SB 624 — Relating to: prohibiting an assessor from changing the valuation of property based solely on a recent sale of the property. (FE)

- 2020 LEGISLATURE LRBs0239/1LRB-4947/1 JK:amn&skwJK:amn SENATE SUBSTITUTEBILL AMENDMENT624 1,December TO19, SENATE2019 BILL- 624Introduced Januaryby 29,Senators 2020C -RAIG Offeredand N ASS, cosponsored by SenatorRepresentatives CB RAIG.ROOKS , GUNDRUM , HORLACHER , KNODL , KUGLITSCH, KULP, M AGNAFICI, M URPHY, R AMTHUN , SKOWRONSKI , T HIESFELDT and W ICHGERS.

AReferred Nto ACommittee CTon toAgriculture, amendRevenue 70.365and ofFinancial theInstitutions. statutes;

A N A CT to renumber 70.32 (1);

and to create 70.32 (1) (b) of the statutes;

noticeprohibiting that an assessor is prohibited from changing the valuation of property based solely on a recent sale of the property.

CurrentThis law,bill generally, prohibits an assessor from changing the assessed value of a property based solely on the recent arm's-length sale of the property unless the change in assessed value corrects a previous assessment based on incorrect information about the physical characteristics of the property.

ThisFor billfurther requiresinformation thatsee an assessor's notice of changed assessment to a property owner include language that specifies that the assessorlocal mayfiscal notestimate, changewhich thewill assessmentbe ofprinted propertyas basedan solelyappendix onto thethis recentbill. arm's length sale of the property LRBs0239/1 - 2020 Legislature - 2 - JK:amn&skw without adjusting the assessed value of comparable properties in the same market area.

70.36570.32 (1) of the statutes,statutes as affected by 2019 Wisconsin Act 2, is amendedrenumbered to70.32 read:(1) (a).

70.365SECTION Notice2. of changed assessment.

When70.32 the(1) assessor(b) assessesof anythe taxablestatutes realis property,created orto anyread: improvements taxed as personal property under s.

77.84- (1),2020 andLegislature arrives- at2 a- differentLRB-4947/1 totalJK:amn thanSENATE theBILL assessment624 ofS itECTION for2 the70.32(1) previous(b) year,An the assessor shallmay notifynot change the person assessed ifvalue theof addressa ofproperty based solely on the personrecent isarm's knownlength tosale of the assessor,property otherwiseunless the occupantchange ofin assessed value updates a previous assessment based on incorrect or outdated information about the property.property characteristics.

However,This theparagraph assessordoes is not requiredlimit the assessor's ability to providechange noticethe underassessed thisvalue sectionof ifa landproperty isusing classifieda asrecent agriculturalarm's land,length sale of the property as definedpart inof s.a revaluation or interim market update of the taxation district, nor does it limit the ability of a board of review to change the assessment based solely on the recent arm's length sale of the property.

70.32S (2)ECTION (c)3.Initial 1g.,applicability. for the current year and previous year and the difference between the assessments is $500 or less.

If(1) This act first applies to the assessorproperty determinestax thatassessments landas assessedof underJanuary s.1, 2020.

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 LRBs0239/1 - 2020 Legislature - 3 - JK:amn&skw SECTION 1 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.

The notice shall also include the following:

“Under Wisconsin law, generally, the assessor may not change the assessment of property based solely on the recent arm's length sale of the property without adjusting the assessed value of comparable properties in the same market area.

For information on the assessment of properties that have recently sold, visit the Internet site of the Department of Revenue at ...

(Internet site address).” 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 LRBs0239/1 - 2020 Legislature - 4 - JK:amn&skw S ECTION 1 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.

S ECTION 20Initial applicability.

(1) This act first applies to the property tax assessments as of January 1, 2021.