79.10 Wisconsin state property tax relief.

2,434 words·~11 min read·/wi/chapter-79/79-10-5

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

(1)Definitions. In this section:

(b)“Average school tax levies” means the average of the school tax levies for the 3 years preceding the assessment year to which the tax credit is to apply.

(d)“Municipality” means any town, village or city in this state. Where a municipality is located in more than one county the portion thereof in each county shall be considered a separate municipality.

(dm)“Principal dwelling” means any dwelling that is used by the owner of the dwelling as a primary residence on January 1 of the year preceding the allocation of a credit under sub.

(bm)and includes improvements that are classified, under ch. 70 , as taxable real property or personal property.

(e)“School tax levies” means property taxes levied in a municipality for elementary and secondary school districts and for county children with disabilities education board programs under s. 115.817 , net of municipal surplus funds applied against those levies.

(g)“School tax rate” means the taxes levied by school districts, as defined in s. 115.01

(3), as reflected on each property tax bill divided by the estimated fair market value of the property as reflected on each tax bill.

(1m)Notice to the department.

(a)Each municipality shall notify the department of revenue of the total amount of credits allocated under sub.

(bm).

(b)Counties and municipalities shall submit to the department of revenue all data related to the lottery and gaming credit and the first dollar credit as requested by the department of revenue.

(2)Notice to municipalities.

(a)On or before November 20 of the year preceding the distribution under sub.

(a)or

(cm), the department of revenue shall notify the clerk of each town, village and city of the estimated fair market value, as determined under sub.

(c), to be used to calculate the lottery and gaming credit under sub.

(5)and of the amount to be distributed to it under sub.

(a)or

(cm). The anticipated receipt of such distribution shall not be taken into consideration in determining the tax rate of the municipality but shall be applied as tax credits.

(b)On or before November 20 of the year preceding the distribution under sub.

(c)or

(cm), the department of revenue shall notify the clerk of each town, village, and city of the estimated fair market value, as determined under sub.

(d), used to calculate the first dollar credit under sub.

(5m)and of the amount to be distributed to it under sub.

(c)or

(cm). The anticipated receipt of such distribution shall not be taken into consideration in determining the tax rate of the municipality but shall be applied as tax credits.

(4)School levy tax credit. Except as provided in sub.

(5m), the amount appropriated under s. 20.835

(b)shall be distributed to municipalities in proportion to their share of the sum of average school tax levies for all municipalities.

(5)Lottery and gaming credit. Each municipality shall receive, from the appropriation under s. 20.835

(q), an amount determined by multiplying the school tax rate by the estimated fair market value, not exceeding the value determined under sub.

(c), of every principal dwelling that is located in the municipality and for which a claim for the credit under sub.

(bm)is made by the owner of the principal dwelling.

(5m)First dollar credit. Each municipality shall receive, from the appropriation under s. 20.835

(b), an amount determined by multiplying the school tax rate by the estimated fair market value, not exceeding the value determined under sub.

(d), of every parcel of real property with improvements that is located in the municipality.

(6m)Corrections of state property tax credit payments.

(a)Except as provided in pars.

(b)and

(c), if the department of administration or the department of revenue determines by October 1 of the year of any distribution under subs.

(4),

(5), and

(5m)that there was an overpayment or underpayment made in that year’s distribution by the department of administration to municipalities, as determined under subs.

(4),

(5), and

(5m), because of an error by the department of administration, the department of revenue or any municipality, the overpayment or underpayment shall be corrected as provided in this paragraph. Any overpayment shall be corrected by reducing the subsequent year’s distribution, as determined under subs.

(4),

(5), and

(5m), by an amount equal to the amount of the overpayment. Any underpayment shall be corrected by increasing the subsequent year’s distribution, as determined under subs.

(4),

(5), and

(5m), by an amount equal to the amount of the underpayment. Corrections shall be made in the distributions to all municipalities affected by the error. Corrections shall be without interest.

(b)If, after March 1 of the year of any distribution under sub.

(5), a municipality discovers an error in the notice that the municipality furnished under sub.

(1m)that resulted in an overpayment of that year’s distribution to the municipality, as determined under sub.

(5), the municipality shall correct the error and notify the department of revenue of the correction on a form that the department prescribes. If, after March 1 of the year of any distribution under sub.

(5), the department of administration or the department of revenue discovers an error in the notice that the municipality furnished under sub.

(1m)that resulted in an overpayment of that year’s distribution to the municipality, as determined under sub.

(5), the department of administration or the department of revenue shall notify the municipality and the municipality shall correct the error. The municipality may pay the amount of the overpayment to the department of revenue and, if the municipality chooses to make such a payment, shall submit the payment with the form prescribed under this paragraph. If the municipality does not pay the amount of the overpayment, the department of administration may collect the amount of the overpayment as a special charge to the municipality or may correct the overpayment as provided under par.

(a). Payments under this paragraph shall be without interest and shall be deposited in the lottery fund.

(c)If, after March 1 of the year of any distribution under sub.

(5), a municipality discovers an error in the notice that the municipality furnished under sub.

(1m)that resulted in an underpayment of that year’s distribution to the municipality, as determined under sub.

(5), the municipality shall correct the error and notify the department of revenue on a form that the department prescribes. If, after March 1 of the year of any distribution under sub.

(5), the department of administration or the department of revenue discovers an error in the notice that the municipality furnished under sub.

(1m)that resulted in an underpayment of that year’s distribution to the municipality, as determined under sub.

(5), the department of administration or the department of revenue shall notify the municipality and the municipality shall correct the error. The department of revenue may either pay the amount of the underpayment to the municipality, from the appropriation under s. 20.835

(q), or correct the underpayment as provided under par.

(a). Payments under this paragraph shall be without interest.

(7m)Distribution.

(a)School tax credit.

1. Except as provided in par.

(cm), the amount determined under sub.

(4)shall be distributed by the department of administration to the counties on the 4th Monday in July, except as follows:

a. In the 2023-24 fiscal year, on the 4th Monday in July 2023, the department of administration shall distribute $940,000,000 related to the 2022 property tax levies. In the 2023-24 fiscal year, on the first Monday in May 2024, the department of administration shall distribute $255,000,000 related to the 2023 property tax levies.

b. In the 2024-25 fiscal year, on the 4th Monday in July 2024, the department of administration shall distribute $940,000,000 related to the 2023 property tax levies. In the 2024-25 fiscal year, on the first Monday in May 2025, the department of administration shall distribute $335,000,000, related to the 2024 property tax levies. In each fiscal year thereafter, on the 4th Monday in July, the department of administration shall distribute $940,000,000 related to the property tax levies of the calendar year immediately preceding the distribution.

In each fiscal year thereafter, on the first Monday in May, the department of administration shall distribute $335,000,000 related to the property tax levies of the calendar year immediately preceding the distribution.

2. Except as provided in par.

(cm), the county treasurer shall settle for the amounts distributed under this paragraph with each municipality and taxing jurisdiction in the county not later than August 20. Failure to settle timely under this subdivision subjects the county treasurer to the penalties under s. 74.31 .

(b)Lottery and gaming credit.

1. Except as provided in par.

(cm), the amount determined under sub.

(5)with respect to claims filed for which the municipality has furnished notice under sub.

(1m)by March 1 shall be distributed from the appropriation under s. 20.835

(q)by the department of administration to the county in which the municipality is located on the 4th Monday in March.

2. Except as provided in par.

(cm), the county treasurer shall settle for the amounts distributed on the 4th Monday in March under this paragraph with each taxation district and each taxing jurisdiction within the taxation district not later than April 15. Failure to settle timely under this subdivision subjects the county treasurer to the penalties under s. 74.31 .

(c)First dollar credit.

1. Except as provided in par.

(cm), the amount determined under sub.

(5m)shall be distributed from the appropriation under s. 20.835

(b)by the department of administration to the counties on the 4th Monday in July.

2. Except as provided in par.

(cm), the county treasurer shall settle for the amounts distributed on the 4th Monday in July under this paragraph with each municipality and taxing jurisdiction in the county not later than August 20. Failure to settle timely under this subdivision subjects the county treasurer to the penalties under s. 74.31 .

(cm)Distribution to certain municipalities.

a. If, in any year, the total of the amounts determined under subs.

(4),

(5), and

(5m)for any municipality is $3,000,000 or more, the municipality, with the approval of the majority of the members of the municipality’s governing body, may notify the department of administration to distribute the amounts directly to the municipality and the department of administration shall distribute the amounts at the time and in the manner provided under pars.

(a)1. ,

(b)1. , and

(c)1. Beginning in 2018, if the municipality approves the distribution under this subd. 1. a. by enacting an ordinance and provides a copy of the ordinance to the department of administration and the department of revenue, the department of administration shall distribute the amounts determined under subs.

(4),

(5), and

(5m)to the municipality as provided under this subd. 1. a. for the year in which the municipality enacts the ordinance and in all subsequent years until the municipality notifies the department of administration and the department of revenue that the municipality has repealed the ordinance or until the total amounts under subs.

(4),

(5), and

(5m)to be distributed to the municipality in a year is less than $3,000,000.

b. The treasurer of the municipality shall settle for the amounts distributed under pars.

(a)1. and

(c)1. with the appropriate county treasurer not later than August 15. Failure to settle timely under this subdivision subjects the treasurer of the municipality to the penalties under s. 74.31 . On or before August 20, the county treasurer shall settle with each taxing jurisdiction, including towns, villages, and cities, except 1st class cities, in the county.

c. The treasurer of the municipality shall settle for the amounts distributed under par.

(b)1. on the 4th Monday in March with each taxing jurisdiction within the taxation district not later than April 15. Failure to settle timely under this subdivision subjects the treasurer of the municipality to the penalties under s. 74.31 . On or before August 20, the county treasurer shall settle with each taxing jurisdiction, including towns, villages, and cities, except 1st class cities, in the county.

a. The department of administration shall distribute the amounts determined under subs.

(4),

(5), and

(5m)directly to any municipality that enacts an ordinance under s. 74.12 at the time and in the manner provided under pars.

(a)1. ,

(b)1. , and

b. The treasurer of the municipality shall settle for the amounts distributed under pars.

(a)1. and

c. The treasurer of the municipality shall settle for the amounts distributed under par.

(8)Delayed payments.

(a)If a county receives a payment under this section that, under s. 16.53 , is made after the date specified in this section, that county shall as soon as possible distribute to each municipality and taxing jurisdiction in the county, the municipality’s and taxing jurisdiction’s share of the payment and of the interest in respect to that payment.

(b)If a municipality receives a payment under this section that, under s. 16.53 , is made after the date specified in this section, that municipality shall as soon as possible distribute to each taxing district for which the municipality collects taxes that district’s share of the payment and of the interest in respect to that payment.

(9)Credit against tax liability.