SB 145

Under current law, a billboard is subject to the imposition of personal property

taxes. The Wisconsin Supreme Court has recently determined that, although net

income from billboard rentals may be a factor to consider, it cannot be the sole

controlling factor for determining the value of a billboard for property tax purposes.

See,

Adams Outdoor Advertising, Ltd. v. City of Madison,

294 Wis. 2d 441, 717

N.W.2d 803. The court also found that, by not determining the billboard's value

based on its cost, less depreciation, the city assessor contravened the prevailing

practice for assessing billboards not only in this state, but throughout the United

States.

Under this bill, for personal property tax purposes, an assessor must determine

a billboard's value by subtracting depreciation from the cost of reproducing the

billboard. In addition, consistent with

Adams Outdoor Advertising, Ltd.

, the

assessor may not include the value of any permits issued, leasehold interests, or

other intangibles with regard to the billboard for the purpose of determining the

billboard's assessed value.