SB673: Bill Text

SB673, s. 29 Section 29. 76.38 (4) (b) of the statutes is repealed.

SB673, s. 30 Section 30. Subchapter IV of chapter 76 [precedes 76.80] of the statutes is created to read:

SB673,15,3 Chapter 76

SB673,15,5 Subchapter IV Telephone company tax

SB673,15,6 76.80 Definitions. In this subchapter:

SB673,15,7 (1) "Department" means the department of revenue.

SB673,15,14 76.81 Imposition. There is imposed a tax on the real property of, and the tangible personal property of, every telephone company, except motor vehicles that are exempt under s. 70.112 (5) and treatment plant and pollution abatement equipment that is exempt under s. 70.11 (21) (a). Except as provided in s. 76.815, the rate for the tax imposed on each description of real property and on each item of tangible personal property is the net rate for the prior year for the tax under ch. 70 in the taxing jurisdictions where the description or item is located.

SB673,15,19 76.815 Combined reporting. For taxes payable in 1998 and 1999, telephone companies that have more than 150,000 access lines in this state may submit a combined report of their items of personal property. Any company that does so shall pay the tax on those items at a rate that reflects the company's weighted average property tax rate based on the value and location of its real property in this state.

SB673,15,23 76.82 Assessment. The department, using the methods that it uses to assess property under s. 70.995, shall assess the property that is taxable under s. 76.81, including property that is exempt under s. 70.11 (27) from the tax under ch. 70, at its value as of January 1.

SB673,16,3 76.83 Report; payment. On or before March 1, every telephone company shall send to the department a completed form that the department prescribes. Upon written request, the department may extend the time for filing the report by no more than 30 days. The requirements for payment of taxes under s. 76.13 (2a), as they apply to the tax under subch. I, apply to the tax under this subchapter.

SB673,16,6 76.84 Administration. (1) On or before October 1, the department shall notify each telephone company that is subject to the tax under s. 76.81 of the assessed value of its property.

SB673,16,8 (2) On or before November 1, the department shall notify each telephone company that is subject to the tax under s. 76.81 of the amount of that tax.

SB673,16,12 (3) From the revenues collected under this subchapter, the department shall transfer to the appropriation account under s. 20.566 (2) (ht) in 1997-98 $307,300, in 1998-99 $283,300 and in 1999-2000 and thereafter the amounts necessary to administer the tax under this subchapter.

SB673,16,15 (4) Sections 76.03 (4), 76.05, 76.06, 76.075, 76.08, 76.09, 76.13 (1), (2) and (3), 76.14, 76.18, 76.22, 76.23, 76.25 and 76.28 (4) to (6), as they apply to the tax under subch. I, apply to the tax under this subchapter.

SB673, s. 31 Section 31. Subchapter V of chapter 76 [precedes 76.90] of the statutes is created to read:

SB673,16,18 Chapter 76

SB673,16,20 Subchapter v Transitional adjustment fee

SB673,16,21 76.90 Definitions. In this subchapter:

SB673,16,22 (1) "Basic local exchange service" has the meaning given in s. 196.01 (1g)

SB673,16,24 (2) "Cellular mobile radio telecommunications utility" has the meaning given in s. 196.202 (1).

SB673,16,25 (3) "Department" means the department of revenue.

SB673,17,7 76.91 Imposition. For 1999 and 2000, there is imposed on each cellular mobile radio telecommunications utility and on each person that, on the effective date of this section .... [revisor inserts date], provides basic local exchange service a transitional adjustment fee. Taxpayers shall pay the tax during May 1998, November 1998, May 1999, November 1999 and May 2000. For each month that a fee is due under this subchapter, the taxpayer shall pay to the department an amount calculated as follows:

SB673,17,10 (1) Determine the amount that the taxpayer would pay during that month, taking into account the reconciliation of the previous year's estimated payments, if the taxpayer were assessed the tax under s. 76.38, 1993 stats., at a rate of 5.77%.

SB673,17,12 (2) Subtract from the amount under sub. (1) the taxpayer's payment during that month of the tax under subch. IV.

SB673,17,16 76.92 Report; payment. On or before March 1, every taxpayer that is subject to the fee under this subchapter shall send to the department a completed form that the department prescribes. Upon written request, the department may extend the time for filing the report by no more than 30 days.

SB673,17,18 76.93 Administration. (1) On or before May 1, the department shall notify each taxpayer that is subject to the fee under s. 76.91 of the amount of that fee.

SB673,17,21 (2) Sections 76.03 (4), 76.04 (1), 76.05, 76.06, 76.14, 76.18, 76.22, 76.24 (1), 76.25 and 76.28 (4) to (6), as they apply to the tax under subch. I, apply to the fee under this subchapter.

SB673, s. 32 Section 32. 77.52 (2) (a) 5. of the statutes is amended to read:

SB673,18,2 77.52 (2) (a) 5. The sale of telecommunications services , not including services paid for by the insertion of coins in a coin-operated telephone, that originate in this state and are charged to a service address in this state, regardless of the location where that charge is billed or paid.

SB673, s. 33 Section 33. 134.72 (1) (a) of the statutes is amended to read:

SB673,18,7 134.72 (1) (a) "Facsimile machine" means a machine that transmits copies of documents by means of a telecommunications facility, as defined in s. 76.38 (1) (bm) telephone line, telegraph line, microwave, satellite, cellular radio, fiber optics, coaxial cable or any other transmission facility or any switching device.

SB673, s. 34 Section 34. 227.03 (1) of the statutes is amended to read:

SB673,18,10 227.03 (1) This chapter applies to cases arising under ss. 76.38, 76.39 and, 76.48 and 76.91.

SB673, s. 35 Section 35. 227.03 (1) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is repealed and recreated to read:

SB673,18,14 227.03 (1) This chapter applies to cases arising under s. 76.38, 1993 stats., and ss. 76.39, 76.48 and 76.91.

SB673, s. 36 Section 36. 968.01 (1) of the statutes is amended to read:

SB673,18,18 968.01 (1) ``Facsimile machine" means a machine that transmits copies of documents by means of a telecommunications facility, as defined in s. 76.38 (1) (bm) has the meaning given in s. 134.72 (1) (a).

SB673, s. 37 Section 37. 1991 Wisconsin Act 39, section 9149 (6) is repealed.

SB673, s. 38 Section 38. 1991 Wisconsin Act 39, section 9149 (7) is amended to read:

SB673,19,2 [1991 Wisconsin Act 39] Section 9149 (7) Legislative intent; telephone companies. The legislature intends that the tax reduction created by the treatment of chapter 76 of the statutes by this act in regard to telephone companies, when fully and completely implemented in 1997, constitutes a portion of the refund of taxes that could be claimed pursuant to GTE Sprint Communications Corporation, n.k.a. U.S. Sprint Communications Company vs. Wisconsin Bell, Inc., and the State of Wisconsin, (No. 89-0272, May 15, 1990).

SB673, s. 40m Section 40m. 1995 Wisconsin Act .... (Assembly Bill 808), section 3 (1) is amended to read:

SB673,19,7 [1995 Wisconsin Act .... (Assembly Bill 808)] Section 3 (1) Transfer to property tax relief fund. There is transferred on June 30, 1997, from the general fund to the property tax relief fund $160,000,000 $195,000,000.

SB673, s. 39 Section 39. Nonstatutory provisions.

SB673,19,15 (1) Reconciliation. Cellular mobile radio telecommunications utilities and telephone companies that provide basic local exchange service shall reconcile their first payments under subchapter V of chapter 76 of the statutes, as created by this act, to reflect their overpayment or underpayment of their final instalment of gross receipts taxes. All other telephone companies shall reconcile their first payments under subchapter IV of chapter 76 of the statutes, as created by this act, to reflect their overpayment or underpayment of their final instalment of gross receipts taxes.

SB673,19,18 (2) Transition. This act does not affect any amounts due, remedies available to or appeals available to any telephone company or the department of revenue that accrued before a change in the method of taxation of any telephone company.

SB673,19,24 (3)  Instalment amount. Notwithstanding section 76.83 of the statutes, as created by this act, the May 10, 1998, instalment of the tax under subchapter IV of chapter 76 of the statutes, as created by this act, shall be at least 50% of the tax under section 76.38 of the statutes that was assessed on May 1, 1998, or at least 40% of the tax under subchapter IV of chapter 76 of the statutes, as created by this act, that is due for 1998.

SB673,20,6 (4) Proxy for refund. The legislature intends that the tax reduction created by the treatment of chapter 76 of the statutes by this act in regard to telephone companies, when it is implemented in 1998, constitutes the remainder of taxes that could be claimed pursuant to GTE Sprint Communications n.k.a. U.S. Sprint Communications Company v. Wisconsin Bell, Inc., and the State of Wisconsin, (No. 89-0272, May 15, 1990).

SB673,20,9 (5) Nonseverability. Notwithstanding section 990.001 (11) of the statutes, if it is finally adjudicated that any provision of this act is unconstitutional, the entire act is void.

SB673,20,14 (6) Telephone tax. The authorized FTE positions for the department of revenue are increased by 6.0 PR positions on July 1, 1997, to be funded from the appropriation under section 20.566 (2) (ht) of the statutes, as created by this act, for the purpose of administering the tax under subchapter IV of chapter 76 of the statutes, as created by this act.

SB673,20,22 (7) Reconciliation; transfer to property tax relief fund. If 1995 Senate Bill 563 is enacted and that enactment includes section 10 of Senate Substitute Amendment 1 to 1995 Senate Bill 563, there is transferred from the general fund to the property tax relief fund on June 30, 1997, in lieu of the amount shown in section 10 of Senate Substitute Amendment 1 to 1995 Senate Bill 563 and the amount shown in Section 40m of this act, the amount of $205,635,900. If 1995 Wisconsin Act .... (Assembly Bill 808) is not enacted into law, the treatment of 1995 Wisconsin Act .... (Assembly Bill 808), section 3 (1) by this act and Section 44 (3p) of this act are void.

SB673,21,3 (8) Future appropriations for educational technology board grants. The legislature expresses its intention to appropriate an additional amount of $10,000,000 for grants to be distributed to school districts and library boards by the educational technology board in the 1997-99 fiscal biennium and its intention that, if such an appropriation is made, the amount appropriated will not be included in state school aids for purposes of section 121.15 (3m) (a) 2. of the statutes.

SB673, s. 40 Section 40. Initial applicability.

SB673,21,6 (1) The treatment of subchapter IV of chapter 76 of the statutes first applies to taxes due for 1998.

SB673, s. 41 Section 41. Effective dates. This act takes effect on the day after publication, except as follows:

SB673,21,10 (1) Sales tax. The treatment of section 77.52 (2) (a) 5. of the statutes takes effect on the first day of the 2nd month beginning after publication.

SB673,21,14 (2) Discontinuation of license fee. The repeal of section 76.38 of the statutes, the treatment of section 76.28 (4), (5) and (6) and subchapter II (title) of chapter 76 of the statutes and the repeal and recreation of sections 20.913 (1) (b), 71.26 (3) (f), 73.01 (4) (a) and (5) (a) and 227.03 (1) of the statutes take effect on May 15, 1998.

SB673,21,16 (3) Transfer to property tax relief fund. The treatment of 1995 Wisconsin Act .... (Assembly Bill 808), section 3 (1) takes effect on August 1, 1996.

SB673,21,17 (End)