taxation
The bill creates a property tax exemption for the property of a local cultural arts
district. The property tax exemption, however, does not apply to the property of a
local cultural arts district that is not a part of the physical structure of a cultural arts
facility, if that property is used for a retail business or a restaurant, unless the retail
business or restaurant is operated by the local cultural arts district or by a nonprofit
corporation, organization or association. The exemption also does not apply to
parking lots or parking structures that are not used to support the operation of a local
cultural arts district.
Under the bill, the income of a local cultural arts district is exempt from the
income tax and the franchise tax, and the income and interest from the district's
obligations are exempt from the income tax. In addition, the income and interest
from bonds that are issued by WHEFA with respect to a local cultural arts district
are exempt from the income tax.
Under the bill, goods and services purchased by a local cultural arts district are
exempt from the sales tax and the use tax.
Finance
The bill permits the legislative audit bureau to audit the records of a district.
Under the bill, the joint legislative audit committee may review a district's
performance.
ethics
Members of a district board are subject to the statutory code of ethics for local
public officials. Like other local public officials, district board members are not
subject to periodic reporting requirements.
applicability of other laws
Numerous laws that currently apply to special purpose districts and local units
of government apply to a local cultural arts district, including, among others:
1. The district is subject to laws requiring, with certain exceptions, public
notice of and access to meetings of the district board and public access to the district's
records.
2. The district is subject to worker's compensation, unemployment insurance,
state minimum wage and hour and family and medical leave laws.
3. The district is subject to the law requiring the payment of prevailing wages
on local government public works projects.
4. The district is governed by laws regulating municipal administrative
procedures and rights.
5. The district is subject to laws restricting employers from testing employes
and prospective employes for human immunodeficiency virus (HIV) or an antibody
to HIV.
6. The district is subject to the tort and antitrust liability limitation that
currently applies to actions brought against local governmental units of $50,000 per
occurrence, and persons attempting to sue the district are subject to a requirement
to file notice of their claims within 120 days of their occurrence.
7. The district is subject to laws regulating buildings and safety.
8. The property of the district is subject to special assessment levies.
Under the bill, the district may participate in the local government property
insurance fund.
The bill provides that the district is not subject to:
1. Laws regulating generally the ways in which funds of local governments may
be invested.
2. The state public employe retirement plan and state-administered plans for
deferred compensation, health care benefits and disability and survivor benefits.
The bill provides also that the district may:
1. Contract with municipalities and federally recognized Indian tribes and
bands in this state for the receipt or furnishing of services or the joint exercise of
powers or duties.
2. Participate in the state-operated local government pooled-investment fund.
Under the bill, the assets and liabilities of a district are not assets or liabilities
of the sponsoring city.
employment
Under the bill, any ordinance of a sponsoring city that regulates employment
relations or practices of all private employers generally applies to employes of the
district, unless the sponsoring city's common council excludes the application of such
an ordinance to the district's employes.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
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:
SB442,7,13
113.94
(4) (a) 1. Every state department, board, examining board, affiliated
2credentialing board, commission, independent agency, council or office in the
3executive branch of state government; all bodies created by the legislature in the
4legislative or judicial branch of state government; any public body corporate and
5politic created by the legislature including specifically a professional baseball park
6district
, a local cultural arts district and a family care district under s. 46.2895; every
7Wisconsin works agency under subch. III of ch. 49; every provider of medical
8assistance under subch. IV of ch. 49; technical college district boards; development
9zones designated under s. 560.71; every county department under s. 51.42 or 51.437;
10every nonprofit corporation or cooperative to which moneys are specifically
11appropriated by state law; and every corporation, institution, association or other
12organization which receives more than 50% of its annual budget from appropriations
13made by state law, including subgrantee or subcontractor recipients of such funds.
SB442, s. 2
14Section
2. 16.70 (14) of the statutes is amended to read:
SB442,7,1615
16.70
(14) "State" does not include a district created under subch. II
or, III
or
16V of ch. 229.
SB442, s. 3
17Section
3. 19.42 (13) (a) of the statutes is amended to read:
SB442,7,2318
19.42
(13) (a) All positions to which individuals are regularly appointed by the
19governor, except the position of trustee of any private higher educational institution
20receiving state appropriations and the position of member of the district board of a
21local professional baseball park district created under subch. III of ch. 229
and the
22position of member of the district board of a local cultural arts district created under
23subch. V of ch. 229.
SB442, s. 4
24Section
4. 24.61 (2) (a) 8. of the statutes is created to read:
SB442,8,2
124.61
(2) (a) 8. Bonds issued under ch. 231 with respect to a local cultural arts
2district created under subch. V of ch. 229.
SB442, s. 5
3Section
5. 24.61 (2) (a) 9. of the statutes is created to read:
SB442,8,54
24.61
(2) (a) 9. Bonds issued by a local cultural arts district under subch. V of
5ch. 229.
SB442, s. 6
6Section
6. 25.17 (3) (b) 11. of the statutes is created to read:
SB442,8,87
25.17
(3) (b) 11. Bonds issued under ch. 231 with respect to a local cultural arts
8district created under subch. V of ch. 229.
SB442, s. 7
9Section
7. 25.17 (3) (b) 12. of the statutes is created to read:
SB442,8,1110
25.17
(3) (b) 12. Bonds issued by a local cultural arts district under subch. V
11of ch. 229.
SB442,8,2214
25.50
(1) (d) "Local government" means any county, town, village, city, power
15district, sewerage district, drainage district, town sanitary district, public inland
16lake protection and rehabilitation district, local professional baseball park district
17created under subch. III of ch. 229, family care district under s. 46.2895,
local
18cultural arts district created under subch. V of ch. 229, public library system, school
19district or technical college district in this state, any commission, committee, board
20or officer of any governmental subdivision of this state, any court of this state, other
21than the court of appeals or the supreme court, or any authority created under s.
22231.02, 233.02 or 234.02.
SB442, s. 9
23Section
9. 32.02 (11) of the statutes is amended to read:
SB442,9,324
32.02
(11) Any housing authority created under ss. 66.40 to 66.404
,; 25redevelopment authority created under s. 66.431
,; community development
1authority created under s. 66.4325
; local cultural arts district created under subch.
2V of ch. 229, subject to s. 229.844 (4) (c); or local exposition district created under
3subch. II of ch. 229.
SB442, s. 10
4Section
10. 32.05 (intro.) of the statutes is amended to read:
SB442,9,24
532.05 Condemnation for sewers and transportation facilities. (intro.)
6In this section, "mass transit facility" includes, without limitation because of
7enumeration, exclusive or preferential bus lanes if those lanes are limited to
8abandoned railroad rights-of-way or existing expressways constructed before
9May 17, 1978, highway control devices, bus passenger loading areas and terminal
10facilities, including shelters, and fringe and corridor parking facilities to serve bus
11and other public mass transportation passengers, together with the acquisition,
12construction, reconstruction and maintenance of lands and facilities for the
13development, improvement and use of public mass transportation systems for the
14transportation of passengers. This section does not apply to town highways created
15or altered under ch. 80 except as to jury trials on appeals under ss. 80.24 and 80.25,
16nor to proceedings in 1st class cities under subch. II. In any city, condemnation for
17housing under ss. 66.40 to 66.404,
or for urban renewal under s. 66.431,
or for
18cultural arts facilities under subch. V of ch. 229, may proceed under this section or
19under s. 32.06 at the option of the condemning authority. Condemnation by a local
20exposition district under subch. II of ch. 229 for any exposition center or exposition
21center facility may proceed under this section or under s. 32.06 at the option of the
22local exposition district. All other condemnation of property for public alleys, streets,
23highways, airports, mass transit facilities, or other transportation facilities, gas or
24leachate extraction systems to remedy environmental pollution from a solid waste
1disposal facility, storm sewers and sanitary sewers, watercourses or water
2transmission and distribution facilities shall proceed as follows:
SB442, s. 11
3Section
11. 32.05 (1) (a) of the statutes is amended to read:
SB442,10,234
32.05
(1) (a) Except as provided under par. (b), the county board of supervisors
5or the county highway committee when so authorized by the county board of
6supervisors, city council, village board, town board, sewerage commission governing
7metropolitan sewerage district created by ss. 66.22 or 66.88 to 66.918, secretary of
8transportation, a commission created by contract under s. 66.30, a joint local water
9authority created by contract under s.
66.0375 66.0735, housing authority under ss.
1066.40 to 66.404, local exposition district created under subch. II of ch. 229,
local
11cultural arts district created under subch. V of ch. 229, redevelopment authority
12under s. 66.431 or community development authority under s. 66.4325 shall make
13an order providing for the laying out, relocation and improvement of the public
14highway, street, alley, storm and sanitary sewers, watercourses, water transmission
15and distribution facilities, mass transit facilities, airport, or other transportation
16facilities, gas or leachate extraction systems to remedy environmental pollution from
17a solid waste disposal facility, housing project, redevelopment project,
cultural arts
18facilities, exposition center or exposition center facilities which shall be known as the
19relocation order. This order shall include a map or plat showing the old and new
20locations and the lands and interests required. A copy of the order shall, within 20
21days after its issue, be filed with the county clerk of the county wherein the lands are
22located or, in lieu of filing a copy of the order, a plat may be filed or recorded in
23accordance with s. 84.095.
SB442, s. 12
24Section
12. 32.07 (2) of the statutes is amended to read:
SB442,11,10
132.07
(2) The petitioner shall determine necessity if application is by the state
2or any commission, department, board or other branch of state government or by a
3city, village, town, county, school district, board, commission, public officer,
4commission created by contract under s. 66.30, joint local water authority under s.
566.0735, redevelopment authority created under s. 66.431, local exposition district
6created under subch. II of ch. 229,
local cultural arts district created under subch.
7V of ch. 229, housing authority created under ss. 66.40 to 66.404 or for the
8right-of-way of a railroad up to 100 feet in width, for a telegraph, telephone or other
9electric line, for the right-of-way for a gas pipeline, main or service or for easements
10for the construction of any elevated structure or subway for railroad purposes.
SB442,11,2213
40.02
(28) "Employer" means the state, including each state agency, any
14county, city, village, town, school district, other governmental unit or
15instrumentality of 2 or more units of government now existing or hereafter created
16within the state
and, any federated public library system established under s. 43.19
17whose territory lies within a single county with a population of 500,000 or more, a
18local exposition district created under subch. II of ch. 229 and a family care district
19created under s. 46.2895, except as provided under ss. 40.51 (7) and 40.61 (3) and
20subch. X.
"Employer" does not include a local cultural arts district created under
21subch. V of ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI
22purposes.
SB442, s. 14
23Section
14. 40.02 (28) of the statutes, as affected by
1999 Wisconsin Act 9,
24section
931c, and 1999 Wisconsin Act .... (this act), is repealed and recreated to read:
SB442,12,9
140.02
(28) "Employer" means the state, including each state agency, any
2county, city, village, town, school district, other governmental unit or
3instrumentality of 2 or more units of government now existing or hereafter created
4within the state, any federated public library system established under s. 43.19
5whose territory lies within a single county with a population of 500,000 or more, a
6local exposition district created under subch. II of ch. 229 and a family care district
7created under s. 46.2895, except as provided under ss. 40.51 (7) and 40.61 (3).
8"Employer" does not include a local cultural arts district created under subch. V of
9ch. 229. Each employer shall be a separate legal jurisdiction for OASDHI purposes.
SB442,12,2112
40.02
(36) "Governing body" means the legislature or the head of each state
13agency with respect to employes of that agency for the state, the common council in
14cities, the village board in villages, the town board in towns, the county board in
15counties, the school board in school districts, or the board, commission or other
16governing body having the final authority for any other unit of government, for any
17agency or instrumentality of 2 or more units of government, for any federated public
18library system established under s. 43.19 whose territory lies within a single county
19with a population of 500,000 or more, for a local exposition district created under
20subch. II of ch. 229 or for a family care district created under s. 46.2895
, but does not
21include a local cultural arts district created under subch. V of ch. 229.
SB442, s. 16
22Section
16. 66.04 (1) of the statutes is renumbered 66.04 (1e).
SB442, s. 17
23Section
17. 66.04 (1a) of the statutes is created to read:
SB442,13,3
166.04
(1a) Definition. In this section, "governing board" has the meaning given
2under s. 34.01 (1) but does not include a local cultural arts district board created
3under subch. V of ch. 229.
SB442, s. 18
4Section
18. 66.04 (2) (a) (intro.) of the statutes is amended to read:
SB442,13,75
66.04
(2) (a) (intro.) Any county, city, village, town, school district, drainage
6district, technical college district or other governing board
as defined by s. 34.01 (1) 7may invest any of its funds not immediately needed in any of the following:
SB442, s. 19
8Section
19. 66.04 (2) (a) 3r. of the statutes is created to read:
SB442,13,119
66.04
(2) (a) 3r. Bonds issued by the Wisconsin Health and Educational
10Facilities Authority under ch. 231, with respect to a local cultural arts district under
11subch. V of ch. 229.
SB442, s. 20
12Section
20. 66.04 (2) (a) 3t. of the statutes is created to read:
SB442,13,1413
66.04
(2) (a) 3t. Bonds issued by a local cultural arts district under subch. V of
14ch. 229.
SB442, s. 21
15Section
21. 66.066 (1) (a) of the statutes is amended to read:
SB442,13,2516
66.066
(1) (a) "Municipality" means any city, village, town, county, commission
17created by contract under s. 66.30, public inland lake protection and rehabilitation
18district established under s. 33.23, 33.235 or 33.24, metropolitan sewerage district
19created under ss. 66.20 to 66.26 or 66.88 to 66.918, town sanitary district under
20subch. IX of ch. 60, a local professional baseball park district created under subch.
21III of ch. 229
, a local cultural arts district created under subch. V of ch. 229 or a
22municipal water district or power district under ch. 198 and any other public or
23quasi-public corporation, officer, board or other public body empowered to borrow
24money and issue obligations to repay the same out of revenues. "Municipality" does
25not include the state or a local exposition district created under subch. II of ch. 229.
SB442, s. 22
1Section
22. 66.066 (5) of the statutes is renumbered 66.066 (5) (a).
SB442, s. 23
2Section
23. 66.066 (5) (c) of the statutes is created to read:
SB442,14,43
66.066
(5) (c) Revenue bonds issued by a local cultural arts district created
4under subch. V of ch. 229 are subject to the provisions in ss. 229.849 to 229.853.
SB442, s. 24
5Section
24. 66.067 of the statutes is amended to read:
SB442,14,14
666.067 Public works projects. For financing purposes, garbage
7incinerators, toll bridges, swimming pools, tennis courts, parks, playgrounds, golf
8links, bathing beaches, bathhouses, street lighting, city halls, village halls, town
9halls, courthouses, jails, schools, cooperative educational service agencies, hospitals,
10homes for the aged or indigent, child care centers, as defined in s. 231.01 (3c),
11regional projects, waste collection and disposal operations, systems of sewerage,
12local professional baseball park facilities
, local cultural arts facilities and any and
13all other necessary public works projects undertaken by any municipality are public
14utilities within the meaning of s. 66.066.
SB442,15,217
66.30
(1) (a) In this section "municipality" means the state or any department
18or agency thereof, or any city, village, town, county, school district, public library
19system, public inland lake protection and rehabilitation district, sanitary district,
20farm drainage district, metropolitan sewerage district, sewer utility district, solid
21waste management system created under s. 59.70 (2), local exposition district
22created under subch. II of ch. 229, local professional baseball park district created
23under subch. III of ch. 229,
local cultural arts district created under subch. V of ch.
24229, family care district under s. 46.2895, water utility district, mosquito control
25district, municipal electric company, county or city transit commission, commission
1created by contract under this section, taxation district or regional planning
2commission.
SB442, s. 26
3Section
26. 70.11 (40) of the statutes is created to read:
SB442,15,54
70.11
(40) Local cultural arts district. Property of a local cultural arts
5district under subch. V of ch. 229, except any of the following:
SB442,15,116
(a) Property that is not a part of the physical structure of a cultural arts facility,
7as defined under s. 229.841 (5), if that property is used for a retail business or a
8restaurant, unless the retail business or restaurant is operated by the local cultural
9arts district or by a corporation, organization or association described in section
501 10(c)
3 of the Internal Revenue Code that is exempt from taxation under section
501 11(a) of the Internal Revenue Code.
SB442,15,1312
(b) A parking lot or parking structure that is not used to support the operation
13of a cultural arts facility, as defined under s. 229.841 (5).
SB442, s. 27
14Section
27. 71.05 (1) (c) 6. of the statutes is created to read:
SB442,15,1515
71.05
(1) (c) 6. A local cultural arts district created under subch. V of ch. 229.
SB442, s. 28
16Section
28. 71.05 (1) (c) 7. of the statutes is created to read:
SB442,15,1817
71.05
(1) (c) 7. The Wisconsin Health and Educational Facilities Authority
18under ch. 231, if the bonds are issued with respect to a local cultural arts district.