SB117: Bill Text

LRB-2210/1

JK&DAK:jld:jf

2007 - 2008 LEGISLATURE

2007 Senate BILL 117

March 28, 2007 - Introduced by Senator Miller, cosponsored by Representatives Bies, Zepnick, Albers, Benedict, Berceau, Black, Grigsby, Hebl, Molepske, A. Ott, Pocan, Sheridan, Sherman, Soletski, Townsend, Turner, A. Williams and Young. Referred to Committee on Health and Human Services.

SB117,1,6 An Act to amend 20.435 (4) (o) and chapter 77 (title); and to create 20.435 (4) (xm), 20.435 (4) (xn), 25.17 (1) (cm), 25.771, 49.45 (3) (n), subchapter XIV of chapter 77 [precedes 77.9981] and 250.17 of the statutes; relating to: imposing a tax on the sale of soft drinks, creating a dental access trust fund, creating grants for dental public health and dental education projects, and making appropriations.

Analysis by the Legislative Reference Bureau

This bill imposes an excise tax on the sale at wholesale of soft drinks sold in this state and creates the dental access trust fund. The tax is equal to: 1) $2 for each gallon of soft drink syrup sold in this state in the taxable year; 2) 21 cents for each gallon of bottled soft drinks sold in this state in the taxable year; and 3) on the sale of a package or container of soft drink syrups, simple syrups, powders, or other base products, 21 cents for each gallon of soft drink that may be produced from each package or container according to the manufacturer's instructions. The revenue generated from the tax is deposited into the dental access trust fund.

Under the bill, moneys deposited into the dental access trust fund are appropriated, beginning January 1, 2009, to supplement reimbursement for dentists' services provided to recipients under the Medical Assistance Program and to fund grants from the Department of Health and Family Services for dental public health and dental education projects.

For further information see the state 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:

SB117, s. 1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB117, s. 2 Section 2. 20.435 (4) (o) of the statutes is amended to read:

SB117,2,7 20.435 (4) (o) Federal aid; medical assistance. All federal moneys received for meeting costs of medical assistance administered under ss. 46.284 (5), 49.45 and 49.665, to be used for those purposes and for transfer to the medical assistance Medical Assistance trust fund and to the dental access trust fund, for those purposes.

SB117, s. 3 Section 3. 20.435 (4) (xm) of the statutes is created to read:

SB117,2,11 20.435 (4) (xm) Dental access trust fund; medical assistance dental services supplement. From the dental access trust fund, biennially, the amounts in the schedule for supplementary payments under s. 49.45 (3) (n) for dentists' services.

SB117, s. 4 Section 4. 20.435 (4) (xn) of the statutes is created to read:

SB117,3,4 20.435 (4) (xn) Dental access trust fund; dental public health and education projects. From the dental access trust fund, all moneys received, less the moneys appropriated under par. (xm), for dental public health and education projects under s. 250.17.

SB117, s. 5 Section 5. 25.17 (1) (cm) of the statutes is created to read:

SB117,3,6 25.17 (1) (cm) Dental access trust fund (s. 25.771);

SB117, s. 6 Section 6. 25.771 of the statutes is created to read:

SB117,3,10 25.771 Dental access trust fund. There is created a separate nonlapsible trust fund, designated as the dental access trust fund, consisting of all of the following:

SB117,3,12 (1) All moneys collected under subch. XIV of ch. 77 from the soft drink tax imposed under s. 77.9982.

SB117,3,16 (2) All federal money received, including moneys that the department of health and family services may transfer from the appropriation under s. 20.435 (4) (o), that are related to supplementary payments under s. 49.45 (3) (n) for dentists' services provided as specified in ss. 49.46 (2) (b) 1. and 49.47 (6).

SB117, s. 7 Section 7. 49.45 (3) (n) of the statutes is created to read:

SB117,3,22 49.45 (3) (n) From the appropriation under s. 20.435 (4) (xm), the department shall supplement the rate of reimbursement for dental services otherwise paid under this subsection by an amount that increases the rate so as to equal the 75th percentile of the fees specified in the most recent American Dental Association fee schedule for the east north central region, as determined by the department.

SB117, s. 8 Section 8. Chapter 77 (title) of the statutes is amended to read:

SB117,3,24 CHAPTER 77

SB117,4,10 TAXATION OF FOREST CROPLANDS; REAL ESTATE TRANSFER FEES; SALES AND USE TAXES; COUNTY AND SPECIAL DISTRICT SALES and USE TAXES; MANAGED FOREST land; RECYCLINg SURCHARGE; LOCAL FOOD AND BEVERAGE TAX; LOCAL RENTAL CAR TAX; Premier resort area taxes; state rental vehicle fee; dry cleaning fees;

SB117,4,12 Regional transit authority fee; Soft drink tax

SB117, s. 9 Section 9. Subchapter XIV of chapter 77 [precedes 77.9981] of the statutes is created to read:

SB117,4,16 CHAPTER 77

SB117,4,17 SUBCHAPTER XIV

SB117,4,18 soft drink TAX

SB117,4,19 77.9981 Definitions. In this subchapter:

SB117,4,21 (1) "Bottled soft drink" means any complete and ready-to-consume soft drink sold in a container.

SB117,4,22 (2) "Partnership" has the meaning given in s. 77.92 (4m).

SB117,4,25 (3) "Soft drink" means a flavored nonalcoholic beverage that contains sugar, corn fructose, aspartame, or some other sweetener as an ingredient and includes all of the following:

SB117,5,2 (a) Ginger ale, cola, or any other drink that is commonly referred to as a soft drink.

SB117,5,4 (b) Any fruit or vegetable drink that contains no more than 10 percent natural fruit or vegetable juice.

SB117,5,6 (c) Any package or container of powder, syrup, or other base product that, when mixed with a liquid, produces a soft drink that may be dispensed from a machine.

SB117,5,7 (4) "Taxable year" has the meaning given in s. 71.22 (10).

SB117,5,10 (5) "Wholesaler" means a person who receives, stores, manufactures, bottles, or sells any of the following for resale to retailers, distributors, or other wholesalers or manufacturers:

SB117,5,11 (a) Bottled soft drinks.

SB117,5,13 (b) Soft drink syrups, simple syrups, powders, or other base products, if any such items are used for making soft drinks.

SB117,5,16 77.9982 Imposition. For taxable years beginning on or after January 1, 2008, an excise tax is imposed on every wholesaler doing business in this state in the following amounts:

SB117,5,18 (1) Two dollars for each gallon of soft drink syrup sold in this state in the taxable year.

SB117,5,20 (2) Twenty-one cents for each gallon of bottled soft drinks sold in this state in the taxable year.

SB117,5,24 (3) On the sale of a package or container of soft drink syrups, simple syrups, powders, or other base products, 21 cents for each gallon of soft drink that may be produced from each package or container according to the manufacturer's instructions.

SB117,6,4 77.9983 Interest and penalties. The interest and penalty provisions under ss. 71.82 (1) (a) and (b) and (2) (a) and (b), 71.83 (1) (a) 1., 2., and 7. and (b) 1., (2) (a) 1. to 3. and (b) 1. to 3., and (3), and 71.85, as they apply to the taxes under ch. 71, apply to the tax imposed under this subchapter.

SB117,6,8 77.9984 Applicability. (1) With regards to a tax-option corporation, the tax imposed under this subchapter is imposed on the tax-option corporation, not its shareholders, except that, if the tax due from the tax-option corporation is delinquent, the shareholders are jointly and severally liable for the delinquent tax.

SB117,6,12 (2) With regards to a partnership, the tax imposed under this subchapter is imposed on the partnership, not its partners, except that, if the tax due from the partnership is delinquent, the partners are jointly and severally liable for the delinquent tax.

SB117,6,16 77.9985 Single-owner entities. A single-owner entity that is disregarded as a separate entity under ch. 71 is disregarded as a separate entity under this subchapter. The owner of that entity shall include the information from the entity on the owner's return under this subchapter.

SB117,6,19 77.9986 Administration. (1) The revenue from the tax collected under this subchapter, including interest and penalties, shall be deposited into the dental access trust fund.

SB117,6,21 (2) The tax imposed under this subchapter is due on the date on which the person's return under ch. 71 is due without regard to any extension.

SB117,6,23 (3) The department of revenue shall levy, enforce, and collect the tax imposed under this subchapter.

SB117,7,2 (4) Sections 71.74 (1) to (3), (6), (7), and (9) to (15), 71.75 (1), (2), (4), (5), and (6) to (10), 71.76, 71.77, 71.78 (1) to (8), 71.80 (1) (a) to (d), (3), (3m), (6), (8) to (12), (14), and (18), 71.87, 71.88, 71.89, 71.90, 71.91, and 71.93, as they apply to the taxes under ch. 71, apply to the tax imposed under this subchapter.

SB117,7,7 (5) Each person subject to the tax imposed under this subchapter shall, on or before the due date, including extensions, for filing under ch. 71, file an accurate statement of the person's gross tax liability or net business income. Payments made after the due date under sub. (2) and on or before the due date under this subsection are not delinquent but are subject to interest at the rate of 12 percent per year.

SB117,7,11 (6) Persons who owe amounts under this subchapter shall mail or deliver those amounts to the department of revenue or, if the department prescribes another method of submitting or another destination, those persons shall use that other method or submit those amounts to that other destination.

SB117, s. 10 Section 10. 250.17 of the statutes is created to read:

SB117,7,16 250.17 Grants for dental public health and dental education projects. From the appropriation under s. 20.435 (4) (xn), the department shall, upon application from qualified entities, award moneys in each fiscal year for all of the following:

SB117,7,17 (1) Dental public health projects.

SB117,7,19 (2) Dental education projects, including projects affiliated with the Marquette University School of Dentistry.

SB117, s. 11 Section 11. Effective dates. This act takes effect on the day after publication, except as follows:

SB117,7,23 (1) The treatment of sections 20.435 (4) (o), (xm), and (xn), 49.45 (3) (n), and 250.17 of the statutes takes effect on January 1, 2009.

SB117,7,24 (End)