PENALTY FOR CHANGE IN LAND USE

 Effective January 2001, land that was assessed under the preferential agricultural use valuation (s. 70.32 (2r)), and is removed from agricultural use will be subject to a two-year penalty.  The State of Wisconsin Legislature provided for the assessment of agricultural land based on its “Use” rather than its “Market” value, and has now provided for the imposition of a penalty if land that had been classified as agricultural land had changed in use, so that it is no longer classified as agricultural land.  Provisions for implementation of that penalty are contained in Section 74.48 of the State Statutes, reprinted here:

 74.48 Penalty for transfer of ownership

74.48 (1)(a) If a person who owns land that has been valued under s. 70.32 (2r) changes the use of the land so that the land is not valued under s. 70.32 (2r), there is imposed on that person a penalty equal to the difference between the property taxes that would have been levied on the land if the land had been assessed at full market value and the property taxes levied on the land for the last 2 years that the land has been valued under s. 70.32 (2r).

74.48 (1)(b) A person who owns land that has been valued under s. 70.32 (2r) and who sells the land, shall notify the buyer of the land that the land has been valued under s. 70.32 (2r).

74.48 (2) Any amount due under sub. (1) shall be paid to the taxation district in which the land as described sub. (1) is located.  The taxation district shall distribute the amount to the taxing jurisdictions in which the land is located in proportion to the taxes levied by the taxing jurisdictions during the 2 years that the land has been valued under s. 70.32 (2r).

74.48 (3) The taxation district in which the land as described in sub. (1) is located shall administer the penalty under this section.