SB301: Bill Text

Sales and use tax

Under current law, a county may impose a sales and use tax at the rate of 0.5 percent of the sales price of tangible personal property, goods, and services sold or used in the county. The tax may be imposed only for the purpose of reducing the property tax levy.

Under the bill, a county in which a first class city is located (currently, Milwaukee County) may impose an additional sales and use tax at a rate not exceeding 0.375 percent of the sales price of tangible personal property, goods, and services sold or used in the county. Under the bill, DOR keeps 1.75 percent of the revenue from the additional tax for administrative expenses. The bill requires that the remaining revenue be used to pay the unfunded actuarial accrued liability of the county's retirement system and for public safety services. Under the bill, the tax does not take effect unless it is approved by the voters in the county at a referendum and the county chooses to join the WRS for all its new employees.

The bill also allows a first class city to impose a sales and use tax at a rate not exceeding 2.0 percent of the sales price of tangible personal property, goods, and services sold or used in the city. Under the bill, DOR keeps 1.75 percent of the revenue from the additional tax for administrative expenses. The bill requires that the remaining revenue be used to pay the unfunded actuarial accrued liability of the city's retirement system and for public safety services. Similar to the tax imposed by the county, the tax imposed by the city does not take effect unless it is approved by the voters in the city at a referendum and the city chooses to join the WRS for all its new employees.

The bill also requires the county and city to annually submit a report to JCF detailing how the tax revenues were spent in the previous year. In addition, the bill requires the Legislative Audit Bureau to conduct a financial audit of the taxes imposed by the county and city once every five years, to annually conduct a financial audit of the retirement systems of the county and city, and to, at least every five years, contract to audit the actuarial performance of those retirement systems.

Under the bill, if in any year the county or city does not make the required contribution to the unfunded actuarial accrued liability of its respective retirement system, DOR will reduce the amount of the county's or city's shared revenue payment by the amount of the unpaid contribution and pay that amount towards the unfunded actuarial accrued liability. Also, if in any year the county or city uses the sales tax revenue for a purpose not authorized under the bill, DOR will reduce the shared revenue payment to the county or city, as appropriate, by the amount of the unauthorized expenditure.

Under the bill, the sales tax is no longer imposed after the county or city has paid in full the unfunded actuarial accrued liability of its respective retirement system.

Under current law, Milwaukee County and the City of Milwaukee each operate their own retirement systems, providing retirement benefits to individuals employed by the county or city. The bill requires that employees initially hired by Milwaukee County or the City of Milwaukee after December 31 in the year the county adopts an ordinance to impose a 1 percent sales and use tax and elects to join the WRS are covered under the WRS and not the county's or city's retirement system.

Provisions applicable to city of Milwaukee and Milwaukee County

In addition, the bill provides certain requirements or limitations for a city or county that is authorized to impose the sales tax under the bill. Among these requirements and limitations that apply to a first class city are:

1. The total amount of spending for cultural or entertainment matters or involving partnerships with nonprofit groups is limited to not more than 5 percent of the total city budget.

2. Net new program spending or position authorizations may occur only upon a two-thirds vote of all of the members of the common council.

3. The city may not use moneys raised by levying taxes for funding any position for which the principal duties consist of promoting individuals on the basis of their race, color, ancestry, national origin, or sexual orientation.

4. The city may not use moneys raised by levying taxes for developing, operating, or maintaining a rail fixed guideway transportation system (street car).

5. The city must maintain the level of law enforcement and fire department staffing at at least the current level.

6. The school board of the school district that is located in the first class city must ensure that 25 school resource officers are present at schools in the school district during school hours and that a reasonable number are present during other school-related activities, and that, beginning in the 2025-26 school year, the school board must consider the statistics required to be collected on violations of municipal disorderly conduct ordinances and certain crimes, as further described below, to allocate the school resource officers to specific schools in the school district.

7. Under current law, project costs for a tax incremental district (TID) in the city of Milwaukee may not include direct or indirect expenses related to operating a street car in the city of Milwaukee. The bill also excludes expenses relating to developing or constructing a street car from inclusion as project costs in a TID in the city of Milwaukee, with the exception of development and construction costs for a project referred to as the Lakefront Line.

8. Current law authorizes the FPC of a first class city to prescribe general policies and standards for the police and fire departments and to prescribe rules for the government of the members of the departments. Also under current law, an FPC of a first class city consists of seven or nine members selected by the mayor. The bill requires that of those members at least one is selected from a list provided by the employee association that represents nonsupervisory law enforcement officers and the employee association that represents fire fighters. Individuals included in these lists must be residents of the city, must have professional law enforcement experience or professional fire fighting experience, respectively, and may not be currently employed as a professional law enforcement officer or fire fighter, respectively. The bill also transfers authority for the control and management of the police and fire departments from the FPC to the chief of each department. Policies established for the control and management of the departments may be modified or suspended by a two-thirds vote of the common council.

Among the requirements and limitations that apply to a county in which a first class city is located are:

1. The total amount of spending for cultural or entertainment matters or involving partnerships with nonprofit groups is limited to not more than 5 percent of the total county budget.

2. Net new program spending or position authorizations may occur only upon a two-thirds vote of all of the members of the county board.

Elimination of the personal property tax

Under current law, beginning with the property tax assessments as of January 1, 2018, machinery, tools, and patterns, not including those items used in manufacturing, are exempt from the personal property tax. However, beginning in 2019, the state pays each taxing jurisdiction an amount equal to the property taxes levied on those items of personal property for the property tax assessments as of January 1, 2017.

Under the bill, beginning with the property tax assessments as of January 1, 2024, no items of personal property will be subject to the property tax.

Under current law, generally, public utilities, including railroad companies, are subject to a license fee imposed by the state instead of being subject to local property taxes. This bill creates a personal property tax exemption to the license fee for railroad companies in order to comply with the requirements of the federal Railroad Revitalization and Regulatory Reform Act.

The bill also makes a number of technical changes related to the repeal of the personal property tax, such as providing a process whereby manufacturing establishments located in this state that do not own real property in this state may continue to claim the manufacturing income tax credit.

Other provisions

Prohibition of certain discrimination

The bill prohibits a political subdivision, which means a county, city, village, or town, from discriminating against or providing a preference in hiring or contracting based on race, color, ancestry, national origin, or sexual orientation unless it is required to receive federal aid.

Collection of certain data related to criminal or ordinance violations occurring on school property

Beginning in the 2024-25 school year, the bill requires public high schools and private high schools participating in a parental choice program to collect statistics on violations of municipal disorderly conduct ordinances and certain crimes, including homicide, sexual assault, burglary, battery, and arson, that occur on school property or on transportation provided by the school. The high school must collect statistics about the crime or disorderly conduct only if 1) it occurred on a weekday between the hours of 6 a.m. and 10 p.m.; 2) it is reported to law enforcement; and 3) a charge is filed or citation is issued. The bill further requires that the collected statistics be reported to the Department of Public Instruction and included on the annual school and school district accountability report. In addition, the bill clarifies that DPI may not consider crimes statistics reported by a school or school district for purposes of determining a school or school district's performance on the annual school and school district accountability report.

Maintenance of effort for protective services

The bill requires political subdivisions to certify to DOR that the political subdivision is maintaining a level of law enforcement and fire and emergency medical services that is at least equivalent to that provided in the previous year. County and municipal aid to political subdivisions that do not satisfy the maintenance of effort requirement are reduced by 15 percent.

Advisory referenda

The bill prohibits a county or municipality from holding an advisory referendum.

Local government spending reports

The bill requires DOR to annually produce a comparative local government spending report from information DOR annually collects from counties, municipalities, and public officers regarding the collection of taxes, receipts from licenses, and the expenditure of public funds and to create and maintain a web page on its Internet site to display the information contained in the report.

Local health officer

The bill prohibits a local health officer from issuing a mandate to close a business in order to control an outbreak or epidemic of communicable disease for longer than 14 days unless the governing body of the governmental unit in which the order is intended to apply approves an extension. Under the bill, no approved extension may be longer than 14 days.

Levy limit reduction for service transfers

Generally under current law, local levy limits are applied to the property tax levies that are imposed by a political subdivision in December of each year. Current law prohibits any political subdivision from increasing its levy by a percentage that exceeds its “valuation factor," which is defined as the greater of either 0 percent or the percentage change in the political subdivision's equalized value due to new construction, less improvements removed.

Also under current law, if a political subdivision transfers to another governmental unit the responsibility to provide a service that it provided in the previous year, the levy increase limit otherwise applicable in the current year is decreased to reflect the cost that the political subdivision would have incurred to provide that service. Similarly, if a political subdivision increases the services that it provides by adding the responsibility for providing a service transferred to it by another governmental unit that provided the service in the previous year, the levy increase limit otherwise applicable in the current year is increased to reflect the cost of that service. The bill repeals both of these provisions.

Local regulation of nonmetallic quarries

The bill limits the ability of a political subdivision to place limits or conditions on the operation of quarries from which nonmetallic materials that are used primarily in the construction or repair of public transportation facilities, public infrastructure, or private construction or transportation projects are extracted, as follows:

1. The bill prohibits a political subdivision from requiring a quarry operator to obtain a permit unless, prior to the establishment of quarry operations, the political subdivision enacts an ordinance requiring a permit. The bill also prohibits a political subdivision from, during the duration of a permit that is required in order to operate a quarry, adding conditions to that permit unless the permittee consents and from requiring compliance with another political subdivision's requirements as a condition of the permit. In addition, if the permit is a permit that is granted pursuant to an ordinance that is not a zoning ordinance, any conditions in the permit must be related to the purpose of the ordinance authorizing the permit and be based on substantial evidence.

2. Under the bill, if a political subdivision enacts an ordinance, other than a zoning ordinance, regulating the operation of a quarry that was not in effect when quarry operations began at a quarry, the ordinance may not be applied to that quarry or to land that is contiguous to the land on which the quarry is located that a) has remained under common ownership, leasehold, or control with the land on which the quarry is located since the time the ordinance was enacted; b) can be shown to have been intended for quarry operations prior to the enactment of the ordinance; and c) is located in the same political subdivision.

3. The bill prohibits a political subdivision from limiting the times that activities related to extracting or processing minerals at a quarry occur if the minerals will be used in a public works project that requires nighttime construction or an emergency repair.

4. Under the bill, a political subdivision may not limit blasting at a quarry, except that the political subdivision may require the operator of the quarry to do any of the following: a) provide preblasting notice to owners of structures within the affected area and to the political subdivision; b) cause a third party to conduct a building survey of structures within the affected area; c) cause a third party to conduct a survey of and test any wells within the affected area; d) maintain records and reports; e) comply with other properly adopted local blasting regulations that are not related to airblast, flyrock, or ground vibration; and f) comply with requirements under current law and rules promulgated by the Department of Safety and Professional Services related to blasting.

The bill also allows a political subdivision to petition DSPS for an order granting the political subdivision the authority to impose additional restrictions and requirements related to blasting on a quarry operator that are more restrictive than requirements under current law and rules promulgated by DSPS related to blasting. DSPS may not charge a fee for the petition, but if the petition is related to the potential impact of blasting on a qualified historic building, DSPS may require the quarry operator to pay the costs of an impact study related to the building.

Emergency medical responder certification requirements

The bill also affects the requirements for certification as an emergency medical responder, formally known as a first responder. First, the bill prohibits the Department of Health Services from requiring an applicant who is applying for certification as an emergency medical responder to register with or take the examination of the National Registry of Emergency Medical Technicians (NREMT). An ambulance service provider or another emergency medical services program is allowed to require an emergency medical responder to register with or take the examination of the NREMT. Current rules promulgated by DHS require an applicant for a license as an emergency medical services practitioner at any level, including an emergency medical responder, to be registered with the NREMT or, in certain circumstances, to complete the NREMT examination.

Currently, an applicant for certification as an emergency medical responder who demonstrates to DHS that the education, training, instruction, or other experience gained by the applicant in connection with military service is substantially equivalent to the course required for emergency medical responder certification is considered to have satisfied completion of that course. The bill requires DHS to issue the certification for an applicant who has relevant education, training, and experience gained in connection with military service. For applicants with military service who are not affiliated with an ambulance service provider, the determination of whether an applicant has obtained the relevant education, training, and experience remains with DHS as under current law. For applicants with military service intending to volunteer for or be employed by an ambulance service provider or emergency medical services program, the determination of whether an applicant has obtained relevant education, training, and experience is solely within the discretion of that ambulance service provider or emergency medical services program.

Ambulance staffing

The bill allows an ambulance that is engaged in a nonemergent interfacility transport to be staffed with one emergency medical technician and one individual who has a certification in cardiopulmonary resuscitation. Currently, an ambulance may be staffed with any of the following: any two emergency medical services practitioners, licensed registered nurses, licensed physician assistants or physicians, or any combination of those individuals; one emergency medical services practitioner plus one individual with an emergency medical services practitioner training permit; or, for certain rural ambulance service providers, one emergency medical technician and one emergency medical responder.

Under the bill, an ambulance service provider or emergency medical services program may not prohibit an emergency medical responder or emergency medical services practitioner who is employed by or volunteering with it from being employed by or volunteering with another ambulance service provider or emergency medical services program.

Rural ambulance service providers

Under current law, a rural ambulance service provider may upgrade the service level of an ambulance to the highest level of license of any emergency services practitioner staffing that ambulance if approved by the medical director. The bill prohibits DHS from requiring a rural ambulance service provider to stock an ambulance with equipment to perform all functions that the emergency medical services practitioner with the highest level of license staffing the ambulance may perform in order to upgrade its ambulance service level.

Joint Committee on Finance approval of stewardship projects

The bill requires the Department of Natural Resources to obtain support from local governments before taking certain steps with respect to activities or projects that will be funded under the Warren Knowles-Gaylord Nelson Stewardship 2000 Program.

Current law authorizes the state to incur public debt for certain conservation activities under the stewardship program, which is administered by DNR. The state may incur this debt to acquire land for the state for conservation purposes and for property development activities and may award grants or state aid to certain local governmental units and nonprofit conservation organizations to acquire land for these purposes.

Under current law, under certain situations, stewardship moneys may not be obligated for a given project or activity unless DNR first notifies JCF in writing of the proposal. If the JCF cochairpersons do not notify DNR within 14 working days after DNR's notification that JCF has scheduled a meeting to review the proposal, DNR may obligate the moneys. If, within 14 working days after DNR's notification, the JCF cochairpersons notify DNR that JCF has scheduled a meeting to review the proposal, DNR may obligate the moneys only upon JCF's approval. This process is generally known as “passive review.”

Current law provides that each city, village, or town (municipality) and each county may adopt a resolution supporting or opposing the proposed acquisition of land funded under the stewardship program. Under current law, if DNR receives a copy of such a resolution within 30 days after notifying the municipality or county, DNR must take the resolution into consideration before approving or denying the land acquisition. The bill expands these resolutions to apply to any stewardship program project or activity, but limits the application to a project or activity on land north of USH 8. The bill prohibits DNR from obligating stewardship money and from submitting a project or activity to JCF for passive review, if required, unless every municipality and county in which all or a portion of the land on which the project or activity will occur is located adopts a resolution supporting the project or activity by a simple majority vote of the governing body.

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.

Because this bill relates to public employee retirement or pensions, it may be referred to the Joint Survey Committee on Retirement Systems 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:

SB301,1 Section 1. 8.06 of the statutes is amended to read:

SB301,13,4 8.06 Special elections may be called. Towns, cities, villages, and, subject to ss. 67.05 (6a) (a) 2. and 121.91 (3) (a), school districts, may call special elections for any purpose authorized by law. If an election is called for a special referendum, the election shall be noticed under s. 8.55. A county in which a 1st class city is located may call an election for a special referendum for the purpose of imposing the tax under s. 77.70 (2).

SB301,2 Section 2. 13.94 (1) (w) of the statutes is created to read:

SB301,13,8 13.94 (1) (w) Once every 5 years, conduct a financial audit of expenditures of revenues generated by the sales and use taxes imposed under ss. 77.70 (2) and 77.701.

SB301,3 Section 3. 13.94 (1) (x) of the statutes is created to read:

SB301,13,17 13.94 (1) (x) Annually, conduct a financial audit of the retirement systems of Milwaukee County and the city of Milwaukee, to include financial statements and an evaluation of accounting controls and accounting records maintained by the systems for individual participants and departments. Within 30 days after completion of such audit, the bureau shall file with the governor, the legislative reference bureau, the department of administration, and the respective systems a detailed report thereof, including specific instances, if any, of illegal or improper transactions.

SB301,4 Section 4. 13.94 (1) (y) of the statutes is created to read:

SB301,13,20 13.94 (1) (y) At least once every 5 years, contract for an actuarial audit of the retirement systems of Milwaukee County and the city of Milwaukee.

SB301,5 Section 5. 13.94 (1s) (c) 1m. of the statutes is created to read:

SB301,13,24 13.94 (1s) (c) 1m. The retirement systems of Milwaukee County and the city of Milwaukee for the cost of the audits required to be performed of those systems under sub. (1) (x) and (y).

SB301,6 Section 6. 13.94 (1s) (c) 1s. of the statutes is created to read:

SB301,14,2 13.94 (1s) (c) 1s. Milwaukee County and the city of Milwaukee for the cost of the audits required to be performed under sub. (1) (w).

SB301,7 Section 7 . 23.0917 (5t) of the statutes is renumbered 23.0917 (5t) (a) and amended to read:

SB301,14,21 23.0917 (5t) (a) Each city, village, town, or county may adopt a nonbinding resolution that supports or opposes the proposed acquisition of land project or activity to be funded by moneys obligated from the appropriation under s. 20.866 (2) (ta) if all or a portion of the land on which the project or activity will occur is located in the city, village, town, or county. The department shall provide written notification of the proposed acquisition project or activity to each city, village, town, or county in which the land on which the project or activity will occur is located. A city, village, town, or county that adopts a resolution shall provide the department with a copy of the resolution. If the department receives the copy within 30 days after the date that the city, village, town, or county received the notification of the proposed acquisition, the department shall take the resolution into consideration before approving or denying The department may not approve the obligation of moneys for the acquisition project or activity from the appropriation under s. 20.866 (2) (ta) and may not notify the joint committee on finance of the proposal, if required under sub. (6m), unless every city, village, town, or county in which the land on which the project or activity will occur is located adopts a resolution approving the project or activity by a simple majority vote of the governing body.

SB301,8 Section 8 . 23.0917 (5t) (b) of the statutes is created to read:

SB301,14,25 23.0917 (5t) (b) Paragraph (a) applies only if the project or activity to be funded by moneys obligated from the appropriation under s. 20.866 (2) (ta) is located on land north of USH 8.

SB301,9 Section 9. 25.17 (1) (jf) of the statutes is created to read:

SB301,15,2 25.17 (1) (jf) Local government fund (s. 25.491);

SB301,10 Section 10 . 25.491 of the statutes is created to read:

SB301,15,5 25.491 Local government fund. (1) There is established a separate nonlapsible trust fund designated as the local government fund.

SB301,15,8 (2) There is established in the local government fund a separate account that is designated the “county and municipal aid account” to make the payments under s. 79.036.