LRB-0394/3
EKL:emw&kjf
2019 - 2020 LEGISLATURE
March 15, 2019 - Introduced by
Joint Legislative Council. Referred to Committee
on Agriculture, Revenue and Financial Institutions.
SB97,1,3
1An Act to amend 70.47 (2m), 70.47 (7) (af) and 70.47 (13); and
to create 70.325,
270.47 (12e) and 70.47 (13e) of the statutes;
relating to: the submission of
3information for commercial property tax assessments.
Analysis by the Legislative Reference Bureau
This bill is explained in the Notes provided by the Joint Legislative Council in
the bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
Joint Legislative Council prefatory note: This bill was prepared for the Joint
Legislative Council Study Committee on Property Tax Assessment Practices. In
Wisconsin, if a property tax assessor concludes that recent sales data is insufficient to
allow assessment based on a sale of the subject property or recent sales of comparable
properties, an assessor may rely on an “income approach” to estimate a property's value
based on its income-generating potential. Under current law, an assessor may request
that a person provide information regarding the income and expenses of a property in
connection with board of review proceedings. No person may object to a valuation that
relies on the income approach unless the person provided the assessor with the requested
information at least seven days before the first meeting of the board of review.
The bill authorizes an assessor to request an enumerated list of documents at an
earlier stage in the assessment process, and regardless of the valuation approach.
Specifically, for commercial assessments, the bill authorizes an assessor, by January 15
of the current assessment year, to request a person to provide one or more of a specified
list of documents that were executed, prepared, or submitted within the current
assessment year or the three years prior to the current assessment year. The bill
generally prohibits a person who has received such a request from objecting to a valuation
before the board of review if the person did not provide the requested information by
March 31 of the current assessment year.
If the person challenging an assessment does not possess the requested documents,
the bill requires the person to make a good faith effort to obtain them. The bill authorizes
a board of review to dismiss a person's objection if the person does not demonstrate such
good faith effort, and it provides for limited judicial review of such dismissals.
The bill requires the Department of Revenue to prescribe a form listing the
documents enumerated in the bill. Under the bill, the form and documents are
confidential records of an assessor's office and must remain under seal before the board
of review and on appeal. Finally, the bill provides that documents provided under the bill
are not controlling and specifies that the bill does not limit an assessor's authority to seek
additional evidence regarding a property's value.
SB97,1
1Section 1
. 70.325 of the statutes is created to read:
SB97,2,13
270.325 Requirement to provide information for commercial property
3assessments. (1) To determine the value of property classified under s. 70.32 (2)
4(a) 2. for which a person should be assessed, an assessor may request, no later than
5January 15 of the current assessment year, the person to submit evidence of the
6property's fair market value. An assessor shall make a request by providing the
7person with a form prescribed by the department of revenue that the person shall
8complete. The form prescribed by the department shall list documents that evidence
9a commercial property's fair market value and shall require the person to declare
10whether a document exists for the property to be assessed and, if so, to attach a copy
11to the form. The assessor may request any of the listed documents that were
12executed, prepared, or submitted within the current assessment year or the 3 years
13prior to the current assessment year. The documents listed on the form shall include:
SB97,2,1414
(a) All of the following relating to the rental of the property:
SB97,2,1515
1. Itemized operating statements.
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2. Vacancy losses.
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3. Rent rolls.
SB97,3,1
15. Lease abstracts.
SB97,3,22
6. Federal tax form 8825.
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(b) All of the following relating to a sale or potential sale of the property:
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1. Purchase agreements.
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2. Listing contracts.
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3. Offers to purchase.
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4. Counteroffers to purchase.
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5. Condition reports.
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6. Option to purchase.
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7. Rights of first refusal.
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8. Letters of intent.
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(c) All of the following provided to a purchaser of the property no later than the
13sale's closing date:
SB97,3,1414
1. Closing statements.
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2. Rent rolls.
SB97,3,1717
4. Operating statements.
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5. Stacking plans.
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6. Title commitments.
SB97,3,2020
7. Documentation of tenant delinquencies.
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8. Service contracts.
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9. Warranties.
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10. Utility bills.
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11. Environmental reports.
SB97,4,2
1(d) Documents showing the cost of completed construction or completed
2remodeling.
SB97,4,33
(e) Appraisals and feasibility studies.
SB97,4,54
(f) Documents provided to the federal securities and exchange commission in
5which the property is listed or discussed.
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(g) Fixed asset schedules on which the property is listed.
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(h) Documents showing asset value of the property in the real estate portfolio
8of a real estate investment trust.
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9(2) The form and documents provided under sub. (1) shall be the confidential
10records of the assessor's office and shall remain under seal before the board of review
11and on appeal. The municipality or county shall provide by ordinance for the
12confidentiality of the information contained on the form and documents and shall
13provide exceptions for persons using the information in the discharge of the duties
14of their office or duties imposed by law or order of a court. The form and documents
15provided under sub. (1) are not subject to the right of inspection and copying under
16s. 19.35 (1).
SB97,4,19
17(3) If any documents requested under sub. (1) are not in the possession of a
18person challenging an assessment, the person shall make a good faith effort to obtain
19the documents.
SB97,4,23
20(4) No document or information provided under this section is controlling on
21the assessor in the assessment of the property. Nothing in this section limits the
22authority of the assessor to seek additional evidence as to the full value of the
23property.
SB97,2
24Section 2
. 70.47 (2m) of the statutes is amended to read:
SB97,5,6
170.47
(2m) Open meetings.
All Except when the board of review determines
2it necessary to meet in closed session to maintain the confidentiality of information
3required to remain under seal under s. 70.325 (2), all meetings of the board
of review 4shall be publicly held and open to all citizens at all times
. No and no formal action
5of any kind
shall may be introduced, deliberated upon
, or adopted at any closed
6session or meeting
of a board of review.
SB97,3
7Section 3
. 70.47 (7) (af) of the statutes is amended to read:
SB97,5,248
70.47
(7) (af) No person
upon whom a timely request under s. 70.325 (1) was
9made may appear before the board of review, testify to the board by telephone or
10object to a valuation
; if that valuation was made by the assessor or the objector using
11the income method; unless
no later than 7 days before the first meeting of the board
12of review the person supplies to the assessor all of the information about income and
13expenses, as specified in the manual under s. 73.03 (2a), that the assessor requests.
14The municipality or county shall provide by ordinance for the confidentiality of
15information about income and expenses that is provided to the assessor under this
16paragraph and shall provide exceptions for persons using the information in the
17discharge of duties imposed by law or of the duties of their office or by order of a court.
18The information that is provided under this paragraph is not subject to the right of
19inspection and copying under s. 19.35 (1) unless a court determines before the first
20meeting of the board of review that the information is inaccurate
the person provides
21the assessor with the information requested under s. 70.325 (1) no later than March
2231. This paragraph does not apply if the board of review, or a court under s. 70.47
23(13e), determines that the person demonstrated a good faith effort to obtain
24documents that are not in the person's possession as required under s. 70.325 (3).
SB97,4
25Section 4
. 70.47 (12e) of the statutes is created to read:
