AB719: Bill Text

LRB-1714/1

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2013 - 2014 LEGISLATURE

2013 Assembly BILL 719

February 3, 2014 - Introduced by Representative Sinicki. Referred to Committee on Ways and Means.

AB719,1,3 An Act to create 59.615 and 77.70 (2) of the statutes; relating to: authorizing a county to increase its sales and use tax under certain circumstances and requiring a referendum.

Analysis by the Legislative Reference Bureau

Under current law, a county may impose a sales and use tax at the rate of 0.5 percent of the sales price of tangible personal property, goods, and services sold or used in the county. The county sales and use tax may be imposed only for the purpose of reducing the county's property tax levy.

Under the bill, a county may enact an ordinance to impose an additional sales and use tax at the rate of no more than 1 percent of the sales price of tangible personal property, goods, and services sold or used in the county if the county reduces its property tax levy for the next year by an amount that will result in reduced property tax receipts that approximately equal the amount of sales tax revenue generated in the prior year by the additional sales tax that may be imposed under the bill. Also under the bill, the ordinance imposing the additional sales tax may not take effect unless it is approved by the electors of the county in a referendum.

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:

AB719,1 Section 1. 59.615 of the statutes is created to read:

AB719,2,8 59.615 County sales tax, property tax. (1) Subject to sub. (2), a board may enact an ordinance to increase the sales tax imposed in the county under s. 77.70 (2) by up to 1 percent if the county decreases its property tax levy for the next year by an amount that will reduce the county's property tax receipts by an amount that is approximately equal to the amount of sales tax revenue generated by the additional sales tax that is imposed under s. 77.70 (2) in the 4 quarters before the quarter in which the county imposes its levy for the next year.

AB719,2,10 (2) An ordinance enacted under sub. (1) may not take affect unless it is approved in a contingent referendum described in s. 59.52 (25).

AB719,2 Section 2. 77.70 (2) of the statutes is created to read:

AB719,2,21 77.70 (2) In addition to the taxes imposed under sub. (1), a county may adopt an ordinance under s. 59.615 to impose a sales and use tax under this subchapter at the rate of no more than 1 percent of the sales price or purchase price in order to decrease its property tax levy as provided under s. 59.615. The taxes may be imposed only in their entirety. An ordinance adopted under s. 59.615 to impose the taxes under this subsection shall be effective on January 1, April 1, July 1, or October 1. A certified copy of the ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The repeal of any such ordinance shall be effective on December 31. A certified copy of a repeal ordinance shall be delivered to the secretary of revenue at least 120 days before the effective date of the repeal.

AB719,2,22 (End)