AB 14

This bill eliminates a property tax assessment freeze applicable to certain

replacement property. Under current law, if a property owner 1) conveys property

under threat of condemnation or through condemnation proceedings for the benefit

of a public entity to be used for public purposes and 2) acquires a property to replace

the conveyed property (replacement property), a municipality may “freeze” the

assessed value of the replacement property, for up to five years, at an amount equal

to the assessed value of the conveyed property in the year immediately preceding the

conveyance. However, in

Gottlieb v. City of Milwaukee

, 33 Wis. 2d 408, 147 N.W.2d

633 (1967), the Wisconsin Supreme Court held that the uniformity clause of the

Wisconsin Constitution requires that all property that is taxed must be taxed in its

entirety and at the same rate that applies to all other property in a taxation district.

The court concluded that a property tax assessment freeze applicable to urban

redevelopment corporations was unconstitutional because it constituted a partial

exemption from the property tax.

The bill eliminates the property tax assessment freeze applicable to

replacement property.