AB818: Bill Text

AB818,5,3 (b) For the property tax assessments as of January 1, 2008, the treatment of manufacturing property under subs. (4) to (14) extends to property described under s. 70.112 (4) (am) 2.

AB818, s. 8 Section 8. 76.28 (3) (e) of the statutes is created to read:

AB818,5,14 76.28 (3) (e) Beginning with the fees due in calendar year 2008, a light, heat, and power company may claim as a credit against the fees imposed under sub. (2) and s. 76.29 (2) an amount equal to the amount of property taxes imposed under ch. 70 on general structures and substations that the light, heat, and power company paid in the then current calendar year. If a credit computed under this paragraph is not entirely offset against the license fees otherwise due for the then current calendar year, the unused balance may be carried forward and credited against license fees otherwise due for the following 15 calender years to the extent not offset by the license fees otherwise due in all intervening years between the year in which the property taxes were paid and the year in which the carry-forward credit is claimed.

AB818, s. 9 Section 9. 76.28 (9) of the statutes is amended to read:

AB818,6,4 76.28 (9) Property subject to local tax. The Except as provided in s. 70.112 (4) (am) the license fees imposed by this section upon the gross revenues of light, heat and power companies as defined in sub. (1) (e) shall be in lieu of all other taxes on all property used and useful in the operation of the business of such companies in this state, except that the same shall be subject to special assessments for local improvements. If a general structure is used and useful in part in the operation of the business of those companies in this state and in part for nonoperating purposes, the license fees imposed by this section are in place of the percentage of all other taxes on the property that fairly measures and represents the extent of the use and usefulness in the operation of the business of those companies in this state, and the balance is subject to local assessment and taxation, except that the entire general structure is subject to special assessments for local improvements. Property under s. 76.025 (2) shall not be taxed under this section, but shall be subject to local assessment and taxation.

AB818, s. 10 Section 10. 76.29 (2) of the statutes is amended to read:

AB818,6,17 76.29 (2) Imposition. There Subject to the credits under ss. 76.28 (3) (e) and 76.48 (3d), there is imposed on every light, heat, and power company and electric cooperative that owns an electric utility plant, an annual license fee to be assessed by the department on or before May 1, 2005, and every May 1 thereafter, ending with the assessment on May 1, 2010, measured by the gross revenues of the preceding tax period in an amount equal to the apportionment factor multiplied by gross revenues multiplied by 1.59% 1.59 percent. The fee shall become delinquent if not paid when due and when delinquent shall be subject to interest at the rate of 1.5% 1.5 percent per month until paid. Gross revenues earned by a light, heat, and power company after December 31, 2009, are subject to the license fee imposed under s. 76.28 (2). Gross revenues earned by an electric cooperative after December 31, 2009, are subject to the license fee imposed under s. 76.48 (1r).

AB818, s. 11 Section 11. 76.48 (3d) of the statutes is created to read:

AB818,7,5 76.48 (3d) (a) Beginning with the fees due in calendar year 2008, an electric cooperative may claim as a credit against the fees imposed under sub. (1r) and s. 76.29 (2) an amount equal to the amount of any payments in lieu of property taxes that the electric cooperative paid in the then current calendar year, not to exceed the amount of property taxes that the cooperative would have paid in that year had the cooperative's property been subject to taxation under ch. 70. If a credit computed under this paragraph is not entirely offset against the license fees otherwise due for the then current calendar year, the unused balance may be carried forward and credited against license fees otherwise due for the following 15 calender years to the extent not offset by the license fees otherwise due in all intervening years between the year in which the payments were paid and the year in which the carry-forward credit is claimed.

AB818,7,12 (b) Beginning with distributions in 2008, a general structure owned or leased by an electric cooperative for which a payment in lieu of property taxes is made in the year of the distribution shall not be included in the calculation of payments under s. 79.04 (1) and (2). Beginning with distributions in 2009, a substation of an electric cooperative, other than a transmission substation, for which a payment in lieu of property taxes is made in the year of the distribution shall not be included in the calculation of payments under s. 79.04 (1) and (2).

AB818, s. 12 Section 12. 79.04 (1) (intro.) of the statutes is amended to read:

AB818,7,24 79.04 (1) (intro.) Annually, except for production plants that begin operation after December 31, 2003, or begin operation as a repowered production plant after December 31, 2003, and except as provided in sub. (4m) and under s. 70.112 (4) (am), the department of administration, upon certification by the department of revenue, shall distribute to a municipality having within its boundaries a production plant, general structure, or substation, used by a light, heat, or power company assessed under s. 76.28 (2) or 76.29 (2), except property described in s. 66.0813 unless the production plant or substation is owned or operated by a local governmental unit located outside of the municipality, or by an electric cooperative assessed under ss. 76.07 and 76.48, respectively, or by a municipal electric company under s. 66.0825 the amount determined as follows:

AB818, s. 13 Section 13. 79.04 (1) (b) 1. of the statutes is amended to read:

AB818,8,6 79.04 (1) (b) 1. Beginning with the distribution under this subsection in 1991, and ending with the distribution under this subsection in 2006, the amount determined under par. (a) to value property used by a light, heat or power company in a municipality may not be less than the amount determined to value the property for the distribution to the municipality under this subsection in 1990, subject to subds. 2., 3. and 4.

AB818, s. 14 Section 14. 79.04 (2) (a) of the statutes is amended to read:

AB818,9,16 79.04 (2) (a) Annually, except for production plants that begin operation after December 31, 2003, or begin operation as a repowered production plant after December 31, 2003, and except as provided in sub. (4m) and under s. 70.112 (4) (am), the department of administration, upon certification by the department of revenue, shall distribute from the shared revenue account or, for the distribution in 2003, from the appropriation under s. 20.835 (1) (t) to any county having within its boundaries a production plant, general structure, or substation, used by a light, heat or power company assessed under s. 76.28 (2) or 76.29 (2), except property described in s. 66.0813 unless the production plant or substation is owned or operated by a local governmental unit that is located outside of the municipality in which the production plant or substation is located, or by an electric cooperative assessed under ss. 76.07 and 76.48, respectively, or by a municipal electric company under s. 66.0825 an amount determined by multiplying by 6 mills in the case of property in a town and by 3 mills in the case of property in a city or village the first $125,000,000 of the amount shown in the account, plus leased property, of each public utility except qualified wholesale electric companies, as defined in s. 76.28 (1) (gm), on December 31 of the preceding year for "production plant, exclusive of land," "general structures," and "substations," in the case of light, heat and power companies, electric cooperatives or municipal electric companies, for all property within the municipality in accordance with the system of accounts established by the public service commission or rural electrification administration, less depreciation thereon as determined by the department of revenue and less the value of treatment plant and pollution abatement equipment, as defined under s. 70.11 (21) (a), as determined by the department of revenue plus an amount from the shared revenue account or, for the distribution in 2003, from the appropriation under s. 20.835 (1) (t) determined by multiplying by 6 mills in the case of property in a town, and 3 mills in the case of property in a city or village, of the total original cost of production plant, general structures, and substations less depreciation, land and approved waste treatment facilities of each qualified wholesale electric company, as defined in s. 76.28 (1) (gm), as reported to the department of revenue of all property within the municipality. The total of amounts, as depreciated, from the accounts of all public utilities for the same production plant is also limited to not more than $125,000,000. The amount distributable to a county under this subsection and sub. (6) in any year shall not exceed $100 times the population of the county.

AB818, s. 15 Section 15. 79.04 (2) (am) 1. of the statutes is amended to read:

AB818,9,22 79.04 (2) (am) 1. Beginning with the distribution under this subsection in 1991, and ending with the distribution under this subsection in 2006, the amount determined under par. (a) to value property used by a light, heat or power company in a county may not be less than the amount determined to value the property for the distribution to the county under this subsection in 1990, subject to subds. 2. and 3.

AB818, s. 16 Section 16. 79.04 (4m) of the statutes is created to read:

AB818,9,25 79.04 (4m) Beginning with distributions in 2007, for production plants described under subs. (1) and (2), if in any year the payments to the municipality and county in which the production plant is located would be greater under subs. (6) and (7) (c) 1. based on the production plant's name-plate capacity than under sub. (1) or (2) based on the depreciated net book value of the production plant, the municipality and county shall receive payments under subs. (6) and (7) (c) 1., rather than under sub. (1) or (2), beginning in that year and in each year thereafter.

AB818, s. 17 Section 17. 79.04 (6) (a) of the statutes is amended to read:

AB818,10,19 79.04 (6) (a) Annually, beginning in 2005, for production plants that begin operation after December 31, 2003, or begin operation as a repowered production plant after December 31, 2003, except as provided in sub. (4m), the department of administration, upon certification by the department of revenue, shall distribute payments from the public utility account, as determined under par. (b), to each municipality and county in which a production plant is located, if the production plant has a name-plate capacity of at least one megawatt and is used by a light, heat, or power company assessed under s. 76.28 (2) or 76.29 (2), except property described in s. 66.0813, unless the production plant is owned or operated by a local governmental unit located outside of the municipality; by a qualified wholesale electric company, as defined in s. 76.28 (1) (gm); by a wholesale merchant plant, as defined in s. 196.491 (1) (w); by an electric cooperative assessed under ss. 76.07 and 76.48, respectively; or by a municipal electric company under s. 66.0825.

AB818, s. 18 Section 18. 196.20 (7) (c) of the statutes is renumbered 196.20 (7) (c) 1. and amended to read:

AB818,10,25 196.20 (7) (c) 1. The Except as provided in subd. 2., the commission shall only approve a mitigation payment agreement that is received by the commission before June 10, 2003, and, if the commission finds the agreement to be reasonable, shall not subsequently modify the agreement.

AB818, s. 19 Section 19. 196.20 (7) (c) 2. of the statutes is created to read:

AB818,11,6 196.20 (7) (c) 2. If the commission receives a mitigation payment agreement before June 10, 2003, and does not determine that the agreement is unreasonable before November 11, 2003, mitigation payments in accordance with the terms of the agreement shall be recoverable in rates, notwithstanding any subsequent limitations imposed by the commission on the mitigation payments.

AB818, s. 20 Section 20. 196.491 (3) (gm) of the statutes is amended to read:

AB818,11,21 196.491 (3) (gm) The commission may not approve an application filed after October 29, 1999, under this subsection for a certificate of public convenience and necessity for a high-voltage transmission line that is designed for operation at a nominal voltage of 345 kilovolts or more unless the approval includes the condition that the applicant shall pay the fees specified in sub. (3g) (a). If the commission has approved an application under this subsection for a certificate of public convenience and necessity for a high-voltage transmission line that is designed for operation at a nominal voltage of 345 kilovolts or more that was filed after April 1, 1999, and before October 29, 1999, the commission shall require the applicant to pay the fees specified in sub. (3g) (a). For any application subject to this paragraph, the commission shall determine the cost net book value of the high-voltage transmission line, identify the counties, towns, villages and cities through which the high-voltage transmission line is routed and allocate the amount of investment associated with the high-voltage transmission line to each such county, town, village and city.

AB818, s. 21 Section 21. Nonstatutory provisions.

AB818,12,9 (1) Department of revenue study; utility license fees. No later than December 31, 2005, the department of revenue shall convene a study group to assess the feasibility and desirability of imposing local general property taxes or their equivalent on all distribution property of electric cooperatives, municipal utilities, and light, heat, and power companies. The study group shall include residents of communities that host public utility property; representatives of electric cooperatives, municipal utilities, and light, heat, and power companies; members of the public who have expertise in the taxation of power plant and transmission line siting; and any other individuals who the department of revenue believes to have expertise related to the study. No later than May 1, 2006, the study group shall report its findings and recommendations to the legislature under section 13.172 (2) of the statutes.

AB818, s. 22 Section 22. Initial applicability.

AB818,12,13 (1) The treatment of section 196.20 (7) (c) 2. of the statutes applies retroactively to agreements received before June 10, 2003, and to determinations made before the effective date of this subsection.

AB818,12,14 (End)