AB350: Bill Text

1997 - 1998 LEGISLATURE

1997 Assembly BILL 350

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 An Act to repeal 13.94 (1) (em), 13.94 (1s) (b), 15.433, 15.643 (3), 16.71 (3), 16.72 (4m), 16.84 (3), 20.003 (5), 20.115 (4) (g), 20.115 (4) (h), 20.197 (1) (g), 20.197 (1) (q), 20.197 (3), 20.455 (2) (g), 20.455 (2) (r), 20.566 (2) (r), 20.566 (8), 20.835 (3) (q), 20.835 (3) (r), 25.17 (1) (jr), 25.75, 66.058 (3) (c) 8., 66.74, 71.04 (7) (f) 16., 71.25 (5) (a) 24., 71.25 (9) (f) 16., 71.67 (4), 71.67 (5), 71.78 (4) (L), 74.09 (3) (b) 6., 74.09 (3) (b) 7., 77.61 (5) (b) 9., 79.10 (1) (f) and (g), 79.10 (1m), 79.10 (5), 79.10 (7m) (b), 79.10 (7r), 79.10 (9) (bm), 79.10 (10), 79.10 (11), 79.11 (3) (b), 125.51 (4) (q), 227.01 (13) (ze), 561.01 (5), 561.02 (2), 561.08, chapter 562, chapter 565, 945.01 (1) (d) and 945.01 (1) (e); to renumber and amend 20.835 (2) (q) and 561.02 (1); to amend 16.72 (2) (b), 16.75 (3m) (c) 4., 20.002 (11) (a), 20.115 (4) (a), 20.115 (4) (b), 20.505 (5) (ka), 20.566 (1) (h), 20.765 (3) (ka), 27.08 (6) (b), 71.02 (1), 71.04 (1) (a), 74.29, 77.22 (2) (intro.), 77.23, 79.10 (2), 79.10 (6m), 79.10 (9) (c), 93.31, 125.07 (3) (a) 5., 165.25 (4) (a), 182.020, 561.03, 561.06 (1), 561.06 (2), 561.06 (3), 561.06 (4), 945.01 (3) (b) 1., 945.01 (4) (am), 945.01 (5) (am) and 973.05 (5) (a); and to create 71.07 (3m) (e), 71.28 (2m) (e) and 71.47 (2m) (e) of the statutes; relating to: the elimination of the state lottery and pari-mutuel wagering, prohibiting new claims under the farmland relief tax credit, providing 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 Section 1. 13.94 (1) (em) of the statutes is repealed.

AB350, s. 2 Section 2. 13.94 (1s) (b) of the statutes is repealed.

AB350, s. 3 Section 3. 15.433 of the statutes is repealed.

AB350, s. 4 Section 4. 15.643 (3) of the statutes is repealed.

AB350, s. 5 Section 5. 16.71 (3) of the statutes is repealed.

AB350, s. 6 Section 6. 16.72 (2) (b) of the statutes is amended to read:

AB350,3,7 16.72 (2) (b) Except as provided in s. 565.25 (2) (a) 4., the The department shall prepare or review specifications for all materials, supplies, equipment, other permanent personal property and contractual services not purchased under standard specifications. Such "nonstandard specifications" may be generic or performance specifications, or both, prepared to describe in detail the article which the state desires to purchase either by its physical properties or programmatic utility. When appropriate for such nonstandard items or services, trade names may be used to identify what the state requires, but wherever possible 2 or more trade names shall be designated and the trade name of any Wisconsin producer, distributor or supplier shall appear first.

AB350, s. 7 Section 7. 16.72 (4m) of the statutes is repealed.

AB350, s. 8 Section 8. 16.75 (3m) (c) 4. of the statutes is amended to read:

AB350,3,17 16.75 (3m) (c) 4. The department shall annually prepare and submit a report to the governor and to the chief clerk of each house of the legislature, for distribution to the appropriate standing committees under s. 13.172 (3), on the total amount of money paid to and of indebtedness or other obligations underwritten by minority businesses, minority financial advisers and minority investment firms under the requirements of this subsection and ss. 16.855 (10m), 16.87 (2), 25.185 , and 84.075 and 565.25 (2) (a) 3. and on this state's progress toward achieving compliance with par. (b) and ss. 16.855 (10m) (a), 16.87 (2), 25.185 and 84.075 (1).

AB350, s. 9 Section 9. 16.84 (3) of the statutes is repealed.

AB350, s. 10 Section 10. 20.002 (11) (a) of the statutes is amended to read:

AB350,4,9 20.002 (11) (a) All appropriations, special accounts and fund balances within the general fund or any segregated fund may be made temporarily available for the purpose of allowing encumbrances or financing expenditures of other general or segregated fund activities which do not have sufficient moneys in the accounts from which they are financed but have accounts receivable balances or moneys anticipated to be received from lottery proceeds, as defined in s. 25.75 (1) (c), tax revenues, gifts, grants, fees, sales of service, or interest earnings recorded under s. 16.52 (2). The secretary of administration shall determine the composition and allowability of the accounts receivable balances and anticipated moneys to be received for this purpose in accordance with s. 20.903 (2) and shall specifically approve the use of surplus moneys from the general or segregated funds after consultation with the appropriate state agency head for use by specified accounts or programs. The secretary of administration shall reallocate available moneys from the budget stabilization fund under s. 16.465 prior to reallocating moneys from any other fund.

AB350, s. 11 Section 11. 20.003 (5) of the statutes is repealed.

AB350, s. 12 Section 12. 20.115 (4) (a) of the statutes is amended to read:

AB350,4,15 20.115 (4) (a) Aid to Wisconsin livestock breeders association. The amounts in the schedule, less moneys available under par. (h), for the purpose of aid to the Wisconsin livestock breeders association for the conduct of junior livestock shows and other livestock educational programs under s. 93.31.

AB350, s. 13 Section 13. 20.115 (4) (b) of the statutes is amended to read:

AB350,4,23 20.115 (4) (b) Aids to county and district fairs. A sum sufficient to provide state aids to counties and agricultural societies, associations or boards and to incorporated dairy or livestock associations, not to exceed $15,000 per fair as provided in s. 93.23. No moneys in excess of the difference between $585,000 and the amount of moneys available under par. (g) in each fiscal year may be expended from this appropriation. If the total due the several counties and agricultural societies under this paragraph exceeds $585,000, the department shall equitably prorate that amount.

AB350, s. 14 Section 14. 20.115 (4) (g) of the statutes is repealed.

AB350, s. 15 Section 15. 20.115 (4) (h) of the statutes is repealed.

AB350, s. 16 Section 16. 20.197 (1) (g) of the statutes is repealed.

AB350, s. 17 Section 17. 20.197 (1) (q) of the statutes is repealed.

AB350, s. 18 Section 18. 20.197 (3) of the statutes is repealed.

AB350, s. 19 Section 19. 20.455 (2) (g) of the statutes is repealed.

AB350, s. 20 Section 20. 20.455 (2) (r) of the statutes is repealed.

AB350, s. 21 Section 21. 20.505 (5) (ka) of the statutes is amended to read:

AB350,5,21 20.505 (5) (ka) Facility operations and maintenance; police and protection functions. The amounts in the schedule for the purpose of financing the costs of operation of state-owned or operated facilities that are not funded from other appropriations, including custodial and maintenance services; minor projects; utilities, fuel, heat and air conditioning; costs incurred under s. 16.895 by or on behalf of the department; repayment to the energy efficiency fund loans made to the department under s. 16.847 (6); and supplementing the costs of operation of child care facilities for children of state employes under s. 16.841; and for police and protection functions under s. 16.84 (2) and (3). All moneys received from state agencies for the operation of such facilities, parking rental fees established under s. 16.843 (2) (bm) and miscellaneous other sources, all moneys received from assessments under s. 16.895, all moneys received for the performance of gaming protection functions under s. 16.84 (3), and all moneys transferred from the appropriation account under s. 20.865 (2) (e) for this purpose shall be credited to this appropriation account.

AB350, s. 22 Section 22. 20.566 (1) (h) of the statutes is amended to read:

AB350,6,2 20.566 (1) (h) Debt collection. From moneys received from the collection of debts owed to state agencies under ss. s. 71.93 and 565.30 (5) and from moneys received from the collection of debts owed to municipalities and counties under s. 71.935, the amounts in the schedule to pay the administrative expenses of the department of revenue for the collection of those debts.

AB350, s. 23 Section 23. 20.566 (2) (r) of the statutes is repealed.

AB350, s. 24 Section 24. 20.566 (8) of the statutes is repealed.

AB350, s. 25 Section 25. 20.765 (3) (ka) of the statutes is amended to read:

AB350,6,12 20.765 (3) (ka) Audit bureau reimbursable audits. The amounts in the schedule for the provision of auditing services requested by state agencies or by the federal government, for audits specified in s. 13.94 (1s) (c) and for audits of the department of revenue relating to the state lottery and verifications of the odds of winning a lottery game under s. 565.37 (5). All moneys received by the legislative audit bureau from charges assessed to departments under s. 13.94 (1s) shall be credited to this appropriation.

AB350, s. 26 Section 26. 20.835 (2) (q) of the statutes is renumbered 20.835 (2) (er) and amended to read:

AB350,6,17 20.835 (2) (er) Farmland tax relief credit. From the lottery fund, a A sum sufficient to pay the aggregate claims approved under ss. 71.07 (3m) (c), 71.28 (2m) (c) and 71.47 (2m) (c).

AB350, s. 27 Section 27. 20.835 (3) (q) of the statutes is repealed.

AB350, s. 28 Section 28. 20.835 (3) (r) of the statutes is repealed.

AB350, s. 29 Section 29. 25.17 (1) (jr) of the statutes is repealed.

AB350, s. 30 Section 30. 25.75 of the statutes is repealed.

AB350, s. 31 Section 31. 27.08 (6) (b) of the statutes is amended to read:

AB350,7,4 27.08 (6) (b) The board of park commissioners of any city of the 1st class where there has been hitherto established a driving club or similar organization in connection with any park under the direction of said board of park commissioners may conduct horse races and driving exhibitions within its public parks and pay the expenses and cost of trophies therefor out of the park fund. A fee for admission may be charged for the purpose of defraying such expenses in whole or in part. Chapter 562 does not apply to any race under this paragraph.

AB350, s. 32 Section 32. 66.058 (3) (c) 8. of the statutes is repealed.

AB350, s. 33 Section 33. 66.74 of the statutes is repealed.

AB350, s. 34 Section 34. 71.02 (1) of the statutes is amended to read:

AB350,7,25 71.02 (1) For the purpose of raising revenue for the state and the counties, cities, villages and towns, there shall be assessed, levied, collected and paid a tax on all net incomes of individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds subject to the tax under s. 71.23 (2), by every natural person residing within the state or by his or her personal representative in case of death, and trusts administered within the state; by every nonresident natural person and trust of this state, upon such income as is derived from property located or business transacted within the state including, but not limited by enumeration, income derived from a limited partner's distributive share of partnership income, income derived from a limited liability company member's distributive share of limited liability company income, the state lottery under ch. 565, any multistate lottery under ch. 565 if the winning lottery ticket or lottery share was purchased from a retailer, as defined in s. 565.01 (6), located in this state or from the department and pari-mutuel wager winnings or purses under ch. 562, and also by every nonresident natural person upon such income as is derived from the performance of personal services within the state, except as exempted under s. 71.05 (1) to (3). Every natural person domiciled in the state shall be deemed to be residing within the state for the purposes of determining liability for income taxes and surtaxes.

AB350, s. 35 Section 35. 71.04 (1) (a) of the statutes is amended to read:

AB350,9,3 71.04 (1) (a) All income or loss of resident individuals and resident estates and trusts shall follow the residence of the individual, estate or trust. Income or loss of nonresident individuals and nonresident estates and trusts from business, not requiring apportionment under sub. (4), (10) or (11), shall follow the situs of the business from which derived. All items of income, loss and deductions of nonresident individuals and nonresident estates and trusts derived from a tax-option corporation not requiring apportionment under sub. (9) shall follow the situs of the business of the corporation from which derived. Income or loss of nonresident individuals and nonresident estates and trusts derived from rentals and royalties from real estate or tangible personal property, or from the operation of any farm, mine or quarry, or from the sale of real property or tangible personal property shall follow the situs of the property from which derived. Income from personal services of nonresident individuals, including income from professions, shall follow the situs of the services. A nonresident limited partner's distributive share of partnership income shall follow the situs of the business. A nonresident limited liability company member's distributive share of limited liability company income shall follow the situs of the business. Income of nonresident individuals, estates and trusts from the state lottery under ch. 565 is taxable by this state. Income of nonresident individuals, estates and trusts from any multistate lottery under ch. 565 is taxable by this state, but only if the winning lottery ticket or lottery share was purchased from a retailer, as defined in s. 565.01 (6), located in this state or from the department. Income of nonresident individuals, nonresident trusts and nonresident estates from pari-mutuel winnings or purses under ch. 562 is taxable by this state. All other income or loss of nonresident individuals and nonresident estates and trusts, including income or loss derived from land contracts, mortgages, stocks, bonds and securities or from the sale of similar intangible personal property, shall follow the residence of such persons, except as provided in par. (b) and sub. (9).

AB350, s. 36 Section 36. 71.04 (7) (f) 16. of the statutes is repealed.

AB350, s. 37 Section 37. 71.07 (3m) (e) of the statutes is created to read:

AB350,9,8 71.07 (3m) (g) New claims. No claim may be filed under this subsection for a taxable year that begins after December 31, 1998, based on property taxes accrued in the previous year.

AB350, s. 38 Section 38. 71.25 (5) (a) 24. of the statutes is repealed.

AB350, s. 39 Section 39. 71.25 (9) (f) 16. of the statutes is repealed.

AB350, s. 40 Section 40. 71.28 (2m) (e) of the statutes is created to read:

AB350,9,14 71.28 (2m) (e) New claims. No claim may be filed under this subsection for a taxable year that begins after December 31, 1998, based on property taxes accrued in the previous year.

AB350, s. 41 Section 41. 71.47 (2m) (e) of the statutes is created to read:

AB350,9,18 71.47 (2m) (e) New claims. No claim may be filed under this subsection for a taxable year that begins after December 31, 1998, based on property taxes accrued in the previous year.

AB350, s. 42 Section 42. 71.67 (4) of the statutes is repealed.

AB350, s. 43 Section 43. 71.67 (5) of the statutes is repealed.

AB350, s. 44 Section 44. 71.78 (4) (L) of the statutes is repealed.

AB350, s. 45 Section 45. 74.09 (3) (b) 6. of the statutes is repealed.

AB350, s. 46 Section 46. 74.09 (3) (b) 7. of the statutes is repealed.

AB350, s. 47 Section 47. 74.29 of the statutes is amended to read:

AB350,10,7 74.29 August settlement. On or before August 20, the county treasurer shall pay in full to the proper treasurer all real property taxes, including taxes offset by the credit under s. 79.10 (5), and special taxes included in the tax roll which have not previously been paid to, or retained by, the proper treasurer. A county may, by resolution adopted by the county board, direct the county treasurer to pay in full to the proper treasurer all special assessments and special charges included in the tax roll which have not previously been paid to, or retained by, the proper treasurer.

AB350, s. 48 Section 48. 77.22 (2) (intro.) of the statutes is amended to read:

AB350,10,11 77.22 (2) (intro.)  The secretary of revenue shall prescribe the form required under sub. (1). The form shall include an application for a credit under s. 79.10 (5) and shall provide for the submission of the following:

AB350, s. 49 Section 49. 77.23 of the statutes is amended to read:

AB350,10,19 77.23 Disposition of fees and returns. On or before the 15th day of each month the register shall submit to the county treasurer transfer fees collected together with the returns filed in the office during the preceding month for the treasurer's transmission to the department of revenue under s. 77.24 and shall submit to the county treasurer, or to the city treasurer if the property is located in a city that collects taxes under s. 74.87, all applications for credits under s. 79.10 (5) that the county register of deeds receives during the preceding month.

AB350, s. 50 Section 50. 77.61 (5) (b) 9. of the statutes is repealed.

AB350, s. 51 Section 51. 79.10 (1) (f) and (g) of the statutes are repealed.

AB350, s. 52 Section 52. 79.10 (1m) of the statutes is repealed.

AB350, s. 53 Section 53. 79.10 (2) of the statutes is amended to read:

AB350,11,6 79.10 (2) Notice to municipalities. On or before December 1 of the year preceding the distribution under sub. (7m) (a), the department of revenue shall notify the clerk of each town, village and city of the estimated fair market value, as determined under sub. (11), to be used to calculate the lottery credit under sub. (5) and of the amount to be distributed to it under sub. (7m) (a) on the following 4th Monday in July. The anticipated receipt of such distribution shall not be taken into consideration in determining the tax rate of the municipality but shall be applied as tax credits.

AB350, s. 54 Section 54. 79.10 (5) of the statutes is repealed.