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.
Current law generally requires drivers to remain at least 500 feet behind
authorized emergency vehicles, including police cars, fire trucks and ambulances,
that are responding to a call or alarm. This bill prohibits a driver from following
closer than 200 feet behind a snowplow that is engaged in the removal or treatment
of snow or ice upon a highway.
Motor vehicles
Current law specifically requires, with limited exceptions, that the owner of a
motor vehicle register the vehicle with DOT if the vehicle is subject to registration
in this state. This bill requires the lessee of a motor vehicle to register the vehicle
with DOT unless the lease period is less than one year. The bill imposes on the lessee
the same vehicle registration and financial responsibility duties that currently apply
to the vehicle owner, but does not permit the vehicle to be impounded under the
financial responsibility laws of this state.
Current law imposes upon the owner of a motor vehicle liability for certain
traffic and parking violations, including fleeing a traffic officer, illegally passing a
school bus or crossing a controlled school crossing, and parking in areas reserved for
vehicles used by physically disabled persons. This bill imposes liability on the lessee
of a vehicle if the vehicle is registered, or is required to be registered, by the lessee.
The bill also provides that certain provisions relating to vehicle removal, seizure,
impoundment, immobilization, towing or storage, or to the seizure of vehicle parts,
also apply to the lessee.
Under current law, DOT issues and delivers a certificate of title to the owner
of a motor vehicle upon receipt of an application and the fee required for titling the
vehicle. However, if a secured party holds legal title to a vehicle, the debtor is
considered the owner of the vehicle and the certificate of title is issued and delivered
to the debtor if the debtor has the immediate right of possession of the vehicle.
This bill requires DOT, if there is a perfected security interest in a motor
vehicle, to deliver the certificate of title to the secured party having the primary
perfected security interest in the vehicle. DOT may deliver a certificate of title by
electronic transmission. The bill also permits an application for a certificate of title
and related forms to be in an automated format.
Under current law, with specific exceptions, a person suffering damage caused
by the negligent operation of a motor vehicle that is owned and operated by a political
subdivision of this state may file a claim for damages and commence a lawsuit
against that political subdivision. Under this bill, a political subdivision is not liable
for damages caused by the operation of a snowplow if the damage occurred while the
snowplow was engaged in the removal or treatment of snow or ice.
Currently, most motor vehicle registrants may obtain for their vehicles special
license plates that identify the bearer as affiliated with a special group. No
additional fee is assessed to issue or reissue special plates associated with
endangered resources, but an additional fee of $15 is assessed to issue or reissue
special plates related to certain campuses of the University of Wisconsin System and
an additional fee of $10 is assessed to issue or reissue all other special plates. This
bill provides that an additional fee of $15 is assessed for the issuance or reissuance
of all special plates, including endangered resources special plates.
In addition, current law assesses fees of $5 or $10 for issuance or reissuance of
license plates that identify the registrant as an ex-prisoner of war, national guard
member, amateur radio station licensee or collector of special interest vehicles. This
bill increases to $15 the fee to issue or reissue these license plates.
Under current law, a person who is required to demonstrate proof of financial
responsibility for the future with respect to the operation of motor vehicles must
submit or have submitted a written certification of insurance to DOT. This bill
provides that, if an insurer submits more than 1,000 such certifications (or
recertifications) of insurance in any year, the insurer must pay to DOT a transaction
fee of $1.50 per certification or recertification that is not transmitted electronically
to DOT.
Current law prescribes an annual vehicle registration fee of $12 for a mobile
home that is 25 feet or less in length, and $18 for a mobile home that is more than
25 feet in length. The annual vehicle registration fee for a camping trailer that
weighs more than 3,000 pounds is the same as the fee for a mobile home of the same
length.
This bill establishes a single annual vehicle registration fee of $15 for a mobile
home that is 45 feet or less in length and for a camping trailer that weighs more than
3,000 pounds.
The bill also prohibits DOT from registering or initially titling mobile homes
that are more than 45 feet in length. The effect is that security interests given in
these mobile homes must be perfected by filing a financing statement with the
department of financial institutions, instead of DOT.
Current law prescribes a $5 annual registration fee for a semitrailer that
weighs more than 3,000 pounds, that is owned by or leased to a farmer and that is
used exclusively to transport farming supplies or produce. This bill allows such a
semitrailer to be permanently registered for $50, except that the owner of a
semitrailer currently registered under the annual registration fee may permanently
register the semitrailer for $5.
