Manufacturing Tax Refund Program

About

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.  

Authorizing Statute

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.

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
          Division of Intergovernmental Relations
          Department of Administration
          PO Box 8944         
          Madison, WI  53708

Copies of letter should also be sent to:

 

          Local Government Services Section
          Department of Revenue
          PO Box 8971 MS-697
          Madison, WI  53708

          DEBF Tax and Local Gov. Section
          Department of Administration
          PO Box 7864
          Madison, WI  53707
  

Step 3

DOR verifies the interest paid and alerts DOA of the amount that can be refunded by November 1. DOA prepares payment to be made by third Monday in November.