Feed for /code/register/2002/558b/rulemaking_notices PDF
Revenue
[CR 02-053]
NOTICE IS HEREBY GIVEN that pursuant to ss. 77.61 (9) and 227.11 (2), Stats., and interpreting s. 70.11 (21), 76.025 (1) and 77.54 (26), Stats., and according to the procedure set forth in s. 227.16 (2) (e), Stats., the Department of Revenue will adopt the following rules as proposed in this notice without public hearing unless, within 30 days after publication of this notice on July 1, 2002, 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 by the Department of Revenue
Statutory authority: ss. 77.61 (9) and 227.11 (2), Stats.
Statutes interpreted: ss. 70.11 (21), 76.025 (1) and 77.54 (26), Stats.
Section Tax 6.40 guides administration of the property tax exemption for waste treatment facilities owned by public utilities. Section Tax 11.11 guides administration of the sales and use tax exemption for waste treatment facilities. Section Tax 12.40 guides administration of the property tax exemption for industrial waste treatment facilities taxed under ch. 70, Stats.
Prior to 2001 Wis. Act 16, the property tax exemption for industrial waste treatment facilities under s. 70.11 (21), Stats., required an approval process whereby application was made to the Department of Revenue. Under 2001 Wis. Act 16, owners of industrial waste treatment property that is taxed under ch. 70, Stats., are no longer 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 is no longer tied to a Department of Revenue approval process for property taxed under ch. 70, Stats.
The proposed order clarifies the different requirements for obtaining sales and use tax exemption for waste treatment facilities in s. Tax 11.11 and repeals the approval procedures required for the property tax exemption in s. Tax 12.40. The proposed order also: updates format and style in ss. Tax 6.40, 11.11 and 12.40, per Legislative Council Rules Clearinghouse ("Clearinghouse") standards; updates a department address in ss. Tax 6.40 and Tax 12.40 and moves it from the text of the rule to a note in s. Tax 6.40, per Clearinghouse standards; and alphabetizes definitions and moves a "non-exempt" provision from a definition to a separate paragraph in ss. Tax 6.40 and 12.40, per Clearinghouse standards.
SECTION 1. Tax 6.40 (title) and (2)(b) are amended to read:
Tax 6.40 (title) Waste treatment facilities ( - industrial/utility).
(2) (b) The completed form "Application for Exemption of Waste Treatment Facility-Utility" should be sent to the Bureau of Utility and Special Taxes, Division of State/Local Finance, Wisconsin Department of Revenue, P.O. Box 8933, Madison, WI 53708.
Note to Revisor: Insert the following note at the end of Tax 6.40 (2) (b):
Note: The address for mailing the application form is Wisconsin Department of Revenue, Bureau of Utility and Special Taxes, Division of State and Local Finance, PO Box 8971, Madison WI 53708-8971.
SECTION 2. Tax 6.40 (3) (a) 1. and 3. are renumbered Tax 6.40 (3) (a) 3. and 1. and as renumbered are amended to read:
Tax 6.40 (3) (a) 1. " Facility; " means tangible personal 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 3. Tax 6.40 (3) (a) 2. and 4., (b) and (c) are amended to read:
Tax 6.40 (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 4. Tax 6.40 (3) (d) is created to read:
Tax 6.40 (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 6.40 with the following:
Note: Section Tax 6.40 interprets s. 76.025 (1), Stats.
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:
Note: Section Tax 12.40 interprets s. 70.11 (21), Stats.
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
Loading...
Loading...