Chargeback of Rescinded or Refunded Taxes

Sec. 74.41, Wis. Stats.

1. What is a chargeback of rescinded or refunded taxes?


2. How do I file a chargeback of rescinded or refunded taxes?


3. Do I need a PIN number or password to file a chargeback request?


4. What are the requirements for submitting a request for chargeback of rescinded or refunded taxes to the Wisconsin Department of Revenue (DOR)?


5. What if a municipality doesn't file the request by the October 1 deadline?


6. When and who does DOR notify after making a determination?


7. When do the affected taxing jurisdictions have to pay their amount of the chargeback to the municipality that filed the chargeback request?


8. Does a Tax Incremental District have any effect on our chargeback determination made by DOR?


9. Does the chargeback amount have an effect on mill rate limits?


10. What is a Preliminary Chargeback Determination memo, and why did I receive one?


11. Do we need to issue bills to each taxing jurisdiction?


12. How do we know what statute relates to the rescinded or refunded tax?


13. Should I file Form PC-200 or PC-201?


14. Are there additional resources for the chargeback process?

1. What is a chargeback of rescinded or refunded taxes?
   
   

   A municipality may request reimbursement (chargeback) of property taxes it has refunded or rescinded to a property owner. If the request is approved, the other taxing jurisdictions must pay the municipality back for the amounts it had previously shared with them as part of the property tax settlement process.

   Request must be electronically filed using the Request for Chargeback of Rescinded or Refunded Taxes (Form PC-201). Before submitting a chargeback request to the Wisconsin Department of Revenue (DOR), these must occur:

   • Property owner requests a refund for overpaid taxes from their municipality
   • Municipality rescinds or refunds overpaid taxes to the property owner
   • Municipality must rescind or refund the overpaid taxes before submitting its chargeback request to DOR
   
   


2. How do I file a chargeback of rescinded or refunded taxes?
   
   

   You must electronically file (e-file) your Request for Chargeback of Rescinded or Refunded Taxes (Form PC-201). This form is located in My DOR Government Account. For more information, review our Online Filing Help – Using My DOR Government Account.



3. Do I need a PIN number or password to file a chargeback request?
   
   

   This form is located in My DOR Government Account. You must be authorized to file. For more information, review our Online Filing Help – Using My DOR Government Account.



4. What are the requirements for submitting a request for chargeback of rescinded or refunded taxes to the Wisconsin Department of Revenue (DOR)?
   
   

   Starting on the January 1, 2018 property tax assessment, the tax refunded for any single description for one year is $250 or more. Taxes refunded/rescinded for any of the five assessment years immediately preceding the year Form PC-201 is submitted (or taxes refunded/rescinded because of a court determination) must be submitted no later than one year after the date of the court's determination.

   For property tax assessments as of January 1, 2017 or prior, the refunded/rescinded tax amount must be at least $500 or your tax district must accumulate at least $5,000 of rescinded/refunded taxes levied for the same year.

   Note: The property owner must receive a refund for the overpaid tax with all applicable interest, if any, before the municipality submits a chargeback request to DOR.



5. What if a municipality doesn't file the request by the October 1 deadline?
   
   

   If the municipality does not file a request by the October 1 deadline, it may file a request (Form PC-201) with DOR before the next October 1. DOR will not make a determination for the request until November 15 of the following year.



6. When and who does DOR notify after making a determination?
   
   

   After DOR determines the amount of rescinded or refunded taxes for requests received by October 1, we certify the chargeback amount by November 15. DOR provides the municipal clerk with a copy of the request with the determination, showing the tax amount billed to each taxing jurisdiction. DOR also notifies each affected taxing jurisdiction. Note: These amounts are listed on the copy even if DOR denies the request.



7. When do the affected taxing jurisdictions have to pay their amount of the chargeback to the municipality that filed the chargeback request?
   
   

   Each taxing jurisdiction must pay the municipality the total amount it owes by February 15 of the year following the determination.



8. Does a Tax Incremental District have any effect on our chargeback determination made by DOR?
   
   

   Taxes refunded or rescinded for properties within a Tax Incremental District (TID) are not eligible for a chargeback unless the TID's current value is less than the TID's base value in the year the property owner received the tax refund.



9. Does the chargeback amount have an effect on mill rate limits?
   
   

   No. Under state law (sec. 74.41(6), Wis. Stats.), if a taxing jurisdiction levies a tax to fund an amount the taxing jurisdiction is required to pay, the amount should not be considered when determining whether the taxing jurisdiction complies with any statutorily imposed mill rate limit.



10. What is a Preliminary Chargeback Determination memo, and why did I receive one?
    
    

    DOR reviews any large requests submitted and mails a preliminary chargeback determination memo to each municipality and taxing jurisdiction. The memo serves as our preliminary approval, which allows other taxing jurisdictions to budget for the amount they will owe the municipality.

    DOR still certifies the total amount of all requests for each taxing jurisdiction by November 15 each year. Each taxing jurisdiction must still repay the total amount it owes by February 15 of the year following the determination.



11. Do we need to issue bills to each taxing jurisdiction?
    
    

    No. By November 15 each year, DOR informs each taxing jurisdiction of the amount it owes to the municipal treasurer by the following February 15.



12. How do we know what statute relates to the rescinded or refunded tax?
    
    

    The assessor should identify the appropriate Wisconsin Statute.



13. Should I file Form PC-200 or PC-201?
    
    
    • Form PC-201 (Chargeback of Rescinded or Refunded Taxes) – is a sec. 74.41 Wis. Stats. correction
    • Form PC-200 (Chargeback of Uncollected Net Personal Property Taxes) – is a sec. 74.42 Wis. Stats. correction.
      Municipality may file this form between February 2 and April 1. To file, the following must be true:
      • Personal property taxes were settled in full the previous year, which were delinquent at the time of settlement
      • Personal property taxes were not collected in the intervening year (and remain delinquent) if the taxes are owed by an entity that ceased operations, filed a petition for bankruptcy, or are due on personal property that was removed from the next assessment roll
    
    

    Example – when to file Form PC-200:

    • 2019 personal property taxes were unpaid as of January 31, 2020
    • Municipality settled in full, as the taxes were delinquent at time of settlement
    • In 2021, these taxes remain unpaid and one of the following applies. The entity:
      • Ceased operation
      • Filed a petition for bankruptcy
      • Owes taxes on personal property that will be removed on the next assessment roll
    • No earlier than February 2 and no later than April 1, 2021, the municipality may file Form PC-200 and inform its taxing jurisdictions
    
    

    Note:

    • Do not submit the PC-200 to DOR
    • You must submit a copy to the treasurer of each taxing jurisdiction between February 2 and April 1 for the amount settled in full the previous February
    
    


14. Are there additional resources for the chargeback process?
    
    

    Yes. For more information, review Publication PA-600, Property Tax Refund Requests and the Chargeback Process.