act5Act 5
State of Wisconsin
Office of the Governor
July 28, 1999

To the Honorable, the Senate:
I have approved Senate Bill 114 as 1999 Wisconsin Act 5 and have deposited it in the Office of the Secretary of State. I have exercised the partial veto in Sections 22 and 31 of the bill.
In April of this year, 86% of Wisconsin voters approved the distribution of lottery, bingo and pari-mutuel proceeds to Wisconsin residents for property tax relief. By restoring the lottery credit to principal dwellings only, and enhancing the credit by including bingo and pari-mutuel proceeds in the dollars available for the credit, the bill enacts the will of Wisconsin residents. In doing so, it more than doubles the size of the lottery credit to the typical homeowner to an estimated $90 on the December 1999 property tax bills. It also provides property tax relief to farmers by increasing the maximum farmland tax relief credit from $1000 to $1500 and increasing the share of taxes on farmland for which the credit may be claimed from 10% to an estimated 15%.
My partial vetos are limited to correcting three technical administrative concerns. Section 22 of the bill specifies the mechanics for mobile homes to qualify for the lottery and gaming credit. I am partially vetoing section 22 to remove both January 31 deadline for owners of mobile homes to claim the credit and the requirement that eligibility for the credit for mobile homes be tied to the same date as for real property. I am partially vetoing the January 31 deadline because it is unnecessarily restrictive. My partial veto will enable the Department of Revenue to administratively set the date by which the credit must be claimed. Since homeowners are given until the due date of the first installment of their property taxes to make a claim for the credit, mobile home owners should be given at least the same degree of freedom. I am also partially vetoing the requirement that mobile homes be utilized as principal dwellings on the same date as for real property to gain the lottery credit because this requirement creates an inconsistency. In the bill, for mobile home to be eligible for the credit, the mobile home must be used as a primary dwelling on January 1 of the year prior to the year the credit is received. For assessment of mobile homes, however, taxable value is determined as of January 1 of the year the credit is received (which is the year for which the mobile home parking fee is being determined and paid). My partial veto will allow eligibility for the credit for mobile homes and the assessment for mobile homes to be tied to the same date, rather than dates that are one year apart.

Section 31 specifies that if an overpayment or underpayment is made in the amounts paid to counties or the City of Milwaukee to reimburse these local governments for their costs to precertify principal dwellings to receive the credit, a correction can be made. According to this section, the correction shall be included in the next precertification payment. Since precertification payments will be made only once every five years, however, a local government would need to wait that time period to receive a correcting payment. I am partially vetoing this section to remove the restriction that the adjustment is made on the subsequent distribution because it is too restrictive. My partial veto will permit a correction to an underpayment or overpayment to occur without a five-year wait.

I am pleased that the Legislature acted quickly on this bill so that Wisconsin homeowners will benefit from the revised lottery credit on the first property tax bills following the passage of the constitutional amendment. My partial vetos will improve the administration of the credit.


Tommy G. Thompson