Under current law, resident shareholders of subchapter S corporations and
members of limited liability corporations (LLCs) treated as partnerships may claim
a tax credit for taxes that those S corporations and LLCs pay to another state. This
bill expands the application of this tax credit so that it may be claimed by otherwise
qualified resident partners of a partnership that pays taxes to another state.
Property taxation
This bill creates a property tax exemption for a hub facility operated by an air
carrier. A "hub facility" is a facility at an airport from which an air carrier company
operated at least 45 common carrier departing flights each weekday in the prior year
and from which it transported passengers to at least 15 nonstop destinations; or an
airport or any combination of airports in this state from which an air carrier company
cumulatively operated at least 20 common carrier departing flights each weekday in
the prior year, if the air carrier company's headquarters are in this state.
Under current law, regional planning commissions (RPCs) may be created by
the governor, or by a state agency or official that the governor designates, upon the
submission of a petition in the form of a resolution by the governing body of a city,
village, town, or county (local governmental units). An RPC may conduct research
studies; collect and analyze data; prepare maps; make plans for the physical, social,
and economic development of the region; provide advisory services to local
governmental units and other public and private agencies on regional planning
problems; and coordinate local programs that relate to the RPC's objectives. This bill
authorizes RPCs to acquire and hold real property for public use. The bill also
authorizes RPCs to convey and dispose of such property.
Under current law, property owned by municipalities or by certain districts,
such as school districts, technical college districts, and metropolitan sewerage
districts, is exempt from the property tax. Under this bill, property owned by an RPC
is also exempt from the property tax.
Under current law, in lieu of paying local property taxes, a light, heat, and
power company pays a license fee to the state based on a percentage of the company's
gross revenue that is attributable to this state. However, if a light, heat, and power
company structure is used in part for the company's business operation and in part
for purposes that are not related to the company's business operation, the part of the
structure that is used for purposes that are not related to the company's business
operation is subject to local property taxes.
Under this bill, property, excluding land, that is owned or leased by a public
utilities holding company that provides services to a light, heat, and power company
affiliated with the holding company is assessed for local property taxes on the portion
of the fair market value of the property that is not used for providing services to the
light, heat, and power company.
Under current law, DOR assesses manufacturing property, and determines
what property is classified as manufacturing property, for property tax purposes. If
a reviewing authority for property tax assessments reduces a manufacturing
property's assessed value or determines that manufacturing property is exempt from
property tax, the property owner may file a claim for a property tax refund with the
municipality in which the property is located. The municipality pays the refund in
one sum that includes interest on the refund amount, paid at the rate of 0.8% a
month.
Under current law, a property owner may file an objection to a property tax
assessment of the owner's manufacturing property with the state board of assessors
within 60 days of receiving notice from DOR of the property's assessment.
Under this bill, a municipality may pay a property tax refund to an owner of
manufacturing property in five annual installments rather than all at once, if the
refund is more than $10,000, the refund amount represents at least 0.0025% of the
municipality's tax levy, and the municipality's tax levy is less than $100,000,000.
The interest on the refund amount is paid either at a rate of 10% a year or at a rate
determined by the last auction of six-month U.S. treasury bills, whichever is less.
In addition, the state compensates the municipality for the interest on any such
refund that is paid by the municipality.
Under the bill, a property owner who files an objection to a property tax
assessment of the owner's manufacturing property must include in the objection the
reasons for the objection, an estimate of the correct assessment, and the basis for that
estimate. In addition, the property owner may file supplemental information to
support the objection within 60 days from the date that the objection is filed.
Under current law, an owner of manufacturing property must submit annually
by March 1 a report to DOR that contains certain information about the property that
DOR considers necessary for property tax assessment purposes. An owner of
manufacturing property who fails to submit the report by the date that it is due must
pay a penalty equal to the greater of $10 or 0.05% of the property's assessment for
the previous year, but not more than $1,000. If the property owner does not submit
the report within 30 days from the date that it is due, the property owner must pay
a second penalty that is equal to the first.
Under this bill, an owner of manufacturing property who fails to submit the
report by the date that it is due is subject to the following penalties: if the report is
one to ten days late, $25; if the report is 11 to 30 days late, the greater of $50 or 0.05%
of the previous year's assessment, but not more than $250; and if the report is more
than 30 days late, the greater of $100 or 0.1% of the previous year's assessment, but
not more than $750.
Other taxation
Under current law, in lieu of paying local property taxes, a private light, heat,
and power company and an electric cooperative pay a license fee to the state based
on a percentage of the company's or cooperative's gross revenues that are
attributable to this state. A private light, heat, and power company pays a license
fee based, in part, on multiplying its gross revenues from the sale of gas services by
0.97% and multiplying its other gross revenues by 3.19%. An electric cooperative
pays a license fee based, in part, on multiplying its gross revenues by 3.19%.
Under this bill, a private light, heat, and power company and an electric
cooperative pay a license fee to the state based, in part, on multiplying the company's
or cooperative's gross revenues from the sale of wholesale electricity by 1.59%. The
license fee applies to gross revenues from the sale of wholesale electricity that are
earned during tax periods beginning on January 1, 2003, and ending on December
31, 2008. A private light, heat, and power company will continue to pay a license fee
under current law based on multiplying its gross revenues from the sale of gas
services by 0.97% and multiplying its other gross revenues, except revenues from the
sale of wholesale electricity, by 3.19%. An electric cooperative will continue to pay
a license fee under current law based on multiplying its gross revenues, except
revenues from the sale of wholesale electricity, by 3.19%.
Under current law, a farm that is not a corporation, except a farm that has no
more than $1,000,000 in gross receipts, pays a recycling surcharge of $25. Under this
bill, a farm that is not a corporation, except a farm that has less than $4,000,000 in
gross receipts, pays a recycling surcharge in an amount that is equal to 2% of its net
income, up to a maximum of $9,800, or $25, whichever is greater.
Under current law, tax stamps must be affixed to each cigarette package that
is sold in this state. This bill prohibits affixing tax stamps to cigarette packages that
are not intended to be sold, distributed, or used in the United States; that are not
labeled as provided under federal law; that are modified by a person who is not the
cigarette manufacturer; that are altered so as to remove, conceal, or obscure certain
labels; and that are imported into the United States after December 31, 1999, in
violation of federal law. Under the bill, a person who possesses over 400 of such
cigarettes, or who sells or distributes such cigarettes, is subject to the same penalties
that are applicable to the possession of cigarettes without tax stamps.
Under current law, DOR may offset tax refunds against debts owed by a
taxpayer to another state agency or to a municipality or county. Current law also
authorizes DOR to enter into agreements with the Internal Revenue Service to offset
state tax refunds against federal tax obligations and federal tax refunds against
state tax obligations. This bill authorizes DOR to enter into agreements with other
states to offset tax refunds against another state's tax obligations if the other state
agrees to implement an offset program for Wisconsin residents' tax refunds from that
other state against tax obligations of this state.
Transportation
Highways
Under current law, the building commission may issue revenue bonds for major
highway projects and transportation administrative facilities in a principal amount
that may not exceed $1,447,085,500. 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 at least five miles
in length to the highway; or improvement of an existing multilane divided highway
to freeway standards.
This bill increases the revenue bond limit from $1,447,085,500 to
$1,743,570,900. The bill also provides that revenue bond proceeds may not exceed
53% of the total funds expended in any fiscal year for major highway projects,
beginning with fiscal year 2002-03. Additionally, the bill provides that revenue bond
proceeds may be expended for reconstruction of the Marquette interchange, lying at
or near the junction of I 94, I 43, and I 794, in Milwaukee County. In addition to the
revenue bond limit of $1,743,570,900 specified above, the building commission may
issue revenue bonds for the Marquette interchange reconstruction project in a
principal amount that may not exceed $6,996,600.
Current law requires that any major highway project, unlike other construction
projects undertaken by DOT, receive the approval of the transportation projects
commission (TPC) and the legislature before the project may be constructed. This
bill adds three major highway projects recommended by TPC to the current list of
enumerated projects already approved for construction.
This bill appropriates federal moneys to fund reconstruction of the Marquette
interchange in Milwaukee County. The bill also provides for a grant from DOT to the
city of Milwaukee of up to $5,000,000 from the state's federal interstate cost estimate
(ICE) funds to fund a local roads project to reconstruct West Canal Street to serve as
a traffic mitigation corridor in connection with the Marquette interchange
reconstruction. DOT may not award the grant unless the city makes a matching
contribution from its federal ICE funds equal to the amount of the grant from DOT;
the city contributes an additional $10,000,000 toward the West Canal Street
reconstruction project; and, the federal department of transportation approves the
use of the federal ICE funds for the project. The bill also requires DOT to award
grants totaling $5,000,000 of state funds to the city of Milwaukee to reconstruct West
Canal Street if the city contributes $10,000,000 toward the West Canal Street
reconstruction project.
This bill provides that the maximum state share of costs for the project
involving demolition of the abandoned Park East Freeway corridor in Milwaukee
County is $8,000,000, as provided in an agreement between the city of Milwaukee,
Milwaukee County, and the state, of which $6,800,000 is required to be from the
state's federal ICE funds. The local share of costs for the project may not be less than
$17,000,000, the amount specified in the agreement between the parties, of which
$14,500,000 is required to be federal ICE funds received by the city or county.
Under the nonentitlement component of the local roads improvement program,
DOT currently allocates $500,000 in each fiscal year to fund eligible town road
improvements and $750,000 in each fiscal year to fund eligible municipal street
improvements. This bill requires DOT to make additional allocations of $529,000 in
fiscal year 2001-02 and $1,954,200 in fiscal year 2002-03. These funds may be used
for either of these purposes.
Drivers and motor vehicles
Currently, a person may not operate a motor vehicle while under the influence
of an intoxicant, controlled substance, or other drug (OWI), or improperly refuse to
submit to a test to determine his or her blood alcohol concentration. Under current
law, if a person commits either of these OWI-related offenses, the person's motor
vehicle operating privilege is suspended or revoked for a certain period of time,
depending on the number of the person's prior OWI-related convictions,
suspensions, or revocations. A person whose operating privilege is suspended or
revoked is eligible to apply for an occupational driver's license after a waiting period
of between 30 and 120 days, depending on the number of the person's prior
OWI-related convictions, suspensions, or revocations. However, a person who has
no prior OWI-related convictions, suspensions, or revocations is eligible to apply
immediately.
Under current law, if a person is convicted of an OWI-related offense and the
person has two or more prior OWI-related convictions, suspensions, or revocations,
a court may order that the vehicle owned by the person and involved in the violation
or refusal be seized and subject to forfeiture. If the court does not order that the
vehicle be seized and subject to forfeiture, the court is required to order that the
vehicle be immobilized or equipped with an ignition interlock device.
Beginning on January 1, 2002, a court will not be required to order that the
vehicle owned by the person and involved in the violation or refusal be immobilized
or equipped with an ignition interlock device even if the court does not order that the
vehicle be seized and subject to forfeiture, and even if the person has two or more
prior OWI-related convictions, suspensions, or revocations. Rather, the court may,
but is not required to, order any of those options.
Also beginning on January 1, 2002, if a person is convicted of an OWI-related
offense and the person has one or more prior OWI-related convictions, suspensions,
or revocations, the court may, but is not required to, order that the vehicle owned by
the person and involved in the violation or refusal be immobilized or equipped with
an ignition interlock device.
This bill makes the following changes, beginning on January 1, 2002: 1) if a
person is convicted of an OWI-related offense and the person has one or more prior
OWI-related convictions, suspensions, or revocations, the court must order that
each vehicle owned by the person be immobilized or equipped with an ignition
interlock device for a period of not less than one year, and the person is not eligible
to apply for an occupational driver's license for one year; and 2) if a person is
convicted of an OWI-related offense and the person has two or more prior
OWI-related convictions, suspensions, or revocations, the court may order that the
vehicle owned by the person and involved in the violation or refusal be seized and
subject to forfeiture in lieu of the ignition interlock or immobilization options.
Under current law, a person who is ordered to pay a fine or a forfeiture (civil
monetary penalty) for an OWI violation is required to pay a driver improvement
surcharge of $345. Funds collected from the driver improvement surcharge are used
to provide alcohol and other drug abuse services to drivers, to provide
chemical-testing training to law enforcement officers, and to fund various state
agencies for services related to OWI offenses. This bill increases the driver
improvement surcharge from $345 to $355.
Under current law, circuit courts and municipal courts may suspend a person's
operating privilege for a variety of reasons, including failure to pay an amount
ordered by the court. However, circuit courts and municipal courts are not permitted
to suspend a person's operating privilege solely because of the person's failure to pay
a forfeiture imposed for an ordinance violation unrelated to the operation of a motor
vehicle. This bill permits circuit courts and municipal courts to suspend the
operating privilege of a juvenile solely because the juvenile has not paid a forfeiture
imposed for an ordinance violation unrelated to the operation of a motor vehicle.
Current law imposes a six-year redesign cycle for most motor vehicle
registration plates, by the end of which DOT must redesign the plates. DOT must
issue redesigned plates upon every initial vehicle registration and upon every
registration renewal if the vehicle's plate is more than six years old. The first
six-year cycle will be completed by July 1, 2005, and DOT will have provided
redesigned plates to every vehicle by that date. However, DOT may not redesign or
reissue the "Celebrate Children" plates until January 1, 2005. After that date, DOT
may redesign and issue those plates upon initial registration or renewal.
This bill creates a seven-year redesign cycle and extends the reissue deadline
for each category of registration by one year. The bill requires DOT to wait until July
1, 2007, to redesign plates for three recently designed plates: "Celebrate Children,"
"Ducks Unlimited," and "professional football team."
Under current law, DOT charges a special license plates fee in addition to the
regular registration fee to issue or reissue license plates for certain vehicles that are
owned or leased by members of authorized special groups. The fee is $5, $10, or $15,
depending on the type of plate, except that there are no fees for special plates for
disabled veterans and other persons entitled to use disabled parking spaces,
Congressional Medal of Honor awardees, certain former prisoners of war, Somalia
War veterans, and registrants interested in endangered resources. This bill directs
DOT to charge $15 for all special plates, except that there continues to be no charge
for special plates for disabled veterans and other disabled persons, Congressional
Medal of Honor awardees, and certain former prisoners of war.
Under current law, no person may operate upon a highway any vehicle or
combination of vehicles that exceeds certain limits on size, weight, or load unless that
person possesses a permit issued by DOT. The fees for certain single trip, annual,
consecutive month, and multiple trip permits issued by DOT are 10% higher than
the usual rates for the period beginning on January 1, 2000, and ending on June 30,
2003, after which time the fees revert to their previous amounts. This bill delays the
sunset date of the permit fee increases from June 30, 2003, to December 31, 2007.
Under current law, DOT charges $3 for any of the following: a single file search
or computerized search of vehicle operating records, a single vehicle operating record
contained on computer tape or other electronic media, or a single record of uniform
traffic citations or motor vehicle accidents contained on computer tape or other
electronic media. DOT charges $4 to search a single operating record requested by
telephone.
In addition, under current law an employer of any person who operates a
commercial motor vehicle (a commercial driver) may register any commercial driver
employed by the employer on a list maintained by DOT. DOT notifies the employer
of any conviction, suspension, revocation, cancellation, disqualification, or
out-of-service order against that driver. DOT charges $3 for each notification that
it provides to the employer. This bill increases each of the specified fees by $2.
Current law requires any motor vehicle that is subject to an emissions test to
undergo the test within 90 days before the vehicle's registration is renewed in the
second year after the vehicle's model year and every two years thereafter. This bill
removes the 90-day requirement and allows DOT to determine when those vehicles
will be presented for testing.
Transportation aids
Under current law, DOT makes general transportation aids payments to a
county based on a share-of-costs formula, and to a city, village, or town
(municipality) based on the greater of a share-of-costs formula for municipalities or
an aid rate per road mile, which is $1,704 for calendar year 2000 and thereafter. This
bill increases the aid rate per road mile to $1,747 for calendar year 2001 and $1,790
for calendar year 2002 and thereafter.
This bill increases the maximum amount of general transportation aids that
may be paid to counties from the current limit of $84,059,500 to $88,598,700 in
calendar year 2002 and $89,239,300 in calendar year 2003 and thereafter. The bill
also increases the maximum amount of aid that may be paid to municipalities under
the program from the current limit of $264,461,500 to $277,684,500 in calendar year
2002 and $277,907,200 in calendar year 2003 and thereafter.
Under current law, DOT administers an urban mass transit operating
assistance program that provides state aid to local public bodies in urban areas
served by mass transit systems to assist with the expenses of operating those
systems. Aid paid for mass transit systems that have annual operating expenses of
less than $20,000,000 is determined under a formula. Under the formula, DOT
makes state aid payments in amounts sufficient to ensure that the combination of
state and federal aids contributed toward the operating expenses of an urban mass
transit system equals the uniform percentage established by DOT for each of the two
smaller classes of mass transit system. The two smaller classes are: 1) mass transit
systems serving urban areas having a population of 50,000 or more but having
annual operating expenses of less than $20,000,000 (Tier B systems); and 2) mass
transit systems serving urban areas having a population of less than 50,000 (Tier C
systems). "Operating expenses" used in this aid formula are based on actual
operating costs from the second preceding year, with adjustments for the projected
expenses of new services, for which historical cost data is not available.
This bill deletes the requirement that annual transit aid payments for Tier B
and Tier C systems be made based on actual operating costs from the second
preceding year. The bill requires that annual state transit aid payments for Tier B
and Tier C systems be based on estimated operating costs for that year, effective with
calendar year 2001 payments.
The bill also increases the total amount of state aid payments to each class of
mass transit system, as follows:
1. For a mass transit system having annual operating expenses in excess of
$80,000,000 (Tier A-1 system), from $53,555,600 in calendar year 2000 to
$54,894,500 in calendar year 2001 and thereafter.
2. For a mass transit system having annual operating expenses of at least
$20,000,000 but less than $80,000,000 (Tier A-2 system), from $14,297,600 in
calendar year 2000 to $14,655,000 in calendar year 2001 and thereafter.
3. For Tier B systems, from $19,804,200 in calendar year 2000 to $20,299,300
in calendar year 2001 and thereafter.
4. For Tier C systems, from $5,349,100 in calendar year 2000 to $5,482,800 in
calendar year 2001 and thereafter.
The bill requires DOT to make supplemental mass transit aid payments in any
calendar year for any eligible urban mass transit system for whom the percentage
increase in the average cost per passenger trip in the preceding calendar year did not
exceed the percentage increase in the consumer price index for that calendar year.
DOT must distribute supplemental mass transit aid payments for similar urban
mass transit systems on a proportionate basis according to annual ridership on each
urban mass transit system during the preceding calendar year.
Under current law, DOT administers a Transportation Facilities Economic
Assistance and Development Program. Under the program, DOT may improve a
highway, airport, or harbor, or provide other assistance for the improvement of those
transportation facilities or certain rail property or railroad tracks, as part of a major
economic development project. DOT may also make loans for the improvement of
any of these transportation facilities. This bill renames the program the Tommy G.
Thompson Transportation Economic Assistance Program.
Rail and air transportation
This bill increases the authorized general obligation bonding limit for the
acquisition and improvement by DOT of rail property from $23,500,000 to
$28,000,000.
Under current law, with certain exceptions, a property owner is immune from
liability for damages occurring on the property while a person is engaged in a
recreational activity on the property.
This bill creates an immunity from civil liability for any property owner upon
which a rails-with-trails trail is located and for any railroad that operates within
an active rail corridor upon which a rails-with-trails trail is located for the death,
injury, or property damage resulting from an individual's use of a rails-with-trails
trail, regardless of whether the death, injury, or property damage occurred in
connection with a recreational activity or occurred on public or private property.
Under the bill, a rails-with-trails trail is a strip of land that is located partly or fully
within an active rail corridor and is identified in an agreement entered into by a
railroad that operates within that rail corridor and a person that is sponsoring and
maintaining the strip of land for the use of individuals for purposes specified in the
agreement. The immunity does not apply to deaths, injuries, or property damage
caused by the property owner's or railroad's willful or wanton acts or omissions.
Other transportation
This bill increases the authorized general obligation bonding limit for grants
awarded by DOT for harbor improvements from $22,000,000 to $25,000,000.
