Wednesday 951 W. Maple
at 12:00 p.m. Spooner, WI
February 17, 2000 Room G55/G59
Thursday Waukesha Co. Courthouse
at 9:00 a.m. 515 W. Moorland Blvd.
Waukesha, WI
February 18, 2000 Room 611A, GEF #2
Friday 101 S. Webster St.
at 1:00 p.m. Madison, WI
Notice is hereby further given that pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of information material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call Don Swailes at (608) 266-7093 with specific information on your request at least 10 days before the date of the scheduled hearing.
Written Comments
Written comments on the proposed rule may be submitted to Mr. Don Swailes, Bureau of Drinking Water and Groundwater, P.O. Box 7921, Madison, WI 53707 no later than March 10, 2000. Written comments will have the same weight and effect as oral statements presented at the hearings. A copy of the proposed rule [ DG-3-00] and fiscal estimate may be obtained from Mr. Swailes.
Fiscal Estimate
Fiscal Impacts
Cost increases accruing to the Department are a result of increased monitoring and reporting requirements under the CCR, IESWTR, and D/DBP rules, and development and implementation of the OpCert program. With new monitoring and reporting requirements on regulated facilities,- there will also be increased enforcement activities as a result of new violations and ultimately, there will be an increase in plan review and technical assistance to systems as a result of installation of new equipment to meet new standards. All initial cost increases to the Department from CCR, IFS WTR, and DIDBP rules are covered through ongoing upgrades to our automated compliance tracking system and technical assistance set aside funds from federal drinking water revolving loan grants. Development and implementation of an OpCert program will be covered by a specific OpCert set aside from the drinking water state revolving loan funds. Monitoring and reporting increases will not be felt fully until the follow on regulations to the IESWTR and DIDBP rules are promulgated. When the next rules are promulgated, increased resources will be requested through the budget process.
Cost increases to local government will result from CCR requirements, new monitoring and analytical requirements associated with the IESWTR and D/DBP rules, and for school districts only, new requirements for a certified operators. CCR requirements for municipal systems are estimated by U.S. EPA at an average annual cost of $442/year/system, but since all municipal systems have already provided the notice in 1999, addition of the CCR to State Codes will not create any additional cost. U.S. EPA has estimated the worst case average annual cost for implementation of the D/DBP rule to be about $8900/year/disinfecting system. However, for the vast majority of Wisconsin's disinfecting municipal water systems, the cost should be less than $1000/year. IESWTR costs are only incurred by Wisconsin's 20 surface water systems. These systems, as a result of federal direct implementation of the Information Collection Rule and the 1993 cryptosporidium incident in Milwaukee, have already either installed or are currently installing the equipment necessary to meet requirements of the IESWTR. Based on national cost estimates, average system cost of implementing the IESWTR is approximately $1.1 15 million/year. However, that estimate assumes systems have made no improvements in their treatment processes prior to promulgation of the rule, which is not the case in Wisconsin.
Long-Range Fiscal Implications
Over a 2 - 4 year period new rules associated with the IESWTR and the D/DBP regulation will create a need for additional Department resources. Resources would be used for both contractors and permanent staff. In addition, other new regulations unrelated to the aforementioned rules must be incorporated in State Codes, further taxing existing resources.
Notice of Proposed Rule
Revenue
Notice is hereby given that pursuant to s. 227.11 (2) Stats., and interpreting ss. 66.058 (3) and 79.10 (10), Stats., and according to the procedure set forth in s. 227.16 (2) (e), Stats., the Department of Revenue will adopt the following rule as proposed in this notice without public hearing unless, within 30 days after publication of this notice on February 1, 2000 , it is petitioned for a public hearing by 25 natural persons who will be affected by the rule, a municipality which will be affected by the rule, or an association which is representative of a farm, labor, business or professional group which will be affected by the rule.
Analysis Prepared by Dept. of Revenue
Statutory authority: s. 227.11 (2)
Statutes interpreted: ss. 66.058 (3) and 79.10 (10)
The lottery credit program was enacted by 1991 Wis. Act 39. Chapter Tax 20 was created to guide the administration of the lottery credit and first applied to the credit against 1991 property taxes. Chapter Tax 20 was amended to guide the administration of the lottery credit against property taxes for 1992 and thereafter.
Prior to 1996, homeowners claimed the credit on a property through an annual application in which they attested that as of the January 1 certification date, they were the owner of the property which they used as their primary residence. Also prior to 1996, an incorporated municipality could request the department of revenue's approval to administer the lottery credit within its jurisdiction.
In 1996, a circuit court found the distribution of the lottery credit to homeowners violated the uniformity clause of the state's constitution. As a result, no lottery credits were extended on 1996/97 property tax bills. Following 1997 Wis. Act 27, lottery credits were extended to all taxable properties, including personal property, on 1997/98 and 1998/99 property tax bills.
The 1997/99 and 1999/01 Legislatures approved a joint resolution to amend the Constitution by requiring that proceeds from lottery, pari-mutuel on-track betting and bingo be used for property tax relief for state residents; the proposed amendment further specified that the property tax relief would not have to conform to the rules for uniform taxation. On April 6, 1999, Wisconsin voters approved the proposed amendment.
1999 Wis. Act 5 requires that the lottery credit be distributed to owners of primary residences.
1999 Wis. Act 5 is similar to the law prior to 1996 in that the lottery credit is to be distributed to homeowners through a precertification process. However, 1999 Wis. Act 5 differs from the law prior to 1996 in the following respects:
1) The name of the credit is changed from the lottery credit to the lottery and gaming credit;
2) Whereas prior law required an annual certification, the act provides for a 5-year certification process;
3) Whereas prior law allowed the Department to authorize cities to administer the credit, the act authorizes only counties and the City of Milwaukee to administer the lottery credit and allows the Department to authorize a certification process other than the specified claim process; and
4) Whereas prior law provided $.50 per claim, the act provides $.70 per claim for administrative costs.
Finally, the reporting requirements for treasurers under the act differ from that under prior law.
1999 Wis. Act 9 allows a new homeowner to apply to the Department for and receive the 1999/2000 lottery and gaming credit on the property if the new homeowner can attest that, to his or her knowledge, the previous owner used the property as a primary residence on the certification date. Payments for the computed credits would be made after the 1999 property tax bills have been issued. In subsequent years, such applications would be filed with the treasurer administering the credit.
Chapter Tax 20, Subchapter I is specific to the 1991 lottery credit and is no longer needed; therefore, its repeal is proposed. The amendment to Chapter Tax 20 is required to account for the law changes in 1999 Wis. Act 5. The proposed amendment will change the rule in the following ways:
- change the name from the lottery credit to the lottery and gaming credit;
- provide for an application every 5 years;
- explain how claims in interim years are made;
- revise the claimant information to be provided to the Department;
- explain the reimbursement procedures for administrative costs;
- repeal the authorization for approved cities to administer the credit;
- specify dates by which counties seek permission for alternative certification procedures.
Text of Rule
SECTION 1. Chapter Tax 20 (title) is amended to read:
Chapter Tax 20
LOTTERY AND GAMING CREDIT
SECTION 2. Tax 20, Subchapter I is repealed.
SECTION 3. Tax 20, Subchapter II (title) is repealed.
SECTION 4. Tax 20.11 (1) is amended to read:
Tax 20.11(1) “Application" means application to claim the lottery and gaming credit.
SECTION 5. Tax 20.11 (2) is repealed.
SECTION 6. Tax 20.11 (3) is amended to read:
Tax 20.11(3)“Approved parcel" means a parcel of taxable real estate or an item of personal property that contains the primary residence of an owner whose application for a lottery and gaming credit has been timely made under s. Tax 20.14 or s. Tax 20.18 or extended under s. Tax 20.13 and has not been disqualified by the department.
SECTION 7. Tax 20.11(3m) is created to read:
Tax 20.11(3m) “Certification date" means the January 1 of the year the tax is levied.
SECTION 8. Tax 20.11 (4) and (5) are amended to read:
Tax 20.11(4) “Credit" means the lottery and gaming credit under ss. 66.058(3)(c) and 79.10, Stats.
(5) “Credit value" means the value of property set by the legislature department as provided in s. 79.10(11)(c), Stats., for purposes of computing the lottery and gaming credit.
SECTION 9. Tax 20.11 (8m) is created to read:
Tax 20.11(8m) “Precertification year" means the first year in each 5-year cycle for filing claims for lottery and gaming credits, beginning with 1999 for taxable real or personal property and 2000 for mobile homes subject to a mobile home parking fee.
SECTION 10. Tax 20.12(title) and (3) are amended to read:
Tax 20.12 (title) Computing the lottery and gaming credit.
Tax 20.12 (3) The amount of the property tax or mobile home parking permit fee due after subtracting the lottery and gaming credit may not be less than zero.
SECTION 11. Tax 20.13 is repealed and recreated to read:
Tax 20.13 Authorization for alternative certification procedures. A county, or a city that collects taxes under s. 74.87, Stats., may request the department's approval to use a certification procedure other than that under s. Tax 20.14 (1) for certifying claims in a precertification year. The request shall be in writing and shall indicate the procedure to be used, which shall be consistent with that prescribed by the department. The request shall be made by July 1 of the year prior to the precertification year. Ss. Tax 20.11, 20.12, 20.14 (1) (a) 2., (b), (c) and (d), 20.15 (1) (e), (2) ,(3), (4) and (5), 20.16, 20.17, 20.18 and 20.19 as they apply to credits under s. Tax 20.14 apply to credits extended under this section.
SECTION 12. Tax 20.14 (1) (a) is renumbered s. Tax 20.04 (1) (a) 1. and is amended to read:
Tax 20.14 How to claim the credit. (1) TAXABLE PROPERTY. (a) 1. `Precertification years.' An owner of taxable property who qualifies for the lottery and gaming credit may claim the credit on an application prescribed by the department. The owner must attest that as of the certification date of the precertification year, he or she is the owner of the property described on the application and that as of that date he or she uses the property as his or her primary residence. The completed application shall be filed with the county treasurer except that in approved cities and in a city that collects taxes under s. 74.87, Stats., the application shall be filed with the city treasurer. The certification date for the tax levied in 1992 is July 1, 1992. Thereafter, the certification date is the January 1 of the year the tax is levied. Beginning with the credit for 1999 property taxes, a claim that is made under this subdivision is valid for 5 years, except as provided under s. Tax 20.19(2).
Note: A copy of the prescribed application for the 1999 credit, including instructions, is attached as an appendix.
SECTION 13. Tax 20.14 (1) (a) 2. is created to read:
Tax 20.14 (1) (a) 2. `Interim years.' An owner of taxable property who becomes eligible to claim a credit in years other than a precertification year may claim the credit by filing an application with the treasurer of the county in which the property is located or, if the property is located in a city that collects taxes under s. 74.87, Stats., with the treasurer of that city. The owner must attest that as of the certification date, he or she is the owner of the property described on the application and that as of that date he or she uses the property as his or her primary residence. Except as provided under s. Tax 20.19(2), claims made under this subdivision are valid until the next following precertification year.
SECTION 14. Tax 20.14 (1) (c) is amended to read:
Tax 20.14 (1) (c) An owner who qualifies for the credit against taxes but whose tax bill does not reflect the credit may claim the credit until January 31 following the issuance of the tax bill by filing the application under par. (a) with the treasurer collecting the taxes. If the application is approved, the treasurer shall proceed under s. Tax 20.15 (1) (e). Applications made after January 31 shall be filed with the department as provided under s. Tax 20.18.
SECTION 15. Tax 20.14 (1) (d) is created to read:
Tax 20.14 (1) (d) 1. If a property that has been transferred to a new owner qualifies for the credit because a previous owner used the property as his or her primary residence on the certification date, the new owner of the property may apply for the credit on a form prescribed by the department. The applicant shall attest that to his or her knowledge, the property was used as a primary residence by the previous owner of the property as of the certification date. Applications made under this paragraph for the credit for 1999 property taxes shall be filed with the department. For each accepted claim under this paragraph, the department shall direct the treasurer under par. (a) to compute the credit, subtract it from the amount due for the approved parcel of the owner and make an appropriate entry in the tax roll or the department shall issue a check to the taxpayer in the amount equal to the computed credit. Beginning with the lottery and gaming credit for 2000 property taxes, applications made under this paragraph shall be filed with the treasurer of the county in which the property is located or, if the property is located in a city that collects taxes under s. 74.87, Stats., with the treasurer of that city. Applications made after January 31 shall be filed with the department for processing under s. Tax 20.18 (2).
2. A claim made under this paragraph is valid until the next following precertification year. If the claimant under this paragraph does not own or use the property as his or her primary residence on the certification date of any year subsequent to the year of the claim, the claimant shall withdraw the claim as required under sub. (3).
SECTION 16. Tax 20.14 (2) (a) is renumbered s. Tax 20.14 (2) (a) 1. and is amended to read:
Tax 20.14(2) MOBILE HOMES. (a) 1. `Precertification years.' The owner of a mobile home subject to a monthly mobile home parking permit fee who qualifies for the credit may claim the credit on an application prescribed by the department. The owner must attest that as of January 1 of the precertification year he or she is the owner of the mobile home described on the application and as of that date he or she uses the mobile home as his or her primary residence. The completed application must be filed with the taxation district treasurer no later than January 31 February 10 of the year the fees are payable. Beginning with the credit for fees payable in 2000, a claim that is made under this subdivision is valid for 5 years, except as provided under s. Tax 20.19 (2).
SECTION 17. Tax 20.14(2)(a)2. is created to read.
Tax 20.14 (2) (a) 2. `Interim years.' An owner of a mobile home who becomes eligible to claim a credit in years other than a precertification year may claim the credit by filing an application with the taxation district treasurer no later than February 10 of the year the fees are payable. The owner must attest that as of the January 1 of the year the fees are payable, he or she is the owner of the property described on the application and that as of that date he or she uses the property as his or her primary residence. Except as provided under s. Tax 20.19 (2), claims made under this subdivision are valid until the next following precertification year.
SECTION 18. Tax 20.14 (2) (b) and (c) are amended to read:
