Reminder – Pipeline Assessment and Taxation

March 19, 2025

To: Assessors
Municipal Clerks and Treasurers
County Treasurers, Real Property Listers and Register of Deeds

The Wisconsin Department of Revenue (DOR), State and Local Finance Division, is providing a reminder on pipeline assessment and taxation. Assessors need to complete the following steps to determine pipeline assessment jurisdiction, taxability, listing and valuation.

Steps

  1. Determine Assessment Jurisdiction – State or Local
    • Refer to your 2023 property assessment data to identify locally assessed pipelines
    • If you are not sure if the pipeline is currently state assessed – contact DOR's Manufacturing & Utility Bureau district office at utility@wisconsin.gov
    • If the pipeline company is:
      • State-assessed – no action is required by local assessors​​​
      • Not under state assessment – continue to step 2
  2. Determine Taxability – Real or Personal Property
    • First apply state law:
      • Sec. 70.03, Wis. Stats. – defines real property, in summary, as the land and all buildings, improvements and fixtures located thereon
      • Sec. 70.04, Wis. Stats. – defines personal property, in summary, as goods, wares, chattels not included in real property as defined in sec. 70.03, Wis. Stats.
      • Sec. 70.17(3), Wis. Stats. – requires real property assessment of buildings, improvements and fixtures on leased land, exempt land and DNR forest program land
    • Then apply state court cases that provide a three-factor test to determine real property:
      1. Actual physical annexation to the real estate – is the property attached to the walls and foundation of a structure, and/or built into the structure?
      2. Application or adaptation to the use or purpose to which the realty is devoted – is the building and property in question adapted to the same purpose of the real property?
      3. Intention on the part of the person creating the annexation to make the item a permanent part of the realty – would the average person under similar circumstances intend to make the property permanent?
        4. Note: Court case information: WPAM – Chapter 18 Personal Property
  3. List and Value
    1. Listing options
      • Option A – list and value the total pipeline property within the municipality
      • Option B – list and value the pipeline separately on a new parcel
      • Option C – list and value the pipeline with the land parcel where each portion of the pipeline is located
      • Option D – compel parcel creation through sec. 70.27, Wis. Stats.
    2. Value – follow state law, case law and the Wisconsin Property Assessment Manual (WPAM)
      • State law – sec. 70.32, Wis. Stats. provides the valuation standard for real property
      • Case law – State ex rel. Markarian v City of Cudahy, 45 Wis.2d 683, 173 N.W.2d 627 (1970)
        • Markarian hierarchy requires assessors to first use a recent arm's length sale of the subject property
        • If there is no such sale, the next step is to use recent comparable sales of other properties
        • Only if there are no recent comparable sales of other properties should the assessor proceed to other indicators of value that include the income and cost approaches to value – consider cost manuals that provide pipeline cost information by length and diameter
        • See pages 9-23 and 21-24 of the WPAM
      • WPAM – Chapter 9 Real Property Valuation and Chapter 13 Commercial Property Valuation

Important – omitted property:

  • If taxable pipeline property was not assessed in 2023 or 2024, assess the property as "omitted property" on the 2025 assessment roll (sec. 70.44, Wis. Stats.)
  • Notify the property owner following statutory requirements (sec. 70.44 (3) Wis. Stats.)
  • After the 2025 Board of Review (BOR) has confirmed the omitted values and adjourned, municipal clerk must:
    • Review sec. 74.315, Wis. Stats.
    • Review Omitted Taxes Process Summary
    • Submit a separate Form PC-205 to DOR for each omitted parcel and tax year where the omitted  taxes are $250 or more
      • File forms using MyDORGov – if 2025 BOR adjourns:
        • Before October 1, 2025, file by October 1, 2025
        • After October 1, 2025, file by October 1, 2026
      • Clerks should contact lgs@wisconsin.gov for assistance with filing

Resources

Questions?

  • Property assessment – bapdor@wisconsin.gov
  • State-assessed pipelines – utility@wisconsin.gov
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