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70.375(4)(em) (em) In the case of a mine owned by a corporation that owns other business operations or is part of an affiliated group of corporations eligible to file consolidated federal income tax returns, the determination of deductible state income or franchise taxes and federal income taxes shall be made by calculating the taxable income from the mine as though the mine were a separate entity and applying the federal income tax laws and state income or franchise tax laws to this income as though the mine were filing a separate income or franchise tax return. To calculate taxable income, federal taxable income as it applies to the depletion deduction under section 613 of the internal revenue code shall be adjusted to reflect the difference between Wisconsin income or franchise tax law and federal income tax law.
70.375(4)(f) (f) Rents paid on personal property used in mining metalliferous minerals.
70.375(4)(g) (g) The cost of relocating employes within this state.
70.375(4)(h) (h) The cost of premiums for bonds required under s. 293.51.
70.375(4)(i) (i) The cost of premiums for insurance on persons or tangible assets relating to mining metalliferous minerals.
70.375(4)(j) (j) Losses from uninsured casualty losses and the sale of personal property used in mining metalliferous minerals.
70.375(4)(k) (k) Depreciation or amortization on property used in connection with mining. With respect to property first eligible for depreciation or amortization before January 1, 1981, the deduction shall be limited to the deduction under s. 70.375 (4) (k), 1979 stats. With respect to property first eligible for depreciation or amortization on or after January 1, 1981, the deduction shall be limited to the amount allowable as a deduction to corporations in computing net income under s. 71.26 (2). The following assets may be depreciated or amortized:
70.375(4)(k)1. 1. Machinery, mills and reduction works.
70.375(4)(k)2. 2. Buildings, structures and other improvements.
70.375(4)(k)3. 3. Permit fees, license fees and any other fees for formal written authorization required by a department or instrumentality of the state.
70.375(4)(k)4. 4. Development of the mine after the date on which extraction begins.
70.375(4)(L) (L) Royalties paid to owners of the mineral rights to the lands where the mine or an extension of the mine is located. In this paragraph, "owners" does not include the person mining or a controlled entity or controlling entity of the person mining.
70.375(4)(m) (m) Amortization by a straight-line method over the life of the mine commencing with production of premining costs, including costs for drilling, geological and engineering studies, design of facilities, pilot mines, mine testing, environmental surveys, facilities siting surveys and other exploration and development activities.
70.375(4)(n) (n) Expenses under par. (m) incurred after mining begins, those costs to be expensed currently.
70.375(4)(o) (o) Actual and necessary reclamation and restoration costs associated with a mine in this state, including payments for future reclamation and postmining costs which are required by law or by department of natural resources order and fees and charges under chs. 281, 285 or 289 to 299, except s. 281.48, not otherwise deductible under this section. Any refunds of escrowed or reserve fund payments allowed as a deduction under this paragraph shall be taxed as net proceeds at the average effective tax rate for the years the deduction was taken.
70.375(4)(p) (p) Interest determined as follows:
70.375(4)(p)1. 1. If the interest is specifically allocable to the development or operation of a mine or beneficiation facility from which net proceeds are derived, all of the interest is deductible.
70.375(4)(p)2. 2. If the interest is not specifically allocable to the development or operation of a mine or beneficiation facility, the proportion of the interest that equals the proportion of the capital investment in the mine and beneficiation facilities as compared to the taxpayer's total capital investment.
70.375(4)(p)3. 3. If a mine is owned by a corporation that is part of an affiliated group of corporations, "interest" means the interest paid to nonmembers of the group.
70.375(4)(p)4. 4. The deduction for interest under this paragraph shall not exceed 5% of the total gross proceeds for the taxable year.
70.375(4)(q) (q) An allowance for depletion of ores on the basis of their actual original cost in cash or the equivalent of cash.
70.375(4)(r) (r) Administrative fees under s. 70.3965.
70.375(5) (5)Rates. The tax to be assessed, levied and collected upon persons engaging in mining metalliferous minerals in this state shall be computed at the following rates:
70.375(5)(a) (a) On the amount from $250,001 to $5,000,000, at a rate of 3%.
70.375(5)(b) (b) On the amount from $5,000,001 to $10,000,000, at a rate of 7%.
70.375(5)(c) (c) On the amount from $10,000,001 to $15,000,000, at a rate of 10%.
70.375(5)(d) (d) On the amount from $15,000,001 to $20,000,000, at a rate of 13%.
70.375(5)(e) (e) On the amount from $20,000,001 to $25,000,000, at a rate of 14%.
70.375(5)(f) (f) On the amount exceeding $25,000,000, at a rate of 15%.
70.375(6) (6)Indexing. For calendar year 1983 and corresponding fiscal years and thereafter, the dollar amounts in sub. (5) and s. 70.395 (1), (1m) and (2) (d) 1m. and 5. a. and (2) (dg) shall be changed to reflect the percentage change between the gross national product deflator for June of the current year and the gross national product deflator for June of the previous year, as determined by the U.S. department of commerce as of December 30 of the year for which the taxes are due, except that no annual increase may be more than 10%. The revised amounts shall be rounded to the nearest whole number divisible by 100 and shall not be reduced below the amounts under sub. (5) on November 28, 1981. Annually, the department shall adopt any changes in dollar amounts required under this subsection and incorporate them into the appropriate tax forms.
70.38 70.38 Reports, appeals, estimated liability.
70.38(1)(1)Reports. On or before June 15, persons mining metalliferous minerals shall file with the department a true and accurate report in the form the department deems necessary to administer the tax under s. 70.375. The books and records of the person shall be open to inspection and examination to employes of the department designated by the secretary and to the state geologist.
70.38(1m) (1m)Estimated liability. Upon written request and for sufficient reason shown, the department shall allow a person subject to the tax under s. 70.375 to file, on or before June 15, a net proceeds tax return and to pay that tax based upon estimated tax liability. On or before September 15, that person shall file a final report and pay any additional tax due along with interest at the rate of 1% per month from June 15 until the date of payment. If the additional tax exceeds 10% of the person's tax under s. 70.375 for the previous year, the penalty and interest under s. 70.39 (1) apply. If the final report indicates that the person overpaid the person's liability, the department shall refund the overpayment.
70.38(2) (2)Combined reporting. If the same person extracts metalliferous minerals from different sites in this state, the net proceeds for each site for which a permit has been issued under s. 293.49 shall be reported separately for the purposes of computing the amount of the tax under s. 70.375 (5).
70.38(4) (4)Appeals.
70.38(4)(a)(a) Any person feeling aggrieved by the assessment notice shall, within 60 days after the receipt of the notice, file with the department a petition for redetermination setting forth the person's objections to the assessment. The person may request an informal conference with representatives of the department prior to September 15. The request shall be indicated in the petition. The secretary shall act on the petition on or before October 1. On or before November 1, the person shall pay the amount determined by the secretary pursuant to the secretary's action on the petition. If the person is aggrieved by the secretary's denial of the petition the person may appeal to the tax appeals commission if the appeal is filed with the commission on or before December 1.
70.38(4)(b) (b) Determinations of the tax appeals commission shall be subject to judicial review under ch. 227.
70.38 History History: 1977 c. 31; 1981 c. 86; 1983 a. 27; 1995 a. 227.
70.385 70.385 Collection of the tax. All taxes as evidenced by the report under s. 70.38 (1) are due and payable to the department on or before June 15, and shall be deposited by the department with the state treasurer.
70.385 History History: 1977 c. 31; 1981 c. 86; 1983 a. 27.
70.39 70.39 Collection of delinquent tax.
70.39(1) (1) Taxes due and unpaid on June 15 shall be deemed delinquent as of that date, and when delinquent shall be subject to a penalty of 4% of the tax and interest at the rate of 1.5% per month until paid. The parent shall be liable for any delinquent taxes of a subsidiary person. The department shall immediately proceed to collect the tax due, penalty, interest and costs. For the purpose of collection the department or its duly authorized agent has the same powers as conferred by law upon the county treasurer, county clerk, sheriff and district attorney.
70.39(2) (2) Any part of an assessment which is contested before the tax appeals commission or the courts, which after hearing shall be ordered to be paid, shall be considered as a delinquent tax if unpaid on the 10th day following the date of the final order and shall be subject to the penalty and interest provisions under sub. (1).
70.39(3) (3) After the tax becomes delinquent, the department shall issue a warrant to the sheriff of any county of the state in which the metalliferous mineral property is located in total or in part. The warrant shall command the sheriff to levy upon and sell sufficient of the person's metalliferous mineral property found within the sheriff's county, to pay the tax with the penalties, interest and costs, and to proceed in the same manner as upon an execution against property issued out of a court of record, and to return the warrant to the department and pay to it the money collected, or the part thereof as may be necessary to pay the tax, penalties, interest and costs, within 60 days after the receipt of the warrant, and deliver the balance, if any, after deduction of lawful charges to the person.
70.39(4) (4)
70.39(4)(a)(a) Within 5 days after the receipt of the warrant the sheriff shall file a copy of it with the clerk of circuit court of the county, unless the person makes satisfactory arrangements for payment with the department, in which case, the sheriff shall, at the direction of the department, return the warrant to it.
70.39(4)(b) (b) The clerk of circuit court shall enter the warrant as a delinquent income or franchise tax warrant as required under s. 806.11. The clerk of circuit court shall accept, file and enter the warrant without prepayment of any fee, but shall submit a statement of the proper fees within 30 days to the department of revenue. The fees shall be paid by the state treasurer upon audit by the department of administration on the certificate of the secretary of revenue and shall be charged to the proper appropriation for the department of revenue.
70.39(4)(c) (c) The sheriff shall be entitled to the same fees for executing upon the warrant as upon an execution against property issued out of a court of record, to be collected in the same manner.
70.39(4)(d) (d) Upon the sale of any real estate the sheriff shall execute a deed of the real estate, and the person may redeem the real estate as from a sale under an execution against property upon a judgment of a court of record. No public official may demand prepayment of any fee for the performance of any official act required in carrying out this section.
70.39 History History: 1977 c. 31; 1983 a. 27; 1991 a. 39; 1995 a. 224.
70.395 70.395 Distribution and apportionment of tax.
70.395(1) (1)Distribution. Fifteen days after the collection of the tax under ss. 70.38 to 70.39, the department of administration, upon certification of the department of revenue, shall transfer the amount collected as follows:
70.395(1)(a)1.1. To the investment and local impact fund, an amount equal to the first-dollar payment or 60% of the taxes collected under ss. 70.38 to 70.39 in respect to mines not in operation on November 28, 1981, whichever is greater.
70.395(1)(a)2. 2. In this paragraph, except as provided in subd. 3., "first-dollar payment" means an amount equal to $100,000 for each county, Native American community or municipality eligible to receive a payment under sub. (2) (d) 1., 2. or 2m.
70.395(1)(a)3. 3. If the tax collected under ss. 70.38 to 70.39 in any year is less than the first-dollar payment as defined in subd. 2., "first-dollar payment" for that year means the amount of taxes collected under ss. 70.38 to 70.39 in respect to mines not in operation on November 28, 1981.
70.395(1)(b) (b) After the transfers under par. (a), the undistributed portion of the amount of taxes collected under ss. 70.38 to 70.39 in respect to mines not in operation on November 28, 1981, shall be deposited to the badger fund under s. 25.28.
70.395(1)(c) (c) Annually, the dollar amounts under par. (a) 2. shall be adjusted as specified under s. 70.375 (6).
70.395(1g) (1g)Distribution. Fifteen days after the collection of the tax under ss. 70.38 to 70.39, the department of administration, upon certification of the department of revenue, shall transfer the amount collected to January 1, 1991, in respect to mines in operation on November 28, 1981, as follows:
70.395(1g)(a) (a) Forty percent to the general fund.
70.395(1g)(b) (b) Sixty percent to the investment and local impact fund.
70.395(1m) (1m)Limit on investment and local impact fund. If the fund under sub. (1) (a) has a balance of more than $20 million on January 1 of any year, the excess over $20 million shall be transferred to a separate account to be administered under s. 25.28. The badger board may not commingle the moneys transferred under this subsection with the other moneys constituting the badger fund. The interest on the moneys transferred under this subsection shall be used for the purposes under s. 25.28. If the investment and local impact fund does not have sufficient moneys to make the payments under this section for any year, or if the balance in the fund under sub. (1) (a) falls below a level of $20 million on any January 1, the investment and local impact fund board may transfer from the funds under s. 25.28, up to the amount of the moneys previously transferred under this subsection for all prior years, sufficient funds to make the payments under this section or to provide a balance in the investment and local impact fund of $20 million.
70.395(2) (2)Investment and local impact fund.
70.395(2)(b)(b) There is created an investment and local impact fund under the jurisdiction and management of the investment and local impact fund board, as created under s. 15.435.
70.395(2)(c) (c) The board shall, according to procedures established by rule:
70.395(2)(c)1. 1. Certify to the department of administration the amount of funds to be distributed under pars. (d) to (g) and to be paid under par. (j).
70.395(2)(c)2. 2. Determine the amount which is not distributed under subd. 1. which shall be invested under s. 25.17 (1) (jc).
70.395(2)(d) (d) Annually on the first Monday in January, except as provided in subd. 5. b. and c., the department of administration shall distribute, upon certification by the board:
70.395(2)(d)1. 1. To each county in which metalliferous minerals are extracted, the first-dollar payment under sub. (1) (a).
70.395(2)(d)1m. 1m. To each county in which metalliferous minerals are extracted, 20% of the tax collected annually under ss. 70.38 to 70.39 from persons extracting metalliferous minerals in the county or $250,000, whichever is less, to be used for mining-related purposes.
70.395(2)(d)2. 2. To each city, town or village in which metalliferous minerals are extracted, the first-dollar payment under sub. (1) (a) minus any payment during that year under par. (d) (intro.) or subd. 5. If the minable ore body is located in 2 contiguous municipalities and if at least 15% of the minable ore body is in each municipality, each qualifying municipality shall receive a full payment specified in this subdivision as if the ore body were located solely within that municipality. The department of revenue shall annually change the dollar amount specified in this subdivision as specified in s. 70.375 (6) except that the dollar amount may not be reduced below the dollar amount under this subdivision on November 28, 1981.
70.395(2)(d)2m. 2m. To any Native American community that has tribal lands within a municipality qualified to receive a payment under this section, an amount equal to $100,000 minus any payments during that year under par. (d) (intro.) or subd. 5. Annually, the dollar amount in this subdivision shall be adjusted as specified under s. 70.375 (6).
70.395(2)(d)3. 3. Where the tax under ss. 70.37 to 70.39 is in respect to a mining site which is located in more than one county or municipality the distribution under subds. 1. and 2. shall be as follows:
70.395(2)(d)3.a. a. On or before February 10 of each year persons extracting metalliferous minerals in this state shall report to the department the amount of crude ore extracted from each municipality and county in the state in the previous year. The data shall detail the total amount of crude ore extracted from each mine and the portion of the total taken from each municipality and county. This data shall be included in the report required by s. 70.38 (1) and (2).
70.395(2)(d)3.c. c. Each county's proportion of the amount determined under subd. 1. shall be equal to the ratio of the amount of crude ore extracted from the mine in that county to the total amount of crude ore extracted from the mine multiplied by the amount determined under subd. 1.
70.395(2)(d)4. 4. To the investment and local impact fund an amount equal to 10% of the taxes paid by each mine plus all accrued interest on that amount for a project reserve fund. The funds shall be withdrawn by the investment and local impact fund board to be used for the following purposes in respect to the municipality or municipalities in which the mine is located:
70.395(2)(d)4.a. a. To ensure an annual payment to each municipality under sub. (1) (a) in an amount equal to the average payment for the 3 previous years to that municipality.
70.395(2)(d)4.b. b. To reimburse municipalities for costs associated with the cessation of mining operations.
70.395(2)(d)4.c. c. To indemnify municipalities for reclamation expenses.
70.395(2)(d)5.a.a. To each municipality that contains a metalliferous mining site in respect to which an application for a mining permit has been made prior to January 1, 1986, until a final decision is made on that application or for 4 years, whichever is the shorter period, $100,000 annually. To each municipality that contains a metalliferous mining site at which construction has begun prior to January 1, 1989, but at which extraction has not been engaged in for at least 3 years, $100,000 annually. The funds under this subdivision shall be used only for mining-related purposes. Payments under this subdivision are payable 30 days following submission of the application or commencement of construction. Payments shall be made on a project fiscal year basis commencing on the date of submission or commencement of construction. In this subdivision, "municipality" means a city, town or village and any Native American community contained within such a city, town or village.
70.395(2)(d)5.b. b. Annually, after the board has determined that the use of the funds is for mining-related purposes associated with construction of the specific project in the project fiscal year, to each county that contains a metalliferous mining site at which construction is begun prior to January 1, 1989, but at which extraction has not been engaged in, $300,000 annually reduced by the amount of property taxes paid to the county during the current fiscal year on improvements and also reduced by any payments received under subds. 1. and 1m. The funds under this subparagraph shall be used only for mining-related purposes. Payments shall be made on a project fiscal year basis commencing on the date of commencement of construction, and are payable 30 days following the close of the fiscal year.
70.395(2)(d)5.c. c. To each Native American community, county, city, town and village that contains at least 15% of a minable ore body in respect to which construction has begun at a metalliferous mining site but in respect to which extraction has not begun, $100,000 as a one-time payment. Those payments shall be made on or before the date 30 days after the beginning of construction.
70.395(2)(dc)1.1. Each person intending to submit an application for a mining permit shall pay $50,000 to the department of revenue for deposit in the investment and local impact fund at the time that the person notifies the department of natural resources under s. 293.31 (1) of that intent.
70.395(2)(dc)2. 2. A person making a payment under subd. 1. shall pay an additional $50,000 upon notification by the board that the board has distributed 50% of the payment under subd. 1.
70.395(2)(dc)3. 3. A person making a payment under subd. 2. shall pay an additional $50,000 upon notification by the board that the board has distributed all of the payment under subd. 1. and 50% of the payment under subd. 2.
70.395(2)(dc)4. 4. Six months after the signing of a local agreement under s. 293.41 for the proposed mine for which the payment is made, the board shall refund any funds paid under this paragraph but not distributed under par. (fm) from the investment and local impact fund to the person making the payment under this paragraph.
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