Ethics and lobbying law counsel
This bill permits the governor, upon request of the ethics board, to employ special counsel for the purpose of assisting the board in investigating or prosecuting an alleged violation of the lobbying regulation law or the code of ethics for state public officials and employes. The special counsel is paid from a sum sufficient appropriation for the compensation of special counsel. Currently, neither the governor nor the ethics board is authorized to employ special counsel for this purpose.
Cultural arts authorities
This bill directs the legislative reference bureau (LRB) to prepare a bill draft creating cultural arts authorities, based on instructions provided by DOA. The secretary of administration must submit the bill to the cochairpersons of JCF no later than April 1, 1999.
Sales of tobacco to minors
This bill requires the LRB to prepare legislation, based on final drafting instructions submitted by DOA no later than March 1, 1999, authorizing the development of a statewide protocol for licensing authorities and law enforcement agencies in conducting compliance surveys to determine the prevalence of illegal retail sales of tobacco products to underage persons. The bill requires the secretary of administration to submit the proposed legislation to the cochairpersons of JCF not later than April 1, 1999.
Transitional housing grants
Under current law, DOA may award grants that do not exceed $50,000 each to counties and municipalities, community action agencies and private, nonprofit organizations for the purpose of providing housing and associated support services to homeless families and individuals. This bill removes the dollar limit on the grants so that a grant of any size may be awarded.
Representation by department of justice
Currently, if requested to do so by the head of a state agency, the department of justice (DOJ) defends that agency or any state officer, employe or agent of that agency in a civil action brought against the agency or person for an act arising out of his or her official duties. In addition to receiving general program revenue, the attorney general is paid by state agencies for the legal services provided under contracts or understandings between DOJ and the other agencies.
This bill appropriates to DOJ any money that is received by DOJ as the result of a contract or understanding between DOJ and another state agency that is approved by JCF or as part of the biennial budget act. Any money collected by DOJ under a contract or understanding with a state agency that is not approved by JCF or as part of the biennial budget act is not directly appropriated to DOJ. In addition, the bill provides that a state agency may not be charged for legal services provided to that agency by DOJ if DOJ is not required by statute to provide legal services to that agency and if that agency does not have a contract or understanding with DOJ that is approved by JCF or as part of the biennial budget act.
State employe addresses and telephone numbers
Under current law, any person may inspect, copy or receive a copy of a public record unless the record is specifically exempted from access under state or federal law or authorized to be withheld from access under state law, or unless the custodian of the record demonstrates that the harm done to the public interest by providing access to the record outweighs the strong public interest in providing access.
This bill specifically authorizes the custodian of any record of a state governmental unit to withhold from access information contained in a record of the governmental unit pertaining to the home address or home telephone number of any employe of that governmental unit.
Expenditure authority of department of administration
Currently, general purpose revenue is appropriated to DOA in separate appropriations for general program operations and for the operation of the state prosecution system (compensation of district attorneys and their deputies and assistants). This bill consolidates those appropriations.
Currently, program revenue is appropriated to DOA in four separate appropriations for: 1) transportation services; 2) printing, mail distribution and record services; 3) financial services; and 4) other services, except building construction services, telecommunications and data processing services, information technology services and projects and Wisconsin land council services. The revenue is derived from moneys received from other state agencies. This bill consolidates those four appropriations.
Under the consolidations, revenue collected for one purpose may be used by DOA for a different purpose within the same appropriation account, subject to the intent of the governor, JCF and legislature, as specified in various budgetary documents.
Funding source for department of administration positions
Currently, with limited exceptions, no state agency for which full-time equivalent positions have been authorized may change the funding source of any position that was provided by the legislature, JCF or the governor at the time the position was authorized or at the time the funding source was last changed.
This bill permits DOA, during the period beginning on the day on which this bill becomes law and ending on June 30, 2001, or on the day before publication of the 2001-03 biennial budget act, whichever is later, to change the funding source of any position authorized for DOA to carry out its functions with respect to supervision and management, the land information board, risk management, facilities management, housing assistance or gaming regulation if the position is currently funded from program revenue and the funding for the position would remain funded from program revenue that is collected by DOA to carry out one of these functions. The bill provides that any such change in the funding source of a position remains in effect after the period specified in the bill unless changed in accordance with current procedures.
Arrangements between governor and state agencies
This bill permits the governor to enter into cooperative arrangements with state agencies under which the agencies provide assistance to the governor in carrying out his or her responsibilities. The bill also permits the governor to expend any moneys received from the agencies to carry out these arrangements. Currently, the governor is not expressly authorized to enter into such arrangements.
Legislative technology bureau services
This bill permits the director of the legislative technology services bureau, by lease agreement, to purchase and install computer networking equipment to serve facilities of state agencies that are located in the same building in which a legislative branch office is located or in an adjacent building, and to provide related maintenance and support services to such agencies. Currently, the bureau is authorized and directed to provide and coordinate information technology support and services to the legislative branch of state government only.
Consolidation of state vehicle fleet management functions
This bill directs DOA to submit for consideration of JCF during the fourth quarter of 1999, an implementation plan for consolidating the vehicle fleet management functions of the department of natural resources (DNR) with the corresponding functions of DOA. The bill also directs DOA to submit for consideration of JCF during the third quarter of 2000 an implementation plan for consolidating the vehicle fleet management functions of the department of transportation (DOT) and the UW-Madison with the corresponding functions of DOA. The bill permits JCF to approve or to modify and approve the plans. If JCF approves a plan, with or without modifications, DOA may implement that plan. If JCF does not approve any plan, DOA may not implement that plan.
Taxation
Income taxation
This bill makes various changes in the structure of the individual income tax system. The bill modifies the calculation of adjusted gross income (AGI), prohibits new claims from being made under certain income tax credits, creates a personal exemption, modifies the itemized deductions credit and modifies the sliding scale standard deduction and the tax rates and brackets.
Under current law, the standard income tax deduction has four different categories, each of which has a different deduction amount based on income. The maximum standard deduction amounts in each category phase out as income increases. This bill retains the same four categories and increases the maximum income at which the standard deduction reaches $0.
Under current law, the dollar amounts of the standard deduction and the dollar amounts of Wisconsin AGI are indexed for inflation for taxable years that begin after December 31, 1998. This bill suspends indexing for taxable year 2000.
Under current law, there are three income tax brackets for single individuals, certain fiduciaries, heads of households and married persons. This bill expands the number of brackets to four and lowers the rate of taxation in all four brackets in taxable year 2000. The bill also lowers the rate of taxation for taxable year 2001 and all taxable years thereafter for the first three brackets. The brackets remain the same for taxable year 2001 and are indexed for inflation in taxable years thereafter.
Under current law, the individual income tax brackets are indexed for inflation for taxable years beginning after December 31, 1998. This bill suspends indexing until taxable years beginning after December 31, 2001.
Under current law, after an individual calculates his or her gross tax liability, several tax credits may be calculated to reduce his or her gross tax liability. Some credits, like the earned income tax credit and the homestead tax credit, are refundable. Some credits, like the school property tax credit, the working families tax credit and the married persons credit, are nonrefundable. Generally, with a refundable credit, if the amount of the claim exceeds the taxpayer's tax liability, or if there is no tax due, the excess amount of the credit is paid to the claimant by a check from the state. With a nonrefundable credit, the amount of the credit is available only up to the amount of the taxpayer's tax liability.
Under this bill, for taxable years beginning after December 31, 1999, no new claims may be filed for the following nonrefundable tax credits: the school property tax credit, the working families tax credit, the dependent credit and the senior credit. In addition, the bill increases the married persons tax credit from a maximum credit of $385 to $440 in taxable year 2000 and from a maximum of $420 to $480 in taxable years beginning after December 31, 2000.
Under current law, the department of revenue (DOR) may not adjust the withholding tables to reflect the changes made to the tax rates or the changes in dollar amounts with respect to bracket indexing or with respect to standard deduction indexing for taxable years that begin before January 1, 2000. Under this bill, DOR must adjust the withholding tables to reflect the changes made to the tax rates and changes in dollar amounts with respect to bracket indexing that are made in this bill on July 1, 2000.
Under current law, for homestead tax claims filed in 1991 and thereafter, the threshold income is $8,000, the maximum property taxes that a claimant may use in calculating his or her credit are $1,450 and the maximum eligible income is $19,154. Under this bill, for claims filed in 2000 and thereafter, the maximum eligible income is raised to $20,290. The threshold income and maximum property taxes remain the same as under current law.
The bill also modifies the nonrefundable itemized deductions credit. Under current law, the itemized deductions credit is calculated as 5% of the difference between the sum of certain amounts that are allowed as itemized deductions under the Internal Revenue Code (IRC) and the standard deduction. Under this bill, miscellaneous itemized deductions that are allowed as itemized deductions under the IRC are not allowed under the itemized deductions credit.
The bill creates a personal exemption for a taxpayer, the taxpayer's spouse and the taxpayer's dependents. The personal exemption is $600 for each of these persons in taxable year 2000 and $700 for each of these persons for taxable years that begin after December 31, 2000. An additional personal exemption exists for taxpayers who are at least 65 years old. This additional exemption is $200 for taxable year 2000 and $250 for taxable years that begin after December 31, 2000. The bill also eliminates the state's treatment of social security benefits, thus taxing the benefits at the rate used by the federal government, which is a higher rate.
Under current law, when computing corporate income taxes and franchise taxes, a formula is used to attribute a portion of a corporation's income to this state. The formula has three factors: a sales factor, a property factor and a payroll factor. The sales factor represents 50% of the formula and the property and payroll factors each represent 25% of the formula. When computing income taxes and franchise taxes for an insurance company, a formula with a premiums factor and a payroll factor is used to attribute a portion of an insurance company's income to this state.
Under this bill, beginning on January 1, 2000, the sales factor will be the only factor used to attribute a portion of a corporation's income to this state and the premiums factor will be the only factor used to attribute a portion of an insurance company's income to this state.
The bill also broadens the definition of sales as it relates to the sales factor used to apportion income for tax purposes. Receipts from the lease or rental of motor vehicles, rolling stock, aircraft and vessels used in this state are included in the sales factor. The sales factor also includes the royalties for the use of intangible property, the sales of intangible property and receipts from the performance of services.
Under current law, each separate corporation doing business in this state must file a tax return with DOR reporting its net income. Even separate corporations that are part of a unitary business, which is, generally, an affiliated group of corporations that operate as a unit and which is characterized by centralized management and decision making, are not required to file a combined tax return. Instead, a corporation doing business in this state that is part of a unitary business files a separate return.
This bill requires that an affiliated group of corporations that is part of a unitary business file a combined tax return with DOR. The bill creates a presumption that all corporations that are part of an affiliated group are unitary and must file a combined return.
Under current law, an eligible claimant may recover a certain amount of property taxes paid through the refundable farmland preservation credit. One of the eligibility requirements for the farmland preservation credit is that the farmland to which the credit relates must be subject either to a farmland preservation agreement or to a county exclusive agricultural use zoning ordinance that requires the claimant to abide by certain soil and water conservation standards.
Currently, the credit is computed under a formula that is based on property taxes accrued on the claimant's farmland in the preceding calendar year, the claimant's household income and the agreement or zoning provisions that cover the farmland. This bill retains most of the current law's formula but, for taxable years beginning after December 31, 2000, the formula does not include any factor for a farmland preservation agreement or exclusive agricultural use zoning. See AGRICULTURE. For new claims that are filed for taxable years beginning after December 31, 2000, the maximum credit for which a claimant is eligible is reduced from current law levels and no new claims may be filed for a taxable year that begins after December 31, 2002.
The bill also creates a new, refundable farmland preservation acreage credit. This credit may be claimed by any person who is an eligible claimant under the farmland preservation credit. Under the acreage credit, a claimant who sells, donates or otherwise transfers the development rights to the claimant's farmland to a nonprofit entity, the state or a city, village, town or county may claim the credit. The bill defines development rights as a holder's nonpossessory interest in farmland that imposes a limitation or affirmative obligation, the purpose of which is to retain or protect natural, scenic or open space values of farmland, assuring the availability of farmland for agricultural, forest, wildlife habitat or open space use, protecting natural resources or maintaining or enhancing air or water quality.
A nonprofit entity may develop the farmland with the written consent of the owner of the property and of the department of agriculture, trade and consumer protection, but only in a way that retains or protects natural, scenic or open space values of the farmland. If a claimant sells, donates or otherwise transfers development rights to a political subdivision, the political subdivision may develop the farmland only in a way that is consistent with certain comprehensive planning requirements.
The acreage credit may only be claimed by the claimant who owns the farmland when the development rights are initially transferred. No new claims may be filed under the acreage credit for taxable years that begin after December 31, 2002.
Current law provides a tuition expenses subtraction, or deduction, from federal adjusted gross income of up to $3,000 per year per student for tuition to attend a university, college, technical college or other approved school that is located in this state or that is subject to the Minnesota-Wisconsin reciprocity agreement. The subtraction is phased out at certain income levels. Also under current law, nonresidents and part-year residents of this state may claim a prorated amount of the subtraction. This bill clarifies that the proration applicable to nonresidents and part-year residents of this state applies at all times and not just when the taxpayer is subject to the phaseout provisions and also changes current law such that the limitation of the credit to a claimant's total wages, income and net earnings from a trade or business taxable by this state applies to all taxpayers.
Under federal law, the amounts claimed under the state tuition expenses subtraction may also be claimed as a federal itemized deduction if the expenses are job-related. Under this bill, amounts claimed as a deduction under the tuition expenses subtraction may not be used in calculating the itemized deductions credit.
Under current law, an individual income tax refund that is payable on the basis of a joint return must be issued jointly to the persons who filed the return. Under this bill, if DOR is sent a copy of a formerly married couple's divorce judgment and that judgment apportions any tax refund that may be due the former couple, DOR is required to send the refund check to the person to whom the tax refund is apportioned, or one check to each of the former spouses, according to the apportionment that is specified under the terms of the judgment.
Currently, Wisconsin statutes provide that alimony and supplemental unemployment compensation that are paid while an individual is not a resident of this state may not be claimed as deductions for Wisconsin income tax purposes. The U.S. Supreme Court has ruled that a similar New York law violates the privileges and immunities clause of the U.S. Constitution. This bill modifies the statutes to conform to the U.S. Supreme Court's decision in the New York case.
Currently, the department of commerce administers three types of development zone programs. Generally, after the department designates an area as one of the three types of development zones, a person or corporation that conducts or that intends to conduct economic activity in the designated zone is or may be certified by the department as eligible for certain tax credits.
The calculation of one of these credits is based in part on a claimant's hiring members of a targeted group, as defined in the IRC, who are certified under a 90-day requirement by the department and who are also subject to certification rules under the IRC. This bill eliminates the requirement that certification must occur within a 90-day period.
Under current law, the state imposes an income or franchise tax on a foreign corporation doing business in this state. However, a foreign corporation may engage in certain business-related activities in this state without becoming subject to the state income or franchise tax.
This bill allows a foreign corporation to store its tangible personal property in this state and transfer possession of its tangible personal property to a person in this state, without becoming subject to the state income or franchise tax, if the other person uses the personal property for fabricating, processing, manufacturing or printing.
Property taxation
Under current law, DOR assesses the value of taxable property in a county or taxation district. A county or taxation district may appeal DOR's assessment of the property in the county or taxation district by filing an appeal with the tax appeals commission. If the tax appeals commission determines on appeal that DOR incorrectly assessed the taxable property in a county or taxation district, the tax appeals commission may redetermine the assessment. Under current law, the tax appeals commission is authorized to hear appeals of tax matters, at times and places designated by the commission, and tax matters that are small claims cases in which the amount in controversy is less than $2,500. The tax appeals commission may impose a $1,000 penalty on a taxpayer who pursues a frivolous appeal.
Under this bill, a county or taxation district may appeal DOR's assessment of the property of the county or taxation district by filing an appeal with DOR. DOR hears the appeal and, if DOR determines that the appealed assessment is incorrect, DOR redetermines the assessment. DOR's decision on appeal may be appealed to the tax appeals commission.
The bill authorizes the tax appeals commission to submit a case to summary proceedings (an alternative dispute resolution proceeding) if the amount in controversy is less than $100,000. The bill also increases the penalty for pursuing a frivolous appeal to $5,000 and provides that the commission may hold hearings only in the following places: Appleton, Eau Claire, LaCrosse, Madison, Milwaukee and Wausau.
Under current law, if a person does not pay the tax that is due on a parcel of real property before September 1, the county treasurer must issue a tax certificate to the county that relates to that property. The issuance of a tax certificate begins the redemption period during which the taxpayer may retain his or her property by paying the delinquent taxes. If the property is not redeemed during the redemption period, which is usually two years, the county may acquire the property by taking a tax deed or by other methods.
Under this bill, if a county does not, within two years after the expiration of the redemption period, take a tax deed for property that is subject to a tax certificate and that is contaminated by a hazardous substance, the county must, upon receiving a written request from the city, village or town within whose jurisdiction the property is located, acquire the property by taking a tax deed. The county may then either retain ownership of the property or transfer ownership of the property, without consideration, to the municipality.
Under current law, a taxation district transfers its tax roll to the county or counties in which the taxation district is located. The county accepts all delinquent property taxes from the taxation district and credits the taxation district for delinquent taxes in the next tax levy. The county attempts to collect the delinquent property taxes by issuing a tax certificate. After the county issues a tax certificate, an owner of real property has two years to redeem the certificate by paying the delinquent taxes. If the taxes remain unpaid after two years, the county may record a tax deed on the property. However, a county may cancel the delinquent taxes if the property is contaminated by a hazardous substance and the property owner agrees to clean up, maintain and monitor the property. The taxation district that transferred the relevant tax roll receives a credit on its tax levy from the county even though the county has canceled the tax.
This bill requires a county that cancels delinquent taxes to charge back to the appropriate taxation district any or all of the amount of the canceled taxes and to include that amount in the county's next tax levy against the taxation district.
Other taxation
Under current law, computers are exempt from the general property tax paid by businesses. Also under current law, computers owned by telephone companies, which are ad valorem taxpayers, are exempt from the ad valorem tax. An ad valorem tax is a tax imposed on property or on an article of commerce in proportion to its value.
This bill exempts from ad valorem taxation computers owned by other ad valorem taxpayers, such as railroads, airlines, pipeline companies, conservation and regulation companies and municipal electric association projects.
The bill also creates a personal property tax exemption for fax machines, copiers, cash registers and automated teller machines.
Under current law, the sale of time-share property is subject to the real estate transfer fee. This bill exempts from real estate transfer fees conveyances of those time-share properties that give the owner the right to use or occupy the real property during at least four separate periods over at least four years. Under current law, some, but not all, conveyances that are exempt from the real estate transfer fee are also exempt from the requirement of filing a real estate transfer return. This bill exempts from the requirement of filing a real estate transfer return these conveyances of time-share property.
The furnishing of rooms or lodging through the sale of time-share properties that are exempted from the real estate transfer fee by this bill is currently subject to the sales tax only if the use of the rooms or lodging is not fixed at the time of sale as to the starting date or the lodging unit and is for less than one month. This bill subjects to the sales tax all sales of time-share properties that are for less than one month, whether or not they are exempted from the real estate transfer fee by this bill, and whether or not the use of the rooms or lodging is fixed at the time of the sale.
The bill also subjects to the sales tax those charges associated with time-share property that at the time of the charges would be subject to the sales tax.
Under current law, a county may adopt an ordinance to impose sales and use taxes upon county retailers. DOR collects the sales and use taxes imposed by counties. The state retains 1.5% of the sales and use taxes collected to cover the costs incurred by the state to administer, enforce and collect the taxes. DOR distributes the remaining taxes collected to the respective counties. This bill increases from 1.5% to 1.75% the amount of taxes collected that are retained by the state.
This bill changes the tobacco products tax from an occupational tax to an excise tax. The change allows the state to tax certain sales of tobacco products sold on reservations by American Indians to persons who are not American Indians.
This bill permits DOR to enter into agreements with American Indian tribes to provide for the refunding of the tobacco products tax imposed on tobacco products sold on reservations to enrolled members of the tribe residing on the tribal reservation. In addition, DOR is required to refund 50% of the taxes collected with respect to sales on reservations or trust lands of an American Indian tribe to the tribal council of the tribe having jurisdiction over the reservation or trust land on which the sale is made. These two provisions parallel existing authority of DOR in regard to cigarette taxes.
The bill also reduces from 70% to 50% the percentage of cigarette tax revenue collected in sales on reservations or trust lands that must be refunded to American Indian tribes.
Under current law, any taxpayer may petition DOR to compromise delinquent income or franchise taxes, including any applicable costs, penalties and interest. Under this bill, DOR is authorized to compromise any taxes, interest, penalties and costs that are due this state and that have not yet been recorded as delinquent.
This bill changes the rate of the gross earnings tax that is levied on a car line company and the amount that a railroad company must withhold from rental payments made to a car line company. A car line company is any person, other than a railroad, engaged in the business of leasing or furnishing car line equipment to a railroad and car line equipment is any railroad car or other equipment used in railroad transportation under a rental agreement.
Under current law, delinquent sales and use tax returns are subject to a $10 late filing fee unless the return was not timely filed because of the death of the person required to file or because of reasonable cause, but not because of neglect. This bill changes the late filing fee to $30 for returns that are filed for periods beginning after September 30, 1999.
This bill removes the requirement that the recertification application for assessors and assessment personnel be notarized and that it be submitted at least 60 days before the expiration date of the current certificate. Under the bill, DOR may, for good cause, accept an application for renewal up to one year after the expiration of the current certificate if the applicant has complied with the current continuing education and other recertification requirements.
transportation
Highways
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 five miles or more in length to the highway; or improvement of an existing multilane divided highway to freeway standards. There are currently 75 enumerated major highway projects approved for construction. This bill adds one major highway project to the list of 75 enumerated projects already approved for construction.
Under current law, the building commission may issue revenue bonds in a principal amount of $1,348,058,900, of which $1,255,499,900 may be used for major highway projects and other transportation facilities and $92,559,000 may be used for fees and other expenses related to the revenue obligations.
This bill increases the level of revenue bonding for major highway projects and transportation administrative facilities by 14.3% to $1,435,165,900. The bill also authorizes the building commission to contract revenue obligations in any amount to pay fees and other expenses related to the revenue obligations.
This bill authorizes DOT to designate highways that have outstanding intrinsic value as scenic byways. The bill allows DOT to apply for federal designation of a scenic byway as a national scenic byway. Federal designation would make the scenic byway eligible for federal aid for scenic byways.
Under current law, outdoor advertising signs that are located along interstates and certain other highways and that advertise activities conducted on the property on which the signs are located (on-property signs) are subject to restrictions as to size, number and location. This bill prohibits the erection of on-property signs at locations that constitute traffic hazards and eliminates specific restrictions that apply solely to on-property signs located outside the incorporated area of a city or village. The bill specifies that on-property signs do not require permits issued by DOT.
Drivers and motor vehicles
