1995 Wisconsin Act 351

(1m) For sufficient reason shown the department may upon written request allow such further time for making and filing the report under sub. (1) as it may deem necessary, but not to exceed 30 days. If any company fails to file such report within the time prescribed or as extended under this subsection, the department shall add to the taxes due from such company $250 if the report is not filed within 15 days after the due date or extended due date and an additional $250 for each month or part of a month thereafter during which the report is not filed, except that the total penalty may not exceed $2,500. No company may in any action or proceeding contest the imposition of such penalty.

351,20 Section 20 . 76.07 (1) of the statutes is amended to read:

76.07 (1) Duty of department. The department on or before August 1 in each year in the case of railroad companies and sleeping car companies, and on or before September 15 in the case of air carrier companies, telephone companies, conservation and regulation companies and pipeline companies, shall, according to its best knowledge and judgment, ascertain and determine the full market value of the property of each company within the state.

351,21 Section 21 . 76.07 (2) of the statutes is amended to read:

76.07 (2) Relation to state valuation; description. The value of the property of each of said companies for assessment shall be made on the same basis and for the same period of time, as near as may be, as the value of the general property of the state is ascertained and determined. The department shall prepare an assessment roll and place thereon after the name of each of said companies assessed, the following general description of the property of such company, to wit: “Real estate, right-of-way, tracks, stations, terminals, appurtenances, rolling stock, equipment, franchises and all other real estate and personal property of said company," in the case of railroads, and “Real estate, right-of-way, poles, wires, conduits, cables, devices, appliances, instruments, franchises and all other real and personal property of said company," in the case of conservation and regulation companies, and “Real estate, appurtenances, rolling stock, equipment, franchises, and all other real estate and personal property of said company," in the case of sleeping car and air carrier companies, and “Land and land rights, structures, improvements, mains, pumping and regulation equipment, services, appliances, instruments, franchises and all other real and personal property of said company," in the case of pipeline companies, and “All property of the company used in the operation of the company's telephone business" in the case of telephone companies, which description shall be deemed and held to include the entire property and franchises of the company specified and all title and interest therein.

351,22 Section 22 . 76.07 (4g) (e) of the statutes is repealed.

351,23 Section 23 . 76.13 (1) of the statutes is amended to read:

76.13 (1) The department shall compute and levy a tax upon the property of each company defined in s. 76.02, as assessed in the manner specified in ss. 76.07 and 76.08, at the average net rate of taxation determined under s. 76.126. The amount of tax to be paid by each such company shall be extended upon a tax roll opposite the description of the property of the respective companies. The tax rolls for all companies required to be assessed on or before August 1 in each year under s. 76.07 (1) shall be completed on or before August 10, and for all companies required to be assessed on or before September 15 in each year under s. 76.07 (1) shall be completed on or before October 1; and the department shall thereupon attach to each such roll a certificate signed by the secretary of revenue, which shall be as follows:

“I hereby certify that the foregoing tax roll includes the property of all railroad companies, sleeping car companies, air carrier companies, conservation and regulation companies, telephone companies or pipeline companies, as the case may be, defined in 76.0276, liable to taxation in this state; that the valuation of the property of each company as set down in said tax roll is the full market value thereof as assessed by the department of revenue, except as changed by court judgment, and that the taxes thereon charged in said tax roll have been assessed and levied at the average net rate of taxation in this state, as required by law".

351,24 Section 24 . 76.28 (4) of the statutes is repealed and recreated to read:

76.28 (4) Redetermination. If after filing the reports specified in sub. (7) and after the department's computation and assessment of license fees under sub. (2) it is determined that the amount of gross revenues reported is in error, the department shall compute the additional license fee to be paid or the amount of the overpayment of license fee to be refunded, as the case may be. If an additional license fee is due, the department shall give notice to the light, heat and power company against whom the license fee is to be levied. All such additional assessments and claims for refunds for excess license fees paid are subject to the same procedure for review and final determination as additional income or franchise tax assessments and claims for refunds under ch. 71 as far as the same may be applicable, except that appeals of denials of claims for refunds shall be made directly to the tax appeals commission and except that the additional license fees shall become delinquent 60 days after notice provided in this subsection or, if review proceedings are held, 60 days following final determination of the review proceedings. All additional license fees shall bear interest at the rate of 12% per year from the time they should have been paid to the date on which the additional fees shall become delinquent if unpaid.

(b) In the case of overpayments of license fees by any light, heat and power company under par. (a), the department shall certify the overpayments to the department of administration, which shall audit the amount of the overpayments and the state treasurer shall pay the amounts determined by means of the audit. All refunds of license fees under this subsection shall bear interest at the annual rate of 9% from the date of the original payment to the date when the refund is made. The time for making additional levies of license fees or claims for refunds of excess license fees paid, in respect to any year, shall be limited to 4 years after the time the report for such year was filed.

351,25 Section 25 . 76.28 (5) of the statutes is repealed and recreated to read:

76.28 (5) Remedies. Delinquent license fees of any light, heat and power company, together with penalties and interest, for a lien upon all property of such company prior to all other liens, claims and demands, which lien may be enforced in an action in the name of the state in any court of competent jurisdiction against the property of such company within the state as an entirety. The remedies for nonpayment of taxes specified in s. 76.14 apply to nonpayment of license fees, penalties and interest referred to under this section.

351,26 Section 26 . 76.28 (6) of the statutes is repealed and recreated to read:

76.28 (6) Administration. (a) The records, books, accounts and papers of any light, heat and power company are subject to inspection and examination by the secretary of revenue or by the person that the secretary designates for that purpose.

(b) If any light, heat and power company that is required under this section to file a report fails to file a report within the time prescribed by law or as extended under sub. (7), unless it is shown that the failure is due to reasonable cause and not due to wilful neglect, there shall be added to the amount required to be shown as license fees on the report 5% of the amount of such fees if the failure is for not more than one month, with an additional 5% for each additional month or fraction thereof during which the failure continues, not exceeding 25% in the aggregate.

(c) If any light, heat and power company fails to make a report as required by sub. (7) within the time required, the department may enter an assessment against such company in a sum representing the approximate amount of the license fees, together with penalties and interest, for which such company may be liable as estimated by the department. Notice of such assessment shall be given by certified mail, and unless a report conforming to the requirements of this section is filed within 15 days of such notice, such estimated assessment shall become final. Thereafter the light, heat and power company assessed shall be forever barred from questioning the correctness of the same in any action or proceeding.

351,27 Section 27 . Subchapter II (title) of chapter 76 [precedes 76.38] of the statutes is amended to read:

Chapter 76

Subchapter II

Telephone companies license
fees; car line companies;
electric cooperative associations

351,28 Section 28 . 76.38 of the statutes, as affected by 1995 Wisconsin Act .... (this act), is repealed.

351,29 Section 29 . 76.38 (1) (c) of the statutes is amended to read:

76.38 (1) (c) “Telephone company" means any person operating a telecommunications facility or providing telecommunications services to another person, including the resale of those services provided by another telephone company. “Telephone company" does not include any person who operates a private shared telecommunications system as defined in s. 196.201 (1) and who is not otherwise a telephone company. Beginning with the assessment on May 1, 1998, “telephone company" does not include a person described in s. 76.02 (9u).

351,30 Section 30 . 76.38 (4) (a) of the statutes, is renumbered 76.38 (4), and 76.38 (4) (intro.), (c) and (d) of the statutes, as renumbered, are amended to read:

76.38 (4) (intro.) Except as provided in sub. (6), every Every telephone company operating one or more telephone exchanges shall pay an annual license fee equal to the following percentages of its total gross revenues in this state for local and rural exchange service:

(c) For fees assessed on May 1, 1996, 5.70% 5.77%.

(d) For fees assessed on May 1, 1997, and on each May 1 thereafter, 5.40%, 1998, 5.77%.

351,31 Section 31 . 76.38 (4) (b) of the statutes is repealed.

351,32 Section 32 . Subchapter IV of chapter 76 [precedes 76.80] of the statutes is created to read:

Chapter 76

Subchapter IV
Telephone company tax

76.80 Definitions. In this subchapter:

(1) “Department" means the department of revenue.

76.81 Imposition. There is imposed a tax on the real property of, and the tangible personal property of, every telephone company, except motor vehicles that are exempt under s. 70.112 (5) and treatment plant and pollution abatement equipment that is exempt under s. 70.11 (21) (a). Except as provided in s. 76.815, the rate for the tax imposed on each description of real property and on each item of tangible personal property is the net rate for the prior year for the tax under ch. 70 in the taxing jurisdictions where the description or item is located.

76.815 Combined reporting. For taxes payable in 1998 and 1999, telephone companies that have more than 150,000 access lines in this state may submit a combined report of their items of personal property. Any company that does so shall pay the tax on those items at a rate that reflects the company's weighted average property tax rate based on the value and location of its real property in this state.

76.82 Assessment. The department, using the methods that it uses to assess property under s. 70.995, shall assess the property that is taxable under s. 76.81, including property that is exempt under s. 70.11 (27) from the tax under ch. 70, at its value as of January 1.

76.83 Report; payment. On or before March 1, every telephone company shall send to the department a completed form that the department prescribes. Upon written request, the department may extend the time for filing the report by no more than 30 days. The requirements for payment of taxes under s. 76.13 (2a), as they apply to the tax under subch. I, apply to the tax under this subchapter.

76.84 Administration. (1) On or before October 1, the department shall notify each telephone company that is subject to the tax under s. 76.81 of the assessed value of its property.

(2) On or before November 1, the department shall notify each telephone company that is subject to the tax under s. 76.81 of the amount of that tax.

(3) From the revenues collected under this subchapter, the department shall transfer to the appropriation account under s. 20.566 (2) (ht) in 1997-98 $307,300, in 1998-99 $283,300 and in 1999-2000 and thereafter the amounts necessary to administer the tax under this subchapter.

(4) Sections 76.03 (4), 76.05, 76.06, 76.075, 76.08, 76.09, 76.13 (1), (2) and (3), 76.14, 76.18, 76.22, 76.23, 76.25 and 76.28 (4) to (6), as they apply to the tax under subch. I, apply to the tax under this subchapter.

351,33 Section 33 . Subchapter V of chapter 76 [precedes 76.90] of the statutes is created to read:

chapter 76

subchapter v
transitional adjustment fee

76.90 Definitions. In this subchapter:

(1) “Basic local exchange service" has the meaning given in s. 196.01 (1g)

(2) “Cellular mobile radio telecommunications utility" has the meaning given in s. 196.202 (1).

(3) “Department" means the department of revenue.

76.91 Imposition. For 1999 and 2000, there is imposed on each cellular mobile radio telecommunications utility and on each person that, on the effective date of this section .... [revisor inserts date], provides basic local exchange service a transitional adjustment fee. Taxpayers shall pay the tax during May 1998, November 1998, May 1999, November 1999 and May 2000. For each month that a fee is due under this subchapter, the taxpayer shall pay to the department an amount calculated as follows:

(1) Determine the amount that the taxpayer would pay during that month, taking into account the reconciliation of the previous year's estimated payments, if the taxpayer were assessed the tax under s. 76.38, 1993 stats., at a rate of 5.77%.

(2) Subtract from the amount under sub. (1) the taxpayer's payment during that month of the tax under subch. IV.

76.92 Report; payment. On or before March 1, every taxpayer that is subject to the fee under this subchapter shall send to the department a completed form that the department prescribes. Upon written request, the department may extend the time for filing the report by no more than 30 days.

76.93 Administration. (1) On or before May 1, the department shall notify each taxpayer that is subject to the fee under s. 76.91 of the amount of that fee.

(2) Sections 76.03 (4), 76.04 (1), 76.05, 76.06, 76.14, 76.18, 76.22, 76.24 (1), 76.25 and 76.28 (4) to (6), as they apply to the tax under subch. I, apply to the fee under this subchapter.

351,34 Section 34 . 77.52 (2) (a) 5. of the statutes is amended to read:

77.52 (2) (a) 5. The sale of telecommunications services, not including services paid for by the insertion of coins in a coin-operated telephone, that originate in this state and are charged to a service address in this state, regardless of the location where that charge is billed or paid.

351,35 Section 35 . 134.72 (1) (a) of the statutes is amended to read:

134.72 (1) (a) “Facsimile machine" means a machine that transmits copies of documents by means of a telecommunications facility, as defined in s. 76.38 (1) (bm) telephone line, telegraph line, microwave, satellite, cellular radio, fiber optics, coaxial cable or any other transmission facility or any switching device.

351,36 Section 36 . 227.03 (1) of the statutes is amended to read:

227.03 (1) This chapter applies to cases arising under ss. 76.38, 76.39 and, 76.48 and 76.91.

351,37 Section 37 . 227.03 (1) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is repealed and recreated to read:

227.03 (1) This chapter applies to cases arising under s. 76.38, 1993 stats., and ss. 76.39, 76.48 and 76.91.

351,38 Section 38 . 968.01 (1) of the statutes is amended to read:

968.01 (1) ``Facsimile machine" means a machine that transmits copies of documents by means of a telecommunications facility, as defined in s. 76.38 (1) (bm) has the meaning given in s. 134.72 (1) (a).

351,39 Section 39 . 1991 Wisconsin Act 39, section 9149 (6) is repealed.

351,40 Section 40 . 1991 Wisconsin Act 39, section 9149 (7) is amended to read:

[1991 Wisconsin Act 39] Section 9149 (7) Legislative intent; telephone companies. The legislature intends that the tax reduction created by the treatment of chapter 76 of the statutes by this act in regard to telephone companies, when fully and completely implemented in 1997, constitutes a portion of the refund of taxes that could be claimed pursuant to GTE Sprint Communications Corporation, n.k.a. U.S. Sprint Communications Company vs. Wisconsin Bell, Inc., and the State of Wisconsin, (No. 89-0272, May 15, 1990).

351,40m Section 40m. 1995 Wisconsin Act .... (Assembly Bill 808), section 3 (1) is amended to read:

[1995 Wisconsin Act .... (Assembly Bill 808)] Section 3 (1) Transfer to property tax relief fund. There is transferred on June 30, 1997, from the general fund to the property tax relief fund $160,000,000 $170,000,000.

351,41 Section 41 . Nonstatutory provisions.

(1) Reconciliation. Cellular mobile radio telecommunications utilities and telephone companies that provide basic local exchange service shall reconcile their first payments under subchapter V of chapter 76 of the statutes, as created by this act, to reflect their overpayment or underpayment of their final instalment of gross receipts taxes. All other telephone companies shall reconcile their first payments under subchapter IV of chapter 76 of the statutes, as created by this act, to reflect their overpayment or underpayment of their final instalment of gross receipts taxes.

(2) Transition. This act does not affect any amounts due, remedies available to or appeals available to any telephone company or the department of revenue that accrued before a change in the method of taxation of any telephone company.

(3)  Instalment amount. Notwithstanding section 76.83 of the statutes, as created by this act, the May 10, 1998, instalment of the tax under subchapter IV of chapter 76 of the statutes, as created by this act, shall be at least 50% of the tax under section 76.38 of the statutes that was assessed on May 1, 1998, or at least 40% of the tax under subchapter IV of chapter 76 of the statutes, as created by this act, that is due for 1998.

(4) Proxy for refund. The legislature intends that the tax reduction created by the treatment of chapter 76 of the statutes by this act in regard to telephone companies, when it is implemented in 1998, constitutes the remainder of taxes that could be claimed pursuant to GTE Sprint Communications n.k.a. U.S. Sprint Communications Company v. Wisconsin Bell, Inc., and the State of Wisconsin, (No. 89-0272, May 15, 1990).

(5) Nonseverability. Notwithstanding section 990.001 (11) of the statutes, if it is finally adjudicated that any provision of this act is unconstitutional, the entire act is void.

(6) Telephone tax. The authorized FTE positions for the department of revenue are increased by 6.0 PR positions on July 1, 1997, to be funded from the appropriation under section 20.566 (2) (ht) of the statutes, as created by this act, for the purpose of administering the tax under subchapter IV of chapter 76 of the statutes, as created by this act.

(6x)  Pioneering partners appropriation. Notwithstanding section 16.42 (1) (e) of the statutes, in submitting information under section 16.42 of the statutes for the purposes of the 1997-99 biennial budget bill, the department of administration shall submit information concerning the appropriation under section 20.505 (4) (er) of the statutes as though the change in the dollar amount of that appropriation by Section 42m (1) of this act had not been made.

(7) Waiver of local match. Direct the educational technology board to propose, as part of its 1997-99 biennial budget request, statutory changes to provide a waiver of the 25% local match requirement for pioneering partners grants for school districts which due to fiscal constraints are unable to meet the match requirement. Direct the board's proposal to include specific criteria which would be used to determine a school district's eligibility for the waiver.

(7p)  Reconciliation; transfer to property tax relief fund. If 1995 Senate Bill 563 is enacted and that enactment includes section 10 of Senate Substitute Amendment 1 to 1995 Senate Bill 563, there is transferred from the general fund to the property tax relief fund on June 30, 1997 in lieu of the amount shown in section 10 of Senate Substitute Amendment 1 to 1995 Senate Bill 563 and the amount shown in Section 40m of this act, the amount of $180,635,900. If 1995 Wisconsin Act .... (Assembly Bill 808) is not enacted into law, the treatment of 1995 Wisconsin Act .... (Assembly Bill 808), section 3 (1) by this act and Section 44 (3p) of this act are void.

(7q)  Future appropriations for educational technology board grants. The legislature expresses its intention to appropriate an additional amount of $5,000,000 for grants to be distributed to school districts and library boards by the educational technology board in the 1997-99 fiscal biennium and its intention that, if such an appropriation is made, the amount appropriated will not be included in state school aids for purposes of section 121.15 (3m) (a) 2. of the statutes.

351,42m Section 42m. Appropriation changes.

(1) Pioneering partners grants. In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of administration under section 20.505 (4) (er) of the statutes, as affected by the acts of 1995, the dollar amount is increased by $5,000,000 for fiscal year 1996-97 to increase funding for the purpose for which the appropriation is made.

351,43 Section 43 . Initial applicability.

(1) The treatment of subchapter IV of chapter 76 of the statutes first applies to taxes due for 1998.

351,44 Section 44 . Effective dates. This act takes effect on the day after publication, except as follows:

(1) Sales tax. The treatment of section 77.52 (2) (a) 5. of the statutes takes effect on the first day of the 2nd month beginning after publication.

(2) Discontinuation of license fee. The repeal of section 76.38 of the statutes, the treatment of section 76.28 (4), (5) and (6) and subchapter II (title) of chapter 76 of the statutes and the repeal and recreation of sections 20.913 (1) (b), 71.26 (3) (f), 73.01 (4) (a) and (5) (a) and 227.03 (1) of the statutes take effect on May 15, 1998.