LRB-5425/3
JS:kmg&mkd:km
1995 - 1996 LEGISLATURE
March 18, 1996 - Introduced by Representatives F. Lasee, Huebsch and Jensen,
cosponsored by Senators Panzer, Rude and Jauch. Referred to Joint survey
committee on Tax Exemptions.
AB1048,1,13
1An Act to repeal 76.001, 76.02 (9r), 76.07 (4g) (e), 76.38 and 76.38 (4) (b);
to
2renumber 76.02 (9t);
to renumber and amend 76.02 (9u) and 76.38 (4) (a);
3to amend 20.913 (1) (b), 71.26 (3) (f), 73.01 (4) (a), 73.01 (5) (a), 76.01, 76.02 (9),
476.04 (1), 76.07 (1), 76.07 (2), 76.13 (1), subchapter II (title) of chapter 76
5[precedes 76.38], 76.38 (1) (c), 77.52 (2) (a) 5., 134.72 (1) (a), 227.03 (1) and
6968.01 (1);
to repeal and recreate 20.913 (1) (b), 71.26 (3) (f), 73.01 (4) (a),
773.01 (5) (a), 76.28 (4), 76.28 (5), 76.28 (6) and 227.03 (1);
to create 20.566 (2)
8(ht), 25.63, 25.17 (1) (kv), subchapter IV of chapter 76 [precedes 76.80] and
9subchapter V of chapter 76 [precedes 76.90] of the statutes; and
to affect 1991
10Wisconsin Act 39, section
9149 (6) and
1991 Wisconsin Act 39, section
9149 (7);
11relating to: the taxation of telephone companies, property tax relief and
12technological equipment fund, imposing the sales tax on coin-operated
13telephone services and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, telephone companies pay a license fee based on their gross
receipts at a rate of 5.70% and, beginning in 1997, interexchange carriers and
resellers will pay a tax based on the value of their property in this state.
Under this bill, the license fee based on gross receipts is in effect for 1996 and
1997, and the correction of the estimated payments made in 1997 will be made with
payments of the new taxes in 1998. The rate is 5.77%. Beginning in 1998, all
telephone companies will pay a tax that is based on the value of their property. The
department of revenue will administer the tax; the tax will not be collected as part
of the property tax process. The tax base is all real property and all tangible personal
property, rather than a base that is calculated by apportioning the value of the
company's property to this state under a formula. The rate for each description of
real property and each item of tangible personal property is the rate that would apply
if the property were subject to general property taxes, rather than the statewide
average net rate for manufacturing and commercial property, except that for 2 years
certain telephone companies may file a combined report on their tangible personal
property and pay the tax on it at a weighted rate.
During 1999 and 2000 cellular companies and local exchange carriers will pay
a transitional adjustment fee equal to the gross receipts tax that they would have
paid under current law minus their payments of the new tax based on the value of
their property.
The bill provides that the increase in the general fund that this act causes over
the 4 fiscal years that begin with 1995-96 is to be transferred to a fund the uses of
which are property tax relief and the purchase of technological equipment.
The bill also discontinues the sales tax exemption for services provided by
coin-operated telephones.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
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:
AB1048, s. 1
1Section
1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
AB1048, s. 2
3Section
2. 20.566 (2) (ht) of the statutes is created to read:
AB1048,3,24
20.566
(2) (ht)
Telephone tax administration. The amounts in the schedule for
5the administration of the tax under subch. IV of ch. 76. For 1997-98, $307,300 of the
1revenue from that tax and in 1998-99 and thereafter $283,300 of the revenue from
2that tax shall be credited to this appropriation account.
AB1048,3,85
20.913
(1) (b)
Excess tax payments. Taxes collected in excess of lawful taxation,
6when claims therefor have been established as provided in ss. 71.30 (4), 71.74 (13),
771.75, 71.89 (1), 72.24, 74.35, 74.37, 76.13 (3), 76.38, 76.39,
76.84, 76.91, 78.19, 78.20,
878.68 (10), 78.75, 78.80 (1m), 139.092, 139.25 (1), 139.36, 139.365 and 139.39 (4).
AB1048, s. 4
9Section
4. 20.913 (1) (b) of the statutes, as affected by 1995 Wisconsin Acts 27
10and .... (this act), is repealed and recreated to read:
AB1048,3,1411
20.913
(1) (b)
Excess tax payments. Taxes collected in excess of lawful taxation,
12when claims therefor have been established as provided in ss. 71.30 (4), 71.74 (13),
1371.75, 71.89 (1), 72.24, 74.35, 74.37, 76.13 (3), 76.39, 76.84, 76.91, 78.19, 78.20, 78.68
14(10), 78.75, 78.80 (1m), 139.092, 139.25 (1), 139.36, 139.365 and 139.39 (4).
AB1048, s. 5
15Section
5. 25.63 of the statutes is created to read:
AB1048,3,20
1625.63 Property tax relief and technological equipment fund. All moneys
17transferred from the general fund to the property tax relief and technological
18equipment fund constitute the property tax relief and technological equipment fund.
19Moneys in the fund are reserved to provide property tax relief and to purchase
20technological equipment.
AB1048, s. 6
21Section
6. 25.17 (1) (kv) of the statutes is created to read:
AB1048,3,2222
25.17
(1) (kv)
Property tax relief and technological equipment fund (s. 25.63).
AB1048, s. 7
23Section
7. 71.26 (3) (f) of the statutes is amended to read:
AB1048,4,224
71.26
(3) (f) Section 164 (a) is modified so that foreign taxes are not deductible
25unless the income on which the tax is based is taxable under this chapter and so that
1gross receipts taxes assessed in lieu of property taxes, the license fees under ss. 76.28
2and 76.38 and the
tax taxes under
s. ss. 70.375
, 76.81 and 76.91 are deductible.
AB1048, s. 8
3Section
8. 71.26 (3) (f) of the statutes, as affected by 1995 Wisconsin Act ....
4(this act), is repealed and recreated to read:
AB1048,4,85
71.26
(3) (f) Section 164 (a) is modified so that foreign taxes are not deductible
6unless the income on which the tax is based is taxable under this chapter and so that
7gross receipts taxes assessed in lieu of property taxes, the license fee under s. 76.28
8and the taxes under ss. 70.375, 76.81 and 76.91 are deductible.
AB1048, s. 9
9Section
9. 73.01 (4) (a) of the statutes is amended to read:
AB1048,4,2510
73.01
(4) (a) Subject to the provisions for judicial review contained in s. 73.015,
11the commission shall be the final authority for the hearing and determination of all
12questions of law and fact arising under sub. (5) and s. 72.86 (4), 1985 stats., and ss.
1370.11 (21), 70.38 (4) (a), 70.397, 70.64, 70.995 (8), 76.38 (12) (a), 76.39 (4) (c), 76.48
14(6),
76.91, 77.26 (3), 77.59 (6) (b), 78.01, 78.22, 78.40, 78.555, 139.02, 139.03, 139.06,
15139.31, 139.315, 139.33, 139.76 and 139.78, subch. XIV of ch. 71 and subch. VII of
16ch. 77. Whenever with respect to a pending appeal there is filed with the commission
17a stipulation signed by the department of revenue and the adverse party, under s.
1873.03 (25), agreeing to an affirmance, modification or reversal of the department's
19position with respect to some or all of the issues raised in the appeal, the commission
20shall enter an order affirming or modifying in whole or in part, or canceling the
21assessment appealed from, or allowing in whole or in part or denying the petitioner's
22refund claim, as the case may be, pursuant to and in accordance with the stipulation
23filed. No responsibility shall devolve upon the commission, respecting the signing
24of an order of dismissal as to any pending appeal settled by the department without
25the approval of the commission.
AB1048, s. 10
1Section
10. 73.01 (4) (a) of the statutes, as affected by 1995 Wisconsin Act ....
2(this act), is repealed and recreated to read:
AB1048,5,183
73.01
(4) (a) Subject to the provisions for judicial review contained in s. 73.015,
4the commission shall be the final authority for the hearing and determination of all
5questions of law and fact arising under sub. (5) and s. 72.86 (4), 1985 stats., and ss.
670.11 (21), 70.38 (4) (a), 70.397, 70.64 and 70.995 (8), s. 76.38 (12) (a), 1993 stats., ss.
776.39 (4) (c), 76.48 (6), 76.91, 77.26 (3), 77.59 (6) (b), 78.01, 78.22, 78.40, 78.555,
8139.02, 139.03, 139.06, 139.31, 139.315, 139.33, 139.76 and 139.78, subch. XIV of ch.
971 and subch. VII of ch. 77. Whenever with respect to a pending appeal there is filed
10with the commission a stipulation signed by the department of revenue and the
11adverse party, under s. 73.03 (25), agreeing to an affirmance, modification or reversal
12of the department's position with respect to some or all of the issues raised in the
13appeal, the commission shall enter an order affirming or modifying in whole or in
14part, or canceling the assessment appealed from, or allowing in whole or in part or
15denying the petitioner's refund claim, as the case may be, pursuant to and in
16accordance with the stipulation filed. No responsibility shall devolve upon the
17commission, respecting the signing of an order of dismissal as to any pending appeal
18settled by the department without the approval of the commission.
AB1048, s. 11
19Section
11. 73.01 (5) (a) of the statutes is amended to read:
AB1048,6,2320
73.01
(5) (a) Any person who is aggrieved by a determination of the state board
21of assessors under s. 70.995 (8) or by the department of revenue under s. 70.11 (21)
22or who has filed a petition for redetermination with the department of revenue and
23who is aggrieved by the redetermination of the department may, within 60 days of
24the determination of the state board of assessors or of the department or, in all other
25cases, within 60 days after the redetermination but not thereafter, file with the clerk
1of the commission a petition for review of the action of the department and the
2number of copies of the petition required by rule adopted by the commission. If a
3municipality appeals, its appeal shall set forth that the appeal has been authorized
4by an order or resolution of its governing body and the appeal shall be verified by a
5member of that governing body as pleadings in courts of record are verified. The clerk
6of the commission shall transmit one copy to the department of revenue and to each
7party. In the case of appeals from manufacturing property assessments, the person
8assessed shall be a party to a proceeding initiated by a municipality. At the time of
9filing the petition, the petitioner shall pay to the commission a $5 filing fee, which
10the commission shall deposit in the general fund. Within 30 days after such
11transmission the department, except for petitions objecting to manufacturing
12property assessments, shall file with the clerk of the commission an original and the
13number of copies of an answer to the petition required by rule adopted by the
14commission and shall serve one copy on the petitioner or the petitioner's attorney or
15agent. Within 30 days after service of the answer, the petitioner may file and serve
16a reply in the same manner as the petition is filed. Any person entitled to be heard
17by the commission under s. 76.38 (12) (a), 76.39 (4) (c)
or
, 76.48
or 76.91 may file a
18petition with the commission within the time and in the manner provided for the
19filing of petitions in income or franchise tax cases. Such papers may be served as a
20circuit court summons is served or by certified mail. For the purposes of this
21subsection, a petition for review is considered timely filed if mailed by certified mail
22in a properly addressed envelope, with postage duly prepaid, which envelope is
23postmarked before midnight of the last day for filing.
AB1048, s. 12
24Section
12. 73.01 (5) (a) of the statutes, as affected by 1995 Wisconsin Act ....
25(this act), is repealed and recreated to read:
AB1048,8,4
173.01
(5) (a) Any person who is aggrieved by a determination of the state board
2of assessors under s. 70.995 (8) or by the department of revenue under s. 70.11 (21)
3or who has filed a petition for redetermination with the department of revenue and
4who is aggrieved by the redetermination of the department may, within 60 days of
5the determination of the state board of assessors or of the department or, in all other
6cases, within 60 days after the redetermination but not thereafter, file with the clerk
7of the commission a petition for review of the action of the department and the
8number of copies of the petition required by rule adopted by the commission. If a
9municipality appeals, its appeal shall set forth that the appeal has been authorized
10by an order or resolution of its governing body and the appeal shall be verified by a
11member of that governing body as pleadings in courts of record are verified. The clerk
12of the commission shall transmit one copy to the department of revenue and to each
13party. In the case of appeals from manufacturing property assessments, the person
14assessed shall be a party to a proceeding initiated by a municipality. At the time of
15filing the petition, the petitioner shall pay to the commission a $5 filing fee, which
16the commission shall deposit in the general fund. Within 30 days after such
17transmission the department, except for petitions objecting to manufacturing
18property assessments, shall file with the clerk of the commission an original and the
19number of copies of an answer to the petition required by rule adopted by the
20commission and shall serve one copy on the petitioner or the petitioner's attorney or
21agent. Within 30 days after service of the answer, the petitioner may file and serve
22a reply in the same manner as the petition is filed. Any person entitled to be heard
23by the commission under s. 76.38 (12) (a), 1993 stats., or s. 76.39 (4) (c), 76.48 or 76.91
24may file a petition with the commission within the time and in the manner provided
25for the filing of petitions in income or franchise tax cases. Such papers may be served
1as a circuit court summons is served or by certified mail. For the purposes of this
2subsection, a petition for review is considered timely filed if mailed by certified mail
3in a properly addressed envelope, with postage duly prepaid, which envelope is
4postmarked before midnight of the last day for filing.
AB1048, s. 14
6Section
14. 76.01 of the statutes is amended to read:
AB1048,8,12
776.01 Railroads and utilities, assessment. The department of revenue
8shall make an annual assessment of the property of all railroad companies, of all
9conservation and regulation companies, of all sleeping car companies, of all air
10carriers
, of all telephone companies and of all pipeline companies, within this state,
11for the purpose of levying and collecting taxes thereon, as provided in this
12subchapter.
AB1048, s. 15
13Section
15. 76.02 (9) of the statutes is amended to read:
AB1048,8,1714
76.02
(9) "Company", without other designation or qualification, includes any
15railroad company, any conservation and regulation company, any express company,
16any air carrier company, any pipeline company
, any telephone company and any
17sleeping car company, as defined in this section, to which "company" is applied.
AB1048, s. 16
18Section
16. 76.02 (9r) of the statutes is repealed.
AB1048, s. 17
19Section
17. 76.02 (9t) of the statutes is renumbered 76.80 (3).
AB1048, s. 18
20Section
18. 76.02 (9u) of the statutes is renumbered 76.80 (4) and amended
21to read:
AB1048,9,522
76.80
(4) "Telephone company" means any person that provides to another
23person telecommunications services, including the resale of services provided by
24another telephone company
, that originate in one local access and transport area, as
25defined in s. 76.38 (1) (bd), and terminate in a different local access and transport
1area, as defined in s. 76.38 (1) (bd). "Telephone company" does not include a person
2who operates a private shared telecommunications system, as defined in s. 196.201
3(1), and who is not otherwise a telephone company.
"Telephone company" does not
4include a person who is a cellular mobile radio telecommunications utility, as defined
5in s. 196.202 (1).
AB1048, s. 19
6Section
19. 76.04 (1) of the statutes is amended to read:
AB1048,9,127
76.04
(1) Every company defined in s. 76.02 shall, annually, file a true and
8accurate statement in such manner and form and setting forth such facts as the
9department shall deem necessary to enforce ss. 76.01 to 76.26. The annual reports
10for railroad companies, sleeping car companies and express companies shall be filed
11on or before April 15 and for conservation and regulation companies, air carriers
,
12telephone companies and pipeline companies on or before May 1.
AB1048,9,21
13(1m) For sufficient reason shown the department may upon written request
14allow such further time for making and filing the report
under sub. (1) as it may deem
15necessary, but not to exceed 30 days. If any company fails to file such report within
16the time prescribed or as extended under this subsection, the department shall add
17to the taxes due from such company $250 if the report is not filed within 15 days after
18the due date or extended due date and an additional $250 for each month or part of
19a month thereafter during which the report is not filed, except that the total penalty
20may not exceed $2,500. No company may in any action or proceeding contest the
21imposition of such penalty.
AB1048, s. 20
22Section
20. 76.07 (1) of the statutes is amended to read:
AB1048,9,2523
76.07
(1) Duty of department. The department on or before August 1 in each
24year in the case of railroad companies and sleeping car companies, and on or before
25September 15 in the case of air carrier companies,
telephone companies,
1conservation and regulation companies and pipeline companies, shall, according to
2its best knowledge and judgment, ascertain and determine the full market value of
3the property of each company within the state.
AB1048, s. 21
4Section
21. 76.07 (2) of the statutes is amended to read:
AB1048,10,245
76.07
(2) Relation to state valuation; description. The value of the property
6of each of said companies for assessment shall be made on the same basis and for the
7same period of time, as near as may be, as the value of the general property of the
8state is ascertained and determined. The department shall prepare an assessment
9roll and place thereon after the name of each of said companies assessed, the
10following general description of the property of such company, to wit: "Real estate,
11right-of-way, tracks, stations, terminals, appurtenances, rolling stock, equipment,
12franchises and all other real estate and personal property of said company," in the
13case of railroads, and "Real estate, right-of-way, poles, wires, conduits, cables,
14devices, appliances, instruments, franchises and all other real and personal property
15of said company," in the case of conservation and regulation companies, and "Real
16estate, appurtenances, rolling stock, equipment, franchises, and all other real estate
17and personal property of said company," in the case of sleeping car and air carrier
18companies, and "Land and land rights, structures, improvements, mains, pumping
19and regulation equipment, services, appliances, instruments, franchises and all
20other real and personal property of said company," in the case of pipeline companies,
21and "All property of the company used in the operation of the company's telephone
22business" in the case of telephone companies, which description shall be deemed and
23held to include the entire property and franchises of the company specified and all
24title and interest therein.
AB1048, s. 22
25Section
22. 76.07 (4g) (e) of the statutes is repealed.
AB1048, s. 23
1Section
23. 76.13 (1) of the statutes is amended to read:
AB1048,11,112
76.13
(1) The department shall compute and levy a tax upon the property of
3each company defined in s. 76.02, as assessed in the manner specified in ss. 76.07 and
476.08, at the average net rate of taxation determined under s. 76.126. The amount
5of tax to be paid by each such company shall be extended upon a tax roll opposite the
6description of the property of the respective companies. The tax rolls for all
7companies required to be assessed on or before August 1 in each year under s. 76.07
8(1) shall be completed on or before August 10, and for all companies required to be
9assessed on or before September 15 in each year under s. 76.07 (1) shall be completed
10on or before October 1; and the department shall thereupon attach to each such roll
11a certificate signed by the secretary of revenue, which shall be as follows:
AB1048,11,19
12"I hereby certify that the foregoing tax roll includes the property of all railroad
13companies, sleeping car companies, air carrier companies, conservation and
14regulation companies
, telephone companies or pipeline companies, as the case may
15be, defined in 76.0276, liable to taxation in this state; that the valuation of the
16property of each company as set down in said tax roll is the full market value thereof
17as assessed by the department of revenue, except as changed by court judgment, and
18that the taxes thereon charged in said tax roll have been assessed and levied at the
19average net rate of taxation in this state, as required by law".
AB1048, s. 24
20Section
24. 76.28 (4) of the statutes is repealed and recreated to read: