LRB-0385/5
ARG/JK/MPG:wlj:rs
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.
AB278,2,2
1An Act to amend 20.370 (2) (cf), 20.395 (5) (cq), 20.395 (5) (hq), 20.395 (5) (hx),
277.54 (57) (b) 1., 77.54 (57) (b) 2., 110.20 (2), 110.20 (8) (am) 1., 110.21, 110.215,
3285.39 (3) (a) and 341.26 (2m) (am); and
to create 20.395 (5) (cr), 70.11 (27m),
470.111 (27), 70.111 (28), 77.54 (57) (a) 5m., 77.54 (60), 85.63, 110.20 (9) (o),
5110.20 (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
highway use.
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
principles.
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
3Section
2. 20.370 (2) (cf) of the statutes is amended to read:
AB278,3,94
20.370
(2) (cf)
Air management — motor vehicle emission inspection and
5maintenance program, state funds. The amounts in the schedule for the
6administration of the motor vehicle emission inspection and maintenance program
7under 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
10Section
3. 20.395 (5) (cq) of the statutes is amended to read:
AB278,4,10
120.395
(5) (cq)
Vehicle registration, inspection and maintenance, driver
2licensing, and aircraft registration, state funds. The amounts in the schedule for
3administering the vehicle registration and driver licensing program, including the
4traffic violation and registration program and the driver license reinstatement
5training program under s. 85.28,
for administering the motor vehicle emission
6inspection and maintenance program under s. 110.20, for the training of inspectors
7under s. 110.22, for administering the fuel tax and fee reporting program under s.
8341.45, for administering the aircraft registration program under s. 114.20 and to
9compensate for services performed, as determined by the secretary of transportation,
10by any county providing registration services.
AB278, s. 4
11Section
4. 20.395 (5) (cr) of the statutes is created to read:
AB278,4,1512
20.395
(5) (cr)
Vehicle inspection and maintenance; payments; state funds. The
13amounts in the schedule for administering the motor vehicle emission inspection and
14maintenance program under s. 110.20 or, if this program is terminated on June 30,
152013, for the reasons specified in s. 110.20 (2), for making payments under s. 85.63.
AB278, s. 5
16Section
5. 20.395 (5) (hq) of the statutes is amended to read:
AB278,4,2217
20.395
(5) (hq)
Motor vehicle emission inspection and maintenance program;
18contractor costs and equipment grants; payments; state funds. The amounts in the
19schedule to provide for contracts for the operation of inspection stations under s.
20110.20 and for the motor vehicle emission control equipment grant program under
21s. 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
23Section
6. 20.395 (5) (hx) of the statutes is amended to read:
AB278,5,424
20.395
(5) (hx)
Motor vehicle emission inspection and maintenance programs,
25federal funds. All moneys received from the federal government for the purpose of
1the motor vehicle emission inspection and maintenance program under s. 110.20, for
2such 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
5Section
7. 70.11 (27m) of the statutes is created to read:
AB278,5,66
70.11
(27m) Research machinery and equipment. (a) In this subsection:
AB278,5,77
1. "Biotechnology" has the meaning given in s. 77.54 (57) (a) 1f.
AB278,5,88
2. "Machinery" has the meaning given in sub. (27) (a) 2.
AB278,5,99
3. "Manufacturing" has the meaning given in sub. (27) (a) 3.
AB278,5,1010
4. "Primarily" means more than 50 percent.
AB278,5,1211
5. "Qualified research" means qualified research as defined under section
41 12(d) (1) of the Internal Revenue Code.
AB278,5,1513
6. "Silviculture" means theory and practice of controlling regeneration,
14composition, and growth of stands of forest vegetation using knowledge of the life
15history, characteristics, and ecology of forest trees through:
AB278,5,1616
a. Regeneration treatment.
AB278,5,1717
b. Liberation cutting.
AB278,5,1818
c. Thinning.
AB278,5,1919
d. Crown thinning.
AB278,5,2020
e. Improvement cutting.
AB278,5,2121
f. Planting.
AB278,5,2222
g. Site preparation.
AB278,5,2424
7. "Used exclusively" has the meaning given in sub. (27) (a) 8.
AB278,6,4
1(b) Machinery and equipment, including attachments, parts, and accessories,
2used by persons who are engaged primarily in manufacturing, silviculture, or
3biotechnology in this state and are used exclusively and directly in qualified
4research.
AB278, s. 8
5Section
8. 70.111 (27) of the statutes is created to read:
AB278,6,96
70.111
(27) Charging stations. All tangible personal property used exclusively,
7as defined in s. 70.11 (27) (a) 8., to provide electricity to recharge electric vehicles that
8are licensed for highway use, regardless of the extent to which the tangible personal
9property is fastened to, connected to, or built into real property.
AB278, s. 9
10Section
9. 70.111 (28) of the statutes is created to read:
AB278,6,1111
70.111
(28) Research property. (a) In this subsection:
AB278,6,1212
1. "Biotechnology" has the meaning given in s. 77.54 (57) (a) 1f.
AB278,6,1313
2. "Manufacturing" has the meaning given in s. 70.11 (27) (a) 3.
AB278,6,1414
3. "Primarily" means more than 50 percent.
AB278,6,1615
4. "Qualified research" means qualified research as defined under section
41 16(d) (1) of the Internal Revenue Code.
AB278,6,1717
5. "Silviculture" has the meaning given in s. 70.11 (27m) (a) 6.
AB278,6,1818
6. "Used exclusively" has the meaning given in s. 70.11 (27) (a) 8.
AB278,6,2219
(b) Tangible personal property used by persons who are engaged primarily in
20manufacturing, silviculture, or biotechnology in this state, if the tangible personal
21property is consumed or destroyed or loses its identity while being used exclusively
22and directly in qualified research.
AB278, s. 10
23Section
10. 77.54 (57) (a) 5m. of the statutes is created to read:
AB278,6,2424
77.54
(57) (a) 5m. "Silviculture" has the meaning given in s. 70.11 (27m) (a) 6.
AB278,7,63
77.54
(57) (b) 1. Machinery and equipment, including attachments, parts, and
4accessories, that are sold to persons who are engaged primarily in manufacturing
,
5silviculture, or biotechnology in this state and are used exclusively and directly in
6qualified research.
AB278,7,139
77.54
(57) (b) 2. Tangible personal property or item or property under s. 77.52
10(1) (b) or (c) that is sold to persons who are engaged primarily in manufacturing
,
11silviculture, or biotechnology in this state, if the tangible personal property or item
12or property under s. 77.52 (1) (b) or (c) is consumed or destroyed or loses its identity
13while being used exclusively and directly in qualified research.
AB278, s. 13
14Section
13. 77.54 (60) of the statutes is created to read:
AB278,7,2515
77.54
(60) The sales price from the sales of and the storage, use, or other
16consumption of extended-range electric vehicles, as defined in s. 85.63 (1), that are
17licensed for highway use, including accessories and parts for such vehicles, and
18purchased during the period beginning on the effective date of this subsection ....
19[LRB inserts date], and ending on December 31, 2022, except that the exemption
20under this subsection that applies to batteries for extended-range electric vehicles
21ends on December 31, 2025. The exemption under this subsection applies regardless
22of whether the vehicles are sold new or used. The taxes imposed under this
23subchapter on the vehicles, accessories, and parts described under this subsection
24after the exemptions under this subsection expire shall be deposited into the
25transportation fund.
AB278, s. 14
1Section
14. 85.63 of the statutes is created to read:
AB278,8,9
285.63 Payments to the Wisconsin Economic Development Corporation. 3(1) In this section, "extended-range electric vehicle" means a vehicle that is
4equipped with an electric motor and energy storage device capable of propelling the
5vehicle, without other methods of propulsion, for at least 30 miles on a single energy
6charge, but does not include a "low-speed vehicle," as defined in s. 340.01 (27h), or
7a golf cart. An "extended-range electric vehicle" may incorporate additional
8methods of propulsion, including a chemically fueled internal combustion engine
9that is capable of operating on gasoline, diesel fuel, or alternative fuels.
AB278,8,13
10(2) (a) Beginning on July 1, 2013, the department shall pay to the Wisconsin
11Economic Development Corporation under ch. 238 the amounts appropriated under
12s. 20.395 (5) (cr) and (hq) if the inspection and maintenance program under s. 110.20
13is terminated as provided in s. 110.20 (2).
AB278,8,1714
(b) Payments under par. (a) shall be used for purposes related to the research,
15production, promotion, and use of extended-range electric vehicles primarily in the
16counties of Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Washington, and
17Waukesha.
AB278, s. 15
18Section
15. 110.20 (2) of the statutes is amended to read:
AB278,9,219
110.20
(2) Program established. The department shall establish an inspection
20and maintenance program as provided in this section.
This program shall terminate
21on, and the provisions of this section do not apply after, June 30, 2013, if termination
22of the program on that date is consistent with the requirements of the federal act or
23if this state receives a waiver of the requirements of the federal act or approval from
24the applicable federal agency to terminate the program. If this program is
25terminated for the reasons specified in this subsection, the department shall provide
1for notice of such termination to be published by the legislative reference bureau in
2the Wisconsin Administrative Register under s. 35.93 (4).
AB278, s. 16
3Section
16. 110.20 (8) (am) 1. of the statutes is amended to read: