SECTION 5. Tax 11.11 (title) and (2) (title) are amended to read:
Tax 11.11 (title) Industrial or Utility, industrial and governmental waste treatment facilities.
(2) (title) INDUSTRIAL UTILITY WASTE TREATMENT EXEMPTION.
SECTION 6. Tax 11.11 (2) (a) is renumbered Tax 11.11(2) and amended to read:
Tax. 11.11 (2) If
an industrial or a utility waste treatment facility
that is taxed under ch. 76, Stats., qualifies for property tax exemption under s.
70.11(21)(a) 76.025(1), Stats., as approved by the department, it qualifies for the sales and use tax exemption under s.
77.54 (26), Stats.
Note to Revisor: Insert the following note at the end of Tax 11.11(2):
Note: Refer to s.
Tax 6.40 for information on how to request approvals for property tax exemption for utility waste treatment facilities. For more information regarding exemptions for waste treatment facilities owned by a utility, including railroads, airlines and pipelines, approved by the department, write to Wisconsin Department of Revenue, Bureau of Utility and Special Taxes, PO Box 8971, Madison WI 53708-8971; telephone (608) 266-8162; send an e-mail to
utility@dor.state.wi.us; or access the department's internet web site at
www.dor.state.wi.us/contact/slfbust.
SECTION 7. Tax 11.11 (2) (b) is repealed.
SECTION 8. Tax 11.11 (2m) is created to read:
Tax 11.11 (2m) INDUSTRIAL WASTE TREATMENT EXEMPTION. (a) An industrial waste treatment facility is any property taxed under ch.
70, Stats., that is built, constructed or installed as a unit used for the treatment of liquid or other wastes resulting from any process of industry, manufacture, trade, business or the development of any natural resource.
(b) Tangible personal property becoming a component part of an industrial waste treatment facility is exempt from the sales and use tax under s.
77.54 (26), Stats., if the facility qualifies for property tax exemption under s.
70.11 (21) (a), Stats.
Note: Refer to s.
Tax 12.40 for information related to the property tax exemption for industrial waste treatment facilities. For more information regarding the property tax exemption for industrial waste treatment facilities of manufacturers write or call the district office of the Wisconsin Department of Revenue, Bureau of Manufacturing and Telco Assessments. To locate the district office, write or call Wisconsin Department of Revenue, Bureau of Manufacturing and Telco Assessment, PO Box 8971, Madison WI 53708-8971; telephone (608) 266-1147. The web site is
www.dor.state.wi.us/contact/slfbmta. To ascertain whether a non-manufacturing property would be exempt under s.
70.11(21), Stats., owners may refer to the Wisconsin Property Assessment Manual or contact the local property tax assessor.
Note to Revisor: Insert the following note at the end of Tax 11.11 (3):
Note: For more information regarding the exemption for municipal treatment facilities, write or call Wisconsin Department of Revenue, Bureau of Customer Service, Mail Stop 5-77, PO Box 8902, Madison WI 53708-8902, telephone (608) 266-2772. The web site is
www.dor.state.wi.us/contact/pcs.html#cust.
SECTION 9. Tax 11.11 (4) is renumbered Tax 11.11 (4) (a) and amended to read:
Tax 11.11 (4) (a) The repair, service, alteration, cleaning, painting and maintenance of a utility waste treatment facility described in sub. (2), an industrial waste treatment facility described in sub. (2) (2m) and a municipal waste treatment facility described in sub. (3) as well as the repair parts and replacement for those types of facilities and chemicals, supplies and utilities used or consumed in operating those types of facilities are exempt from the sales and use tax.
SECTION 10. Tax 11.11 (4) (b) is created to read:
Tax 11.11 (4) (b) Chemicals and supplies, including fuel and electricity, used or consumed in operating a utility waste treatment facility described in sub. (2), an industrial waste treatment facility described in sub. (2m) and a municipal waste treatment facility described in sub. (3) are exempt from the sales and use tax.
SECTION 11. Tax 11.11 (5) (a) is amended to read:
Tax 11.11 (5) (a) Exempt purchases. The sales and use tax exemption extends to and includes the purchases of tangible personal property by a contractor-installer who incorporates the property into an approved industrial utility waste treatment facility or who incorporates the property into an industrial waste treatment facility or a municipal waste treatment facility. The contractor-installer shall certify the intended exempt use of the item to each supplier in order to relieve the supplier of the duty of collecting and reporting the tax on the sales. Certification of exempt use shall be made on a Wisconsin sales and use tax exemption certificate, form S-211.
SECTION 12. Tax 11.11 (5) (c) is repealed and recreated to read:
Tax 11.11 (5) (c)
Determining exemptions. 1. 'Utility property taxed under ch.
76, Stats.' A contractor or subcontractor may be liable for sales and use tax on a purchase of tangible personal property that becomes a component part of a utility waste treatment facility that has not been approved by the department for a property tax exemption under s.
76.025(1), Stats.
Note: Contractors may direct questions concerning the property to the department as provided in sub. (2).
2. 'Industrial property taxed under ch.
70, Stats.' Approvals are not required for industrial waste treatment facilities. A contractor or subcontractor may be liable for sales and use tax on a purchase of tangible personal property that becomes a component part of a facility that is determined to not qualify for a waste treatment facility property tax exemption under s.
70.11 (21), Stats.
Note: Contractors may direct questions concerning the taxability of the waste treatment facility to the department as provided in sub. (2m).
3. 'Municipal waste treatment facilities.' Approvals are not required for municipal waste treatment facilities. A contractor or subcontractor may be liable for sales and use tax on a purchase of tangible personal property that becomes a component part of a facility that is determined not to be a municipal waste treatment facility as provided in sub. (3).
Note: Contractors may direct questions concerning municipal waste treatment facilities to the department as provided in sub. (3).
Note to Revisor: Remove the first two notes at the end of Tax 11.11, and replace the last note with the following:
Note: The interpretations in s.
Tax 11.11 are effective July 31, 1975 when ss.
70.11 (21) and
77.54 (26), Stats., were revised, except: (a) The exemptions for chemicals and supplies used or consumed in operating a waste treatment facility became effective September 1, 1979, pursuant to
Chapter 39, Laws of 1979; and (b) The approval process for property and sales tax exemptions for industrial waste treatment facilities, except utilities, were eliminated effective January 1, 2002, pursuant to
2001 Wis. Act 16.
SECTION 13. Tax 12.40 (title) is amended to read:
Tax 12.40 (title) Waste treatment facilities ( - industrial).
SECTION 14. Tax 12.40 (2) is repealed.
SECTION 15. Tax 12.40 (3) (a) 1. and 3. are renumbered Tax 12.40 (3) (a) 3. and 1. and as renumbered are amended to read:
Tax 12.40 (3) (a) 1. “ Facility; " means tangible property that is built, constructed or installed as a unit so as to be readily identifiable as directly performing a waste treatment function.
3.
“Waste
;" means that which is left over as superfluous, discarded or fugitive material. In addition, "
industrial
waste wastes" is defined by reference to s.
281.01 (5), Stats., as including liquid or other wastes resulting from any process of industry, manufacture, trade, business or the development of any natural resource. "
Air contaminant" is defined by reference to s.
285.01 (1), Stats., as dust, fumes, mist, liquid, smoke, other particulate matter, vapor, gas, odorous substances or any combination thereof but shall not include uncombined water vapor.
SECTION 16. Tax 12.40 (3) (a) 2. and 4., (b) and (c) are amended to read:
Tax 12.40 (3) (a) 2. “Treatment;
" means removing, altering or storing waste.
4. “Waste treatment facility" means tangible personal property that is built, constructed or installed as a unit so as to be readily identifiable as directly removing, altering or storing leftover, superfluous, discarded or fugitive material. Monitoring equipment which is not a component or integral part of a waste treatment facility is not exempt.
(b) The exemption for industrial waste treatment facilities does not extend to “
' unnecessary siltation
' resulting from operations such as the washing of vegetables or raw food products, gravel washing, stripping of lands for development of subdivisions, highways, quarries and gravel pits, mine drainage, cleaning of vehicles or barges or gross neglect of land erosion"
( as provided in s.
281.01(7), Stats.
).
(c) The exemption also for industrial waste treatment facilities does not apply to conversion of an industrial furnace from one type of fuel to another type of fuel . The exemption does not apply , or to the increased height of a smoke stack to diffuse emissions over a wide area or increments to property held for the production of income but which may be indirectly related to pollution abatement. However, the installation of a scrubber or electrostatic precipitator in a smoke stack could qualify for exemption.
SECTION 17. Tax 12.40 (3) (d) is created to read:
Tax 12.40 (3) (d) The exemption for industrial waste treatment facilities does not apply to monitoring equipment that is not a component or integral part of a waste treatment facility.
Note to Revisor: Replace the note at the end of Tax 12.40 with the following:
Fiscal Estimate
Tax 6.40 guides administration of the property tax exemption for waste treatment facilities owned by public utilities. Tax 11.11 guides administration of the sales and use tax exemption for waste treatment facilities. Tax 12.40 guides administration of the property tax exemption for industrial waste treatment facilities taxed under ch.
70, Wis. Stats.
Prior to
2001 Wisconsin Act 16, the property tax exemption for industrial waste treatment facilities under sec. 70.11 (21), Wis. Stats., required an approval process whereby application was made to the Department of Revenue. Under
2001 Wisconsin Act 16, owners of industrial waste treatment property that is taxed under ch.
70, Wis. Stats., will no longer be required to apply to the Department of Revenue for the property tax exemption; the application process will continue to be required for public utility property taxed under ch.
76, Stats.
Tangible personal property becoming a component part of an industrial waste treatment facility is exempt from sales and use taxation if the waste treatment property is exempt from the property tax. While this provision is unchanged by
2001 Wis. Act 16, the sales and use tax exemption will no longer be tied to a Department of Revenue approval process for property taxed under ch.
70, Stats.
As a result of the Act 16, the Department of Revenue will realize minor savings associated with the formal granting of property tax exemptions for industrial waste treatment facilities. However, it is anticipated that the Department will continue to receive the same number of inquiries regarding the qualifications for property tax exemption. In addition, the elimination of the approval process for property tax exemptions will increase the department's administrative costs associated with the determination of sales and use tax exemptions of affected property. These costs include taxpayer assistance and confirmation with local assessors of the property tax status of the property.
There will be a minor increase in local government costs associated with the determination by the local assessor of property tax exemptions for non-manufacturing waste treatment facilities.
The proposed amendments to ss.
Tax 11.11 and
12.40 are required to bring the rules into conformity with current law as affected by
2001 Wis. Act 16. The proposed rule also updates ss.
Tax 6.40 and
Tax 12.40 to conform to a change of address and the renumbering of statutes pursuant to
1995 Act 227 and
1997 Act 35. The proposed amendments have no fiscal effect independent of the fiscal effect of the statutory changes upon which they are based.
Initial Regulatory Flexibility Analysis
This proposed rule order does not have a significant economic impact on a substantial number of small businesses.
Contact Person
Please contact Rebecca Boldt at (608) 266-6785 or
rboldt@dor.state.wi.us if you have any questions regarding this proposed rule order.
Notice of Hearing
Transportation
NOTICE IS HEREBY GIVEN that pursuant to ss.
85.16 (1),
227.11 (2) (a) and
343.51, Stats., and interpreting s.
343.51, Stats., the Department of Transportation will hold a public hearing in
Room 144-B of the Hill Farms State Transportation Building, 4802 Sheboygan Avenue, Madison, Wisconsin on the
9th day of August, 2002, at
10:00 a.m., to consider the amendment of ch.
Trans 130, Wis. Adm. Code, relating to disabled parking placards.
An interpreter for the hearing impaired will be available on request for this hearing. Please make reservations for a hearing interpreter at least 10 days prior to the hearing.
The public record on this proposed rule making will be held open until close of business August 16, 2002, to permit the submission of written comments from persons unable to attend the public hearing or who wish to supplement testimony offered at the hearing. Any such comments should be submitted to Carson Frazier, Department of Transportation, Bureau of Vehicle Services, Room 253, P. O. Box 7911, Madison, WI 53707-7911.
Parking for persons with disabilities and an accessible entrance are available on the north and south sides of the Hill Farms State Transportation Building
Analysis Prepared by the Wisconsin Department of Transportation
STATUTE INTERPRETED: s.
343.51, Stats.
General Summary of Proposed Rule
The Division of Motor Vehicles accommodates persons who have a disability that limits or impairs the ability to walk. Disabled persons may receive a portable disabled parking identification placard, which allows parking in a specially reserved parking space. Disabled persons pay a fee of $6 per placard, which is good for 4 years. A number of class action lawsuits have been filed against states (including Wisconsin) that charge a fee for disabled parking identification placards. These lawsuits allege that the practice of charging a fee for disabled parking identification placards violates the Americans with Disabilities Act (ADA). A settlement ended the Wisconsin lawsuit. Judge Nichol signed an order accepting the settlement, ordering DOT to cease collecting any fee for permanent placards after June 30, 2003, and dismissing the case. Jason, et al. v. Wisconsin DOT, Case No. 97-CV-3137, Dane County Circuit Court, April 15, 2002. The Department proposes to discontinue charging any fee for a permanent placard in compliance with the court order. The Department will continue to charge $6 for temporary placards.
Fiscal Effect
The Transportation Fund will experience an annual revenue loss of approximately $0.5 million.
Initial Regulatory Flexibility Analysis
This proposed rule will have no adverse impact on small businesses.
Copies of Proposed Rule.
Copies of the rule may be obtained upon request, without cost, by writing to Carson Frazier, Department of Transportation, Bureau of Vehicle Services, Room 253, P. O. Box 7911, Madison, WI 53707-7911, or by calling (608) 266-7857. Hearing-impaired individuals may contact the Department using TDD (608) 266-3096. Alternate formats of the proposed rule will be provided to individuals at their request.
Notice of Hearing
Transportation
NOTICE IS HEREBY GIVEN that pursuant to ss.
85.51 (1) and
(2), and
348.26 (2), Stats., and interpreting s.
85.51 (1) and
(2), Stats., the Department of Transportation will hold a public hearing in
Room 551 of the Hill Farms State Transportation Building, 4802 Sheboygan Avenue, Madison, Wisconsin on the
16th day of July, 2002, at
9:00 a.m. to consider the amendment of ch.
Trans 320, Wis. Adm. Code, relating to calculation of fees for special events, security, traffic enforcement and escort services.
An interpreter for the hearing impaired will be available on request for this hearing. Please make reservations for a hearing interpreter at least 10 days prior to the hearing.
The public record on this proposed rule making will be held open until close of business July 26, 2002, to permit the submission of written comments from persons unable to attend the public hearing or who wish to supplement testimony offered at the hearing. Any such comments should be submitted to Dan McGuire, Department of Transportation, Division of State Patrol, Room 551, P. O. Box 7912, Madison, WI 53707-7912.
Parking for persons with disabilities and an accessible entrance are available on the north and south sides of the Hill Farms State Transportation Building.
Analysis Prepared by the Wisconsin Department of Transportation
General Summary of Proposed Rule
The revision of ch.
Trans 320 will enable the Division of State Patrol to implement changes that were included in
2001 Wis. Act 16 section
2339, related to the assessment of charges for security and traffic law enforcement services. Previously, the authority of the state patrol to assess charges for services provided at public events for which an admission fee is charged was limited to those public events that were sponsored by a private agency.
2001 Wis. Act 16 expanded this authority to assess charges for security and traffic enforcement services to include public events that are sponsored by public agencies, assuming that an admission fee is charged.
In addition,
2001 Wis. Act 16 section
2340 provides the Division of State Patrol with the authority to charge fees for security and traffic law enforcement services provided during the installation, inspection, removal, relocation or repair of a utility facility located on a highway.
Fiscal Effect
Fees related to the provision of security and traffic law enforcement services at public events, and at roadside work sites, will be deposited in the appropriation account under s.
20.395 (5) (dg). Funds deposited in this program revenue appropriation will be used to pay salary, fringe benefit, and non-salary expenses incurred during the provision of the service. It is estimated that total revenues and expenditures will increase by $87,600 per year when this rule making becomes effective.
