74.485 Charge for converting agricultural land.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Definition. In this section, “agricultural land” has the meaning given in s. 70.32

(2)Conversion charge. Except as provided in sub.

(4), a person who owns land that has been assessed as agricultural land under s. 70.32

(2r)and who converts the land’s use so that the land is not eligible to be assessed as agricultural land under s. 70.32

(2r), as determined by the assessor of the taxation district in which the land is located, shall pay a conversion charge to the county in which the land is located in an amount, calculated by the county treasurer, that is equal to the number of acres converted multiplied by the amount of the difference between the average fair market value of an acre of agricultural land sold in the county in the year before the year that the person converts the land, as determined under sub.

(3), and the average equalized value of an acre of agricultural land in the county in the year before the year that the person converts the land, as determined under sub.

(3), multiplied by the following:

(a)Five percent, if the converted land is more than 30 acres.

(b)Seven and one-half percent, if the converted land is 30 acres or less but at least 10 acres.

(c)Ten percent, if the converted land is less than 10 acres.

(3)Value determination. Annually, the department of revenue shall determine the average equalized value of an acre of agricultural land in each county in the previous year, as provided under s. 70.57 , and the average fair market value of an acre of agricultural land sold in each county in the previous year based on the sales in each county in the previous year of parcels of agricultural land that are 38 acres or more to buyers who intend to use the land as agricultural land.

(4)Exceptions and deferral.

(a)A person who owns land that has been assessed as agricultural land under s. 70.32

(2r)and who converts the land’s use so that the land is not eligible to be assessed as agricultural land under s. 70.32

(2r)is not subject to a conversion charge under sub.

(2)if the converted land may be assessed as undeveloped under s. 70.32

(a)5. , as agricultural forest under s. 70.32

(a)5m. , as productive forest land under s. 70.32

(a)6. , or as other under s. 70.32

(a)7. or if the amount of the conversion charge determined under sub.

(2)represents less than $25 for each acre of converted land.

(b)If a person owes a conversion charge under sub.

(2), the treasurer of the county in which the person’s land is located may defer payment of the conversion charge to the succeeding taxable year if the person demonstrates to the assessor of the taxation district in which the land is located that the person’s land will be used as agricultural land in the succeeding taxable year. A person who receives a deferral under this paragraph is not subject to the conversion charge under sub.

(2)related to the deferral, if the person’s land is used as agricultural land in the succeeding taxable year. If the land of a person who receives a deferral under this paragraph is not used as agricultural land in the succeeding taxable year, the person shall pay the conversion charge with interest at the rate of 1 percent a month, or fraction of a month, from the date that the treasurer granted a deferral to the date that the conversion charge is paid.