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2019 - 2020 LEGISLATURE
ASSEMBLY AMENDMENT 1,
TO ASSEMBLY BILL 901
February 17, 2020 - Offered by Representative Petersen.
AB901-AA1,1,11 At the locations indicated, amend the bill as follows:
AB901-AA1,1,3 21. Page 1, line 2: after “assistance" insert “, and treatment of comparable
3property and leased property,".
AB901-AA1,1,4 42. Page 4, line 13: after that line insert:
AB901-AA1,1,5 5 Section 3g. 70.32 (1) of the statutes is amended to read:
AB901-AA1,2,26 70.32 (1) Real property shall be valued by the assessor in the manner specified
7in the Wisconsin property assessment manual provided under s. 73.03 (2a) from
8actual view or from the best information that the assessor can practicably obtain, at
9the full value which could ordinarily be obtained therefor at private sale. In Subject
10to subs. (1b) and (1c), in
determining the value, the assessor shall consider recent
11arm's-length sales of the property to be assessed if according to professionally
12acceptable appraisal practices those sales conform to recent arm's-length sales of
13reasonably comparable property; recent arm's-length sales of reasonably

1comparable property; and all factors that, according to professionally acceptable
2appraisal practices, affect the value of the property to be assessed.
AB901-AA1,3m 3Section 3m. 70.32 (1b) and (1c) of the statutes are created to read:
AB901-AA1,2,54 70.32 (1b) For purposes of sub. (1), property may not be considered reasonably
5comparable to the property being assessed under any of the following circumstances:
AB901-AA1,2,96 (a) Either property has physical deterioration due to extended vacancy or is
7otherwise physically deteriorated and the other property does not have physical
8deterioration due to extended vacancy or is not similarly otherwise physically
9deteriorated.
AB901-AA1,2,1410 (b) The comparable property is subject to a deed restriction, placed by the seller
11at or before the time of sale, that prohibits any use of the property that is reasonably
12comparable to the highest and best use of the property being assessed and the
13property being assessed is not subject to a similar restriction, unless credible
14adjustment can be made to account for the difference between the properties.
AB901-AA1,2,1915 (c) The property being assessed is subject to a deed restriction that prohibits
16any use of the property that is reasonably comparable to the highest and best use of
17the comparable property and the comparable property is not subject to a similar
18restriction, unless credible adjustment can be made to account for the difference
19between the properties.
AB901-AA1,2,21 20(1c) (a) In this subsection, “operating lease” means a lease that does not have
21any of the following characteristics:
AB901-AA1,2,2222 1. Is entered into as part of or connected to a sale-leaseback transaction.
AB901-AA1,2,2423 2. Has a purpose of facilitating or financing the construction, purchase,
24financing, or acquisition of the leased property or other tangible or intangible asset.
AB901-AA1,3,3
1(b) In valuing property under sub. (1), the assessor shall value the fee simple
2estate as if unencumbered but subject to any effect from the exercise of police powers
3or other governmental action and shall comply with all of the following:
AB901-AA1,3,104 1. If the property being assessed is subject to one or more operating leases, the
5assessor may consider the lease provisions and rental income generated by the
6property only to the extent that the rental income does not exceed the rental income
7that would be expected if the rents were consistent with local market rents for
8reasonably comparable properties and the overall lease provisions, including the
9creditworthiness of the tenants, are not more favorable to the property's owner than
10is typical in the local market.
AB901-AA1,3,1511 2. If the property being assessed is subject to one or more operating leases, the
12assessor may not rely on the rental income generated by the property or the lease
13provisions unless the assessor has actual knowledge of the material terms of all the
14operating leases and the creditworthiness of all the tenants as of the assessment
15date.
AB901-AA1,3,1816 3. If the property being assessed is subject to a lease that is not an operating
17lease, the assessor may not rely on the rental income generated by the property or
18the lease provisions.
AB901-AA1,3,2119 4. The assessor may rely on the sale of reasonably comparable property that
20is subject to one or more operating leases only if all of the following conditions are
21met:
AB901-AA1,3,2522 a. At the time of the sale of the reasonably comparable property, the rental
23income generated by the reasonably comparable property did not exceed the rental
24income that would be expected if the rents were consistent with market rents for
25reasonably comparable properties in that property's local market.
AB901-AA1,4,4
1b. At the time of the sale of the reasonably comparable property, the overall
2lease provisions, including the creditworthiness of the tenants, are not more
3favorable to the reasonably comparable property's owner than is typical in that
4property's local market.
AB901-AA1,4,75 c. The assessor has actual knowledge of the material terms of all the operating
6leases and the creditworthiness of all the tenants as of the date of the sale of the
7reasonably comparable property.
AB901-AA1,4,98 5. The assessor may not rely on the sale of reasonably comparable property that
9is subject to a lease that is not an operating lease.”.
AB901-AA1,4,10 103. Page 5, line 6: after that line insert:
AB901-AA1,4,11 11 Section 6m. Initial applicability.
AB901-AA1,4,13 12(1) The treatment of s. 70.32 (1), (1b), and (1c) first applies to the property tax
13assessments as of January 1, 2021.”.
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