Purpose of Program
Under s. 70.511(2)(bm), the State of Wisconsin is required to provide refunds to municipalities for interest paid to property taxpayers as a result of erroneous state property assessment (which means manufacturing property taxpayers). S. 70.511(2)(bm) specifies that municipalities must notify the Department of Administration (DOA) by July 1 of interest paid in the prior year to these taxpayers. DOA then must refund 20 percent of the interest paid by the municipality.
How to Apply for Refund
Step 1: A determination is made by the Department of Revenue (DOR) or the TAC that property was incorrectly assessed. The DOR will notify the local government that interest refunds can be requested.
Step 2: The local government submits a letter to DOA, by July 1 for interest paid the previous year. The letter must include: 1) the property that was erroneously assessed, 2) the total refund given in taxes plus interest, 3) a local contact person.
The letter should be sent to:
Manufacturing Tax Refund Program
Department of Administration, Division of Intergovernmental Relations
P.O. Box 8944
Madison, WI 53708
Copies of letter should also be sent to:
Local Government Services Section
Department of Revenue
P. O. Box 8971 MS-697
Madison, WI 53708
DEBF Tax and Local Gov. Section
Department of Administration,
P.O. Box 7864
Madison, WI 53707
Step 3: DOR verifies the interest paid and alerts DOA of the amount that can be refunded by Nov. 1. DOA prepares payment to be made by third Monday in November.
For more information, please contact:
Dawn Vick, Division of Intergovernmental Relations
70.511(2)(bm) No later than July 1 of each year, each municipality that pays a refund under par. (b) for property that is assessed under s. 70.995 shall notify the department of administration of the amount of all such refunds paid by the municipality in the previous fiscal year. Annually, no later than the 3rd Monday in November, from the appropriation account under s. 20.835 (2) (br), the department of administration shall pay to each municipality that pays a refund under par. (b) for property that is assessed under s. 70.995 an amount that is equal to 20 percent of the interest on such refunds paid by the municipality in the previous fiscal year and that has accrued up to the date of the determination by the tax appeals commission of the municipality's obligation.