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
Current law authorizes circuit courts and municipal courts to suspend or
revoke a person's motor vehicle operating privilege for a variety of reasons, including
failure to pay an amount ordered by the court for ordinance violations unrelated to
operating a motor vehicle, such as failing to properly keep sidewalks clear of snow
and ice. Suspensions and revocations for failure to pay generally continue until the
person pays the amount owed. The suspension and revocation orders are forwarded
to DOT, which updates the person's driving record to reflect the suspension or
revocation.
This bill requires DOT to develop a process, by rule, to charge courts a
processing fee for each court order that suspends or revokes a person's operating
privilege for failure to pay a forfeiture that was imposed for violating an ordinance
unrelated to the violator's operation of a motor vehicle. The bill also allows courts
to charge the violator a fee in an amount not more than the fee DOT charges the court
for processing the order.
Current law requires DOT to redesign motor vehicle registration plates that are
issued to certain specified vehicles, primarily automobiles and light-duty trucks, or
that identify the registrant as a member of an authorized special group (such as U.S.
military or veteran, physically disabled, University of Wisconsin campus or natural
resources). DOT must begin issuing the newly designed plates beginning with
registrations effective July 1, 2000, and must issue newly designed plates for every
specified vehicle registered in this state by July 1, 2003. Vehicle registrants must
pay $10 or $15, depending on the type of plate, for the newly designed plates.
This bill allows DOT until July 1, 2005, to complete the issuance of the newly
designed plates. The bill also requires DOT to redesign these registration plates
every six years, and to issue plates of the new design to replace plates that are six
or more years old.
Under current law, if a person arrested for operating a motor vehicle while
under the influence of an intoxicant (OWI) refuses to take a test to determine the
amount of alcohol in his or her blood or breath, the law enforcement officer who
requested the test takes possession of the person's license, prepares a notice of intent
to revoke the person's operating privilege and gives a copy of the notice to the person,
to the circuit court and to the district attorney. The notice informs the person of a
number of items, including the right to request a court hearing to contest the
revocation. The Wisconsin court of appeals, in State v. Schoepp, 204 Wis. 2d 266
(1996), held that a person who receives a notice of intent to revoke the person's
operating privilege may utilize the full range of discovery procedures under state
law, including the use of depositions and interrogatories.
This bill prohibits either party's use of discovery in these cases, except that if
a hearing is requested, the person who refused to take the test has the right to receive
a copy of any written or voice recorded statement of a witness before that witness
testifies.
Currently, 31.29% of all moneys received by the state as driver improvement
surcharges from persons convicted of OWI is used to pay for chemical testing and
services provided by the state traffic patrol. The secretary of administration
transfers the remaining driver improvement surcharge moneys to programs or
purposes related to OWI, such as for the purchase of breath screening devices. Under
this bill, the separate 31.29% payment is eliminated and the chemical testing and
services program is eligible for a funding transfer approved by the secretary of
administration as are the other OWI-related programs.
Under current law, DOT may contract with third-party testers to conduct
on-the-road tests for commercial motor vehicle drivers, abbreviated on-the-road
tests for school bus drivers and special examinations for school bus drivers. This bill
permits DOT to contract with third-party testers to conduct on-the-road tests for
noncommercial motor vehicle drivers, except on-the-road tests for authorization to
operate certain motorcycles.
This bill raises the fee for a driving skills test in a school bus or in a
noncommercial motor vehicle from $10 to $15.
Current law requires DOT to issue a distinctive license document to any person
who is under the legal drinking age when the license is issued. Under this bill,
beginning on January 1, 2000, DOT must also issue a distinctive license document
to any person who is under 18 years of age when the license is issued.
Under current law, no person may operate a school bus unless the person
possesses an endorsement to operate school buses. A school bus endorsement is valid
for the eight-year duration of the person's operator's license. This bill requires each
school bus operator to pass an examination of his or her ability to safely operate a
school bus at least once every 4 years.
1997 Wisconsin Act 84 made extensive changes to this state's laws regarding
operating a motor vehicle with an operating privilege that is revoked or suspended
(OAR or OWS). Most of those changes are scheduled to take effect on May 1, 2000,
or sooner if DOT's computer system can accommodate the necessary changes.
This bill delays the effective date of
1997 Wisconsin Act 84 until May 1, 2001,
or until DOT's computer system can accommodate the necessary changes, whichever
occurs earlier. The bill specifies that DOT is not required to implement all of that
act's changes simultaneously, but may establish different effective dates for those
changes. The bill makes an OAR or OWS committed in another jurisdiction a minor
traffic offense for purposes of determining whether the offending driver is a habitual
traffic offender. Under the bill, all OAR and OWS will be treated as minor traffic
offenses, without regard to where the offense was committed.
Currently, DOT is required to revoke the operating privilege of a person
determined to be a habitual traffic offender. The revocation commences on the day
on which DOT mails the person notice of the revocation or, if the person is already
suspended or revoked, on the day on which the person is convicted and first
considered a habitual traffic offender, or on the date on which the person surrendered
his or her operator's license to begin the current revocation or suspension period.
This bill makes all revocations by DOT for habitual traffic offenders begin on the date
DOT mails notice of the revocation.
Under current law, a highway authority may impose special weight limitations
on highways that would likely be seriously damaged or destroyed if such limitations
were not imposed. The weight limits are effective only if weight limit notice signs
are properly posted. This bill requires the posting of advance weight limit notice
signs, in addition to the weight limit notice signs, to allow motorists to avoid the
weight-limited highway altogether.
Current law prohibits any person from driving upon a highway any motor
vehicle that exceeds the maximum permissible gross vehicle weight or the maximum
permissible weight per axle. Current law allows additional weight, beyond the
weight limits ordinarily applicable, for certain trucks transporting exclusively milk
from the point of production to the primary market and returning with dairy supplies
and dairy products from such primary market to the farm. Only milk trucks having
axle measurements of nine feet, one inch or greater qualify for the additional 2,000
pound axle weight. This bill extends the 2,000 pound weight limit to milk trucks
having an actual axle distance of eight feet, six inches or more.
Under current law, DOT utilizes a telephone call-in procedure through which
applicants may obtain certain single trip permits to operate vehicles that exceed the
statutory size or weight limits. This bill requires DOT to implement a telephone
call-in procedure through which applicants may obtain single trip, annual,
consecutive month and multiple trip permits to operate vehicles that exceed the
statutory size or weight limits, together with the designated route of travel. The bill
also raises fees for certain single trip, annual, consecutive month and multiple trip
permits issued by DOT by 10% beginning on January 1, 2000, and ending on June
30, 2003, after which time the fees revert to their current amounts.
This bill increases the fee for late payment of fees for registering a motor truck
through DOT's automated telephone registration system from $5 to $10.
This bill eliminates the $5 fee charged to financial institutions for processing
electronic applications for motor vehicle title and registration.
Under current law, a claimant must serve legal process upon the secretary of
transportation to commence a legal action against a nonresident driver for damages
arising from a motor vehicle accident in this state. The secretary of transportation
collects a $15 fee from the claimant for each defendant in the action and forwards the
legal process to the nonresident driver. This bill increases this service-of-process
fee to $25.
Transportation aids
