Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB134 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 SENATE BILL 134
5	5	March 23, 2023 - Introduced by Senators TESTIN, TAYLOR, PFAFF, SPREITZER,
6	6	BALLWEG, HESSELBEIN, MARKLEIN, QUINN, SMITH, TOMCZYK, CARPENTER, ROYS
7	7	and WANGGAARD, cosponsored by Representatives O LDENBURG, NOVAK,
8	8	SHANKLAND, TRANEL, C. ANDERSON, CONSIDINE, HURD, JACOBSON, MURSAU,
9	9	SCHMIDT, VANDERMEER, BARE, JOERS, KRUG, NEDWESKI, PENTERMAN and
10	10	SUBECK. Referred to Committee on Agriculture and Tourism.
11	11	*AUTHORS SUBJECT TO CHANGE*
12	12	AN ACT to amend 71.613 (2) (intro.), 71.613 (2) (a), 71.613 (2) (b), 71.613 (2) (c),
13	13	91.04 (intro.) and 91.62 (1) (a); and to create 71.613 (1) (h) 4., 71.613 (2) (am),
14	14	71.613 (2) (bm), 71.613 (2) (cm), 71.613 (2) (d), 71.613 (2e) and 91.04 (2) (bm) of
15	15	the statutes; relating to: farmland preservation agreements and tax credits.
16	16	Analysis by the Legislative Reference Bureau
17	17	This bill makes the following changes involving farmland preservation
18	18	agreements and farmland preservation tax credits:
19	19	1. Decreases the minimum required length of a farmland preservation
20	20	agreement between the Department of Agriculture, Trade and Consumer Protection
21	21	and a farmland owner to 10 years from 15 years. Under current law, a farmland
22	22	owner who enters into a farmland preservation agreement with DATCP may be
23	23	eligible to receive farmland preservation tax credits for his or her qualifying acres
24	24	of farmland.
25	25	2. Requires DATCP to include in a report submitted to the Board of Agriculture,
26	26	Trade and Consumer Protection, the Joint Committee on Finance, the standing
27	27	committees of the legislature with jurisdiction over agriculture, the Department of
28	28	Revenue, and the Department of Administration a review of the tax credit amounts
29	29	for qualifying acres for the farmland preservation tax credit and recommendations
30	30	for the tax credit levels for qualifying acres of farmland. Current law requires
31	31	DATCP to submit a report about farmland and the farmland preservation program
32	32	once every two years to the board, DOR, and DOA.
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38	38	SENATE BILL 134
39	39	3. Under the farmland preservation tax credit, increases from $7.50 to $10 the
40	40	amount that may be claimed, per qualifying acre, for qualifying acres that are located
41	41	in a farmland preservation zoning district but are not subject to a farmland
42	42	preservation agreement.
43	43	4. Under the farmland preservation tax credit, increases from $5 to $10 the
44	44	amount that may be claimed, per qualifying acre, for qualifying acres that are subject
45	45	to a farmland preservation agreement but are not located in a farmland preservation
46	46	zoning district.
47	47	5. Under the farmland preservation tax credit, increases from $10 to $12.50 the
48	48	amount that may be claimed, per qualifying acre, for qualifying acres that are located
49	49	in a farmland preservation zoning district and are subject to a farmland preservation
50	50	agreement.
51	51	6. Adds a new category of farmland that qualifies for the farmland preservation
52	52	tax credit. A credit of $10 per acre may be claimed for farmland that is located in a
53	53	farmland preservation area, but only to the extent that the acres are covered by an
54	54	agricultural conservation easement.
55	55	The bill also indexes the farmland preservation tax credit dollar amounts
56	56	described above for inflation.
57	57	For further information see the state fiscal estimate, which will be printed as
58	58	an appendix to this bill.
59	59	The people of the state of Wisconsin, represented in senate and assembly, do
60	60	enact as follows:
61	61	SECTION 1. 71.613 (1) (h) 4. of the statutes is created to read:
62	62	71.613 (1) (h) 4. The farm is wholly or partially covered by an agricultural
63	63	conservation easement purchased under s. 93.73, except that if the farm is only
64	64	partially covered, the qualifying acres calculation includes only those acres that are
65	65	covered by the agricultural conservation easement and located in a farmland
66	66	preservation area, as defined in s. 91.01 (16), at the end of the taxable year to which
67	67	the claim relates.
68	68	SECTION 2. 71.613 (2) (intro.) of the statutes is amended to read:
69	69	71.613 (2) FILING CLAIMS. (intro.) Subject to sub. (2e) and to the limitations and
70	70	conditions provided in sub. (3), a claimant may claim as a credit against the tax
71	71	imposed under s. 71.02, 71.23, or 71.43, an amount calculated by multiplying the
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85	85	SECTION 2
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87	87	claimant's qualifying acres by one of the following amounts, and if the allowable
88	88	amount of the claim exceeds the income taxes otherwise due on the claimant's income
89	89	or if there are no Wisconsin income taxes due on the claimant's income, the amount
90	90	of the claim not used as an offset against income taxes shall be certified by the
91	91	department of revenue to the department of administration for payment to the
92	92	claimant by check, share draft, or other draft from the appropriation under s. 20.835
93	93	(2) (do):
94	94	SECTION 3. 71.613 (2) (a) of the statutes is amended to read:
95	95	71.613 (2) (a) Ten dollars Except as provided in par. (am), $10, if the qualifying
96	96	acres are located in a farmland preservation zoning district and are also subject to
97	97	a farmland preservation agreement that is entered into after July 1, 2009.
98	98	SECTION 4. 71.613 (2) (am) of the statutes is created to read:
99	99	71.613 (2) (am) For taxable years beginning after December 31, 2022, the
100	100	amount that may be claimed per qualifying acre under par. (a) shall be $12.50.
101	101	SECTION 5. 71.613 (2) (b) of the statutes is amended to read:
102	102	71.613 (2) (b) Seven dollars and 50 cents Except as provided in par. (bm), $7.50,
103	103	if the qualifying acres are located in a farmland preservation zoning district but are
104	104	not subject to a farmland preservation agreement that is entered into after July 1,
105	105	2009.
106	106	SECTION 6. 71.613 (2) (bm) of the statutes is created to read:
107	107	71.613 (2) (bm) For taxable years beginning after December 31, 2022, the
108	108	amount that may be claimed per qualifying acre under par. (b) shall be $10.
109	109	SECTION 7. 71.613 (2) (c) of the statutes is amended to read:
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134	134	SECTION 7 SENATE BILL 134
135	135	71.613 (2) (c) Five dollars Except as provided in par. (cm), $5, if the qualifying
136	136	acres are subject to a farmland preservation agreement that is entered into after July
137	137	1, 2009, but are not located in a farmland preservation zoning district.
138	138	SECTION 8. 71.613 (2) (cm) of the statutes is created to read:
139	139	71.613 (2) (cm) For taxable years beginning after December 31, 2022, the
140	140	amount that may be claimed per qualifying acre under par. (c) shall be $10.
141	141	SECTION 9. 71.613 (2) (d) of the statutes is created to read:
142	142	71.613 (2) (d) For taxable years beginning after December 31, 2022, $10, if the
143	143	qualifying acres are subject to sub. (1) (h) 4., but only to the extent that such acres
144	144	are covered by an agricultural conservation easement purchased under s. 93.73.
145	145	SECTION 10. 71.613 (2e) of the statutes is created to read:
146	146	71.613 (2e) INDEXING FOR INFLATION. (a) Except as provided in par. (b), in
147	147	August 2024, and every August thereafter, the department, in consultation with the
148	148	department of agriculture, trade and consumer protection, shall increase the dollar
149	149	amounts in sub. (2) (am), (bm), (cm), and (d) by a percentage equal to the percentage
150	150	change over the previous 12 months of an index of prices paid by farmers, as
151	151	determined by the national agricultural statistics service of the U.S. department of
152	152	agriculture. The adjustment may occur only if the resulting dollar amounts are
153	153	greater than the corresponding amounts that were calculated for the previous year.
154	154	If an adjustment is not made in a previous year due to a negative change in the index,
155	155	any subsequent adjustment shall be based on the percentage change in the index
156	156	since August of the year that an adjustment under this paragraph last occurred,
157	157	except that following a negative change in the index, no adjustment may occur under
158	158	this paragraph until the current level of the index exceeds the highest level that the
159	159	index had previously reached.
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187	187	SECTION 10
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189	189	(b) In August 2024, and every August thereafter, if the department is unable
190	190	to make the adjustment described in par. (a) for a reason other than the resulting
191	191	dollar amounts not being greater than the corresponding amounts calculated for the
192	192	previous year, the department shall increase the dollar amounts in sub. (2) (am),
193	193	(bm), (cm), and (d) by a percentage equal to the percentage change over the previous
194	194	12 months of the consumer price index for all urban consumers, U.S. city average,
195	195	as determined by the U.S. department of labor. The adjustment may occur only if the
196	196	resulting dollar amounts are greater than the corresponding amounts that were
197	197	calculated for the previous year.
198	198	SECTION 11. 91.04 (intro.) of the statutes is amended to read:
199	199	91.04 Department to report. (intro.) At least once every 2 years, beginning
200	200	not later than December 31, 2011, the department shall submit a farmland
201	201	preservation report to the joint committee on finance, the standing committees of the
202	202	legislature with jurisdiction over agriculture under s. 13.172 (3), and the board of
203	203	agriculture, trade and consumer protection and provide copies of the report to the
204	204	department of revenue and the department of administration. The department shall
205	205	prepare the report in cooperation with the department of revenue and shall include
206	206	all of the following in the report:
207	207	SECTION 12. 91.04 (2) (bm) of the statutes is created to read:
208	208	91.04 (2) (bm) The amount of the tax credits per qualifying acre, and the
209	209	recommendations of the department for the tax credit amounts.
210	210	SECTION 13. 91.62 (1) (a) of the statutes is amended to read:
211	211	91.62 (1) (a) Specifies a term of at least 15 10 years.
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