Under current law, a person may claim the economic development tax credit for
eligible activities in economically distressed areas of the state, as determined by
WEDC. Currently, a person may also claim a jobs tax credit equal to 10 percent of
the wages paid to employees whose wages satisfy certain thresholds.
This bill eliminates the economic development tax credit and the jobs tax credit
and creates the business development credit. Under the business development
credit, a person certified by FWDA may claim all of the following:
1. An amount not exceeding 10 percent of the amount of wages that the person
paid to an employee in a full-time position.
2. An amount not exceeding 5 percent of the amount of wages that the person
paid to an employee in a full-time position, if the eligible position is at the claimant's
business in an economically distressed area.
3. An amount not exceeding 50 percent of the costs incurred to undertake
certain job-training activities.
4. An amount not exceeding 3 percent of the personal property investment and
5 percent of the real property investment in certain capital investment projects.
5. A percentage of wages paid to a full-time employee performing corporate
headquarters functions in Wisconsin.
The bill makes technical changes to the manufacturing and agriculture tax
credit and changes the jobs tax credit appropriation from a continuing appropriation
to a sum sufficient appropriation.
The bill modifies the definitions of "Internal Revenue Code," for state income
and franchise tax purposes, in order to adopt federal law provisions related to
cooperative and small employer charity pension plans and the tribal general welfare
exclusion act.
The bill repeals expired development zone tax credits.
Property taxation
Beginning with the property tax assessments on January 1, 2017, counties will
assess all property, other than manufacturing property, within their boundaries.
Counties that are contiguous to one another may also create regional assessment
units to assess all property within the region. A first or second class city that is
conducting its own assessments as of January 1, 2015, may continue to do so, but if,
in subsequent years, the city fails to assess property at its full value, the city becomes
subject to the county or regional assessment unit assessment.
The bill increases the appropriation for the school levy property tax credits so
that the total amount distributed to claim against a person's property tax liability
is $958,600,000 in 2016 and $853,000,000 in each year thereafter. Currently, the
annual distribution is $747,400,000.
Other taxation
This bill modifies the definition of a "retailer engaged in business in this state"
for use tax purposes, so that it includes the following:
1. Any person repairing or installing equipment in this state.
2. Any person delivering goods into this state in a vehicle owned by the business
that is selling the goods.
3. Any person performing construction activities in this state.
Under current law, DOR is authorized to set off refunds due a taxpayer against
debts that the taxpayer owes state agencies, local governments, and the federal
government. If any amounts remain after the setoffs are satisfied, the taxpayer
receives the balance. The bill specifies that a taxpayer does not have any right to
refunds until the setoff procedure has been completed.
The bill excludes the operator of a distribution facility selling tangible personal
property, coins, and stamps on behalf of a third-party seller from the definition of
"retailer" for purposes of imposing and collecting sales and use taxes.
Under current law, an agent of DOR may execute a tax warrant against the
property of a delinquent taxpayer. The property may be sold, in the county in which
the warrant is filed, at a sale or auction under the same procedures that would apply
to a sheriff's sale or auction of the property. Some of the applicable procedures
require that the auction be held between 9:00 a.m. and 5:00 p.m. and that the
property be within view of those attending the sale. The bill provides that a sale or
auction of property under a DOR issued tax warrant may be conducted by DOR or
by a third-party entity. In addition, the bill authorizes DOR or the third-party entity
to hold the sale in any county in the state and in any manner that DOR believes will
bring the highest net bid or price, including an Internet-based auction or sale.
The bill changes the effective date of provisions related to sales tax return
adjustments for private label credit card bad debt from July 1, 2015, to July 1, 2017.
Transportation
Highways
Current law specifies that southeast Wisconsin freeway megaprojects are
highway projects on southeast Wisconsin freeways that have a total cost of more than
$500,000,000. DOT may not provide funding for construction of these projects
without legislative approval. This bill authorizes DOT to provide funding for
construction of the I 94 east-west project.
Under current law, the Building Commission may issue revenue bonds for
certain major highway projects and transportation administrative facilities. This
bill increases the revenue bond limit from $3,768,059,300 to $4,779,086,300.
This bill also provides that revenue bond proceeds may be expended for the
southeast Wisconsin freeway megaprojects that have been approved by the
legislature.
This bill allows general obligation bonds in an amount not exceeding
$383,386,600 under one of the provisions authorizing bonding for DOT to fund state
highway rehabilitation projects.
This bill allows general obligation bonds, in an amount not exceeding
$255,000,000, for DOT to fund major interstate bridge projects. This bill allows
general obligation bonds, in an amount not exceeding $216,800,000 for DOT to fund
high-cost state highway bridge projects.
Under current law, with several exceptions, DOT is required to ensure that
bikeways and pedestrian ways are established in all new highway construction and
reconstruction projects funded from state or federal funds. Under this bill, these
requirements are repealed.
Under current law, highway improvement projects undertaken by DOT must
be executed by contract based on bids, with limited exceptions. This bill authorizes
DOT, for no more than three highway improvement projects, to enter into contracts
using a construction manager-general contractor process. Under this process, the
department contracts with a provider of construction services to supervise the design
work for the project and, subject to an acceptable proposal, contracts with the
provider of construction services for construction of the project.
Under current law, with certain exceptions, DOT may not expend more than 1.5
percent of the project costs of any highway improvement project on elements DOT
determines are primarily related to the aesthetic preferences of communities
adjacent to the project (community sensitive solutions). Under this bill, DOT may
not expend any state funds for community sensitive solutions.
Drivers and motor vehicles
Under current law, most operator's licenses issued by DOT must be renewed
every eight years. In general, an applicant for renewal of an operator's license must
pass an eyesight test and have his or her photograph taken.
Under this bill, if an applicant for renewal of a license to operate only "Class D"
vehicles satisfies eligibility requirements established by DOT, the applicant may
apply for renewal, and DOT may renew the license, by electronic means and without
a photograph. The procedure may be used by an applicant once in each 16-year
period.
Under current law, DOT issues identification cards, to be used for identification
purposes only, to residents who do not possess valid operator's licenses. The cards
expire eight years from the date of the person's next birthday. Under this bill, an
identification card issued to a person who is 65 years of age or older at the time of
issuance does not expire.
Under current law, various rules govern the expiration of operator's licenses.
Most operator's licenses issued by DOT expire eight years after the date of issuance.
Probationary licenses and original licenses other than instruction permits expire two
years from the date of the person's next birthday. Licenses issued to certain persons
who move to the state and who have been licensed in another state expire three years
from the date of the person's next birthday.
Under this bill, specific provisions regarding the expiration date of original
licenses other than instruction permits and licenses issued to persons who move to
the state are repealed. In general, under this bill, licenses issued to persons who
move to the state will expire eight years after the date of issuance.
Under current law, the fee for the initial issuance of a license authorizing only
the operation of "Class D" vehicles is $18 and the fee for the renewal of such a license
is $24. Under this bill, the fee for the issuance or renewal of such a license, except
a probationary license, is $24 and the fee for the issuance of a probationary license
is $18.
Under current law, certain persons who transport passengers or property by
motor vehicle on highways (motor carriers) are subject to certain regulations.
Current law defines one type of motor carrier, a "private motor carrier," as "any
person except a common or contract motor carrier engaged in the transportation of
property by motor vehicle other than an automobile or trailer used therewith, upon
the public highways." Under this bill, a "private motor carrier" is defined to mean
"any person who provides transportation of property or passengers by commercial
motor vehicle and is not a contract motor carrier."
Under current law, DOT must charge an applicant for a commercial driver
license and for an endorsement to operate a school bus. This bill waives those fees
for an applicant holding a military commercial driver license.
Transportation aids
Under current law, DOT administers a transportation facilities economic
assistance and development (TEA) program. Under the program, DOT may award
a grant to a political subdivision to provide up to 50 percent of the cost of
improvements to transportation facilities, if the political subdivision provides at
least 50 percent of the cost of the improvement. This bill increases the state share
of the cost of an improvement project to 80 percent of the total project cost and
reduces the local share to 20 percent of the total project cost.
Rail and air transportation
This bill allows general obligation bonding in an amount not exceeding
$251,500,000 for railroad property acquisition and improvement and in an amount
not exceeding $79,000,000 for rail passenger route development.
Under current law, most public property is subject to local special assessment.
One exception provides that certain state highway or railway property is not subject
to local special assessment. This bill specifies that certain state property related to
freight rail service is not subject to local special assessment.
Under current law DOT may enter into sponsorship agreements under which
DOT displays material associated with the sponsor at locations owned or controlled
by DOT for a fee or provision of services. Fees received by DOT under an agreement
may be used by DOT for certain specified purposes, including the maintenance and
repair of state trunk highways and routine maintenance activities performed under
contract with DOT.
Under this bill, the fees received by DOT for the display of material at a
passenger railroad station are deposited into the transportation fund.
Other transportation
Under current law, rail transport generally is regulated by the Federal Railroad
Administration (FRA). The FRA does not regulate certain public transportation
systems that operate along a fixed guideway. This bill creates a transit safety
oversight program within DOT, under which DOT may oversee, enforce, investigate,
and audit all safety aspects of fixed guideway transit systems.
Under current law, the Building Commission may issue revenue bonds for
major highway projects and transportation administrative facilities. DOT may
deposit in a special trust fund vehicle registration and titling fee revenues that are
pledged for the repayment of these revenue bonds. This bill allows DOT to pledge
one-half of motor vehicle fuel tax revenues for the repayment of revenue bonds.
Under current law, DOT administers an elderly and disabled transportation
capital assistance program to award grants to qualified private, nonprofit
organizations and local public bodies for capital costs related to specialized vehicles
and facilities used to provide transportation services to elderly and disabled persons.
This bill changes several of the requirements of the program. Under the bill:
1) the program is not limited to capital costs; 2) the assistance beneficiary category
is changed to seniors age 65 or older; 3) DOT need not maintain an annual
application cycle; and 4) several statutory requirements that are in addition to
federal requirements are eliminated.
This bill transfers administration of the pretrial intoxicated driver
intervention grant program from DOT to DHS.
Veterans
Under current law, DVA administers a grant program for a grant of $500,000
to VETransfer, Inc. (VETransfer), an organization that provides training and other
assistance to veterans engaged in entrepreneurship. Of those moneys, VETransfer
is required to use at least $300,000 to make grants to Wisconsin veterans or their
businesses to cover costs associated with the start-up of veteran-owned businesses
located in Wisconsin, and VETransfer is authorized to use up to $200,000 to provide
entrepreneurial training and related services to Wisconsin veterans. VETransfer
must repay to the state any moneys not used by June 30, 2017.
This bill transfers that grant program to the Forward Wisconsin Development
Authority.
Under current law, DVA subsistence payments and health care assistance to
certain veterans and their dependents and a person may be eligible for those benefits
only if the person is a resident of and living in Wisconsin at the time the person
applies for the benefits. This bill eliminates that residency requirement for such
subsistence payments and health care assistance.
Also under current law, the parent of a veteran may be eligible for admission
as a resident in a veterans home in Wisconsin. The bill limits that eligibility to a
parent of a person who died while serving in the U.S. armed forces.
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.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB21,1
1Section
1. 1.12 (1) (b) of the statutes is amended to read:
AB21,50,22
1.12
(1) (b) "State agency" means an office, department, agency, institution of
3higher education, the legislature, a legislative service agency, the courts, a judicial
4branch agency, an association, society, or other body in state government that is
5created or authorized to be created by the constitution or by law, for which
1appropriations are made by law, excluding the
Wisconsin Economic Development
2Corporation Forward Wisconsin Development Authority.
AB21,2
3Section
2. 5.15 (1) (c) of the statutes is amended to read:
AB21,50,174
5.15
(1) (c) The wards established by municipal governing bodies in a division
5ordinance or resolution enacted or adopted under this section shall govern the
6adjustment of supervisory districts under s. 59.10 (2) (a) and (3) (b) and of aldermanic
7districts under s. 62.08 (1) for the purpose of local elections beginning on January 1
8of the 2nd year commencing after the year of the census until revised under this
9section on the basis of the results of the next decennial census of population unless
10adjusted under sub. (2) (f) 4.
or 5., (6) (a)
, or (7), or unless a division is required to
11effect an act of the legislature redistricting legislative districts under article IV,
12section 3, of the constitution or redistricting congressional districts. The populations
13of wards under each decennial ward division shall be determined on the basis of the
14federal decennial census and any official corrections to the census issued on or before
15the date of adoption of the division ordinance or resolution to reflect the correct
16populations of the municipality and the blocks within the municipality on April 1 of
17the year of the census.
AB21,3
18Section
3. 5.15 (2) (f) 5. of the statutes is created to read:
AB21,50,2319
5.15
(2) (f) 5. Territory that lies between an actual municipal boundary that
20existed on April 1 of the year of a federal decennial census and an intersecting
21municipal boundary that deviates from the actual municipal boundary on that date
22if the deviating boundary was used by the U.S. bureau of the census to enumerate
23the population of the municipality in that census.
AB21,4
24Section
4. 5.15 (4) (b) of the statutes is amended to read:
AB21,51,8
15.15
(4) (b) Within 5 days after adoption or enactment of an ordinance or
2resolution under this section or any amendment thereto, the municipal clerk shall
3transmit one copy of the ordinance or resolution or the amendment to the county
4clerk of each county in which the municipality is contained, accompanied by the list
5and map specified in par. (a).
If the population of the municipality exceeds 10,000,
6the municipal clerk shall furnish one copy to the legislative reference bureau at the
7same time. Each copy shall identify the name of the municipality and the county or
8counties in which it is located.
AB21,5
9Section
5. 5.15 (4) (bg) of the statutes is created to read:
AB21,51,1910
5.15
(4) (bg) No later than October 15 of each year following the year of a federal
11decennial census, each municipal clerk shall file a report with the county clerk of
12each county in which the municipality is contained confirming the boundaries of the
13municipality and of all wards in the municipality. The report shall be accompanied
14by a map of the municipality and a list of the block numbers of which the municipality
15and each ward within the municipality are comprised. Within 5 days after notice to
16the municipal clerk of a judgment that has the effect of changing the municipal
17boundaries, the clerk shall file the same report. Each report filed under this
18paragraph shall identify the name of the municipality and the county or counties in
19which it is located.
AB21,6
20Section
6. 5.15 (4) (br) of the statutes is created to read:
AB21,52,221
5.15
(4) (br) 1. Except as provided in subd. 2., no later than January 15 and July
2215 of each year, the county clerk shall transmit to the legislative technology services
23bureau a report confirming the boundaries of each municipality, ward, and
24supervisory district in the county together with a map of the county, in an electronic
1format approved by the legislative technology services bureau. Each report shall be
2current to the nearest January 1 or July 1 preceding the date of the report.
AB21,52,73
2. In each year following the year of a federal decennial census, the July report
4shall instead be transmitted no later than November 1 and shall be current to the
5date of the report. The November 1 report shall be accompanied by a list of the block
6numbers of which the county and each municipality and ward within the county are
7comprised.
AB21,7
8Section
7. 5.15 (7) of the statutes is amended to read:
AB21,52,249
5.15
(7) If a new
town municipality is created or if part of a
town municipality 10is annexed to a city or village during a decennial period after April 1 of the year of
11the federal decennial census, the
town board governing body of any
town 12municipality to which territory is attached or from which territory is detached,
13without regard to the time provisions of sub. (1) (b), may, by ordinance or resolution,
14create new wards or adjust the existing wards in that
town municipality to the extent
15required to reflect the change. If a municipality is consolidated with another
16municipality during a decennial period after April 1 of the year of the federal
17decennial census, the governing body of the consolidated municipality, without
18regard to the time provisions under sub. (1) (b), may, by ordinance or resolution,
19create new wards or adjust the existing wards of the municipality to the extent
20required to reflect the change. No ward line adjustment under this subsection may
21cross the boundary of a congressional, assembly, or supervisory district.
The Within
225 days after adoption of the ordinance or resolution, the municipal clerk shall
23transmit copies of the ordinance or resolution making the adjustment
to the county
24clerk in compliance with sub. (4) (b).
AB21,8
25Section
8. 7.33 (1) (c) of the statutes is amended to read:
AB21,53,3
17.33
(1) (c) "State agency" has the meaning given under s. 20.001 (1) and
2includes an authority created under subch. II of ch. 114 or ch.
36, 231, 232, 233,
234, 3or 237.
AB21,9
4Section
9. 11.36 (1) of the statutes is amended to read:
AB21,53,145
11.36
(1) No person may solicit or receive from any state officer or employee or
6from any officer or employee of the University of Wisconsin Hospitals and Clinics
7Authority
or the University of Wisconsin System Authority any contribution or
8service for any political purpose while the officer or employee is engaged in his or her
9official duties, except that an elected state official may solicit and receive services not
10constituting a contribution from a state officer or employee or an officer or employee
11of the University of Wisconsin Hospitals and Clinics Authority
or the University of
12Wisconsin System Authority with respect to a referendum only. Agreement to
13perform services authorized under this subsection may not be a condition of
14employment for any such officer or employee.
AB21,10
15Section
10. 11.36 (3) of the statutes is amended to read:
AB21,53,2016
11.36
(3) Every person who has charge or control in a building, office or room
17occupied for any purpose by this state, by any political subdivision thereof or by the
18University of Wisconsin Hospitals and Clinics Authority
or the University of
19Wisconsin System Authority shall prohibit the entry of any person into that building,
20office or room for the purpose of making or receiving a contribution.
AB21,11
21Section
11. 11.36 (4) of the statutes is amended to read:
AB21,54,222
11.36
(4) No person may enter or remain in any building, office or room
23occupied for any purpose by the state, by any political subdivision thereof or by the
24University of Wisconsin Hospitals and Clinics Authority
or the University of
1Wisconsin System Authority or send or direct a letter or other notice thereto for the
2purpose of requesting or collecting a contribution.
AB21,12
3Section
12. 13.101 (6) (a) of the statutes is amended to read:
AB21,54,224
13.101
(6) (a) As an emergency measure necessitated by decreased state
5revenues and to prevent the necessity for a state tax on general property, the
6committee may reduce any appropriation made to any board, commission,
7department, or the University of Wisconsin System, or to any other state agency or
8activity, by such amount as it deems feasible, not exceeding 25% of the
9appropriations, except appropriations made by ss. 20.255 (2) (ac), (bc), (bh), (cg), and
10(cr), 20.395 (1), (2) (cq), (eq) to (ex) and (gq) to (gx), (3), (4) (aq) to (ax), and (6) (af),
11(aq), (ar), and (au), 20.435
(7) (4) (a) and
(5) (da), and 20.437 (2) (a) and (dz) or for
12forestry purposes under s. 20.370 (1), or any other moneys distributed to any county,
13city, village, town, or school district. Appropriations of receipts and of a sum
14sufficient shall for the purposes of this section be regarded as equivalent to the
15amounts expended under such appropriations in the prior fiscal year which ended
16June 30. All functions of said state agencies shall be continued in an efficient
17manner, but because of the uncertainties of the existing situation no public funds
18should be expended or obligations incurred unless there shall be adequate revenues
19to meet the expenditures therefor. For such reason the committee may make
20reductions of such appropriations as in its judgment will secure sound financial
21operations of the administration for said state agencies and at the same time
22interfere least with their services and activities.