October 18, 2001 - Introduced by Representatives Hoven, Bies, Duff, Hahn,
Hundertmark, Ladwig, Lassa, Lippert, Montgomery, Musser, Ott, Starzyk,
Steinbrink, Stone, Suder, Townsend, Underheim, Urban
and Vrakas,
cosponsored by Senators Moen, Roessler, Schultz, Shibilski and Welch.
Referred to Committee on Energy and Utilities.
AB584,1,6 1An Act to repeal 79.04 (1) (c) 3.; to amend 20.835 (1) (d), 79.01 (2), 79.03 (3) (a),
279.03 (4), 79.04 (1) (a), 79.04 (1) (b) 3., 79.04 (1) (c) 1., 79.04 (2) (a), 79.04 (2) (am)
33. and 79.04 (2) (b); to repeal and recreate 79.04 (2) (a); and to create 20.835
4(1) (dm), 79.01 (2m), 79.04 (1) (am), 79.04 (1) (c) 4., 79.04 (2) (ad), 79.04 (2) (c),
579.04 (5) and 79.04 (6) of the statutes; relating to: public utility shared revenue
6payments and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, generally, the property of a public utility is subject to a state
tax rather than local property taxes. Instead of collecting property taxes on such
property, municipalities and counties receive payments from the shared revenue
account based on the value of public utility property located in the municipalities and
counties. The amount of a municipality's payment is equal to the value of public
utility property located in the municipality, not exceeding $125,000,000 for each
utility, multiplied by either three mills, for a town, or six mills, for a city or village.
However, the payment may not exceed an amount that is equal to $300 multiplied
by the municipality's population. The amount of a county's payment is equal to the
value of public utility property located in each municipality within the county, not
exceeding $125,000,000 for each utility, multiplied by either three mills, for a city or
village located within the county, or six mills, for a town located within the county.
However, the amount of the county's payment may not exceed an amount that is
equal to $100 multiplied by the county's population.

Under this bill, beginning in 2003, the payments to municipalities and counties
related to public utility property is paid from the public utility distribution account,
which is created by the bill, instead of the shared revenue account. Under the bill,
the amount of a municipality's payment related to public utility property is equal to
the value of public utility property located in the municipality, not exceeding the
following amounts for each utility, multiplied by either three mills, for a town, or six
mills, for a city or village: in 2003, $140,000,000; in 2004, $160,000,000; in 2005,
$185,000,000; in 2006 and subsequent years, $250,000,000. However, the amount
of the payment may not exceed the following amounts multiplied by the
municipality's population: in 2003, $450; in 2004, $650; in 2005, $950; in 2006 and
subsequent years, $1,200.
Under the bill, if a power production plant is built on the site of an existing or
decommissioned power production plant or on brownfields, and operates at a power
production capacity of at least 50 megawatts, the municipality in which the plant is
located receives an additional payment equal to the value of the production plant, not
exceeding the following amounts, multiplied by one mill, for a production plant that
is neither coal-powered nor nuclear-powered, or by two mills, for a production plant
that is coal-powered: in 2003, $140,000,000; in 2004, $160,000,000; in 2005,
$185,000,000; in 2006 and subsequent years, $250,000,000.
Under the bill, the amount of a county's payment related to public utility
property is equal to the value of public utility property located in the county, not
exceeding the following amounts for each utility, multiplied by either three mills, for
a city or village located within the county, or six mills, for a town located within the
county: in 2003, $140,000,000; in 2004, $160,000,000; in 2005, $185,000,000; in 2006
and subsequent years, $250,000,000. However, the amount of the payment may not
exceed the following amounts multiplied by the county's population: in 2003, $225;
in 2004, $325; in 2005, $475; in 2006 and subsequent years, $600.
Under the bill, if a power production plant is built on the site of an existing or
decommissioned power production plant or on brownfields, and operates at a power
production capacity of at least 50 megawatts, the county in which the plant is located
receives an additional payment equal to the value of the production plant, not
exceeding the following amounts, multiplied by one mill, for any production plant
that is not nuclear-powered: in 2003, $140,000,000; in 2004, $160,000,000; in 2005,
$185,000,000; in 2006 and subsequent years, $250,000,000.
Under current law, if public utility property is decommissioned and thereby
subject to local property taxes, the municipalities and counties in which the property
is located no longer receive shared revenue payments based on the value of that
property. Under the bill, shared revenue payments related to decommissioned utility
property are phased out over five years.
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:
AB584, s. 1
1Section 1. 20.835 (1) (d) of the statutes is amended to read:
AB584,3,52 20.835 (1) (d) Shared revenue account. A sum sufficient to meet the
3requirements of the shared revenue account established under s. 79.01 (2) to provide
4for the distributions from the shared revenue account to counties, towns, villages and
5cities under ss. 79.03, 79.04 and 79.06.
AB584, s. 2 6Section 2. 20.835 (1) (dm) of the statutes is created to read:
AB584,3,87 20.835 (1) (dm) Public utility distribution account. A sum sufficient to make
8the payments under s. 79.04.
AB584, s. 3 9Section 3. 79.01 (2) of the statutes is amended to read:
AB584,3,1310 79.01 (2) There is established an account in the general fund entitled the
11"Municipal and County Shared Revenue Account",," referred to in this chapter as the
12"shared revenue account".." There shall be appropriated to the shared revenue
13account the sums specified in ss. s. 79.03 and 79.04.
AB584, s. 4 14Section 4. 79.01 (2m) of the statutes is created to read:
AB584,3,1815 79.01 (2m) There is established an account in the general fund entitled the
16"Public Utility Distribution Account," referred to in this chapter as the "public utility
17account." There shall be appropriated to the public utility account the sums specified
18in s. 79.04.
AB584, s. 5 19Section 5. 79.03 (3) (a) of the statutes is amended to read:
AB584,3,2520 79.03 (3) (a) The amount in the shared revenue account for municipalities and
21the amount in the shared revenue account for counties, less the payments under sub.
22(2) and, for distributions before the distribution in 2003, less the payments under s.
2379.04, shall be allocated to each municipality and county respectively in proportion
24to its entitlement. In this paragraph, "entitlement" means the product of aidable
25revenues and tax base weight.
AB584, s. 6
1Section 6. 79.03 (4) of the statutes, as affected by 2001 Wisconsin Act 16, is
2amended to read:
AB584,4,193 79.03 (4) In 1991, the total amount to be distributed under ss. 79.03, 79.04, and
479.06 from s. 20.835 (1) (d) is $869,000,000. In 1992, the total amount to be
5distributed under ss. 79.03, 79.04, and 79.06 from s. 20.835 (1) (d) is $885,961,300.
6In 1993, the total amount to be distributed under ss. 79.03, 79.04, and 79.06 from s.
720.835 (1) (d) is $903,680,500. In 1994, the total amounts to be distributed under this
8section and ss. 79.04 and 79.06 from s. 20.835 (1) (d) are $746,547,500 to
9municipalities and $168,981,800 to counties. Beginning in 1995 and ending in 2001,
10the total amounts to be distributed under ss. 79.03, 79.04 and 79.06 from s. 20.835
11(1) (d) are $761,478,000 to municipalities and $168,981,800 to counties. In 2002, the
12total amounts to be distributed under ss. 79.03, 79.04, and 79.06 from s. 20.835 (1)
13(d) are $769,092,800 to municipalities and $170,671,600 to counties. In 2003 and
14subsequent years, the total amounts amount to be distributed under ss. 79.03, 79.04,
15and 79.06 from s. 20.835 (1) (d) are to municipalities is $776,783,700, less the amount
16that would be distributed
to municipalities under s. 79.04, 1999 stats. In 2003 and
17subsequent years, the total amount to be distributed under ss. 79.03
and 79.06 from
18s. 20.835 (1) (d) to counties is
$172,378,300, less the amount that would be
19distributed
to counties under s. 79.04, 1999 stats.
AB584, s. 7 20Section 7. 79.04 (1) (a) of the statutes is amended to read:
AB584,6,421 79.04 (1) (a) An Except as provided in par. (am) and sub. (5), an amount from
22the shared revenue account in 2002, and from the public utility distribution account
23in 2003 and subsequent years,
determined by multiplying by 3 mills in the case of
24a town, and 6 mills in the case of a city or village, for the distribution in 2002, the first
25$125,000,000; for the distribution in 2003, the first $140,000,000; for the distribution

1in 2004, the first $160,000,000; for the distribution in 2005, the first $185,000,000;
2and for the distribution in 2006 and subsequent years, the first $250,000,000;
of the
3amount shown in the account, plus leased property, of each public utility except
4qualified wholesale electric companies, as defined in s. 76.28 (1) (gm), on December
531 of the preceding year for either "production plant, exclusive of land" and "general
6structures", or "work in progress" for production plants and general structures under
7construction, in the case of light, heat and power companies, electric cooperatives or
8municipal electric companies, for all property within a municipality in accordance
9with the system of accounts established by the public service commission or rural
10electrification administration, less depreciation thereon as determined by the
11department of revenue and less the value of treatment plant and pollution
12abatement equipment, as defined under s. 70.11 (21) (a), as determined by the
13department of revenue plus an amount from the shared revenue account in 2002, and
14from the public utility distribution account in 2003 and subsequent years,

15determined by multiplying by 3 mills in the case of a town, and 6 mills in the case
16of a city or village, of the first $125,000,000, for the distribution in 2002; the first
17$140,000,000, for the distribution in 2003; the first $160,000,000, for the distribution
18in 2004; the first $185,000,000, for the distribution in 2005; and the first
19$250,000,000, for the distribution in 2006 and subsequent years;
of the total original
20cost of production plant, general structures and work-in-progress less depreciation,
21land and approved waste treatment facilities of each qualified wholesale electric
22company, as defined in s. 76.28 (1) (gm), as reported to the department of revenue of
23all property within the municipality. The total of amounts, as depreciated, from the
24accounts of all public utilities for the same production plant is also limited to not
25more than $125,000,000. The amount distributable to a municipality in any year

1shall not exceed $300 times the population of the municipality
, for the distribution
2in 2002; $140,000,000, for the distribution in 2003; $160,000,000, for the distribution
3in 2004; $185,000,000, for the distribution in 2005; and $250,000,000, for the
4distribution in 2006 and subsequent years
.
AB584, s. 8 5Section 8. 79.04 (1) (am) of the statutes is created to read:
AB584,6,76 79.04 (1) (am) The amount distributable to a municipality under par. (a) shall
7not exceed the following:
AB584,6,98 1. For the distribution in 2002, an amount equal to the municipality's
9population multiplied by $300.
AB584,6,1110 2. For the distribution in 2003, an amount equal to the municipality's
11population multiplied by $450.
AB584,6,1312 3. For the distribution in 2004, an amount equal to the municipality's
13population multiplied by $650.
AB584,6,1514 4. For the distribution in 2005, an amount equal to the municipality's
15population multiplied by $950.
AB584,6,1716 5. For the distribution in 2006 and subsequent years, an amount equal to the
17municipality's population multiplied by $1,200.
AB584, s. 9 18Section 9. 79.04 (1) (b) 3. of the statutes is amended to read:
AB584,6,2019 79.04 (1) (b) 3. The amount of a distribution under this paragraph, as affected
20by subd. 1., may not exceed the per capita amount established under par. (a) (am).
AB584, s. 10 21Section 10. 79.04 (1) (c) 1. of the statutes is amended to read:
AB584,7,322 79.04 (1) (c) 1. The payment for any municipality in which a production plant
23is located, which the public service commission certifies to the department of revenue
24will produce a nominal rated capacity of 200 megawatts or more, shall be no less than
25$75,000 annually, except that the amount distributable to a municipality in any year

1shall not exceed the per capita limit specified in par. (a). Payments under this
2paragraph may be extended to decommissioned production plants as provided in
3subd. 3
(am).
AB584, s. 11 4Section 11. 79.04 (1) (c) 3. of the statutes is repealed.
AB584, s. 12 5Section 12. 79.04 (1) (c) 4. of the statutes is created to read:
AB584,7,136 79.04 (1) (c) 4. Beginning with the distributions in 2003, if property that was
7exempt from the property tax under s. 70.112 (4) and that was used to generate power
8by a light, heat, or power company, except property under s. 66.0813, or by an electric
9cooperative, is decommissioned, the municipality shall be paid an amount calculated
10by subtracting an amount equal to the property taxes paid for that property during
11the current year to the municipality for its general operations from the following
12percentages of the payment that the municipality received under this section during
13the last year that the property was exempt from the property tax:
AB584,7,1414 a. In the first year that the property is taxable, 100%.
AB584,7,1515 b. In the 2nd year that the property is taxable, 80%.
AB584,7,1616 c. In the 3rd year that the property is taxable, 60%.
AB584,7,1717 d. In the 4th year that the property is taxable, 40%.
AB584,7,1818 e. In the 5th year that the property is taxable, 20%.
AB584, s. 13 19Section 13. 79.04 (2) (a) of the statutes is amended to read:
AB584,9,820 79.04 (2) (a) Annually Except as provided in par. (ad) and sub. (5), annually,
21the department of administration, upon certification by the department of revenue,
22shall distribute from the shared revenue account in 2002, and from the public utility
23distribution account in 2003 and subsequent years,
to any county having within its
24boundaries a production plant or a general structure, including production plants
25and general structures under construction, used by a light, heat or power company

1assessed under s. 76.28 (2), except property described in s. 66.0813 unless the
2production plant is owned or operated by a local governmental unit that is located
3outside of the municipality in which the production plant is located, or by an electric
4cooperative assessed under ss. 76.07 and 76.48, respectively, or by a municipal
5electric company under s. 66.0825 an amount determined by multiplying by 6 mills
6in the case of property in a town and by 3 mills in the case of property in a city or
7village, for the distribution in 2002, the first $125,000,000; for the distribution in
82003, the first $140,000,000; for the distribution in 2004, the first $160,000,000; for
9the distribution in 2005, the first $185,000,000; and for the distribution in 2006 and
10subsequent years, the first $250,000,000;
of the amount shown in the account, plus
11leased property, of each public utility except qualified wholesale electric companies,
12as defined in s. 76.28 (1) (gm), on December 31 of the preceding year for either
13"production plant, exclusive of land" and "general structures", or "work in progress"
14for production plants and general structures under construction, in the case of light,
15heat and power companies, electric cooperatives or municipal electric companies, for
16all property within the municipality in accordance with the system of accounts
17established by the public service commission or rural electrification administration,
18less depreciation thereon as determined by the department of revenue and less the
19value of treatment plant and pollution abatement equipment, as defined under s.
2070.11 (21) (a), as determined by the department of revenue plus an amount from the
21shared revenue account in 2002, and from the public utility distribution account in
222003 and subsequent years,
determined by multiplying by 6 mills in the case of
23property in a town, and 3 mills in the case of property in a city or village, of the total
24original cost of production plant, general structures and work-in-progress less
25depreciation, land and approved waste treatment facilities of each qualified

1wholesale electric company, as defined in s. 76.28 (1) (gm), as reported to the
2department of revenue of all property within the municipality. The total of amounts,
3as depreciated, from the accounts of all public utilities for the same production plant
4is also limited to not more than $125,000,000. The amount distributable to a county
5in any year shall not exceed $100 times the population of the county
, for the
6distribution in 2002; $140,000,000, for the distribution in 2003; $160,000,000, for the
7distribution in 2004; $185,000,000, for the distribution in 2005; and $250,000,000,
8for the distribution in 2006 and subsequent years
.
AB584, s. 14 9Section 14. 79.04 (2) (a) of the statutes, as affected by 2001 Wisconsin Acts 16
10and .... (this act) is repealed and recreated to read:
AB584,9,2511 79.04 (2) (a) Except as provided in par. (ad) and sub. (5), annually, the
12department of administration, upon certification by the department of revenue, shall
13distribute from the shared revenue account in 2002, and from the public utility
14distribution account in 2003 and subsequent years, to any county having within its
15boundaries a production plant or a general structure, including production plants
16and general structures under construction, used by a light, heat or power company
17assessed under s. 76.28 (2) or 76.29 (2), except property described in s. 66.0813 unless
18the production plant is owned or operated by a local governmental unit that is located
19outside of the municipality in which the production plant is located, or by an electric
20cooperative assessed under ss. 76.07 and 76.48, respectively, or by a municipal
21electric company under s. 66.0825 an amount determined by multiplying by 6 mills
22in the case of property in a town and by 3 mills in the case of property in a city or
23village, for the distribution in 2002, the first $125,000,000; for the distribution in
242003, the first $140,000,000; for the distribution in 2004, the first $160,000,000; for
25the distribution in 2005, the first $185,000,000; and for the distribution in 2006 and

1subsequent years, the first $250,000,000; of the amount shown in the account, plus
2leased property, of each public utility except qualified wholesale electric companies,
3as defined in s. 76.28 (1) (gm), on December 31 of the preceding year for either
4"production plant, exclusive of land" and "general structures", or "work in progress"
5for production plants and general structures under construction, in the case of light,
6heat and power companies, electric cooperatives or municipal electric companies, for
7all property within the municipality in accordance with the system of accounts
8established by the public service commission or rural electrification administration,
9less depreciation thereon as determined by the department of revenue and less the
10value of treatment plant and pollution abatement equipment, as defined under s.
1170.11 (21) (a), as determined by the department of revenue plus an amount from the
12shared revenue account in 2002, and from the public utility distribution account in
132003 and subsequent years, determined by multiplying by 6 mills in the case of
14property in a town, and 3 mills in the case of property in a city or village, of the total
15original cost of production plant, general structures and work-in-progress less
16depreciation, land and approved waste treatment facilities of each qualified
17wholesale electric company, as defined in s. 76.28 (1) (gm), as reported to the
18department of revenue of all property within the municipality. The total of amounts,
19as depreciated, from the accounts of all public utilities for the same production plant
20is also limited to not more than $125,000,000, for the distribution in 2002;
21$140,000,000, for the distribution in 2003; $160,000,000, for the distribution in 2004;
22$185,000,000, for the distribution in 2005; and $250,000,000, for the distribution in
232006 and subsequent years.
AB584, s. 15 24Section 15. 79.04 (2) (ad) of the statutes is created to read:
AB584,11,2
179.04 (2) (ad) The amount distributable to a county under par. (a) shall not
2exceed the following:
AB584,11,43 1. For the distribution in 2002, an amount equal to the county's population
4multiplied by $100.
AB584,11,65 2. For the distribution in 2003, an amount equal to the county's population
6multiplied by $225.
AB584,11,87 3. For the distribution in 2004, an amount equal to the county's population
8multiplied by $325.
AB584,11,109 4. For the distribution in 2005, an amount equal to the county's population
10multiplied by $475.
AB584,11,1211 5. For the distribution in 2006 and subsequent years, an amount equal to the
12county's population multiplied by $600.
AB584, s. 16 13Section 16. 79.04 (2) (am) 3. of the statutes is amended to read:
AB584,11,1514 79.04 (2) (am) 3. The amount of a distribution under this paragraph, as affected
15by subd. 1., may not exceed the per capita amount established under par. (a) (ad).
AB584, s. 17 16Section 17. 79.04 (2) (b) of the statutes is amended to read:
AB584,11,2117 79.04 (2) (b) The payment under par. (a) for any county in which a production
18plant is located, which the public service commission certifies to the department of
19revenue will produce a nominal rated capacity of 200 megawatts or more, shall be
20not less than $75,000 annually, except that the amount distributable to a county in
21any year shall not exceed the per capita limit specified in par. (a) (ad).
AB584, s. 18 22Section 18. 79.04 (2) (c) of the statutes is created to read:
AB584,12,523 79.04 (2) (c) Beginning with the distributions in 2003, if property that was
24exempt from the property tax under s. 70.112 (4) and that was used to generate power
25by a light, heat, or power company, except property under s. 66.0813, or by an electric

1cooperative, is decommissioned, the county shall be paid an amount calculated by
2subtracting an amount equal to the property taxes paid for that property during the
3current year to the county for its general operations from the following percentages
4of the payment the county received under this section during the last year that the
5property was exempt from the property tax:
AB584,12,66 1. In the first year that the property is taxable, 100%.
AB584,12,77 2. In the 2nd year that the property is taxable, 80%.
AB584,12,88 3. In the 3rd year that the property is taxable, 60%.
AB584,12,99 4. In the 4th year that the property is taxable, 40%.
AB584,12,1010 5. In the 5th year that the property is taxable, 20%.
AB584, s. 19 11Section 19. 79.04 (5) of the statutes is created to read:
AB584,13,712 79.04 (5) (a) If a production plant, other than a coal-powered or
13nuclear-powered production plant, is built on the site of an existing or
14decommissioned production plant or on brownfields, as defined in s. 560.13 (1) (a),
15after the effective date of this paragraph .... [revisor inserts date], and is operating
16at a total power production capacity of at least 50 megawatts, the city, village, or town
17in which the plant is located shall receive annually an additional payment from the
18department of administration equal to the portion of the amount in the account for
19the "production plant, exclusive of land," less depreciation and less the value of
20treatment plant and pollution abatement equipment, as described under s. 70.11 (21)
21(a); and for the total original cost of production plant, general structures, and
22work-in-progress of each qualified wholesale electric company, as defined in s. 76.28
23(1) (gm), less depreciation, land, and approved waste facilities; that is used to
24calculate a payment under sub. (1) (a) multiplied by one mill, and the county in which
25the plant is located shall receive annually an additional payment from the

1department of administration equal to the portion of the amount in the account for
2the "production plant, exclusive of land," less depreciation and less the value of
3treatment plant and pollution abatement equipment, as described under s. 70.11 (21)
4(a); and for the total original cost of production plant, general structures, and
5work-in-progress of each qualified wholesale electric company, as defined in s. 76.28
6(1) (gm), less depreciation, land, and approved waste facilities; that is used to
7calculate a payment under sub. (2) (a) multiplied by one mill.
AB584,14,28 (b) If a coal-powered production plant is built on the site of an existing or
9decommissioned production plant or on brownfields, as defined in s. 560.13 (1) (a),
10after the effective date of this paragraph .... [revisor inserts date], and is operating
11at a total power production capacity of at least 50 megawatts, the city, village, or town
12in which the plant is located shall receive annually an additional payment from the
13department of administration equal to the portion of the amount in the account for
14the "production plant, exclusive of land," less depreciation and less the value of
15treatment plant and pollution abatement equipment, as described under s. 70.11 (21)
16(a); and for the total original cost of production plant, general structures, and
17work-in-progress of each qualified wholesale electric company, as defined in s. 76.28
18(1) (gm), less depreciation, land, and approved waste facilities; that is used to
19calculate a payment under sub. (1) (a) multiplied by 2 mills, and the county in which
20the plant is located shall receive annually an additional payment from the
21department of administration equal to the portion of the amount in the account for
22the "production plant, exclusive of land," less depreciation and less the value of
23treatment plant and pollution abatement equipment, as described under s. 70.11 (21)
24(a); and for the total original cost of production plant, general structures, and
25work-in-progress of each qualified wholesale electric company, as defined in s. 76.28

1(1) (gm), less depreciation, land, and approved waste facilities; that is used to
2calculate a payment under sub. (2) (a) multiplied by one mill.
AB584, s. 20 3Section 20. 79.04 (6) of the statutes is created to read:
AB584,14,84 79.04 (6) (a) Any increase in the total amount of payments to municipalities
5and counties under this section in any year may not exceed an amount equal to the
6sum of the revenue collected under ss. 76.28, 76.29, and 76.48 in that year, less an
7amount equal to the sum of the revenue collected under ss. 76.28 and 76.48 in fiscal
8year 2000-01.
AB584,14,139 (b) The total amount of the payments to municipalities and counties under this
10section shall be allocated to each municipality and county in proportion to the total
11amount of the payments to municipalities and counties calculated under this section
12in any year in which the total amount of the payments to municipalities and counties
13calculated under this section exceeds the limit under par. (a).
AB584, s. 21 14Section 21. Effective dates. This act takes effect on the day after publication,
15except as follows:
AB584,14,1716 (1) The repeal and recreation of section 79.04 (2) (a) of the statutes takes effect
17on January 1, 2002.
AB584,14,1818 (End)
Loading...
Loading...