SB362: Bill Text

The rate of taxation under current law, for taxable years beginning before January 1, 1998, for the lowest income tax bracket for single individuals, certain fiduciaries, heads of households and married persons is 4.9% of taxable income, the rate for the middle bracket is 6.55% and the rate for the highest bracket is 6.93%.

For taxable years beginning after December 31, 1997, current law lowers the rate of taxation for all brackets by 1.0%. Therefore, for taxable years beginning after December 31, 1997, the rate of taxation under current law for the lowest bracket for single individuals, certain fiduciaries, heads of households and married persons is 4.85% of taxable income, the rate for the middle bracket is 6.48% and the rate for the highest bracket is 6.87%.

For taxable years beginning after December 31, 1998, current law also indexes for inflation the maximum dollar amount in each tax bracket and the corresponding minimum dollar amount in the next bracket, and the dollar amounts of the standard deduction that may be claimed by individual income tax payers.

Current law also prohibits the department of revenue (DOR) from adjusting the withholding tables to reflect the changes in rates of taxation for any taxable year that begins before January 1, 2000. This bill prohibits DOR from adjusting the withholding tables to reflect the changes in dollar amounts because of tax bracket and standard deduction indexing for any taxable year that begins before January 1, 2000.

This bill also makes a technical change in the calculation of the income tax liability of nonresident and part-year resident individuals. Under current law, one of the 2 formulas used to calculate the tax liability of nonresident and part-year resident individuals applies to taxable years beginning after December 31, 1996, and ending before January 1, 1998. The other formula use to calculate their tax liability applies to taxable years beginning after December 31, 1997. This bill changes the applicability of the first formula such that it applies to taxable years beginning after December 31, 1996, and before January 1, 1998.

This bill creates 4.5 FTE positions for DOR for the administration of the rental vehicle fee.

Under the international fuel tax agreement (IFTA), to which this state is a party, every person who drives a larger motor truck into this state using motor fuel purchased outside this state pays the Wisconsin motor vehicle fuel tax and the oil inspection fee by purchasing in this state motor vehicle fuel in an amount that is equivalent to the gallonage consumed while driving the truck in this state, or by remitting the tax and fee directly to the department of transportation (DOT) or to another jurisdiction that is a party to IFTA. 1997 Wisconsin Act 27, the biennial state budget act, increased the motor vehicle fuel tax rate.

This bill requires DOT to recalculate the amount of motor vehicle fuel tax payable under IFTA for the 4th quarter of 1997 to reflect the midquarter increase to this state's motor vehicle fuel tax rate.

Under current law, sales of food, beverages and similar goods under a contract or an agreement by an institution of higher education to a student are exempt from the sales tax and the use tax if the goods are consumed by the student. This bill expands the exemption to include sales for which the payments are made by students through use of an account of that institution.

Other

This bill clarifies that the salary-setting authority of the University of Wisconsin board of regents is subject to general salary-setting provisions affecting all boards, commissions and elective and appointive state officials. The bill does not affect the authority of the University of Wisconsin board of regents to adjust salaries for incumbents of certain positions in an amount different from that provided in the compensation plan if the adjustment is for the purpose of correcting a salary inequity or recognizing competitive factors.

1997 Wisconsin Act 27 created a reserve "Class B" license, which authorizes the sale of intoxicating liquor to be consumed on the premises where sold, and established a quota on the number of these licenses which a municipality may issue.

This bill corrects cross-references relating to a municipal clerk's duty to record certain information required for determining the municipality's quota of reserve "Class B" licenses.

The bill also clarifies that a fee that is payable only upon the initial issuance of a "Class B" license is not an "annual" fee.

The budget bill, 1997 Wisconsin Act 27, abolishes the state emergency response board effective July 1, 1998, and gives that board's former responsibilities to the division of emergency management in the department of military affairs. Under current law, the state emergency response board is required to notify the joint committee on finance before entering into any agreements with regional emergency response teams related to emergency responses to level A releases, those releases that require the highest level of protection for the responders. This bill transfers that requirement to the division of emergency management in the department of military affairs.

Under current law, the department of corrections (DOC) assesses supervision fees to persons who are on probation. If a person on probation fails to pay supervision fees assessed by DOC, the court that placed the person on probation may, after a hearing, extend a probationer's period of probation, modify the terms and conditions of probation or revoke the person's probation. In addition, if the court does not extend the period of probation, a court's finding that the person owes supervision fees can be entered as a civil judgment against the person, which DOC can use to collect the unpaid fees. Finally, DOC may seek revocation of a person's probation using the administrative revocation process if the person fails to pay supervision fees.

This bill eliminates the courts' authority to revoke a person's probation for failing to pay supervision fees. The bill does not affect the authority of DOC to seek revocation of probation using the administrative revocation process.

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:

SB362, s. 1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table - See PDF for table

SB362, s. 2 Section 2. 20.566 (1) (qm) of the statutes is created to read:

SB362,9,4 20.566 (1) (qm) Administration of rental vehicle fee. From the transportation fund, the amounts in the schedule for the administration of the rental vehicle fee under subch. XI of ch. 77.

SB362, s. 3 Section 3. 20.865 (4) (u) of the statutes is amended to read:

SB362,9,15 20.865 (4) (u) Segregated funds general program supplementation. From the appropriate segregated funds, a sum sufficient to supplement appropriations made from such funds, as provided in s. 13.101, or made under 1997 Wisconsin Act .... (this act), section 9143 (1). The governor may under this paragraph allot sums not in excess of $1,000 to any state agency when necessary, without a meeting of the joint committee on finance. All supplements made under this paragraph to an appropriation by the governor shall be certified by him or her to the department of administration, and expenditures therefrom shall be shown in the state budget report as an additional cost of the state agency for which such supplements were made.

SB362, s. 4 Section 4. 20.865 (4) (u) of the statutes, as affected by 1997 Wisconsin Act .... (this act), is amended to read:

SB362,9,19 20.865 (4) (u) Segregated funds general program supplementation. From the appropriate segregated funds, a sum sufficient to supplement appropriations made from such funds, as provided in s. 13.101, or made under 1997 Wisconsin Act .... (this act), section 9143 (1). The governor may under this paragraph allot sums not in excess of $1,000 to any state agency when necessary, without a meeting of the joint committee on finance. All supplements made under this paragraph to an appropriation by the governor shall be certified by him or her to the department of administration, and expenditures therefrom shall be shown in the state budget report as an additional cost of the state agency for which such supplements were made.

SB362, s. 5 Section 5. 20.923 (1) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

SB362,10,24 20.923 (1) Establishment of executive salary groups. To this end, a compensation plan consisting of 10 executive salary groups is established in schedule one of the state compensation plan for the classified service from ranges 18 through 27. No salary range established above salary range 23 may be utilized in the establishment and compensation of positions in the classified service without specific approval of the joint committee on employment relations. The dollar value of the salary range minimum and maximum for each executive salary group shall be reviewed and established in the same manner as that provided for positions in the classified service under s. 230.12 (3). The salary-setting authority of individual boards, commissions, elective and appointive officials elsewhere provided by law is subject to and limited by this section, and the salary rate for these positions upon appointment and subsequent thereto shall be set by the appointing authority pursuant to this section, except as provided in s. 36.09 (1) (j) and as otherwise required by article IV, section 26, of the constitution.

SB362, s. 6 Section 6. 25.40 (2) (b) 20s. of the statutes is created to read:

SB362,11,1 25.40 (2) (b) 20s. Section 20.566 (1) (qm).

SB362, s. 7 Section 7. 44.72 (4) (b) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

SB362,11,13 44.72 (4) (b) Subsidized loan applications, terms and conditions. The board shall establish application procedures for, and the terms and conditions of, subsidized loans under this subsection. The terms may include provision of professional building construction services under s. 16.85 (15). The board shall determine the interest rate on these loans. The interest rate shall be as low as possible but shall be sufficient to fully pay all interest expenses incurred by the state and to provide reserves that are reasonably expected to be required in the judgment of the board to ensure against losses arising from delinquency and default in the repayment of subsidized loans. The term of a subsidized loan under this subsection may not exceed 10 years.

SB362, s. 8 Section 8. 44.72 (4) (d) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

SB362,11,20 44.72 (4) (d) Funding for subsidized loans. The board, with the approval of the governor and subject to the limits of s. 20.866 (2) (zc) and (zcm), may request that the building commission contract public debt in accordance with ch. 18 to fund loans under this subsection. The term of public debt contracted under s. 20.866 (2) (zc) and (zcm) may not exceed 10 years.

SB362, s. 9 Section 9. 46.81 (2) of the statutes is amended to read:

SB362,12,2 46.81 (2) From the appropriation under s. 20.435 (7) (dj), the department shall allocate $1,224,000 $2,298,400 in each fiscal year to aging units to provide benefit specialist services for older individuals. The department shall ensure that each aging unit receives funds and shall take into account the proportion of the state's population of low-income older individuals who reside in a county.

SB362, s. 10 Section 10. 46.81 (5) of the statutes is amended to read:

SB362,12,7 46.81 (5) From the appropriation under s. 20.435 (7) (dj) the department shall allocate $132,500 $182,500 in each fiscal year to area agencies on aging. Each area agency on aging shall use the funds for training, supervision and legal back-up services for benefit specialists within its area.

SB362, s. 11 Section 11. 48.561 (3) (a) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

SB362,12,12 48.561 (3) (a) A county having a population of 500,000 or more shall contribute $31,280,700 $30,489,200 in state fiscal year 1997 -- 98 for the provision of child welfare services in that county by the department.

SB362, s. 12 Section 12. 48.561 (3) (a) of the statutes, as affected by 1997 Wisconsin Act 27, section 1600d, and 1997 Wisconsin Act .... (this act), is repealed and recreated to read:

SB362,12,17 48.561 (3) (a) A county having a population of 500,000 or more shall contribute $60,978,400 in each state fiscal year for the provision of child welfare services in that county by the department.

SB362, s. 13 Section 13. 48.57 (3p) (d) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

SB362,13,6 48.57 (3p) (d) If the person being investigated under par. (b) or (c) is a nonresident, or at any time within the 5 years preceding the date of the application has been a nonresident, or if the county department or, in a county having a population of 500,000 or more, the department of health and family services determines that the person's employment, licensing or state court records provide a reasonable basis for further investigation, the county department or department of health and family services shall require the person to be photographed and fingerprinted on 2 fingerprint cards, each bearing a complete set of the person's fingerprints. The department of justice may provide for the submission of the fingerprint cards to the federal bureau of investigation for the purposes of verifying the identity of the person fingerprinted and obtaining records of his or her criminal arrest and conviction.

SB362, s. 14 Section 14. 49.141 (1) (p) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

SB362,13,13 49.141 (1) (p) "Wisconsin works" means the assistance program for families with dependent children, administered under ss. 49.141 to 49.161, except that "Wisconsin works" does not include the Wisconsin works health plan under s. 49.153, unless a waiver under s. 49.153 (1m) is granted and in effect or federal legislation that permits the application of s. 49.153 is enacted.

SB362, s. 15 Section 15. 49.141 (7) (c) (intro.) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

SB362,13,19 49.141 (7) (c) Except as provided in par. (d), in addition to the penalties applicable under par. (a) or (b), a person shall be suspended from participating in Wisconsin works, except s. 49.153, for a period of 10 years, beginning on the date of conviction, if the person is convicted in a federal or state court for any of the following:

SB362, s. 16 Section 16. 49.155 (1m) (a) 1m. of the statutes, as created by 1997 Wisconsin Act 27, is repealed and recreated to read:

SB362,14,2 49.155 (1m) (a) 1m. Obtain a high school diploma or participate in a course of study meeting the standards established by the state superintendent of public instruction for the granting of a declaration of equivalency of high school graduation, if the individual is not subject to the school attendance requirement under s. 49.26 (1) (ge) and at least one of the following conditions is met:

SB362,14,3 a. The individual is 18 or 19 years of age.

SB362,14,7 b. The individual has not yet attained the age of 18 years and the individual resides with his or her custodial parent or with a kinship care relative under s. 48.57 (3m) or is in a foster home or treatment foster home licensed under s. 48.62, a group home or an independent living arrangement supervised by an adult.

SB362, s. 17 Section 17. 59.53 (5) of the statutes, as affected by 1997 Wisconsin Act 3 and 1997 Wisconsin Act 27, section 2165, is amended to read:

SB362,14,25 59.53 (5) Child and spousal support; paternity program; medical support liability program. The board shall contract with the department of workforce development to implement and administer the child and spousal support and establishment of paternity and the medical support liability programs provided for by Title IV of the federal social security act. The board may designate by board resolution any office, officer, board, department or agency, except the clerk of circuit court, as the county child support agency. The board or county child support agency shall implement and administer the programs in accordance with the contract with the department of workforce development. The attorneys responsible for support enforcement under sub. (6) (a), family court commissioner and all other county officials shall cooperate with the county and the department of workforce development as necessary to provide the services required under the programs. The county shall charge the fee established by the department of workforce development under s. 49.22 for services provided under this subsection to persons not receiving benefits under s. 49.148, 49.153 or 49.155 or assistance under s. 46.261, 49.19 or 49.47.

SB362, s. 18 Section 18. 71.06 (2s) (a) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

SB362,15,15 71.06 (2s) (a) For taxable years beginning after December 31, 1996, and ending before January 1, 1998, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1) and (2) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1) and (2) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

SB362, s. 19 Section 19. 71.07 (2dx) (a) 5. of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

SB362,16,2 71.07 (2dx) (a) 5. "Member of a targeted group" means a person under sub. (2dj) (am) 1., a person who resides in an empowerment zone, or an enterprise community, that the U.S. government designates, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), a person who is eligible for the Wisconsin works health plan under s. 49.153 or a person who is eligible for child care assistance under s. 49.155; if the person has been certified in the manner under sub. (2dj) (am) 3. by a designated local agency, as defined in sub. (2dj) (am) 2.

SB362, s. 20 Section 20. 71.28 (1dx) (a) 5. of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

SB362,16,13 71.28 (1dx) (a) 5. "Member of a targeted group" means a person under sub. (1dj) (am) 1., a person who resides in an empowerment zone, or an enterprise community, that the U.S. government designates, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), a person who is eligible for the Wisconsin works health plan under s. 49.153 or a person who is eligible for child care assistance under s. 49.155; if the person has been certified in the manner under sub. (1dj) (am) 3. by a designated local agency, as defined in sub. (1dj) (am) 2.

SB362, s. 21 Section 21. 71.47 (1dx) (a) 5. of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

SB362,16,24 71.47 (1dx) (a) 5. "Member of a targeted group" means a person under sub. (1dj) (am) 1., a person who resides in an empowerment zone, or an enterprise community, that the U.S. government designates, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), a person who is eligible for the Wisconsin works health plan under s. 49.153 or a person who is eligible for child care assistance under s. 49.155; if the person has been certified in the manner under sub. (1dj) (am) 3. by a designated local agency, as defined in sub. (1dj) (am) 2.

SB362, s. 22 Section 22. 71.64 (9) (b) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

SB362,17,20 71.64 (9) (b) The department shall from time to time adjust the withholding tables to reflect any changes in income tax rates, any applicable surtax or any changes in dollar amounts in s. 71.06 (1), (1m) and (2) resulting from statutory changes, except that the department may not adjust the withholding tables to reflect the changes in rates in s. 71.06 (1m) and (2) (c) and (d) and any changes in dollar amounts with respect to bracket indexing under s. 71.06 (2e) and with respect to standard deduction indexing under s. 71.05 (22) (ds) for any taxable year that begins before January 1, 2000. The tables shall account for the working families tax credit under s. 71.07 (5m). The tables shall be extended to cover from zero to 10 withholding exemptions, shall assume that the payment of wages in each pay period will, when multiplied by the number of pay periods in a year, reasonably reflect the annual wage of the employe from the employer and shall be based on the further assumption that the annual wage will be reduced for allowable deductions from gross income. The department may determine the length of the tables and a reasonable span for each bracket. In preparing the tables the department shall adjust all withholding amounts not an exact multiple of 10 cents to the next highest figure that is a multiple of 10 cents. The department shall also provide instructions with the tables for withholding with respect to quarterly, semiannual and annual pay periods.

SB362, s. 23 Section 23. 77.53 (9m) of the statutes, as affected by 1997 Wisconsin Act 27, is repealed and recreated to read:

SB362,18,4 77.53 (9m) Any person who is not otherwise required to collect any tax imposed by this subchapter and who makes sales to persons within this state of tangible personal property or taxable services the use of which is subject to tax under this subchapter may register with the department under the terms and conditions that the department imposes and shall obtain a valid certificate under s. 73.03 (50) and thereby be authorized and required to collect, report and remit to the department the use tax imposed by this subchapter.

SB362, s. 24 Section 24. 77.54 (14) (f) of the statutes, as created by 1997 Wisconsin Act 27, is repealed and recreated to read:

SB362,18,10 77.54 (14) (f) Furnished without charge to a physician, surgeon, nurse anesthetist, advanced practice nurse, osteopath, dentist who is licensed under ch. 447, podiatrist who is licensed under ch. 448 or optometrist who is licensed under ch. 449 if the medicine may not be dispensed without a prescription.

SB362, s. 25 Section 25. 77.54 (20) (c) 5. of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

SB362,18,20 77.54 (20) (c) 5. Taxable sales shall not include meals, food, food products or beverages, furnished in accordance with any contract or agreement or paid for to such institution through the use of an account of such institution, by a public or private institution of higher education to an undergraduate student, a graduate student or a student enrolled in a professional school if the student is enrolled for credit at that institution and if the goods are consumed by that student and meals, food, food products or beverages furnished to a national football league team under a contract or agreement.

SB362, s. 26 Section 26. 78.58 (3) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

SB362,19,3 78.58 (3) Computation of tax. Each general aviation fuel licensee at the time of making the monthly or quarterly report shall compute and pay the full amount of the general aviation fuel tax for the next preceding month or quarter, which shall be computed as follows: the number of gallons of general aviation fuel placed into the fuel supply tanks of an aircraft or into bulk storage facilities by the general aviation fuel licensee, multiplied by 0.065 0.06 and the resulting figure expressed in dollars.

SB362, s. 27 Section 27. 118.51 (4) (a) (intro.) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

SB362,19,7 118.51 (4) (a) (intro.) By December 1997 February 1, 1998, each school board shall adopt a resolution specifying all of the following:

SB362, s. 28 Section 28. 118.52 (4) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

SB362,19,13 118.52 (4) Adoption of policies and criteria. By December 1997 February 1, 1998, each school board shall adopt a resolution specifying the criteria and policies described in subs. (5) and (6). If the school board wishes to revise the criteria or policies, it shall do so by resolution.

SB362, s. 29 Section 29. 125.51 (3) (e) 3. of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

SB362,19,18 125.51 (3) (e) 3. Each municipal governing body shall establish the annual fee for a "Class B" license issued under sub. (4) (v). The initial annual fee may be different from the annual fee to renew the license.

SB362, s. 30 Section 30. 125.51 (4) (br) 1. b., c. and d. of the statutes, as created by 1997 Wisconsin Act 27, are amended to read:

SB362,19,22 125.51 (4) (br) 1. b. Subtract the number recorded under par. (bm) 2. b. from the result under subd. 1. a.