SB803: Bill Text

The bill changes the term “handicapped” to “disabled” when referring to persons who receive certain county services and for purposes of a sales tax exemption for the sale of prepared food to elderly and disabled individuals.

Clarification of respondent

The bill modifies current law to clarify that when DOR petitions for review of a decision of the Tax Appeals Commission, the prevailing parties before the commission are considered the respondents.

Local levy limits

Current law authorizes an increase in the levy limit of a city, village, town, or county (political subdivision) upon the termination of a tax incremental district (TID) in the political subdivision, or upon the subtraction of territory from a TID. The allowable increase is calculated based on a number of factors, one of which is the political subdivision's levy for the preceding year. The bill clarifies that this factor in the calculation consists of the political subdivision's actual adjusted levy, rather than its maximum allowable levy, for the preceding year.

The bill also clarifies how local levy limits are calculated when taking into consideration state personal property aid paid to a taxation district by the Department of Administration.

Reimbursement for training

Under current law, counties with populations of less than 750,000 are required to pay local assessors, clerks, and other officials a per diem and mileage reimbursement when attending DOR assessment training. The amounts are paid by the county in which the person resides and must be at least $5 per day and 6 cents per mile. The bill makes local assessors ineligible for the per diem and mileage reimbursement.

Notice by an assessor to enter a residence

Current law requires that an assessor, when requesting to view the interior of a residence, provide a written notice to the property owner that informs the owner of his or her right to refuse entry. The bill replaces the term “notice” with the term “information.”

Electronic assessment rolls

Under current law, when a board of review changes an assessor's valuation of property, the clerk is required to revise the assessment roll by using red ink to cross out the assessor's valuation and enter the board's valuation. The bill modifies the requirement to reflect the use of electronic assessment rolls. Under the bill, the clerk is required to enter the board's valuation and a note about the change to the assessor's valuation into the assessment roll, but there is no requirement to use red ink or to cross out the assessor's valuation.

Hub facility tax exemption

The bill moves the hub facility tax exemption for air carriers from Chapter 70 of the statutes, which imposes local property taxes, to Chapter 76, which imposes an ad valorem tax on air carriers.

Under current law, air carriers are subject to an ad valorem tax on their property, instead of local property taxes. Current law provides an exemption from local property taxes for property owned and used by an air carrier that operates a hub facility in Wisconsin. For purposes of the ad valorem tax, “air carrier company” is defined to exclude any air carrier whose property is exempt from local property taxes under the hub facility exemption. Thus, under current law, property owned by an air carrier operating a hub facility in Wisconsin is exempt from the ad valorem tax if it meets the criteria for the local property tax exemption.

The bill repeals the hub facility exemption from local property taxes. The bill maintains the current ad valorem tax exemption for air carriers by creating a hub facility exemption specifically for purposes of that tax. The bill also requires that an air carrier claiming the hub facility exemption annually file a request for the exemption with DOR no later than March 1.

Statutory titles

The bill creates titles for the statutory provisions that allow taxpayers to make additions and subtractions for purposes of the individual income tax.

For further information, see the Notes provided by the Law Revision Committee of the Joint Legislative Council.

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:

Law Revision Committee prefatory note: This bill is a remedial legislation proposal, requested by the Department of Revenue and introduced by the Law Revision Committee under s. 13.83 (1) (c) 4. and 5., stats. After careful consideration of the various provisions of the bill, the Law Revision Committee has determined that this bill makes minor substantive changes in the statutes, and that these changes are desirable as a matter of public policy.

SB803,1 Section 1. 59.53 (11) (c) of the statutes is amended to read:

SB803,5,2 59.53 (11) (c) Appropriate money to defray the expenses incurred by private organizations that provide homemaking services to elderly and handicapped disabled persons within the county if the services will enable the persons to remain self-sufficient and to live independently or with relatives.

Note: This Section replaces the term “handicapped” with “disabled” in a statute that allows a county board to appropriate money for purposes of homemaking services for elderly and disabled persons within the county.

SB803,2 Section 2. 59.53 (20) of the statutes is amended to read:

SB803,5,7 59.53 (20) Work centers. The board may establish and operate a work center licensed under s. 104.07 to provide employment for severely handicapped disabled individuals, except that in a county with a population of 750,000 or more, the county executive shall be in charge of the operation of the work center.

Note: This Section replaces the term “handicapped” with “disabled” in a statute that allows a county board to establish and operate a work center to provide employment for severely disabled individuals.

SB803,3 Section 3. 60.85 (2) (b) 7. of the statutes is repealed.

Note: This Section repeals an exception to the town tax increment law for the town of Brookfield in Waukesha County. Sections 4 to 7 delete cross-references to this exception.

SB803,4 Section 4 . 60.85 (2) (c) of the statutes is amended to read:

SB803,5,14 60.85 (2) (c) Except as provided in par. (b) 7., no No town may exercise any power under this subsection within the extraterritorial zoning jurisdiction of a city or village, as that term is defined in s. 62.23 (7a) (a), unless the city's or village's governing body adopts a resolution which approves the town's exercise of power under this subsection within such an extraterritorial zoning jurisdiction.

SB803,5 Section 5. 60.85 (3) (h) 4. of the statutes is amended to read:

SB803,5,20 60.85 (3) (h) 4. Declares the district to be either an agricultural project district, forestry project district, manufacturing project district, or tourism project district, and identifies the North American Industry Classification System industry number of each activity under each project for which project costs are to be expended; or declares the district to be a project described in sub. (2) (b) 7.

SB803,6 Section 6. 60.85 (3) (h) 5. a. of the statutes is amended to read:

SB803,6,4 60.85 (3) (h) 5. a. That not less than 75 percent, by area, of the real property within the district is to be used for projects of a single one of the project types listed under sub. (2) (b) 1. to 4. or 7. and in accordance with the declaration under subd. 4.

SB803,7 Section 7 . 60.85 (3) (h) 5. c. of the statutes is amended to read:

SB803,6,8 60.85 (3) (h) 5. c. That the project costs of the district are limited to those specified under sub. (2) (b) and relate directly to a project described in sub. (2) (b) 7. or to promoting agriculture, forestry, manufacturing, or tourism development.

SB803,8 Section 8. 60.85 (5) (e) of the statutes is repealed.

Note: This Section repeals a requirement that a town clerk, no later than May 15 each year, file with the department of revenue a list of the expenditures made in the previous year for a town tax incremental district.

SB803,9 Section 9. 66.0602 (2) (a) of the statutes is amended to read:

SB803,6,19 66.0602 (2) (a) Except as provided in subs. (3), (4), and (5), no political subdivision may increase its levy in any year by a percentage that exceeds the political subdivision's valuation factor. Except as provided in Subject to par. (b), the base amount in any year, to which the limit under this section applies, shall be the actual levy for the immediately preceding year. In determining its levy in any year, a city, village, or town shall subtract any tax increment that is calculated under s. 59.57 (3) (a), 60.85 (1) (L), or 66.1105 (2) (i). The base amount in any year, to which the limit under this section applies, may not include any amount to which sub. (3) (e) 8. applies.

Note: This Section replaces the phrase “except as provided in” with “subject to” in its reference to s. 66.0602 (2) (b), Stats.

SB803,10 Section 10 . 66.0602 (2) (b) of the statutes is amended to read:

SB803,7,5 66.0602 (2) (b) For purposes of par. (a), in 2018, and in each year thereafter, the base amount to which the limit under this section applies is the actual levy for the immediately preceding year, plus the amount of the payment under s. 79.096, and the levy limit is the base amount multiplied by the valuation factor, minus the amount of the payment under s. 79.096 in the current year. The base amount in any year, to which the limit under this section applies, may not include any amount to which sub. (3) (e) 8. applies.

Note: This Section clarifies that an exception for purposes of determining the base amount for a levy limit continues to apply in 2018 and in each year thereafter. The exception provides that the base amount may not include any amount used to pay unreimbursed expenses for a state of emergency declared by the governor. This Section also deletes unnecessary, duplicative language.

SB803,11 Section 11. 66.0602 (2) (c) of the statutes is created to read:

SB803,7,9 66.0602 (2) (c) The limit under this section shall be reduced by the amount of the payment under s. 79.096 in the following year, as determined by the department of revenue.

Note: This Section provides that the levy limit is reduced by the amount of the personal property aid payment.

SB803,12 Section 12. 66.0602 (3) (dm) of the statutes is amended to read:

SB803,7,21 66.0602 (3) (dm) If the department of revenue does not certify a value increment for a tax incremental district for the current year as a result of the district's termination, the levy increase limit otherwise applicable under this section in the current year to the political subdivision in which the district is located is increased by an amount equal to the political subdivision's maximum allowable levy for the immediately preceding year base amount under sub. (2), multiplied by a percentage equal to 50 percent of the amount determined by dividing the value increment of the terminated tax incremental district, calculated for the previous year, by the political subdivision's equalized value, exclusive of any tax incremental district value increments, for the previous year, all as determined by the department of revenue.

Note: This Section provides that the actual adjusted levy, rather than the maximum allowable levy, for the preceding year is used to calculate the allowable increase in the levy limit when a tax incremental district is terminated.

SB803,13 Section 13. 66.0602 (3) (ds) of the statutes is amended to read:

SB803,8,13 66.0602 (3) (ds) If the department of revenue recertifies the tax incremental base of a tax incremental district as a result of the district's subtraction of territory under s. 66.1105 (4) (h) 2., the levy limit otherwise applicable under this section shall be adjusted in the first levy year in which the subtracted territory is not part of the value increment. In that year, the political subdivision in which the district is located shall increase the levy limit otherwise applicable by an amount equal to the political subdivision's maximum allowable levy for the immediately preceding year base amount under sub. (2), multiplied by a percentage equal to 50 percent of the amount determined by dividing the value increment of the tax incremental district's territory that was subtracted, calculated for the previous year, by the political subdivision's equalized value, exclusive of any tax incremental district value increments, for the previous year, all as determined by the department of revenue.

Note: This Section provides that the actual adjusted levy, rather than the maximum allowable levy, for the preceding year is used to calculate the allowable increase in the levy limit when territory is subtracted from a tax incremental district.

SB803,14 Section 14 . 66.1105 (2) (f) 1. (intro.) of the statutes is amended to read:

SB803,9,11 66.1105 (2) (f) 1. (intro.) “Project costs" mean any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the city which are listed in a project plan as costs of public works or improvements within a tax incremental district or, to the extent provided in this subd. 1. (intro.) or subds. 1. k., 1. m., and 1. n., or sub. (20) (c), without the district, plus any incidental costs, diminished by any income, special assessments, or other revenues, including user fees or charges, other than tax increments, received or reasonably expected to be received by the city in connection with the implementation of the plan. For any tax incremental district for which a project plan is approved on or after July 31, 1981, only a proportionate share of the costs permitted under this subdivision may be included as project costs to the extent that they benefit the tax incremental district, except that expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by a 1st class city, to fund parking facilities ancillary to and within one mile from public entertainment facilities, including a sports and entertainment arena, shall be considered to benefit any tax incremental district located in whole or in part within a one-mile radius of such parking facilities. To the extent the costs benefit the municipality outside the tax incremental district, a proportionate share of the cost is not a project cost. “Project costs" include:

SB803,15 Section 15. 66.1105 (2) (f) 1. m. of the statutes is repealed.

Note: This Section repeals a statute relating to project costs for a one-half mile radius of a tax incremental district in the city of Kenosha. Sections 14 and 19 delete a cross-reference to this statute. Section 17 deletes language that is obsolete after the repeal of the statute in this Section.

SB803,16 Section 16. 66.1105 (2) (f) 1. n. of the statutes is amended to read:

SB803,9,17 66.1105 (2) (f) 1. n. With regard to a tax incremental district that is located anywhere other than a city to which sub. (6) (d) applies, and subject Subject to sub. (4m) (d), project costs incurred for territory that is located within a one-half mile radius of the district's boundaries and within the city that created the district.

SB803,17 Section 17. 66.1105 (6) (am) 2. e. of the statutes is repealed.

Note: This Section repeals an exception for a tax incremental district in the village of Denmark.

SB803,18 Section 18. 66.1105 (6) (am) 2. f. of the statutes is repealed.

Note: This Section repeals an exception for a tax incremental district in the city of Marinette.

SB803,19 Section 19 . 66.1105 (18) (c) 2. of the statutes is amended to read:

SB803,10,3 66.1105 (18) (c) 2. Notwithstanding the provisions under sub. (2) (f) 1. k., m., and n., a multijurisdictional tax incremental district may not incur project costs for any area that is outside of the district's boundaries.

SB803,20 Section 20. 70.05 (4n) of the statutes is amended to read:

SB803,10,9 70.05 (4n) If a taxation district assessor is requesting to view the interior of a residence, the assessor shall provide written notice information to the property owner of the property owner's rights regarding the inspection of the interior of the owner's residence. The notice information shall be in substantially the following form:

SB803,10,10 PROPERTY OWNER RIGHTS

SB803,10,19 You have the right to refuse entry into your residence pursuant to section 70.05 (4m) of the Wisconsin statutes. Entry to view your property is prohibited unless voluntarily authorized by you. Pursuant to section 70.05 (4m) of the Wisconsin statutes, you have the right to refuse a visual inspection of the interior of your residence and your refusal to allow an interior inspection of your residence will not be used as the sole reason for increasing your property tax assessment. Refusing entry to your residence also does not prohibit you from objecting to your assessment pursuant to section 70.47 (7) of the Wisconsin statutes. Please indicate your consent or refusal to allow an interior visual inspection of your residence.

Note: This Section requires an assessor to provide written “information,” rather than written “notice,” to a property owner of the owner's rights regarding the inspection of the interior of the owner's residence.

SB803,21 Section 21 . 70.11 (42) of the statutes is repealed.

Note: Sections 22 and 130 to 131 transfer the contents of the hub facility exemption from ch. 70, Stats. (which relates to general property taxes) to ch. 76, Stats. (which relates to special property taxes).

SB803,22 Section 22. 70.48 of the statutes is amended to read:

SB803,11,20 70.48 Assessor to attend board of review. The assessor or the assessor's authorized representative shall attend without order or subpoena all hearings before the board of review and under oath submit to examination and fully disclose to the board such information as the assessor may have touching the assessment and any other matters pertinent to the inquiry being made. All part-time assessors shall receive the same compensation for such attendance as is allowed to the members of the board but no county assessor or member of a county assessor's staff shall receive any compensation other than that person's regular salary for attendance at a board of review. The clerk shall make all corrections to the assessment roll ordered by the board of review, including all changes in the valuation of real property. When any valuation of real property is changed, the clerk shall enter the valuation fixed by the board in red ink in the proper class above the figures of the assessor, and the figures of the assessor shall be crossed out with red ink and enter a note of the valuation of the assessor and the change to that valuation made by the board. The clerk shall also enter upon the assessment roll, in the proper place, the names of all persons found liable to taxation on personal property by the board of review, setting opposite such names respectively the aggregate valuation of such property as determined by the assessor, after deducting exemptions and making such corrections as the board has ordered. All changes in valuation of personal property made by the board of review shall be made in the same manner as changes in real estate.

Note: This Section requires a clerk, when any valuation of real property is changed, to enter a note of the valuation made by the assessor and the change to a valuation made by the board of review.

SB803,23 Section 23 . 71.05 (6) (a) 1. (title) of the statutes is created to read:

SB803,11,22 71.05 (6) (a) 1. (title) `Interest.'

Note: Sections 23 to 25 , 27, 28 , 30, 32 to 37, 39 , 40, and 43 to 49 create titles for subdivisions relating to additions for individual income tax.

SB803,24 Section 24. 71.05 (6) (a) 2. (title) of the statutes is created to read:

SB803,12,2 71.05 (6) (a) 2. (title) `Losses.'

SB803,25 Section 25 . 71.05 (6) (a) 3. (title) of the statutes is created to read:

SB803,12,4 71.05 (6) (a) 3. (title) `Pre-1965 capital loss carry-over.'

SB803,26 Section 26. 71.05 (6) (a) 4. of the statutes is repealed.

Note: This Section repeals, from the list of additions for individual income tax, the amount of any lump sum distribution for employee benefit plans under the internal revenue code.

SB803,27 Section 27 . 71.05 (6) (a) 5. (title) of the statutes is created to read: