AB1003: Bill Text

LRB-1460/1

JK:ahe

2017 - 2018 LEGISLATURE

2017 Assembly BILL 1003

March 7, 2018 - Introduced by Representatives Kulp, Felzkowski, Katsma, Neylon, Sanfelippo, Spiros and Thiesfeldt, cosponsored by Senators Marklein, Craig, Roth and Wanggaard. Referred to Committee on Housing and Real Estate.

AB1003,1,12 An Act to repeal 66.1113 (1) (d) 1. to 21., 70.995 (2) (a) to (w), 77.994 (2) and 281.58 (1) (c) 1. a. to e.; to amend 66.1113 (1) (d) (intro.), 70.111 (22) (a), 70.111 (22) (b), 70.995 (1) (d), 70.995 (2) (intro.), 70.995 (7) (b), 77.53 (9) (a), 281.58 (1) (c) 1. (intro.), 323.60 (5) (d) 3., 710.02 (2) (e) and 710.02 (2) (f); to repeal and recreate 77.994 (1); and to create 16.316, 66.1113 (1) (d) 1m., 3m., 4m., 5m., 6m., 7m., 8m., 9m., 10m., 11m., 12m., 13m., 14m., 15m., 16m., 17m., 18m., 19m., 20m., 21m., 22m., 23m., 24m., 25m., 26m., 27m., 28m., 29m., 30m., 31m., 32m., 33m., 34m., 35m., 36m., 37m., 38m., 39m., 40m., 41m., 42m., 43m., 44m., 45m. and 46m., 70.995 (2) (am), (bm), (cm), (dm), (em), (fm), (gm), (hm), (im), (jm), (km), (Lm), (mm), (nm), (om), (pm), (qm), (rm), (sm), (tm), (um), (vm) and (wm) and 281.58 (1) (c) 1. am., bm., cm., dm., em., fm., gm., hm., im., jm., km., Lm. and mm. of the statutes; relating to: changing industrial classification codes.

Analysis by the Legislative Reference Bureau

This bill changes references to industry classifications set forth in the Standard Industrial Classification manual to those in the North American Industry Classification System, 2012 edition, and any subsequent edition. The SIC manual was last updated in 1987. Both the SIC manual and the NAICS are published by the federal government.

Industry classifications are used under current law for the following purposes:

1. To assess manufacturing property for property tax purposes. Taxpayers who own property assessed as manufacturing are also eligible to claim certain income tax credits and sales and use tax exemptions.

2. To determine whether a county or municipality may qualify as a premier resort area and impose the premier resort area sales tax on sellers in the area based on their industry classifications.

3. To determine eligibility for the property tax exemption for rented personal property.

4. To report the classification of each place of business in this state when obtaining a business tax registration certificate.

5. To administer the clean water fund program.

6. To determine which facilities must comply with toxic chemical release form requirements under federal law and submit copies of such forms to the Department of Natural Resources.

7. To determine the activities in this state in which a nonresident may hold an interest. Current law allows a nonresident to hold an interest in activities classified as manufacturing or mercantile.

This bill also requires all state agencies to use the North American Industry Classification System in order to determine the industrial classification of any property, entity, or activity included in any program administered by the agencies.

Finally, the bill requires taxation districts to assess property at full value at least once in every eight-year period and requires the Department of Revenue to assess manufacturing property at full value at least once in every eight-year period. Current law requires such assessments at least once in every five-year period.

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:

AB1003,1 Section 1 . 16.316 of the statutes is created to read:

AB1003,3,4 16.316 Industrial classification codes. (1) Notwithstanding the changes made by 2017 Wisconsin Act ... (this act), property, businesses, facilities, and activities that satisfied the industrial classifications under ss. 66.1113 (1) (d), 2015 stats., 70.111 (22), 2015 stats., 70.995 (1) (d) and (2), 2015 stats., 77.53 (9) (a), 2015 stats., 77.994 (1), 2015 stats., 281.58 (1) (c) 1., 2015 stats., 323.60 (5) (d) 3., 2015 stats., and 710.02 (2) (e) and (f), 2015 stats., before January 1, 2019, satisfy the industrial classifications under ss. 66.1113 (1) (d), 70.111 (22), 70.995 (1) (d) and (2), 77.53 (9) (a), 77.994 (1), 281.58 (1) (c) 1., 323.60 (5) (d) 3., and 710.02 (2) (e) and (f) after December 31, 2018.

AB1003,3,10 (2) Beginning on January 1, 2019, the departments, including the department of administration, shall use the North American Industry Classification System, 2012 edition, and any subsequent edition, published by the U.S. office of management and budget, in order to determine the industrial classification of any property, entity, or activity included in any program administered by the departments.

AB1003,2 Section 2. 66.1113 (1) (d) (intro.) of the statutes is amended to read:

AB1003,3,15 66.1113 (1) (d) (intro.) “Tourism-related retailers" means retailers classified in the standard industrial classification manual, 1987 North American Industry Classification System, 2012 edition, and any subsequent edition, published by the U.S. office of management and budget under the following industry numbers sectors:

AB1003,3 Section 3 . 66.1113 (1) (d) 1. to 21. of the statutes are repealed.

AB1003,4 Section 4 . 66.1113 (1) (d) 1m., 3m., 4m., 5m., 6m., 7m., 8m., 9m., 10m., 11m., 12m., 13m., 14m., 15m., 16m., 17m., 18m., 19m., 20m., 21m., 22m., 23m., 24m., 25m., 26m., 27m., 28m., 29m., 30m., 31m., 32m., 33m., 34m., 35m., 36m., 37m., 38m., 39m., 40m., 41m., 42m., 43m., 44m., 45m. and 46m. of the statutes are created to read:

AB1003,3,21 66.1113 (1) (d) 1m. 311811 — Retail bakeries.

AB1003,3,22 3m. 445291 — Baked goods stores.

AB1003,3,23 4m. 445292 — Confectionery and nut stores.

AB1003,3,24 5m. 445299 — All other specialty food stores.

AB1003,3,25 6m. 445310 — Beer, wine, and liquor stores.

AB1003,4,1 7m. 446110 — Pharmacies and drug stores.

AB1003,4,2 8m. 447110 — Gasoline stations with convenience stores.

AB1003,4,3 9m. 447190 — Other gasoline stations.

AB1003,4,4 10m. 451110 — Sporting goods stores.

AB1003,4,5 11m. 452910 — Warehouse clubs and supercenters.

AB1003,4,6 12m. 452990 — All other general merchandise stores.

AB1003,4,7 13m. 453220 — Gift, novelty, and souvenir stores.

AB1003,4,8 14m. 487110 — Scenic and sightseeing transportation, land.

AB1003,4,9 15m. 487210 — Scenic and sightseeing transportation, water.

AB1003,4,10 16m. 487990 — Scenic and sightseeing transportation, other.

AB1003,4,11 17m. 532292 — Recreational goods rental.

AB1003,4,12 18m. 561599 — All other travel arrangement and reservation services.

AB1003,4,13 19m. 611620 — Sports and recreation instruction.

AB1003,4,14 20m. 611699 — All other miscellaneous schools and instruction.

AB1003,4,15 21m. 711110 — Theater companies and dinner theaters.

AB1003,4,16 22m. 711190 — Other performing arts companies.

AB1003,4,17 23m. 711212 — Racetracks.

AB1003,4,18 24m. 711219 — Other spectator sports.

AB1003,4,20 25m. 711310 — Promoters of performing arts, sports, and similar events with facilities.

AB1003,4,22 26m. 711320 — Promoters of performing arts, sports, and similar events without facilities.

AB1003,4,23 27m. 712190 — Nature parks and other similar institutions.

AB1003,4,24 28m. 713110 — Amusement and theme parks.

AB1003,4,25 29m. 713120 — Amusement arcades.

AB1003,5,1 30m. 713210 — Casinos (except casino hotels).

AB1003,5,2 31m. 713290 — Other gambling industries.

AB1003,5,3 32m. 713910 — Golf courses and country clubs.

AB1003,5,4 33m. 713920 — Skiing facilities.

AB1003,5,5 34m. 713940 — Fitness and recreational sports centers.

AB1003,5,6 35m. 713990 — All other amusement and recreation industries.

AB1003,5,7 36m. 721110 — Hotels (except casino hotels) and motels.

AB1003,5,8 37m. 721120 — Casino hotels.

AB1003,5,9 38m. 721191 — Bed-and-breakfast inns.

AB1003,5,10 39m. 721199 — All other traveler accommodation.

AB1003,5,11 40m. 721211 — RV (recreational vehicle) parks and campgrounds.

AB1003,5,12 41m. 721214 — Recreational and vacation camps (except campgrounds).

AB1003,5,13 42m. 722410 — Drinking places (alcoholic beverages).