How should an assessor value lands qualifying for the Agricultural Forest and Undeveloped Land classifications?
According to state law (sec.
70.32(4), Wis. Stats.), assessments for Agricultural Forest and Undeveloped Land are valued at 50% of their full value as determined under sec.
70.32(1), Wis. Stats.
What does the term "full value" mean in state law (sec.
70.32(4), Wis. Stats.)?
Under state law, full value refers to its market value (sec.
70.32, Wis. Stats.). With a 50% valuation, an assessment must be at 50% of the municipality's average assessment level.
Should assessors adjust the values to 50% annually or should they make the adjustment when it occurs and again during a revaluation?
Assessors must make valuation adjustments for classification changes beginning with the 2004 assessment. Generally, assessors make valuation changes when conducting a revaluation. Assessors must follow state law (sec.
70.05, Wis. Stats.) which specifies assessment compliance. For assessment compliance purposes, assessors must combine these values as one class: Undeveloped Land, Agricultural Forest, Productive Forest, and Other (i.e., agricultural home sites and improvements).
Since assessors generally do not determine assessments less than $100 increments and most computer systems do not accept less than $100 class entries, should the current $100 assessment on the one-acre right-of-way (class 5) remain $100?
Yes. There is no change to this.
Does the equalized value include Agricultural Forest and Undeveloped Land classifications at 50% of market value?
Yes. Under state law (sec.
70.57(3)(b), Wis. Stats.), the equalized value includes Agricultural Forest and Undeveloped Land at 50% of their full value.
If you have additional questions on Agricultural Forest or Undeveloped Land, contact the appropriate
Equalization Bureau District Office.
Wisconsin Department of Revenue
Division of State and Local Finance
PO Box 8971
Madison, WI 53708-8971
Fax: (608) 264-6897