FACTS: During the week of May 4th, the Wisconsin Legislature's Joint Finance Committee will be voting on a proposal in the 2009-11 Wisconsin State Budget that would significantly increase the cost of development and home prices in rural areas. The proposal would create a new penalty on farmland anytime the zoning is changed from exclusive agriculture to another type of zoning. The new farmland conversion penalty would be equal to 3 times the assessed value OR HIGHER, if the county decides to increase the tax. The new farmland conversion penalty will increase the cost of housing by $810/acre. Based upon the state's average assessed value for farmland in 2009 ($270 per acre), the new tax will increase the cost of farmland for development by an additional $810/acre, which will be passed on to the homeowner and directly increase the cost of housing. OPINION: As a Real Estate Broker, I support the goal of protecting farmland for purposes of preserving an important part of Wisconsin's cultural heritage and continuing to make the agricultural industry economically viable in Wisconsin. However, I am concerned that the proposed farmland conversion fee, included as part of the Working Lands Initiative and Farmland Preservation programs in the proposed 2009-11 State Budget, fails to recognize the important balance needed between protecting farmland and providing for other types of land uses, namely residential and commercial development. Farmland Conversion Penalty Proposal: Under the proposal, a penalty would be assessed whenever land in a Farmland Preservation Zoning District is rezoned out of the district. The penalty would be equal to the GREATER of: a. 3 times the assessed value of property, as determined by DOR under the use value program; or b. Any amount specified by the county in its Farmland Preservation Zoning Ordinance If a county chooses to impose a HIGHER penalty, the county gets to keep the additional revenues generated. Therefore, a county has a financial incentive to impose a higher penalty. Impacts On Housing: The proposed Farmland Conversion Penalty will hurt housing affordability and our State and Local economies: The new penalty will increase the cost of housing by $810/acre. 1. Every time the new Farmland Conversion Penalty is imposed on an acre of farmland, 148 households will be priced out of the market. 2. For every home that is not built, approximately 3 jobs will not be created and $89,000 in tax revenues will be lost. 3. New housing and a strong housing market is the key to our state's economic recovery. 4. Good planning, not punitive penalties, is the key to protecting farmland and providing affordable housing. Recommended Change: I ask that our State Rep's remove this penalty from the Wisconsin State Budget or, at a minimum, reduce the magnitude of the penalty and the county's ability to impose even higher fines. Our current economic condition shows the important impact that housing has on our economy. Without new housing and commercial growth and development, Wisconsin's State and Local economies will suffer. Accordingly, this is the wrong time to impose penalties that will increase the costs of housing and new development. I strongly encourage you to contact our Wisconsin State Representatives and ask them to make these changes to the proposed Farmland Conversion Fee in the State Budget. Thank you. Anna Morgan Real Estate Broker/Partner Molony Real Estate Lodi, Wisconsin |
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Farm Land Preservation in Wisconsin
Farm Land Preservation in Wisconsin