LRB-4190/1
JS:all:mkd
1995 - 1996 LEGISLATURE
January 9, 1996 - Introduced by Representatives Lehman and Bell, by request of
The Department of Revenue. Referred to Committee on Ways and Means.
AB776,1,7
1An Act to amend 25.75 (1) (c) (intro.), 25.75 (2), 79.10 (7m) (a) 1., 79.10 (7m) (a)
22., 79.10 (7m) (b) 1. a., 79.10 (7m) (b) 2. and 79.10 (10) (d); and
to create 79.10
3(10) (bm) and 79.10 (10) (f) of the statutes;
relating to: payment of school tax
4credit proceeds; a social security number requirement for audited lottery tax
5credit claims; special charges relating to lottery credit claims; creating a
6penalty for intentionally filing false lottery credit claims; state payment of
7lottery credit proceeds.
Analysis by the Legislative Reference Bureau
Under current law, on the 4th Monday of July the state pays school tax credit
proceeds to towns, villages and cities (municipalities), which distribute the funds to
the county. Under this bill, the July school tax credit proceeds are paid to the
municipality or county responsible for collecting taxes on the distribution date and
that unit of government distributes the funds.
If the department of revenue (DOR) audits a lottery tax credit claim, the bill
requires the lottery tax credit claimant to include his or her social security number
in the claimant's response to an audit questionnaire.
Under current law, if DOR determines that a person has made an inappropriate
claim for the lottery credit, a special charge is assessed against the property for which
the credit was claimed and is collected as a delinquent property tax. Under this bill,
if the owner of the property at the time the special charge is assessed was not the
person who made the claim, DOR may dismiss the special charge.
This bill imposes a $100 penalty on a person who intentionally files a false
lottery credit claim. Current law does not impose any penalty for a false claim but
does require the claimant to repay any credit that was improperly received.
Under current law, in 1994 and thereafter, the state pays lottery credit proceeds
to municipalities on the 4th Monday in March. Final settlement of these proceeds
between a municipality and its county must be completed by August 20. Under this
bill, the March lottery credit proceeds are paid to the municipality or county
responsible for collecting taxes on the distribution date and the treasurer for that
political subdivision is directed to distribute the payment no later than April 15.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB776, s. 1
1Section
1. 25.75 (1) (c) (intro.) of the statutes is amended to read:
AB776,2,32
25.75
(1) (c) (intro.) "Lottery proceeds" means the remainder of the
gross lottery
3fund revenues after deducting all of the following:
AB776,2,96
25.75
(2) Creation. There is created a separate nonlapsible trust fund known
7as the lottery fund, to consist of
gross lottery
fund revenues
received by the
8department of revenue. Lottery fund revenues include gross lottery revenues and
9penalties collected under s. 79.10 (10) (f).
AB776, s. 3
10Section
3. 79.10 (7m) (a) 1. of the statutes is amended to read:
AB776,2,1411
79.10
(7m) (a) 1. The amount determined under sub. (4) shall be distributed
12by the department of administration on the 4th Monday in July.
The distribution
13shall be made to the political subdivision, as defined in s. 66.432 (1m) (e), responsible
14for collecting taxes on the distribution date.
AB776, s. 4
15Section
4. 79.10 (7m) (a) 2. of the statutes is amended to read:
AB776,3,516
79.10
(7m) (a) 2. The
town, village or city treasurer shall settle for the amounts
17distributed under this paragraph on the 4th Monday in July with the appropriate
18county treasurer not later than August 15 taxing jurisdictions on the date in August
1when the treasurer settles for property taxes with the taxing jurisdictions. Failure
2to settle timely under this subdivision subjects the
town, village or city treasurer to
3the penalties under s. 74.31.
On or before August 20, the county treasurer shall settle
4with each taxing jurisdiction, including towns, villages and cities except 1st class
5cities, in the county.
AB776, s. 5
6Section
5. 79.10 (7m) (b) 1. a. of the statutes is amended to read:
AB776,3,127
79.10
(7m) (b) 1. a. The amount determined under sub. (5) with respect to
8claims filed for which the town, village or city has furnished notice under sub. (1m)
9by March 1 shall be distributed from the appropriation under s. 20.835 (3) (q) by the
10department of administration on the 4th Monday in March.
The distribution shall
11be made to the political subdivision, as defined in s. 66.432 (1m) (e), responsible for
12collecting taxes on the distribution date.
AB776, s. 6
13Section
6. 79.10 (7m) (b) 2. of the statutes is amended to read:
AB776,3,2114
79.10
(7m) (b) 2. The
town, village or city treasurer shall settle for the amounts
15distributed on the 4th Monday in March under this paragraph with
each the
16appropriate taxing
jurisdiction within the taxation district or provide the amounts
17distributed to the appropriate county treasurer for settlement
jurisdictions not later
18than April 15. Failure to settle timely under this subdivision subjects the
town,
19village or city treasurer to the penalties under s. 74.31.
On or before August 20, the
20county treasurer shall settle with each taxing jurisdiction, including towns, villages
21and cities except 1st class cities, in the county.
AB776, s. 7
22Section
7. 79.10 (10) (bm) of the statutes is created to read:
AB776,3,2523
79.10
(10) (bm) If the department of revenue audits a lottery credit claim, the
24claimant shall include the claimant's social security number on the claimant's
25response to an audit questionnaire.
AB776, s. 8
1Section
8. 79.10 (10) (d) of the statutes is amended to read:
AB776,4,92
79.10
(10) (d) If the department of revenue determines that a credit was
3claimed by a taxpayer who was not entitled to the credit for reasons other than that
4the taxpayer failed to furnish the information required under par. (a), the
5department of revenue shall
collect the credit as a special charge against the county
6where the property for which the credit was claimed is located. The county shall 7instruct the appropriate taxation district to collect the credit as a special charge on
8the next property tax bill issued for the property.
The department may dismiss the
9special charge if the owner of the property did not make the claim for the credit.
AB776, s. 9
10Section
9. 79.10 (10) (f) of the statutes is created to read:
AB776,4,1511
79.10
(10) (f) If a person intentionally files a false lottery credit claim under
12sub. (9) (bm), that person shall be subject to a penalty of $100. Each false claim
13constitutes a separate offense. Penalties collected under this paragraph shall be
14deposited in the lottery fund. Sections 71.91 and 71.93, as they apply to the taxes
15under ch. 71, apply to the penalty under this paragraph.
AB776,4,18
17(1)
School tax credit payment. The treatment of section 79.10 (7m) (a) 1. and
182. of the statutes first applies to property taxes levied in 1996.
AB776,4,20
19(2)
Social security number requirement. The treatment of section 79.10 (10)
20(bm) of the statutes first applies to property taxes levied in 1996.
AB776,4,22
21(3)
False lottery credit claims. The treatment of sections 25.75 (1) (c) (intro.)
22and (2) and 79.10 (10) (f) of the statutes first applies to property taxes levied in 1996.
AB776, s. 9448
23Section 9448.
Effective dates; revenue. This act takes effect on the day
24after publication, except as follows:
AB776,5,2
1(1)
Lottery credit settlement. The treatment of section 79.10 (7m) (b) 1. a.
2and 2. of the statutes takes effect on January 1, 1997.
AB776,5,4
3(2)
Lottery fund. The treatment of section 25.75 (1) (c) (intro.) and (2) of the
4statutes takes effect on December 1, 1996.
