Campaign finance filing fees
This bill imposes a biennial filing fee of $100 upon individuals, committees,
groups and corporations registered with the state elections board that are subject to
a campaign finance reporting requirement, other than candidates and personal
campaign committees and individuals who, or committees, groups or corporations
which, do not make expenditures exceeding $2,500 within a 2-year period. Any
individual who, and any committee, group or corporation which, fails to pay the filing
fee within the time prescribed is subject to a forfeiture (civil penalty) of $500 plus
triple the amount of the delinquent payment.
Under the bill, revenues from fee collections are utilized for the general
program operations of the elections board. Currently, the general program
operations of the elections board are financed with general purpose revenue and no
fees are imposed upon campaign finance registrants.
Settlement of claims and actions against the state
Currently, the attorney general may negotiate and settle actions brought
against a state department or against an officer, employe or agent of this state acting
within his or her duties. This authority also applies to actions brought against
certain other entities, including the Wisconsin state public building corporation, the
patients compensation fund peer review council, and the health care liability board
of governors. The attorney general may negotiate and settle these claims even before
an action is commenced on a claim. This bill requires the approval of DOA before the
attorney general may settle these actions or claims.
Literacy improvement grants
This bill authorizes the governor to award grants to local governments or
nonprofit organizations in support of programs to improve literacy.
Gifts for endangered resources program
Currently, under the code of ethics for state public officials (which applies to all
elective and major appointive officials), no person may offer or give to a state public
official, and no state public official may solicit or accept from any person, anything
of value if it could reasonably be expected to influence the official's vote, official
actions or judgment, or could reasonably be considered as a reward for any official
action or inaction on the part of the official.
This bill provides that this prohibition does not apply to the offer or gift to a
state public official who administers the endangered resources program in the
department of natural resources, or to the solicitation or acceptance by such an
official, of anything of value for the benefit of that program.
Taxation
Income taxation
The department of commerce currently administers the development zone
program, the development opportunity zone program and the enterprise
development zone program. These are economic development programs that provide
tax benefits to businesses that operate in areas that fulfill certain requirements.
Generally, after the department designates an area as one of the 3 types of
development zones, a business that conducts or that intends to conduct economic
activity in the designated zone may be certified by the department as eligible for
certain income and franchise tax credits. This bill discontinues the following income
tax and franchise tax credits: 1) the development zones day care credit; 2) the
development zones environmental remediation credit; 3) the development zones
investment credit; 4) the development zones jobs credit; 5) the development zones
location credit; 6) the development zones research credit; and 7) the development
zones sales tax credit. The bill establishes a new development zones credit based
instead on the creation or retention of jobs and on expenses incurred to remediate
environmental problems.
Under current law, a person who files an incorrect income or franchise tax
return, or who fails to file a required income or franchise tax return, with intent to
defeat or evade the income or franchise tax assessment required by law, is liable for
a penalty equal to 100% of the tax on the entire underpayment.
Under this bill, a person who files a frivolous income tax return is liable for a
penalty of $500 in addition to any other penalty for which the taxpayer may be liable.
(This penalty is similar to a provision of the Internal Revenue Code that applies to
the federal income tax laws.) A frivolous tax return is defined as a return that does
not contain enough information to figure the correct tax owed by the taxpayer or that
contains information that indicates that the self-assessment is substantially
incorrect.
Under current law, for individual income tax purposes, qualified real estate
agents and direct sellers of tangible consumer products, such as door-to-door
salespersons, may be treated as independent contractors or as employes, depending
on the individual application of 20 factors identified by the Internal Revenue Service.
If such a person is treated as an employe, the employe's employer must withhold
income tax. If such a person is treated as an independent contractor, the payer is not
required to withhold income tax because there is no employer-employe relationship,
although the individual is required to file and pay quarterly estimated income tax
payments.
Under the Internal Revenue Code, qualified real estate agents and direct
sellers of tangible consumer products are treated as "statutory independent
contractors" for whom no income tax withholding is required.
This bill federalizes Wisconsin's treatment of qualified real estate agents and
direct sellers. Under the bill, these persons are treated as "statutory independent
contractors" for whom no income tax withholding is required, although they are
required to file and pay quarterly estimated income tax payments.
Under current law, an individual's scholarship income is included in the
calculation of household income for purposes of the homestead tax credit. The
homestead tax credit is a refundable individual income tax credit that is based on
property taxes or rent constituting property taxes, and income. The scholarship
income is includable in the taxable year in which it is received. Under federal law,
certain scholarship income is included in the calculation of federal AGI in the taxable
year in which the academic period ends, which is usually in a different taxable year
from the year in which the income is received. Because the calculation of Wisconsin
AGI starts with a taxpayer's federal AGI, scholarship income is double counted for
certain individuals who claim the homestead tax credit.
This bill eliminates the double counting of scholarship income for certain
individuals who claim the homestead tax credit.
This bill exempts from income taxation the interest income generated by
revenue bonds issued by a local governmental unit or units to finance a premier
resort center in the Wisconsin Dells area. (See also Local government.)
Property taxation
Under current law, lottery proceeds fund a property tax credit only for owners
of principal dwellings. That credit is determined by multiplying the school tax rate
applicable to the property by an amount that is based on the amount of lottery
proceeds that are available for distribution. This bill discontinues that credit.
Under this bill, the available lottery proceeds are allocated to municipalities in
proportion to their total property tax levies. Then the amount allocated to each
municipality is allocated to each taxable property in proportion to its assessed value.
This bill increases the amount of the school levy tax credit by $100,000,000
beginning with the 1999 payment. The credit is applied to reduce property taxes
otherwise levied against all taxable property.
Other taxation
Under current law, when a person applies to the department of regulation and
licensing (DORL) to renew a professional or occupational credential, the person must
provide his or her social security number or, if the person is an entity such as
corporation, its federal employer identification number. DORL must deny an
application if a social security number or federal employer identification number is
not provided. In addition, before renewing the credential, DORL must request DOR
to certify whether or not the person is liable for delinquent taxes. If DOR certifies
that the person is liable for delinquent taxes, DORL must deny the application for
credential renewal. A person whose application is denied has a right to a hearing
before DOR and a right to judicial review in the circuit court for Dane County.
This bill expands these provisions to cover certain licenses, credentials,
permits, approvals, registrations and certifications (licenses) that are issued by the
following departments: DORL; an examining or affiliated credentialing board in
DORL; the department of agriculture, trade and consumer protection; the
department of commerce; the department of financial institutions; the department
of health and family services; the department of natural resources; the department
of public instruction; and the department of transportation.
Under this bill, a person who applies for a license or for license renewal or
continuation must provide his or her social security number or, if applicable, the
applicant's federal employer identification number, to the applicable licensing
department or board. If a social security number or federal employer identification
number is not provided, the licensing department or board must deny the
application. The bill also requires a licensing department or board to request DOR
to certify whether an applicant for a license is liable for delinquent taxes. In addition,
each licensing department, (but not a board), must enter into a memorandum of
understanding with DOR that requires the licensing department to request that
DOR certify whether a license holder is liable for delinquent taxes. DORL is required
to make such a request on behalf of a board. If DOR certifies a liability for delinquent
taxes, the licensing department or board must deny the application for issuance,
renewal or continuation of the license or revoke the license. Such a denial or
revocation is not subject to administrative review by the licensing department or
board or to judicial review. Instead, a person whose application is denied or whose
license is revoked has a right to a hearing before DOR. After a hearing, if DOR
determines that a person is not liable for delinquent taxes, the licensing department
or board must grant the application or reinstate the license, unless there are other
grounds for the denial or revocation. If DOR affirms its certification of liability after
a hearing, the licensing department or board must affirm its denial or revocation.
Such an affirmation is subject to judicial review in the circuit court for Dane County.
The bill also allows DOR to deny an application for a property assessor
certification or recertification or to revoke a property assessor certificate if the
applicant or certificate holder is liable for delinquent taxes. A person whose
application is denied or whose certificate is revoked has a right to a hearing and to
judicial review as described above.
Finally, if the supreme court agrees, the bill's requirements and procedures also
apply to licenses to practice law.
This bill increases the rate of the cigarette tax by 5 cents per pack.
Under current law, telecommunications services that originate in this state and
are billed to a service address in this state are subject to the sales tax and use tax.
This bill imposes the sales tax and use tax also on telecommunications services that
terminate in this state and are billed to a service address in this state.
Under current law, mechanical telephone answering services are subject to the
sales tax and use tax. This bill imposes the sales tax and use tax on all other
telephone answering services and on voice messaging services.
Under current law, cellular mobile radio telecommunications utilities are
subject to a transitional adjustment fee. This bill imposes that fee on providers of
commercial mobile service, a broader range of utilities.
This bill imposes the sales tax on coin-operated laundry services.
Under current law, the sales tax and use tax are imposed on the sale of tangible
personal property to contractors and subcontractors for use in real property
construction activities. For those taxes, this bill limits real property construction
activities to those that are conducted at a site where tangible personal property is
affixed to real property and that fulfill certain other requirements.
Under this bill, the base for the sales tax and use tax on certain manufactured
buildings does not include, at a retailer's option, either 35% of the sales price or an
amount equal to the sales price minus the cost of materials. Currently, there is no
such deduction.
Current law requires DOR to negotiate and, if possible, enter into reciprocal
agreements with other states authorizing the shipment of wine directly to
individuals in this state. No out-of-state source of alcohol beverages may ship
alcohol beverages directly to an individual in this state except under such an
agreement. This bill authorizes DOR to negotiate a withdrawal from such
agreements and prohibits DOR from entering into new agreements.
This bill authorizes DOR to require electronic funds transfer of amounts
withheld for individual income tax purposes if an employer is required to submit
those amounts monthly or more frequently, of sales taxes if a retailer is required to
pay those taxes on the 20th day of the month after they are collected, of cigarette
taxes if the tax is $20,000 or more for the reporting period and of estimated payments
of the corporate franchise tax if the instalment is $20,000 or more. The bill also
allows DOR to prescribe other methods of paying taxes, filing forms and
authenticating documents for other taxpayers.
Transportation
Highways
This bill increases the authorized level of revenue bonding for major highway
projects and transportation administrative facilities from $1,123,638,100 to
$1,263,424,800, of which not more than $1,220,499,900 may be used to fund such
projects and facilities.
Current law requires that any major highway project, unlike other construction
projects undertaken by the department of transportation (DOT), receive the
approval of the transportation projects commission (TPC) and the legislature before
the project may be constructed. A major highway project is a project having a total
cost of more than $5,000,000 and involving construction of a new highway 2.5 miles
or more in length; reconstruction or reconditioning of an existing highway that
relocates at least 2.5 miles of the highway or adds one or more lanes 5 miles or more
in length to the highway; or improvement of an existing multilane divided highway
to freeway standards.
This bill adds 6 major highway projects recommended by TPC to the list of 69
projects already approved for construction.
Drivers
Under current law, most drivers' licenses and identification cards (ID cards)
issued by DOT must be renewed every 4 years. This bill increases the renewal period
of a driver's license or ID card from 4 to 6 years. The bill increases related fees as
follows:
1. For initial issuance of a regular driver's license, from $15 to $18; for renewal,
from $10 to $18.
2. For initial issuance or renewal of a license to operate commercial motor
vehicles (primarily large trucks and buses), from $32 to $48.
3. For initial issuance of a license to operate most motorcycles, from $4 to $9;
for renewal, from $4 to $6.
4. For initial issuance or renewal of an ID card, from $4 to $9.
The bill also increases the biennial registration fee for motorcycles and mopeds
that weigh less than 1,500 pounds from $20 to $23.
Under current law, a person under the age of 19 is prohibited from driving or
operating a motor vehicle if the person has any alcohol in his or her blood. This bill
changes that age to the legal drinking age, which is currently 21.
Under current law, applicants for a driver's license are required to take a road
test. This bill permits DOT, by rule, to waive the road test of an applicant for a
regular driver's license who is under 18 years of age if the applicant has completed
an enhanced driver education course, approved by DOT, if the applicant has satisfied
the driving skills requirements of the course, and if the applicant has also completed
a specified number of hours of additional driving time while accompanied by a
qualified instructor or a licensed person at least 25 years of age with not less than
2 years of licensed experience. The applicant's parent, stepparent or other adult
sponsor must certify that the applicant has satisfactorily completed this additional
driving time.
Under current law, DOT may contract with 3rd-party testers to conduct road
tests for commercial motor vehicle drivers, abbreviated road tests for school bus
drivers and special examinations for school bus drivers. This bill permits DOT to
contract with 3rd-party testers to conduct road tests for noncommercial motor
vehicle drivers, except road tests for authorization to operate certain motorcycles.
Currently, if a court imposes a fine or forfeiture (civil monetary penalty) on a
person convicted of an offense related to driving while under the influence of an
intoxicant, the court must impose a driver improvement surcharge of $300.
Approximately 70% of the revenue from that surcharge is kept by the county where
the conviction occurred and the remainder is forwarded to the state treasurer. Part
of that state money is used for state driver improvement programs and part is
distributed by the department of health and family services to counties for driver
treatment programs.
This bill increases the driver improvement surcharge by $15 and appropriates
a portion of the surcharge to DOT for the purchase and maintenance of breath
screening instruments.
This bill increases the annual fee for a driver school instructor's license from
$5 to $25 and increases the fee for a driver school license (paid by the operator of the
school) from $25 to $75 and to $95 after August 31, 1998.
Under current law, a nonresident who wishes to reinstate his or her Wisconsin
operating privilege after a period of revocation must file proof of financial
responsibility with DOT (proof of the nonresident's ability to respond in damages for
liability arising from his or her use of a motor vehicle). This bill eliminates this
requirement.
