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1995 - 1996 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
To 1995 ASSEMBLY BILL 1048
March 22, 1996 - Offered by Joint committee on Finance.
AB1048-ASA1,1,13 1An Act to repeal 76.001, 76.02 (9r), 76.07 (4g) (e), 76.38 and 76.38 (4) (b); to
2renumber
76.02 (9t); to renumber and amend 76.02 (9u) and 76.38 (4) (a);
3to amend 20.913 (1) (b), 71.26 (3) (f), 73.01 (4) (a), 73.01 (5) (a), 76.01, 76.02 (9),
476.04 (1), 76.07 (1), 76.07 (2), 76.13 (1), subchapter II (title) of chapter 76
5[precedes 76.38], 76.38 (1) (c), 77.52 (2) (a) 5., 134.72 (1) (a), 227.03 (1) and
6968.01 (1); to repeal and recreate 20.913 (1) (b), 71.26 (3) (f), 73.01 (4) (a),
773.01 (5) (a), 76.28 (4), 76.28 (5), 76.28 (6) and 227.03 (1); to create 20.566 (2)
8(ht), 25.63, 25.17 (1) (kv), subchapter IV of chapter 76 [precedes 76.80] and
9subchapter V of chapter 76 [precedes 76.90] of the statutes; and to affect 1991
10Wisconsin Act 39
, section 9149 (6) and 1991 Wisconsin Act 39, section 9149 (7);
11relating to: the taxation of telephone companies, property tax relief and
12technological equipment fund, imposing the sales tax on coin-operated
13telephone services and making an appropriation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB1048-ASA1, s. 1
1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
AB1048-ASA1, s. 2 3Section 2. 20.566 (2) (ht) of the statutes is created to read:
AB1048-ASA1,2,74 20.566 (2) (ht) Telephone tax administration. The amounts in the schedule for
5the administration of the tax under subch. IV of ch. 76. Beginning in 1997-98 the
6amounts determined under s. 76.84 (3) shall be credited to this appropriation
7account.
AB1048-ASA1, s. 3 8Section 3. 20.913 (1) (b) of the statutes, as affected by 1995 Wisconsin Act 27,
9is amended to read:
AB1048-ASA1,2,1310 20.913 (1) (b) Excess tax payments. Taxes collected in excess of lawful taxation,
11when claims therefor have been established as provided in ss. 71.30 (4), 71.74 (13),
1271.75, 71.89 (1), 72.24, 74.35, 74.37, 76.13 (3), 76.38, 76.39, 76.84, 76.91, 78.19, 78.20,
1378.68 (10), 78.75, 78.80 (1m), 139.092, 139.25 (1), 139.36, 139.365 and 139.39 (4).
AB1048-ASA1, s. 4 14Section 4. 20.913 (1) (b) of the statutes, as affected by 1995 Wisconsin Acts 27
15and .... (this act), is repealed and recreated to read:
AB1048-ASA1,2,1916 20.913 (1) (b) Excess tax payments. Taxes collected in excess of lawful taxation,
17when claims therefor have been established as provided in ss. 71.30 (4), 71.74 (13),
1871.75, 71.89 (1), 72.24, 74.35, 74.37, 76.13 (3), 76.39, 76.84, 76.91, 78.19, 78.20, 78.68
19(10), 78.75, 78.80 (1m), 139.092, 139.25 (1), 139.36, 139.365 and 139.39 (4).
AB1048-ASA1, s. 5 20Section 5. 25.63 of the statutes is created to read:
AB1048-ASA1,3,5
125.63 Property tax relief and technological equipment fund. All moneys
2transferred from the general fund to the property tax relief and technological
3equipment fund constitute the property tax relief and technological equipment fund.
4Moneys in the fund are reserved to provide property tax relief and to purchase
5technological equipment.
AB1048-ASA1, s. 6 6Section 6. 25.17 (1) (kv) of the statutes is created to read:
AB1048-ASA1,3,77 25.17 (1) (kv) Property tax relief and technological equipment fund (s. 25.63).
AB1048-ASA1, s. 7 8Section 7. 71.26 (3) (f) of the statutes is amended to read:
AB1048-ASA1,3,129 71.26 (3) (f) Section 164 (a) is modified so that foreign taxes are not deductible
10unless the income on which the tax is based is taxable under this chapter and so that
11gross receipts taxes assessed in lieu of property taxes, the license fees under ss. 76.28
12and 76.38 and the tax taxes under s. ss. 70.375, 76.81 and 76.91 are deductible.
AB1048-ASA1, s. 8 13Section 8. 71.26 (3) (f) of the statutes, as affected by 1995 Wisconsin Act ....
14(this act), is repealed and recreated to read:
AB1048-ASA1,3,1815 71.26 (3) (f) Section 164 (a) is modified so that foreign taxes are not deductible
16unless the income on which the tax is based is taxable under this chapter and so that
17gross receipts taxes assessed in lieu of property taxes, the license fee under s. 76.28
18and the taxes under ss. 70.375, 76.81 and 76.91 are deductible.
AB1048-ASA1, s. 9 19Section 9. 73.01 (4) (a) of the statutes is amended to read:
AB1048-ASA1,4,1020 73.01 (4) (a) Subject to the provisions for judicial review contained in s. 73.015,
21the commission shall be the final authority for the hearing and determination of all
22questions of law and fact arising under sub. (5) and s. 72.86 (4), 1985 stats., and ss.
2370.11 (21), 70.38 (4) (a), 70.397, 70.64, 70.995 (8), 76.38 (12) (a), 76.39 (4) (c), 76.48
24(6), 76.91, 77.26 (3), 77.59 (6) (b), 78.01, 78.22, 78.40, 78.555, 139.02, 139.03, 139.06,
25139.31, 139.315, 139.33, 139.76 and 139.78, subch. XIV of ch. 71 and subch. VII of

1ch. 77. Whenever with respect to a pending appeal there is filed with the commission
2a stipulation signed by the department of revenue and the adverse party, under s.
373.03 (25), agreeing to an affirmance, modification or reversal of the department's
4position with respect to some or all of the issues raised in the appeal, the commission
5shall enter an order affirming or modifying in whole or in part, or canceling the
6assessment appealed from, or allowing in whole or in part or denying the petitioner's
7refund claim, as the case may be, pursuant to and in accordance with the stipulation
8filed. No responsibility shall devolve upon the commission, respecting the signing
9of an order of dismissal as to any pending appeal settled by the department without
10the approval of the commission.
AB1048-ASA1, s. 10 11Section 10. 73.01 (4) (a) of the statutes, as affected by 1995 Wisconsin Act ....
12(this act), is repealed and recreated to read:
AB1048-ASA1,5,313 73.01 (4) (a) Subject to the provisions for judicial review contained in s. 73.015,
14the commission shall be the final authority for the hearing and determination of all
15questions of law and fact arising under sub. (5) and s. 72.86 (4), 1985 stats., and ss.
1670.11 (21), 70.38 (4) (a), 70.397, 70.64 and 70.995 (8), s. 76.38 (12) (a), 1993 stats., ss.
1776.39 (4) (c), 76.48 (6), 76.91, 77.26 (3), 77.59 (6) (b), 78.01, 78.22, 78.40, 78.555,
18139.02, 139.03, 139.06, 139.31, 139.315, 139.33, 139.76 and 139.78, subch. XIV of ch.
1971 and subch. VII of ch. 77. Whenever with respect to a pending appeal there is filed
20with the commission a stipulation signed by the department of revenue and the
21adverse party, under s. 73.03 (25), agreeing to an affirmance, modification or reversal
22of the department's position with respect to some or all of the issues raised in the
23appeal, the commission shall enter an order affirming or modifying in whole or in
24part, or canceling the assessment appealed from, or allowing in whole or in part or
25denying the petitioner's refund claim, as the case may be, pursuant to and in

1accordance with the stipulation filed. No responsibility shall devolve upon the
2commission, respecting the signing of an order of dismissal as to any pending appeal
3settled by the department without the approval of the commission.
AB1048-ASA1, s. 11 4Section 11. 73.01 (5) (a) of the statutes is amended to read:
AB1048-ASA1,6,85 73.01 (5) (a) Any person who is aggrieved by a determination of the state board
6of assessors under s. 70.995 (8) or by the department of revenue under s. 70.11 (21)
7or who has filed a petition for redetermination with the department of revenue and
8who is aggrieved by the redetermination of the department may, within 60 days of
9the determination of the state board of assessors or of the department or, in all other
10cases, within 60 days after the redetermination but not thereafter, file with the clerk
11of the commission a petition for review of the action of the department and the
12number of copies of the petition required by rule adopted by the commission. If a
13municipality appeals, its appeal shall set forth that the appeal has been authorized
14by an order or resolution of its governing body and the appeal shall be verified by a
15member of that governing body as pleadings in courts of record are verified. The clerk
16of the commission shall transmit one copy to the department of revenue and to each
17party. In the case of appeals from manufacturing property assessments, the person
18assessed shall be a party to a proceeding initiated by a municipality. At the time of
19filing the petition, the petitioner shall pay to the commission a $5 filing fee, which
20the commission shall deposit in the general fund. Within 30 days after such
21transmission the department, except for petitions objecting to manufacturing
22property assessments, shall file with the clerk of the commission an original and the
23number of copies of an answer to the petition required by rule adopted by the
24commission and shall serve one copy on the petitioner or the petitioner's attorney or
25agent. Within 30 days after service of the answer, the petitioner may file and serve

1a reply in the same manner as the petition is filed. Any person entitled to be heard
2by the commission under s. 76.38 (12) (a), 76.39 (4) (c) or , 76.48 or 76.91 may file a
3petition with the commission within the time and in the manner provided for the
4filing of petitions in income or franchise tax cases. Such papers may be served as a
5circuit court summons is served or by certified mail. For the purposes of this
6subsection, a petition for review is considered timely filed if mailed by certified mail
7in a properly addressed envelope, with postage duly prepaid, which envelope is
8postmarked before midnight of the last day for filing.
AB1048-ASA1, s. 12 9Section 12. 73.01 (5) (a) of the statutes, as affected by 1995 Wisconsin Act ....
10(this act), is repealed and recreated to read:
AB1048-ASA1,7,1411 73.01 (5) (a) Any person who is aggrieved by a determination of the state board
12of assessors under s. 70.995 (8) or by the department of revenue under s. 70.11 (21)
13or who has filed a petition for redetermination with the department of revenue and
14who is aggrieved by the redetermination of the department may, within 60 days of
15the determination of the state board of assessors or of the department or, in all other
16cases, within 60 days after the redetermination but not thereafter, file with the clerk
17of the commission a petition for review of the action of the department and the
18number of copies of the petition required by rule adopted by the commission. If a
19municipality appeals, its appeal shall set forth that the appeal has been authorized
20by an order or resolution of its governing body and the appeal shall be verified by a
21member of that governing body as pleadings in courts of record are verified. The clerk
22of the commission shall transmit one copy to the department of revenue and to each
23party. In the case of appeals from manufacturing property assessments, the person
24assessed shall be a party to a proceeding initiated by a municipality. At the time of
25filing the petition, the petitioner shall pay to the commission a $5 filing fee, which

1the commission shall deposit in the general fund. Within 30 days after such
2transmission the department, except for petitions objecting to manufacturing
3property assessments, shall file with the clerk of the commission an original and the
4number of copies of an answer to the petition required by rule adopted by the
5commission and shall serve one copy on the petitioner or the petitioner's attorney or
6agent. Within 30 days after service of the answer, the petitioner may file and serve
7a reply in the same manner as the petition is filed. Any person entitled to be heard
8by the commission under s. 76.38 (12) (a), 1993 stats., or s. 76.39 (4) (c), 76.48 or 76.91
9may file a petition with the commission within the time and in the manner provided
10for the filing of petitions in income or franchise tax cases. Such papers may be served
11as a circuit court summons is served or by certified mail. For the purposes of this
12subsection, a petition for review is considered timely filed if mailed by certified mail
13in a properly addressed envelope, with postage duly prepaid, which envelope is
14postmarked before midnight of the last day for filing.
AB1048-ASA1, s. 13 15Section 13. 76.001 of the statutes is repealed.
AB1048-ASA1, s. 14 16Section 14. 76.01 of the statutes is amended to read:
AB1048-ASA1,7,22 1776.01 Railroads and utilities, assessment. The department of revenue
18shall make an annual assessment of the property of all railroad companies, of all
19conservation and regulation companies, of all sleeping car companies, of all air
20carriers, of all telephone companies and of all pipeline companies, within this state,
21for the purpose of levying and collecting taxes thereon, as provided in this
22subchapter.
AB1048-ASA1, s. 15 23Section 15. 76.02 (9) of the statutes is amended to read:
AB1048-ASA1,8,224 76.02 (9) "Company", without other designation or qualification, includes any
25railroad company, any conservation and regulation company, any express company,

1any air carrier company, any pipeline company, any telephone company and any
2sleeping car company, as defined in this section, to which "company" is applied.
AB1048-ASA1, s. 16 3Section 16. 76.02 (9r) of the statutes is repealed.
AB1048-ASA1, s. 17 4Section 17. 76.02 (9t) of the statutes is renumbered 76.80 (3).
AB1048-ASA1, s. 18 5Section 18. 76.02 (9u) of the statutes is renumbered 76.80 (4) and amended
6to read:
AB1048-ASA1,8,157 76.80 (4) "Telephone company" means any person that provides to another
8person telecommunications services, including the resale of services provided by
9another telephone company, that originate in one local access and transport area, as
10defined in s. 76.38 (1) (bd), and terminate in a different local access and transport
11area, as defined in s. 76.38 (1) (bd)
. "Telephone company" does not include a person
12who operates a private shared telecommunications system, as defined in s. 196.201
13(1), and who is not otherwise a telephone company. "Telephone company" does not
14include a person who is a cellular mobile radio telecommunications utility, as defined
15in s. 196.202 (1)
.
AB1048-ASA1, s. 19 16Section 19. 76.04 (1) of the statutes is amended to read:
AB1048-ASA1,8,2217 76.04 (1) Every company defined in s. 76.02 shall, annually, file a true and
18accurate statement in such manner and form and setting forth such facts as the
19department shall deem necessary to enforce ss. 76.01 to 76.26. The annual reports
20for railroad companies, sleeping car companies and express companies shall be filed
21on or before April 15 and for conservation and regulation companies, air carriers,
22telephone companies
and pipeline companies on or before May 1.
AB1048-ASA1,9,6 23(1m) For sufficient reason shown the department may upon written request
24allow such further time for making and filing the report under sub. (1) as it may deem
25necessary, but not to exceed 30 days. If any company fails to file such report within

1the time prescribed or as extended under this subsection, the department shall add
2to the taxes due from such company $250 if the report is not filed within 15 days after
3the due date or extended due date and an additional $250 for each month or part of
4a month thereafter during which the report is not filed, except that the total penalty
5may not exceed $2,500. No company may in any action or proceeding contest the
6imposition of such penalty.
AB1048-ASA1, s. 20 7Section 20. 76.07 (1) of the statutes is amended to read:
AB1048-ASA1,9,138 76.07 (1) Duty of department. The department on or before August 1 in each
9year in the case of railroad companies and sleeping car companies, and on or before
10September 15 in the case of air carrier companies, telephone companies,
11conservation and regulation companies and pipeline companies, shall, according to
12its best knowledge and judgment, ascertain and determine the full market value of
13the property of each company within the state.
AB1048-ASA1, s. 21 14Section 21. 76.07 (2) of the statutes is amended to read:
AB1048-ASA1,9,2515 76.07 (2) Relation to state valuation; description. The value of the property
16of each of said companies for assessment shall be made on the same basis and for the
17same period of time, as near as may be, as the value of the general property of the
18state is ascertained and determined. The department shall prepare an assessment
19roll and place thereon after the name of each of said companies assessed, the
20following general description of the property of such company, to wit: "Real estate,
21right-of-way, tracks, stations, terminals, appurtenances, rolling stock, equipment,
22franchises and all other real estate and personal property of said company," in the
23case of railroads, and "Real estate, right-of-way, poles, wires, conduits, cables,
24devices, appliances, instruments, franchises and all other real and personal property
25of said company," in the case of conservation and regulation companies, and "Real

1estate, appurtenances, rolling stock, equipment, franchises, and all other real estate
2and personal property of said company," in the case of sleeping car and air carrier
3companies, and "Land and land rights, structures, improvements, mains, pumping
4and regulation equipment, services, appliances, instruments, franchises and all
5other real and personal property of said company," in the case of pipeline companies,
6and "All property of the company used in the operation of the company's telephone
7business" in the case of telephone companies,
which description shall be deemed and
8held to include the entire property and franchises of the company specified and all
9title and interest therein.
AB1048-ASA1, s. 22 10Section 22. 76.07 (4g) (e) of the statutes is repealed.
AB1048-ASA1, s. 23 11Section 23. 76.13 (1) of the statutes is amended to read:
AB1048-ASA1,10,2112 76.13 (1) The department shall compute and levy a tax upon the property of
13each company defined in s. 76.02, as assessed in the manner specified in ss. 76.07 and
1476.08, at the average net rate of taxation determined under s. 76.126. The amount
15of tax to be paid by each such company shall be extended upon a tax roll opposite the
16description of the property of the respective companies. The tax rolls for all
17companies required to be assessed on or before August 1 in each year under s. 76.07
18(1) shall be completed on or before August 10, and for all companies required to be
19assessed on or before September 15 in each year under s. 76.07 (1) shall be completed
20on or before October 1; and the department shall thereupon attach to each such roll
21a certificate signed by the secretary of revenue, which shall be as follows:
AB1048-ASA1,11,4 22"I hereby certify that the foregoing tax roll includes the property of all railroad
23companies, sleeping car companies, air carrier companies, conservation and
24regulation companies, telephone companies or pipeline companies, as the case may
25be, defined in 76.0276, liable to taxation in this state; that the valuation of the

1property of each company as set down in said tax roll is the full market value thereof
2as assessed by the department of revenue, except as changed by court judgment, and
3that the taxes thereon charged in said tax roll have been assessed and levied at the
4average net rate of taxation in this state, as required by law".
AB1048-ASA1, s. 24 5Section 24. 76.28 (4) of the statutes is repealed and recreated to read:
AB1048-ASA1,11,216 76.28 (4) Redetermination. If after filing the reports specified in sub. (7) and
7after the department's computation and assessment of license fees under sub. (2) it
8is determined that the amount of gross revenues reported is in error, the department
9shall compute the additional license fee to be paid or the amount of the overpayment
10of license fee to be refunded, as the case may be. If an additional license fee is due,
11the department shall give notice to the light, heat and power company against whom
12the license fee is to be levied. All such additional assessments and claims for refunds
13for excess license fees paid are subject to the same procedure for review and final
14determination as additional income or franchise tax assessments and claims for
15refunds under ch. 71 as far as the same may be applicable, except that appeals of
16denials of claims for refunds shall be made directly to the tax appeals commission
17and except that the additional license fees shall become delinquent 60 days after
18notice provided in this subsection or, if review proceedings are held, 60 days following
19final determination of the review proceedings. All additional license fees shall bear
20interest at the rate of 12% per year from the time they should have been paid to the
21date on which the additional fees shall become delinquent if unpaid.
AB1048-ASA1,12,522 (b) In the case of overpayments of license fees by any light, heat and power
23company under par. (a), the department shall certify the overpayments to the
24department of administration, which shall audit the amount of the overpayments
25and the state treasurer shall pay the amounts determined by means of the audit. All

1refunds of license fees under this subsection shall bear interest at the annual rate
2of 9% from the date of the original payment to the date when the refund is made. The
3time for making additional levies of license fees or claims for refunds of excess license
4fees paid, in respect to any year, shall be limited to 4 years after the time the report
5for such year was filed.
AB1048-ASA1, s. 25 6Section 25. 76.28 (5) of the statutes is repealed and recreated to read:
AB1048-ASA1,12,137 76.28 (5) Remedies. Delinquent license fees of any light, heat and power
8company, together with penalties and interest, for a lien upon all property of such
9company prior to all other liens, claims and demands, which lien may be enforced in
10an action in the name of the state in any court of competent jurisdiction against the
11property of such company within the state as an entirety. The remedies for
12nonpayment of taxes specified in s. 76.14 apply to nonpayment of license fees,
13penalties and interest referred to under this section.
AB1048-ASA1, s. 26 14Section 26. 76.28 (6) of the statutes is repealed and recreated to read:
AB1048-ASA1,12,1715 76.28 (6) Administration. (a) The records, books, accounts and papers of any
16light, heat and power company are subject to inspection and examination by the
17secretary of revenue or by the person that the secretary designates for that purpose.
AB1048-ASA1,12,2418 (b) If any light, heat and power company that is required under this section to
19file a report fails to file a report within the time prescribed by law or as extended
20under sub. (7), unless it is shown that the failure is due to reasonable cause and not
21due to wilful neglect, there shall be added to the amount required to be shown as
22license fees on the report 5% of the amount of such fees if the failure is for not more
23than one month, with an additional 5% for each additional month or fraction thereof
24during which the failure continues, not exceeding 25% in the aggregate.
AB1048-ASA1,13,9
1(c) If any light, heat and power company fails to make a report as required by
2sub. (7) within the time required, the department may enter an assessment against
3such company in a sum representing the approximate amount of the license fees,
4together with penalties and interest, for which such company may be liable as
5estimated by the department. Notice of such assessment shall be given by certified
6mail, and unless a report conforming to the requirements of this section is filed
7within 15 days of such notice, such estimated assessment shall become final.
8Thereafter the light, heat and power company assessed shall be forever barred from
9questioning the correctness of the same in any action or proceeding.
AB1048-ASA1, s. 27 10Section 27. Subchapter II (title) of chapter 76 [precedes 76.38] of the statutes
11is amended to read:
AB1048-ASA1,13,1212 Chapter 76
AB1048-ASA1,13,13 13Subchapter II
AB1048-ASA1,13,16 14Telephone companies license
15 fees;
car line companies;
16 electric cooperative associations
AB1048-ASA1, s. 28 17Section 28. 76.38 of the statutes, as affected by 1995 Wisconsin Act .... (this
18act), is repealed.
AB1048-ASA1, s. 29 19Section 29. 76.38 (1) (c) of the statutes is amended to read:
AB1048-ASA1,14,220 76.38 (1) (c) "Telephone company" means any person operating a
21telecommunications facility or providing telecommunications services to another
22person, including the resale of those services provided by another telephone
23company. "Telephone company" does not include any person who operates a private
24shared telecommunications system as defined in s. 196.201 (1) and who is not

1otherwise a telephone company. Beginning with the assessment on May 1, 1998,
2"telephone company" does not include a person described in s. 76.02 (9u).
AB1048-ASA1, s. 30 3Section 30. 76.38 (4) (a) of the statutes, is renumbered 76.38 (4), and 76.38 (4)
4(intro.), (c) and (d) of the statutes, as renumbered, are amended to read:
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