LRB-5393/1
JK:ahe&klm
2019 - 2020 LEGISLATURE
January 22, 2020 - Introduced by Representatives Wittke, Loudenbeck and
McGuire, cosponsored by Senators Marklein, Kooyenga and Carpenter.
Referred to Committee on Ways and Means.
AB771,1,2
1An Act to create 70.11 (4) (b) 3. of the statutes;
relating to: leasing tax exempt
2property of a church or religious organization to an educational association.
Analysis by the Legislative Reference Bureau
Current law provides a property tax exemption for property owned by
educational associations and institutions, benevolent associations, churches,
religious associations, and certain nonprofit entities licensed by the Department of
Health Services. Leasing such property does not render the property taxable as long
as the lessor uses the leasehold income for maintenance or construction debt
retirement of the leased property. However, current law allows some leased property
to retain its exemption regardless of how the leasehold income is used. For example,
leasing a part of property that is owned and operated by a licensed nonprofit entity
as residential housing does not render the property taxable, regardless of how the
lessor uses the leasehold income.
Under this bill, leasing all or part of any property owned by a church or religious
organization to an educational association or institution that is also exempt from
taxation does not render the property taxable, regardless of how the lessor uses the
leasehold income.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the 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:
AB771,1
1Section
1. 70.11 (4) (b) 3. of the statutes is created to read:
AB771,2,52
70.11
(4) (b) 3. Leasing all or part of property described in par. (a) that is owned
3by a church or religious association or institution to an educational association or
4institution exempt under par. (a) does not render the property taxable, regardless of
5how the lessor uses the leasehold income.
AB771,2
6Section
2.
Initial applicability.
AB771,2,77
(1) This act first applies to the property tax assessments as of January 1, 2020.
