2011 - 2012 LEGISLATURE
September 28, 2011 - Introduced by Representatives Stone, Honadel, Staskunas,
Mursau, Pasch, Kooyenga, Fields, Spanbauer, Richards and Turner,
cosponsored by Senators Darling and Zipperer. Referred to Committee on
Transportation. Referred to Joint Survey Committee on Tax Exemptions.
1An Act to amend
20.370 (2) (cf), 20.395 (5) (cq), 20.395 (5) (hq), 20.395 (5) (hx), 2
77.54 (57) (b) 1., 77.54 (57) (b) 2., 110.20 (2), 110.20 (8) (am) 1., 110.21, 110.215, 3
285.39 (3) (a) and 341.26 (2m) (am); and to create
20.395 (5) (cr), 70.11 (27m), 4
70.111 (27), 70.111 (28), 77.54 (57) (a) 5m., 77.54 (60), 85.63, 110.20 (9) (o), 5
110.20 (10) (e), 238.07 (4) and 285.30 (7) of the statutes; relating to: a sales and
6use tax exemption for extended-range electric vehicles; a property tax
7exemption for tangible personal property used to recharge electric vehicles; the
8motor vehicle emission inspection and maintenance program and payments to
9the Wisconsin Economic Development Corporation related to extended-range
10electric vehicles; a property and sales and use tax exemption for certain
1machinery and tangible personal property used to conduct research; and
2making an appropriation.
Analysis by the Legislative Reference Bureau
Sales tax exemptions
This bill provides a sales and use tax exemption for extended-range electric
vehicles that are licensed for highway use.
Property tax exemptions
This bill exempts from property taxes all tangible personal property used
exclusively to provide electricity to recharge electric vehicles that are licensed for
This bill also creates a property tax exemption and a sales and use tax
exemption for machinery and other tangible personal property used for qualified
research by persons engaged primarily in manufacturing, silviculture, or
biotechnology in this state.
Vehicle emission inspections and payments related to electric vehicles
Current law requires the Department of Transportation (DOT) to conduct the
motor vehicle emission inspection and maintenance program (I/M program) in
counties in which the air quality does not meet certain federal standards
(nonattainment counties). Under the I/M program, most motor vehicles that are
subject to emission limitations established by the Department of Natural Resources
(DNR) must pass periodic emission inspections and may not be registered by DOT
unless they have passed these inspections. Most nonexempt motor vehicles must
undergo an initial emission inspection in the fourth year after the vehicle's model
year and additional emission inspections every two years thereafter. DOT may
contract with third parties to perform vehicle emission inspections under the I/M
program. The costs of administering the program, including contracting for emission
inspections, are primarily paid by DOT from the transportation fund, although a
small portion of the costs are paid by DNR from the general fund.
This bill terminates the I/M program on June 30, 2013, if termination of the
program on that date is consistent with the requirements under federal law or if this
state receives a waiver of the requirements under federal law or approval from the
applicable federal agency to terminate the program. If any of these conditions are
satisfied so that termination may occur, DOT may not thereafter enter into, or renew
or extend, any contract to perform testing and inspections under the program for a
period that extends beyond June 30, 2013. The bill also eliminates the requirement
that DOT's testing and inspection contracts must be for at least three years.
Under the bill, beginning on July 1, 2013, DOT must pay to the Wisconsin
Economic Development Corporation (WEDC) amounts appropriated for these
payments if the I/M program is terminated on June 30, 2013. These payments must
be used for purposes related to the research, production, promotion, and use of
extended-range electric vehicles primarily in the nonattainment counties. The bill
does not provide funding for these payments in the 2011-13 fiscal biennium. For
each year in which DOT makes payments to WEDC, WEDC must submit to the
presiding officer of each house of the legislature an audited financial statement of its
use of the payments, prepared in accordance with generally accepted accounting
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state and local 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:
AB278, s. 2
20.370 (2) (cf) of the statutes is amended to read:
(cf) Air management — motor vehicle emission inspection and
5maintenance program, state funds.
The amounts in the schedule for the 6
administration of the motor vehicle emission inspection and maintenance program 7
under s. 285.30. If this program is terminated on June 30, 2013, for the reasons
8specified in s. 110.20 (2), no moneys may be encumbered from this appropriation
9account after June 30, 2013.
AB278, s. 3
20.395 (5) (cq) of the statutes is amended to read:
(cq) Vehicle registration, inspection and maintenance, driver
2licensing, and aircraft registration, state funds.
The amounts in the schedule for 3
administering the vehicle registration and driver licensing program, including the 4
traffic violation and registration program and the driver license reinstatement 5
training program under s. 85.28, for administering the motor vehicle emission
6inspection and maintenance program under s. 110.20,
for the training of inspectors 7
under s. 110.22, for administering the fuel tax and fee reporting program under s. 8
341.45, for administering the aircraft registration program under s. 114.20 and to 9
compensate for services performed, as determined by the secretary of transportation, 10
by any county providing registration services.
AB278, s. 4
20.395 (5) (cr) of the statutes is created to read:
(cr) Vehicle inspection and maintenance; payments; state funds.
amounts in the schedule for administering the motor vehicle emission inspection and 14
maintenance program under s. 110.20 or, if this program is terminated on June 30, 15
2013, for the reasons specified in s. 110.20 (2), for making payments under s. 85.63.
AB278, s. 5
20.395 (5) (hq) of the statutes is amended to read:
(hq) Motor vehicle emission inspection and maintenance program;
18contractor costs and equipment grants; payments; state funds.
The amounts in the 19
schedule to provide for contracts for the operation of inspection stations under s. 20
110.20 and for the motor vehicle emission control equipment grant program under 21
s. 110.215 or, if these programs are terminated on June 30, 2013, for the reasons
22specified in s. 110.20 (2), for making payments under s. 85.63
AB278, s. 6
20.395 (5) (hx) of the statutes is amended to read:
(hx) Motor vehicle emission inspection and maintenance programs,
All moneys received from the federal government for the purpose of
the motor vehicle emission inspection and maintenance program under s. 110.20, for 2
such purposes. If this program is terminated on June 30, 2013, for the reasons
3specified in s. 110.20 (2), no moneys may be encumbered from this appropriation
4account after June 30, 2013.
AB278, s. 7
70.11 (27m) of the statutes is created to read:
70.11 (27m) Research machinery and equipment.
(a) In this subsection:
1. "Biotechnology" has the meaning given in s. 77.54 (57) (a) 1f.
2. "Machinery" has the meaning given in sub. (27) (a) 2.
3. "Manufacturing" has the meaning given in sub. (27) (a) 3.
4. "Primarily" means more than 50 percent.
5. "Qualified research" means qualified research as defined under section 41 12
(d) (1) of the Internal Revenue Code.
6. "Silviculture" means theory and practice of controlling regeneration, 14
composition, and growth of stands of forest vegetation using knowledge of the life 15
history, characteristics, and ecology of forest trees through:
a. Regeneration treatment.
b. Liberation cutting.
d. Crown thinning.
e. Improvement cutting.
g. Site preparation.
7. "Used exclusively" has the meaning given in sub. (27) (a) 8.
(b) Machinery and equipment, including attachments, parts, and accessories, 2
used by persons who are engaged primarily in manufacturing, silviculture, or 3
biotechnology in this state and are used exclusively and directly in qualified 4