SB867: Bill Text

This bill reinstates a requirement that DNR assess a withdrawal tax and fee against an owner of MFL who voluntarily withdraws part or all of a parcel, which was eliminated under Act 358.

Current law allows an owner of MFL to sell or otherwise transfer all or part of the owner's parcel of MFL, and the transferred land continues to be designated as MFL if it meets eligibility requirements and the transferee certifies to DNR an intent to comply with the existing management plan for the land and any amendments to the plan. If the transferee does not provide this certification to DNR, current law requires DNR to issue an order withdrawing the land and to assess against the transferee the withdrawal tax and fee. Similarly, after a transfer if the remaining land in the parcel does not meet eligibility requirements, current law requires DNR to issue an order withdrawing the land and to assess against the owner the withdrawal tax and fee. Under this bill, in both of these circumstances DNR may, but is not required to, assess the withdrawal tax and fee.

Under current law, an owner of MFL may request to withdraw part of a parcel and DNR must issue an order of withdrawal if DNR determines that the parcel is either unable to produce merchantable timber in the amount required by law or unsuitable, due to environmental, ecological, or economic concerns or factors, for the production of merchantable timber. Current law requires that the order withdraw only the number of acres necessary for the parcel to resume its ability to produce the required amount or to resume its sustainability to produce merchantable timber, and prohibits the assessment of a withdrawal tax or fee for the withdrawal. This bill adds that, if the land remaining in the parcel after the withdrawal will not meet eligibility requirements under the order designating the MFL, the order must withdraw the entire parcel, and may not assess a withdrawal tax or fee.

Small land sales

Under current law, generally an owner of MFL may voluntarily withdraw part of a parcel of the owner's land once per 25-year order and twice per 50-year order if the purpose for which the owner requests the withdrawal is for the sale of one to five acres of the land or for a construction site. Current law separately allows an owner of MFL to sell or transfer ownership of all or part of the owner's land an unlimited number of times per order. This bill harmonizes these provisions by removing the sale of land as a purpose for a voluntary withdrawal under the former.

Large ownerships

The bill authorizes DNR to promulgate rules that subject large ownerships, meaning 1,000 or more acres of land designated as MFL under the same owner, to management plan requirements that deviate from the requirements that apply under statute.

Taxation of buildings

The bill removes a current law provision stating that a building on MFL is taxed as personal property, and eliminates the current law penalty that applies for failure to pay such personal property tax, which is withdrawal of the land from MFL and assessment of the withdrawal tax and fee.

Leasing

This bill eliminates a provision authorizing an owner of MFL that is designated as closed to enter into a lease or other agreement for consideration that permits persons to engage in a recreational activity on the land. Under the bill, there are no prohibitions on leasing land under the MFL program.

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:

SB867,1 Section 1. 70.365 of the statutes, as affected by 2019 Wisconsin Act 2, is amended to read:

SB867,6,5 70.365 Notice of changed assessment. When the assessor assesses any taxable real property, or any improvements taxed as personal property under s. 77.84 (1), and arrives at a different total than the assessment of it for the previous year, the assessor shall notify the person assessed if the address of the person is known to the assessor, otherwise the occupant of the property. However, the assessor is not required to provide notice under this section if land is classified as agricultural land, as defined in s. 70.32 (2) (c) 1g., for the current year and previous year and the difference between the assessments is $500 or less. If the assessor determines that land assessed under s. 70.32 (2r) for the previous year is no longer eligible to be assessed under s. 70.32 (2r), and the current classification under s. 70.32 (2) (a) is not undeveloped, agricultural forest, productive forest land, or other, the assessor shall notify the person assessed if the assessor knows the person's address, or otherwise the occupant of the property, that the person assessed may be subject to a conversion charge under s. 74.485. Any notice issued under this section shall be in writing and shall be sent by ordinary mail at least 15 days before the meeting of the board of review or before the meeting of the board of assessors in 1st class cities and in 2nd class cities that have a board of assessors under s. 70.075, except that, in any year in which the taxation district conducts a revaluation under s. 70.05, the notice shall be sent at least 30 days before the meeting of the board of review or board of assessors. The notice shall contain the amount of the changed assessment and the time, date, and place of the meeting of the local board of review or of the board of assessors. However, if the assessment roll is not complete, the notice shall be sent by ordinary mail at least 15 days prior to the date to which the board of review or board of assessors has adjourned, except that, in any year in which the taxation district conducts a revaluation under s. 70.05, the notice shall be sent at least 30 days prior to the date to which the board of review or board of assessors has adjourned. The assessor shall attach to the assessment roll a statement that the notices required by this section have been mailed and failure to receive the notice shall not affect the validity of the changed assessment, the resulting changed tax, the procedures of the board of review or of the board of assessors or the enforcement of delinquent taxes by statutory means. After the person assessed or the occupant of the property receives notice under this section, if the assessor changes the assessment as a result of the examination of the rolls as provided in s. 70.45 and the person assessed waives, in writing and on a form prescribed or approved by the department of revenue, the person's right to the notice of the changed assessment under this section, no additional notice is required under this section. The secretary of revenue shall prescribe the form of the notice required under this section. The form shall include information notifying the taxpayer of the procedures to be used to object to the assessment. The form shall also indicate whether the person assessed may be subject to a conversion charge under s. 74.485.

SB867,2 Section 2 . 77.82 (1) (a) 1. of the statutes is amended to read:

SB867,6,20 77.82 (1) (a) 1. It consists of at least 20 contiguous acres, which may be composed of individual portions, no smaller than 10 contiguous acres each, that are not contiguous with each other if all individual portions are contained within a tract of contiguous land of 20 acres or more that is under the same ownership, except as provided in this subdivision. The fact that a lake, river, stream , or flowage, a public or private road, or a railroad or utility right-of-way separates any part of the land from any other part does not render a parcel of land noncontiguous . If a part of a parcel of at least 20 contiguous acres is separated from another part of that parcel by a public road, that part of the parcel may be enrolled in the program, even if that part is less than 20 acres, if that part meets the requirement under subd. 2. and is not ineligible under par. (b) and does not render ownership of land noncontiguous. The owner of a parcel of less than 20 acres that is subject to a managed forest land order before April 16, 2016, may apply one time for a renewal of the order under sub. (12) without meeting the 20-acre requirement.

SB867,3 Section 3 . 77.82 (1) (bp) 2. g. of the statutes is repealed.

SB867,4 Section 4 . 77.82 (1) (bp) 4. of the statutes is created to read:

SB867,6,25 77.82 (1) (bp) 4. Notwithstanding par. (b) 3., a building used exclusively for storage that is located on a parcel does not make that parcel ineligible for designation as managed forest land.

SB867,5 Section 5. 77.82 (3) (h) of the statutes is created to read:

SB867,7,3 77.82 (3) (h) 1. Under this paragraph, “large ownership” means 1,000 or more acres of land designated as managed forest land that has the same owner.

SB867,7,6 2. The department may promulgate rules that subject large ownerships to management plan requirements that deviate from the requirements under pars. (ag) to (g).

SB867,6 Section 6. 77.82 (4) of the statutes is amended to read:

SB867,7,24 77.82 (4) Additions to managed forest land. An owner of land that is designated as managed forest land may file an application with the department to designate as managed forest land an additional parcel of land if the additional parcel is at least 3 acres in size and is contiguous to any of land under the same ownership that contains that designated land and any portion not contiguous to that designated land meets the requirements under sub. (1) (a) 1. The application shall be accompanied by a nonrefundable $20 application recording fee unless a different amount for the fee is established by the department by rule at an amount equal to the average expense to the department of recording an order issued under this subchapter. The fee shall be deposited in the conservation fund and credited to the appropriation under s. 20.370 (2) (cr). The application shall be filed on a department form and shall contain any additional information required by the department. The tax rate applicable to an addition under this subsection shall be the tax rate currently applicable to the parcel to which the land is being added. The eligibility requirements applicable to an addition under this subsection are the eligibility requirements under the order that designated the parcel to which the land is being added.

SB867,7 Section 7. 77.82 (11) of the statutes is renumbered 77.82 (11) (a) and amended to read:

SB867,8,9 77.82 (11) (a) An order issued under this subchapter shall constitute a contract between the state and the owner and shall remain in effect for the period specified in the application unless the land is withdrawn under s. 77.84 (3) (b) or 77.88. Except as provided in subs. (3) (f) and (11m), the department may not amend or otherwise change the terms of an order or management plan to conform with changes made to any provision of this subchapter subsequent to the date on which the order was entered or the plan was approved.

SB867,8,21 (b) If a statute is enacted or a rule is promulgated during the period of the order that materially changes the terms of the order as provided under this paragraph, the landowner shall elect between acceptance of modifications to the contract consistent with the provisions of the statute or rule or voluntary withdrawal of the land without penalty. A statutory change does not constitute a material change to an order unless, in the act that makes the change, the legislature states that the act or a provision in the act makes a material change to orders entered into under prior law. A promulgated rule does not constitute a material change to an order unless the rule includes a statement that the rule constitutes a material change to orders entered into under prior rules and the department includes in its report to the legislature under s. 227.19 (2) a statement that the rule constitutes a material change to orders entered into under prior rules and an analysis of this determination.

SB867,8 Section 8. 77.83 (2) (ar) of the statutes is repealed.

SB867,9 Section 9. 77.84 (1) of the statutes is amended to read:

SB867,9,6 77.84 (1) Tax roll. Each clerk of a municipality in which the land is located shall enter in a special column or other appropriate place on the tax roll the description of each parcel of land designated as managed forest land, and shall specify, by the designation “MFL-O" or “MFL-C", the acreage of each parcel that is designated open or closed under s. 77.83. The land shall be assessed and is subject to review under ch. 70. Except as provided in this subchapter, no tax may be levied on managed forest land, except that any building on managed forest land is subject to taxation as personal property under ch. 70.

SB867,10 Section 10. 77.88 (2) (ac) 3. of the statutes is amended to read:

SB867,9,13 77.88 (2) (ac) 3. If the transferee does not provide the department with the certification required under subd. 1., the department shall issue an order withdrawing the land and shall may assess against the transferee the withdrawal tax under sub. (5) and the withdrawal fee under sub. (5m). Notwithstanding s. 77.90, the transferee is not entitled to a hearing on an order withdrawing land under this subdivision.

SB867,11 Section 11. 77.88 (2) (c) of the statutes is amended to read:

SB867,9,20 77.88 (2) (c) Remaining land; requirements not met. If the land remaining after a transfer under par. (a) does not meet the eligibility requirements under s. 77.82 (1) (a) and (b), the department shall issue an order withdrawing the land and shall may assess against the owner the withdrawal tax under sub. (5) and the withdrawal fee under sub. (5m). Notwithstanding s. 77.90, the owner is not entitled to a hearing on an order withdrawing land under this paragraph.

SB867,12 Section 12. 77.88 (3) (am) of the statutes is amended to read:

SB867,9,25 77.88 (3) (am) Entire parcels. Upon request of an owner of managed forest land to withdraw an entire parcel of managed forest land, the department shall issue an order withdrawing the land and assess against the owner the withdrawal tax under sub. (5) and the withdrawal fee under sub. (5m).

SB867,13 Section 13. 77.88 (3) (b) (intro.) of the statutes is amended to read:

SB867,10,6 77.88 (3) (b) Parts of parcels. (intro.) Upon request of an owner of managed forest land to withdraw part of a parcel of managed forest land, the department shall issue an order withdrawing the land subject to the request and assess against the owner the withdrawal tax under sub. (5) and the withdrawal fee under sub. (5m) if all of the following apply:

SB867,14 Section 14. 77.88 (3j) (title) of the statutes is amended to read:

SB867,10,9 77.88 (3j) (title) Voluntary withdrawal; other construction; small land sales.

SB867,15 Section 15. 77.88 (3j) (a) 1. of the statutes is amended to read:

SB867,10,12 77.88 (3j) (a) 1. The purpose for which the owner requests that the department withdraw the land is for the sale of the land or for a construction site.

SB867,16 Section 16. 77.88 (3k) of the statutes is amended to read:

SB867,10,23 77.88 (3k) Voluntary withdrawal; productivity. Upon the request of an owner of managed forest land to withdraw part of a parcel of the owner's land, the department shall issue an order of withdrawal if the department determines that the parcel is unable to produce merchantable timber in the amount required under s. 77.82 (1) (a) 2. The order shall withdraw only the number of acres that is necessary for the parcel to resume its ability to produce the required amount , but if the land remaining after the withdrawal will not meet the eligibility requirements under the order designating the managed forest land, the order shall withdraw the entire parcel. No withdrawal tax under sub. (5) or withdrawal fee under sub. (5m) may be assessed.

SB867,17 Section 17. 77.88 (3L) of the statutes is amended to read:

SB867,11,10 77.88 (3L) Voluntary withdrawal; sustainability. Upon the request of an owner of managed forest land to withdraw part of a parcel of the owner's land, the department shall issue an order of withdrawal if the department determines that the parcel is unsuitable, due to environmental, ecological, or economic concerns or factors, for the production of merchantable timber. The order shall withdraw only the number of acres that is necessary for the parcel to resume its sustainability to produce merchantable timber, but if the land remaining after the withdrawal will not meet the eligibility requirements under the order designating the managed forest land, the order shall withdraw the entire parcel. No withdrawal tax under sub. (5) or withdrawal fee under sub. (5m) may be assessed.

SB867,18 Section 18. 77.88 (3m) of the statutes is repealed.

SB867,19 Section 19. 77.88 (5m) of the statutes is amended to read:

SB867,11,14 77.88 (5m) Withdrawal fee. The withdrawal fee assessed by the department under subs. (1) (c), (2) (ac) 2., (am), and (c), and (3), and (3m) shall be $300.

SB867,20 Section 20. Initial applicability.

SB867,11,18 (1) Minimum acreage. The treatment of s. 77.82 (1) (a) 1. first applies to land designated as managed forest land by an order issued on the effective date of Section 101 (2) of 2015 Wisconsin Act 358.

SB867,11,21 (2) Buildings on parcels. The treatment of s. 77.82 (1) (bp) 2. g. and 4. first applies to land designated as managed forest land under an order issued or renewed on the effective date of Section 101 (3) of 2015 Wisconsin Act 358.

SB867,11,23 (3) Material change. The treatment of s. 77.82 (11) first applies to a statutory change in an act that takes effect on the effective date of this subsection.

SB867,11,24 (End)