably 15
comparable property; and all factors that, according to professionally acceptable 16
appraisal practices, affect the value of the property to be assessed.
In this subsection,
17“arm's-length sale" means a sale between a willing buyer and willing seller, neither
18being under compulsion to buy or sell and each being familiar with the attributes of
19the property sold. In this subsection, “highest and best use" means the specific use
20of the property as of the current assessment date or a higher use to which the
21property can be expected to be put before the next assessment date, if the use is
22legally permissible, physically possible, not highly speculative, and financially
23feasible and provides the highest net return. When the current use of a property is
24the highest and best use of that property, value in the current use equals full market
1value. In this subsection, “legally permissible” does not include a conditional use
2that has not been granted as of the assessment date.
In determining the value of real property under sub. (1), the assessor 5
shall consider, as part of the valuation under sub. (1), any lease provisions and actual 6
rent pertaining to a property and affecting its value, including the lease provisions 7
and rent associated with a sale and leaseback of the property, if all such lease 8
provisions and rent are the result of an arm's-length transaction involving persons 9
who are not related, as provided under section 267
of the Internal Revenue Code for 10
the year of the transaction. In this subsection, an “arm's-length transaction" means 11
an agreement between willing parties, neither being under compulsion to act and 12
each being familiar with the attributes of the property.
To determine the value of property using generally accepted 15
appraisal methods, the assessor shall consider all of the following as comparable to 16
the property being assessed:
1. Sales or rentals of properties exhibiting the same or a similar highest and 18
best use, as defined in sub. (1), with placement in the same real estate market 19
2. Sales or rentals of properties that are similar to the property being assessed 21
with regard to age, condition, use, type of construction, location, design, physical 22
features, and economic characteristics, including similarities in occupancy and the 23
potential to generate rental income. For purposes of this subdivision, such 24
properties may be found locally, regionally, or nationally.
(b) For purposes of par. (a), a property is not comparable if any of the following 2
1. At or before the time of sale, the seller places any deed restriction on the 4
property that changes the highest and best use, as defined in sub. (1), of the property, 5
or prohibits competition, so that it no longer qualifies as a comparable property 6
under par. (a) 1. or 2. and the property being assessed lacks such a restriction.
2. The property is dark property and the property being assessed is not dark 8
property. In this subdivision, “dark property” means property that is vacant or 9
unoccupied beyond the normal period for property in the same real estate market 10
segment. For purposes of this subdivision, what is considered vacant or unoccupied 11
beyond the normal period may vary depending on the property location.
(c) For purposes of par. (a), “real estate market segment” means a pool of 13
potential buyers and sellers that typically buy or sell properties similar to the 14
property being assessed, including potential buyers who are investors or 15
owner-occupants. For purposes of this paragraph, and depending on the type of 16
property being assessed, the pool of potential buyers and sellers may be found locally, 17
regionally, nationally, or internationally.
(d) The department of revenue shall assist local assessors with implementing 19
and applying this subsection.”.
“(1p) Real property tax assessments.
The treatment of ss. 70.03 (1) and 70.32 22
(1), (1b), and (1d) first applies to the property tax assessments as of January 1, 2020.”.