LRB-2849/2
RAC&MES:kaf:jf
1997 - 1998 LEGISLATURE
May 6, 1997 - Introduced by Representatives La Fave, Grothman, Huebsch,
Plouff, R. Young, F. Lasee
and Baldwin, cosponsored by Senators Risser and
Welch. Referred to Committee on Ways and Means.
AB350,2,4 1An Act to repeal 13.94 (1) (em), 13.94 (1s) (b), 15.433, 15.643 (3), 16.71 (3), 16.72
2(4m), 16.84 (3), 20.003 (5), 20.115 (4) (g), 20.115 (4) (h), 20.197 (1) (g), 20.197 (1)
3(q), 20.197 (3), 20.455 (2) (g), 20.455 (2) (r), 20.566 (2) (r), 20.566 (8), 20.835 (3)
4(q), 20.835 (3) (r), 25.17 (1) (jr), 25.75, 66.058 (3) (c) 8., 66.74, 71.04 (7) (f) 16.,
571.25 (5) (a) 24., 71.25 (9) (f) 16., 71.67 (4), 71.67 (5), 71.78 (4) (L), 74.09 (3) (b)
66., 74.09 (3) (b) 7., 77.61 (5) (b) 9., 79.10 (1) (f) and (g), 79.10 (1m), 79.10 (5), 79.10
7(7m) (b), 79.10 (7r), 79.10 (9) (bm), 79.10 (10), 79.10 (11), 79.11 (3) (b), 125.51
8(4) (q), 227.01 (13) (ze), 561.01 (5), 561.02 (2), 561.08, chapter 562, chapter 565,
9945.01 (1) (d) and 945.01 (1) (e); to renumber and amend 20.835 (2) (q) and
10561.02 (1); to amend 16.72 (2) (b), 16.75 (3m) (c) 4., 20.002 (11) (a), 20.115 (4)
11(a), 20.115 (4) (b), 20.505 (5) (ka), 20.566 (1) (h), 20.765 (3) (ka), 27.08 (6) (b),
1271.02 (1), 71.04 (1) (a), 74.29, 77.22 (2) (intro.), 77.23, 79.10 (2), 79.10 (6m), 79.10
13(9) (c), 93.31, 125.07 (3) (a) 5., 165.25 (4) (a), 182.020, 561.03, 561.06 (1), 561.06
14(2), 561.06 (3), 561.06 (4), 945.01 (3) (b) 1., 945.01 (4) (am), 945.01 (5) (am) and

1973.05 (5) (a); and to create 71.07 (3m) (e), 71.28 (2m) (e) and 71.47 (2m) (e) of
2the statutes; relating to: the elimination of the state lottery and pari-mutuel
3wagering, prohibiting new claims under the farmland relief tax credit,
4providing a penalty and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, the state conducts the state lottery and licenses and
regulates pari-mutuel wagering. This bill eliminates the state lottery and the
lottery credit and bans state-regulated pari-mutuel wagering beginning on January
1, 1999. As a result of the elimination of the state lottery and the banning of
state-regulated pari-mutuel wagering, current law penalties that apply to the
unauthorized playing of the lottery and wagering will apply to conduct that is
currently authorized under the state lottery and state-regulated pari-mutuel
wagering.
The farmland tax relief credit is a refundable income and franchise tax credit
that is based on property taxes accrued on farmland and gross farm profits. Under
this bill, no claims for the farmland tax relief credit may be made for taxable years
beginning after December 31, 1998.
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:
AB350, s. 1 5Section 1. 13.94 (1) (em) of the statutes is repealed.
AB350, s. 2 6Section 2. 13.94 (1s) (b) of the statutes is repealed.
AB350, s. 3 7Section 3. 15.433 of the statutes is repealed.
AB350, s. 4 8Section 4. 15.643 (3) of the statutes is repealed.
AB350, s. 5 9Section 5. 16.71 (3) of the statutes is repealed.
AB350, s. 6 10Section 6. 16.72 (2) (b) of the statutes is amended to read:
AB350,3,711 16.72 (2) (b) Except as provided in s. 565.25 (2) (a) 4., the The department shall
12prepare or review specifications for all materials, supplies, equipment, other
13permanent personal property and contractual services not purchased under

1standard specifications. Such "nonstandard specifications" may be generic or
2performance specifications, or both, prepared to describe in detail the article which
3the state desires to purchase either by its physical properties or programmatic
4utility. When appropriate for such nonstandard items or services, trade names may
5be used to identify what the state requires, but wherever possible 2 or more trade
6names shall be designated and the trade name of any Wisconsin producer, distributor
7or supplier shall appear first.
AB350, s. 7 8Section 7. 16.72 (4m) of the statutes is repealed.
AB350, s. 8 9Section 8. 16.75 (3m) (c) 4. of the statutes is amended to read:
AB350,3,1710 16.75 (3m) (c) 4. The department shall annually prepare and submit a report
11to the governor and to the chief clerk of each house of the legislature, for distribution
12to the appropriate standing committees under s. 13.172 (3), on the total amount of
13money paid to and of indebtedness or other obligations underwritten by minority
14businesses, minority financial advisers and minority investment firms under the
15requirements of this subsection and ss. 16.855 (10m), 16.87 (2), 25.185 , and 84.075
16and 565.25 (2) (a) 3. and on this state's progress toward achieving compliance with
17par. (b) and ss. 16.855 (10m) (a), 16.87 (2), 25.185 and 84.075 (1).
AB350, s. 9 18Section 9. 16.84 (3) of the statutes is repealed.
AB350, s. 10 19Section 10. 20.002 (11) (a) of the statutes is amended to read:
AB350,4,920 20.002 (11) (a) All appropriations, special accounts and fund balances within
21the general fund or any segregated fund may be made temporarily available for the
22purpose of allowing encumbrances or financing expenditures of other general or
23segregated fund activities which do not have sufficient moneys in the accounts from
24which they are financed but have accounts receivable balances or moneys
25anticipated to be received from lottery proceeds, as defined in s. 25.75 (1) (c), tax

1revenues, gifts, grants, fees, sales of service, or interest earnings recorded under s.
216.52 (2). The secretary of administration shall determine the composition and
3allowability of the accounts receivable balances and anticipated moneys to be
4received for this purpose in accordance with s. 20.903 (2) and shall specifically
5approve the use of surplus moneys from the general or segregated funds after
6consultation with the appropriate state agency head for use by specified accounts or
7programs. The secretary of administration shall reallocate available moneys from
8the budget stabilization fund under s. 16.465 prior to reallocating moneys from any
9other fund.
AB350, s. 11 10Section 11. 20.003 (5) of the statutes is repealed.
AB350, s. 12 11Section 12. 20.115 (4) (a) of the statutes is amended to read:
AB350,4,1512 20.115 (4) (a) Aid to Wisconsin livestock breeders association. The amounts in
13the schedule, less moneys available under par. (h), for the purpose of aid to the
14Wisconsin livestock breeders association for the conduct of junior livestock shows
15and other livestock educational programs under s. 93.31.
AB350, s. 13 16Section 13. 20.115 (4) (b) of the statutes is amended to read:
AB350,4,2317 20.115 (4) (b) Aids to county and district fairs. A sum sufficient to provide state
18aids to counties and agricultural societies, associations or boards and to incorporated
19dairy or livestock associations, not to exceed $15,000 per fair as provided in s. 93.23.
20No moneys in excess of the difference between $585,000 and the amount of moneys
21available under par. (g)
in each fiscal year may be expended from this appropriation.
22If the total due the several counties and agricultural societies under this paragraph
23exceeds $585,000, the department shall equitably prorate that amount.
AB350, s. 14 24Section 14. 20.115 (4) (g) of the statutes is repealed.
AB350, s. 15 25Section 15. 20.115 (4) (h) of the statutes is repealed.
AB350, s. 16
1Section 16. 20.197 (1) (g) of the statutes is repealed.
AB350, s. 17 2Section 17. 20.197 (1) (q) of the statutes is repealed.
AB350, s. 18 3Section 18. 20.197 (3) of the statutes is repealed.
AB350, s. 19 4Section 19. 20.455 (2) (g) of the statutes is repealed.
AB350, s. 20 5Section 20. 20.455 (2) (r) of the statutes is repealed.
AB350, s. 21 6Section 21. 20.505 (5) (ka) of the statutes is amended to read:
AB350,5,217 20.505 (5) (ka) Facility operations and maintenance; police and protection
8functions.
The amounts in the schedule for the purpose of financing the costs of
9operation of state-owned or operated facilities that are not funded from other
10appropriations, including custodial and maintenance services; minor projects;
11utilities, fuel, heat and air conditioning; costs incurred under s. 16.895 by or on behalf
12of the department; repayment to the energy efficiency fund loans made to the
13department under s. 16.847 (6); and supplementing the costs of operation of child
14care facilities for children of state employes under s. 16.841; and for police and
15protection functions under s. 16.84 (2) and (3). All moneys received from state
16agencies for the operation of such facilities, parking rental fees established under s.
1716.843 (2) (bm) and miscellaneous other sources, all moneys received from
18assessments under s. 16.895, all moneys received for the performance of gaming
19protection functions under s. 16.84 (3), and all moneys transferred from the
20appropriation account under s. 20.865 (2) (e) for this purpose shall be credited to this
21appropriation account.
AB350, s. 22 22Section 22. 20.566 (1) (h) of the statutes is amended to read:
AB350,6,223 20.566 (1) (h) Debt collection. From moneys received from the collection of
24debts owed to state agencies under ss. s. 71.93 and 565.30 (5) and from moneys
25received from the collection of debts owed to municipalities and counties under s.

171.935, the amounts in the schedule to pay the administrative expenses of the
2department of revenue for the collection of those debts.
AB350, s. 23 3Section 23. 20.566 (2) (r) of the statutes is repealed.
AB350, s. 24 4Section 24. 20.566 (8) of the statutes is repealed.
AB350, s. 25 5Section 25. 20.765 (3) (ka) of the statutes is amended to read:
AB350,6,126 20.765 (3) (ka) Audit bureau reimbursable audits. The amounts in the
7schedule for the provision of auditing services requested by state agencies or by the
8federal government, for audits specified in s. 13.94 (1s) (c) and for audits of the
9department of revenue relating to the state lottery and verifications of the odds of
10winning a lottery game under s. 565.37 (5)
. All moneys received by the legislative
11audit bureau from charges assessed to departments under s. 13.94 (1s) shall be
12credited to this appropriation.
AB350, s. 26 13Section 26. 20.835 (2) (q) of the statutes is renumbered 20.835 (2) (er) and
14amended to read:
AB350,6,1715 20.835 (2) (er) Farmland tax relief credit. From the lottery fund, a A sum
16sufficient to pay the aggregate claims approved under ss. 71.07 (3m) (c), 71.28 (2m)
17(c) and 71.47 (2m) (c).
AB350, s. 27 18Section 27. 20.835 (3) (q) of the statutes is repealed.
AB350, s. 28 19Section 28. 20.835 (3) (r) of the statutes is repealed.
AB350, s. 29 20Section 29. 25.17 (1) (jr) of the statutes is repealed.
AB350, s. 30 21Section 30. 25.75 of the statutes is repealed.
AB350, s. 31 22Section 31. 27.08 (6) (b) of the statutes is amended to read:
AB350,7,423 27.08 (6) (b) The board of park commissioners of any city of the 1st class where
24there has been hitherto established a driving club or similar organization in
25connection with any park under the direction of said board of park commissioners

1may conduct horse races and driving exhibitions within its public parks and pay the
2expenses and cost of trophies therefor out of the park fund. A fee for admission may
3be charged for the purpose of defraying such expenses in whole or in part. Chapter
4562 does not apply to any race under this paragraph.
AB350, s. 32 5Section 32. 66.058 (3) (c) 8. of the statutes is repealed.
AB350, s. 33 6Section 33. 66.74 of the statutes is repealed.
AB350, s. 34 7Section 34. 71.02 (1) of the statutes is amended to read:
AB350,7,258 71.02 (1) For the purpose of raising revenue for the state and the counties,
9cities, villages and towns, there shall be assessed, levied, collected and paid a tax on
10all net incomes of individuals and fiduciaries, except fiduciaries of nuclear
11decommissioning trust or reserve funds subject to the tax under s. 71.23 (2), by every
12natural person residing within the state or by his or her personal representative in
13case of death, and trusts administered within the state; by every nonresident natural
14person and trust of this state, upon such income as is derived from property located
15or business transacted within the state including, but not limited by enumeration,
16income derived from a limited partner's distributive share of partnership income,
17income derived from a limited liability company member's distributive share of
18limited liability company income, the state lottery under ch. 565, any multistate
19lottery under ch. 565 if the winning lottery ticket or lottery share was purchased from
20a retailer, as defined in s. 565.01 (6), located in this state or from the department and
21pari-mutuel wager winnings or purses under ch. 562,
and also by every nonresident
22natural person upon such income as is derived from the performance of personal
23services within the state, except as exempted under s. 71.05 (1) to (3). Every natural
24person domiciled in the state shall be deemed to be residing within the state for the
25purposes of determining liability for income taxes and surtaxes.
AB350, s. 35
1Section 35. 71.04 (1) (a) of the statutes is amended to read:
AB350,9,32 71.04 (1) (a) All income or loss of resident individuals and resident estates and
3trusts shall follow the residence of the individual, estate or trust. Income or loss of
4nonresident individuals and nonresident estates and trusts from business, not
5requiring apportionment under sub. (4), (10) or (11), shall follow the situs of the
6business from which derived. All items of income, loss and deductions of nonresident
7individuals and nonresident estates and trusts derived from a tax-option
8corporation not requiring apportionment under sub. (9) shall follow the situs of the
9business of the corporation from which derived. Income or loss of nonresident
10individuals and nonresident estates and trusts derived from rentals and royalties
11from real estate or tangible personal property, or from the operation of any farm,
12mine or quarry, or from the sale of real property or tangible personal property shall
13follow the situs of the property from which derived. Income from personal services
14of nonresident individuals, including income from professions, shall follow the situs
15of the services. A nonresident limited partner's distributive share of partnership
16income shall follow the situs of the business. A nonresident limited liability company
17member's distributive share of limited liability company income shall follow the situs
18of the business. Income of nonresident individuals, estates and trusts from the state
19lottery under ch. 565 is taxable by this state. Income of nonresident individuals,
20estates and trusts from any multistate lottery under ch. 565 is taxable by this state,
21but only if the winning lottery ticket or lottery share was purchased from a retailer,
22as defined in s. 565.01 (6), located in this state or from the department. Income of
23nonresident individuals, nonresident trusts and nonresident estates from
24pari-mutuel winnings or purses under ch. 562 is taxable by this state.
All other
25income or loss of nonresident individuals and nonresident estates and trusts,

1including income or loss derived from land contracts, mortgages, stocks, bonds and
2securities or from the sale of similar intangible personal property, shall follow the
3residence of such persons, except as provided in par. (b) and sub. (9).
AB350, s. 36 4Section 36. 71.04 (7) (f) 16. of the statutes is repealed.
AB350, s. 37 5Section 37. 71.07 (3m) (e) of the statutes is created to read:
AB350,9,86 71.07 (3m) (g) New claims. No claim may be filed under this subsection for a
7taxable year that begins after December 31, 1998, based on property taxes accrued
8in the previous year.
AB350, s. 38 9Section 38. 71.25 (5) (a) 24. of the statutes is repealed.
AB350, s. 39 10Section 39. 71.25 (9) (f) 16. of the statutes is repealed.
AB350, s. 40 11Section 40. 71.28 (2m) (e) of the statutes is created to read:
AB350,9,1412 71.28 (2m) (e) New claims. No claim may be filed under this subsection for a
13taxable year that begins after December 31, 1998, based on property taxes accrued
14in the previous year.
AB350, s. 41 15Section 41. 71.47 (2m) (e) of the statutes is created to read:
AB350,9,1816 71.47 (2m) (e) New claims. No claim may be filed under this subsection for a
17taxable year that begins after December 31, 1998, based on property taxes accrued
18in the previous year.
AB350, s. 42 19Section 42. 71.67 (4) of the statutes is repealed.
AB350, s. 43 20Section 43. 71.67 (5) of the statutes is repealed.
AB350, s. 44 21Section 44. 71.78 (4) (L) of the statutes is repealed.
AB350, s. 45 22Section 45. 74.09 (3) (b) 6. of the statutes is repealed.
Loading...
Loading...