LRBs0644/2
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2005 - 2006 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2005 ASSEMBLY BILL 1011
March 14, 2006 - Offered by Representative Wieckert.
AB1011-ASA1,1,5
1An Act to renumber 77.86 (4);
to renumber and amend 77.87 (1);
to amend
277.86 (2) and 77.87 (2); and
to create 77.86 (4) (b), 77.86 (4) (c), 77.87 (1) (a) 2.
3and 77.87 (1) (b) of the statutes;
relating to: the determination of the value of
4timber for purposes of assessing a yield tax and granting rule-making
5authority.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1011-ASA1,1,117
77.86
(2) Bond. The department may require an owner who intends to cut
8merchantable timber on managed forest land to file with the department a
9noncancelable bond furnished by a surety company licensed to do business in this
10state in the amount expected to be required as payment of the yield tax under s. 77.87
11(1)
(a) 1.
AB1011-ASA1, s. 2
12Section
2. 77.86 (4) of the statutes is renumbered 77.86 (4) (a).
AB1011-ASA1,2,32
77.86
(4) (b) The owner shall include on the report the method for determining
3the yield tax under s. 77.87 (1).
AB1011-ASA1,2,115
77.86
(4) (c) If the owner elects to determine the yield tax under s. 77.87 (1) (a)
62., the owner shall report the sale to the department on a form provided by the
7department. The report shall include the amount of money involved and any other
8compensation, including in-kind services, that the seller received in exchange for
9selling the timber. The department shall promulgate rules that specify the
10information that shall be included in the forms that are required under this
11subsection.
AB1011-ASA1, s. 5
12Section
5. 77.87 (1) of the statutes is renumbered 77.87 (1) (a) (intro.) and
13amended to read:
AB1011-ASA1,2,1714
77.87
(1) (a) (intro.) The department shall assess a yield tax against each owner
15who cuts merchantable timber under s. 77.86
and shall mail a copy of the certificate
16of assessment to the owner at the owner's last-known address. The yield tax shall
17equal 5% of
the one of the following:
AB1011-ASA1,2,20
181. The value of the merchantable timber cut, based on the stumpage value
19established under s. 77.91 (1).
The department shall mail a copy of the certificate of
20assessment to the owner at the owner's last-known address.
AB1011-ASA1,2,2422
77.87
(1) (a) 2. The fair market value of the merchantable timber cut, including
23money and any other compensation received in exchange for the timber, as reported
24under s. 77.86 (4).
AB1011-ASA1,3,3
177.87
(1) (b) If the timber is sold as a cut product, not based on stumpage value,
2or if the owner cannot supply the documentation required under s. 77.86 (4) (c), the
3yield tax shall equal the amount calculated under par. (a) 1.
AB1011-ASA1,3,125
77.87
(2) Supplemental tax. At any time within one year after a report is filed
6under s. 77.86 (4), the department, after notifying the owner and providing the owner
7with the opportunity for a hearing, may determine whether the report is accurate.
8If the department determines that the quantity of
, or the fair market value, including
9money and any other compensation, that the seller received for, the merchantable
10timber cut exceeded the amount on which the tax was assessed under sub. (1), the
11department shall assess a supplemental tax on the additional amount as provided
12under sub. (1).
AB1011-ASA1,3,1514
(1)
This act first applies to merchantable timber sold on the effective date of this
15subsection.
