Amendment SSA3-SB114

ISR/JK/RAC:cmh:jf

1999 - 2000 LEGISLATURE

SENATE SUBSTITUTE AMENDMENT 3, TO 1999 SENATE BILL 114

May 18, 1999 - Offered by Senator George.

SB114-SSA3,1,13 An Act to repeal 20.115 (4) (g), 20.115 (4) (h), 20.505 (8) (i), 20.835 (3) (q), 66.058 (3) (c) 8., 74.09 (3) (b) 6., 74.09 (3) (b) 7., 74.09 (3) (f), 79.10 (1m), 79.10 (5), 79.10 (7m) (b), 79.10 (9) (bm), 79.10 (11), 562.077 and 563.05 (6); to renumber 563.135 and 563.80; to renumber and amend 79.10 (7m) (a); to amend 20.115 (4) (a), 20.115 (4) (b), 20.435 (7) (kg), 20.455 (2) (g), 20.505 (8) (h), 20.505 (8) (j), 20.566 (2) (r), 20.566 (8) (q), 25.75 (2), 25.75 (3) (intro.), 25.75 (3) (e), 71.08 (1) (intro.), 71.10 (4) (i), 74.29, 77.22 (2) (intro.), 77.23, 79.10 (2), 79.10 (6m), 79.10 (9) (b), 79.10 (9) (c), 93.31, 562.065 (3) (d) (title), 562.065 (3m) (c) (title) and 2., 562.124 (2), 563.13 (4), 563.16, 563.92 (2), 563.98 (1g) and 565.02 (7); to repeal and recreate 20.505 (8) (g); and to create 20.505 (8) (am), 20.505 (8) (jm), 20.835 (2) (r), 71.07 (9b), 562.065 (3) (cm), 563.055 (6), 563.135 (2m), 563.22 (2) (c) and 563.80 (2m) of the statutes; relating to: the lottery and gaming tax credit and making appropriations.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB114-SSA3, s. 1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table - See PDF for table

SB114-SSA3, s. 2 Section 2. 20.115 (4) (a) of the statutes is amended to read:

SB114-SSA3,2,7 20.115 (4) (a) Aid to Wisconsin livestock breeders association. The amounts in the schedule, less moneys available under par. (h), for the purpose of aid to the Wisconsin livestock breeders association for the conduct of junior livestock shows and other livestock educational programs under s. 93.31.

SB114-SSA3, s. 3 Section 3. 20.115 (4) (b) of the statutes is amended to read:

SB114-SSA3,3,3 20.115 (4) (b) Aids to county and district fairs. A sum sufficient The amounts in the schedule to provide state aids to counties and agricultural societies, associations or boards and to incorporated dairy or livestock associations, not to exceed $15,000 per fair as provided in s. 93.23. No moneys in excess of the difference between $585,000 and the amount of moneys available under par. (g) in each fiscal year may be expended from this appropriation. If the total due the several counties and agricultural societies under this paragraph exceeds $585,000 the amounts in the schedule, the department shall equitably prorate that amount.

SB114-SSA3, s. 4 Section 4. 20.115 (4) (g) of the statutes is repealed.

SB114-SSA3, s. 5 Section 5. 20.115 (4) (h) of the statutes is repealed.

SB114-SSA3, s. 6 Section 6. 20.435 (7) (kg) of the statutes is amended to read:

SB114-SSA3,3,10 20.435 (7) (kg) Compulsive gambling awareness campaigns. The amounts in the schedule for the purpose of awarding grants under s. 46.03 (43). All moneys transferred from ss. s. 20.505 (8) (g) and (h) and 20.566 (8) (q) shall be credited to this appropriation account.

SB114-SSA3, s. 7 Section 7. 20.455 (2) (g) of the statutes is amended to read:

SB114-SSA3,3,18 20.455 (2) (g) Gaming law enforcement; racing revenues. From all moneys received under ss. 562.02 (2) (f), 562.04 (1) (b) 4. and (2) (d), 562.05 (2), 562.065 (3) (cm) and (d), (3m) (c) 2. and (4) and, 562.09 (2) (e) and 562.124 (2), the amounts in the schedule for the performance of the department's gaming law enforcement responsibilities as specified in s. 165.70 (3m). Notwithstanding s. 20.001 (3) (a), the unencumbered balance of this appropriation account at the end of each fiscal year shall be transferred to the lottery fund.

SB114-SSA3, s. 8 Section 8. 20.505 (8) (am) of the statutes is created to read:

SB114-SSA3,3,23 20.505 (8) (am) Interest on racing and bingo moneys. A sum sufficient equal to the amount earned by the investment fund on revenues received under pars. (g) and (jm) and s. 20.455 (2) (g) for the purpose of transferring this amount to the lottery fund.

SB114-SSA3, s. 9 Section 9. 20.505 (8) (g) of the statutes is repealed and recreated to read:

SB114-SSA3,4,8 20.505 (8) (g) General program operations; racing. The amounts in the schedule for general program operations under ch. 562. All moneys received by the department of administration under ss. 562.02 (2) (f), 562.04 (1) (b) 4. and (2) (d), 562.05 (2), 562.065 (3) (cm) and (d), (3m) (c) 2. and (4), 562.09 (2) (e) and 562.124 (2), less the amounts appropriated under s. 20.455 (2) (g), shall be credited to this appropriation account. Notwithstanding s. 20.001 (3) (a), the unencumbered balance of this appropriation account at the end of each fiscal year shall be transferred to the lottery fund.

SB114-SSA3, s. 10 Section 10. 20.505 (8) (h) of the statutes is amended to read:

SB114-SSA3,4,16 20.505 (8) (h) General program operations; Indian gaming. The amounts in the schedule for general program operations under ch. 569. All Indian gaming receipts, as defined in s. 569.01 (1m), less the amounts appropriated under s. 20.455 (2) (gc), shall be credited to this appropriation account. Annually, of the moneys received under this appropriation account, an amount equal to 50% of the amount in the schedule under s. 20.435 (7) (kg) shall be transferred to the appropriation account under s. 20.435 (7) (kg).

SB114-SSA3, s. 11 Section 11. 20.505 (8) (i) of the statutes is repealed.

SB114-SSA3, s. 12 Section 12. 20.505 (8) (j) of the statutes is amended to read:

SB114-SSA3,4,24 20.505 (8) (j) General program operations; charitable raffles and crane games. The amounts in the schedule for general program operations relating to raffles under chs. subchs. II and VIII of ch. 563 and relating to crane games under ch. 564. All moneys received by the department of administration under ch. 563, except s. 563.80, and under s. ss. 563.92 (2), 563.98 (1g) and 564.02 (2) shall be credited to this appropriation account.

SB114-SSA3, s. 13 Section 13. 20.505 (8) (jm) of the statutes is created to read:

SB114-SSA3,5,7 20.505 (8) (jm) General program operations; bingo. The amounts in the schedule for general program operations relating to bingo under subchs. II to VII of ch. 563. All moneys received by the department of administration under ss. 563.055, 563.13 (4), 563.135, 563.16, 563.22 (2) and 563.80 shall be credited to this appropriation account. Notwithstanding s. 20.001 (3) (a), the unencumbered balance of this appropriation account at the end of each fiscal year shall be transferred to the lottery fund.

SB114-SSA3, s. 14 Section 14. 20.566 (2) (r) of the statutes is amended to read:

SB114-SSA3,5,10 20.566 (2) (r) Lottery and gaming credit administration. From the lottery fund, the amounts in the schedule for the administration of the lottery and gaming credit.

SB114-SSA3, s. 15 Section 15. 20.566 (8) (q) of the statutes is amended to read:

SB114-SSA3,5,16 20.566 (8) (q) General program operations. From the lottery fund, the amounts in the schedule for general program operations under ch. 565. Annually, of the moneys appropriated under this paragraph, an amount equal to 36% of the amount in the schedule under s. 20.435 (7) (kg) shall be transferred to the appropriation account under s. 20.435 (7) (kg).

SB114-SSA3, s. 16 Section 16. 20.835 (2) (r) of the statutes is created to read:

SB114-SSA3,5,19 20.835 (2) (r) Lottery and gaming credit. From the lottery fund, a sum sufficient to make the payments under s. 71.07 (9b) (e).

SB114-SSA3, s. 17 Section 17. 20.835 (3) (q) of the statutes is repealed.

SB114-SSA3, s. 18 Section 18. 25.75 (2) of the statutes is amended to read:

SB114-SSA3,5,25 25.75 (2) Creation. There is created a separate nonlapsible trust fund known as the lottery fund, to consist of gross lottery revenues received by the department of revenue and moneys transferred to the lottery fund under ss. 20.455 (2) (g) and 20.505 (8) (am), (g) and (jm).

SB114-SSA3, s. 19 Section 19. 25.75 (3) (intro.) of the statutes is amended to read:

SB114-SSA3,6,4 25.75 (3) Distribution of gross lottery revenues. (intro.) Amounts The distribution of the gross lottery revenues in the fund shall be distributed as follows subject to all of the following:

SB114-SSA3, s. 20 Section 20. 25.75 (3) (e) of the statutes is amended to read:

SB114-SSA3,6,10 25.75 (3) (e) Lottery and gaming credit state administration expenses. From the appropriation under s. 20.566 (2) (r), lottery proceeds and moneys transferred to the lottery fund under ss. 20.455 (2) (g) and 20.505 (8) (am), (g) and (jm) shall be used to offset department of revenue expenses in administering the lottery and gaming credit.

SB114-SSA3, s. 21 Section 21. 66.058 (3) (c) 8. of the statutes is repealed.

SB114-SSA3, s. 22 Section 22. 71.07 (9b) of the statutes is created to read:

SB114-SSA3,6,13 71.07 (9b) Lottery and gaming credit. (a) In this subsection:

SB114-SSA3,6,15 1. "Claimant" means a natural person who files a claim or on whose behalf a claim is filed under this subsection but does not include an estate, fiduciary or trust.

SB114-SSA3,6,20 2. "Principal dwelling" means any dwelling, whether owned or rented, and the land surrounding it that is reasonably necessary for use of the dwelling as a primary dwelling of the claimant and may include a part of a multidwelling or multipurpose building and a part of the land upon which it is built that is used as the claimant's primary dwelling.

SB114-SSA3,7,10 3. "Property taxes" means real and personal property taxes, exclusive of special assessments, delinquent interest and charges for service, paid by a claimant on the claimant's principal dwelling during the taxable year for which credit under this subsection is claimed, less any property taxes paid which are properly includable as a trade or business expense under section 162 of the Internal Revenue Code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, "property taxes" is that part of property taxes paid that reflects the ownership percentage of the claimant. If the principal dwelling is sold during the taxable year the "property taxes" for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to months of their respective ownership. "Property taxes" includes monthly parking permit fees in respect to a principal dwelling collected under s. 66.058 (3) (c).

SB114-SSA3,7,21 4. "Rent constituting property taxes" means 25% of rent if heat is not included, or 20% of rent if heat is included, paid during the taxable year for which credit is claimed under this subsection, at arm's length, for the use of a principal dwelling and contiguous land, excluding any payment for domestic, food, medical or other services which are unrelated to use of the dwelling as housing, less any rent paid that is properly includable as a trade or business expense under the Internal Revenue Code. "Rent" includes space rental paid to a landlord for parking a mobile home. Rent shall be apportioned among the occupants of a principal dwelling according to their respective contribution to the total amount of rent paid. "Rent" does not include rent paid for the use of housing which was exempt from property taxation, except housing for which payments in lieu of taxes were made under s. 66.40 (22).

SB114-SSA3,8,2 (b) Subject to the limitations under this subsection, a claimant may claim as a credit against the taxes imposed under s. 71.02 an amount not exceeding a percentage, as determined annually by the joint committee on finance under par. (d), of the first $2,000 of property taxes or rent constituting property taxes, or 10% of the first $1,000 of property taxes or rent constituting property taxes of a married person filing separately.

SB114-SSA3,8,14 (c) For an unmarried person or a married person filing a separate return who is a part-year resident of this state, the credit under this subsection is limited to that fraction of the amount determined under this subsection that Wisconsin adjusted gross income is of federal adjusted gross income. No credit is allowed under this subsection for unmarried persons or married persons filing separate returns who are nonresidents of this state. If one spouse is not domiciled in this state during the entire taxable year, the credit on a joint return is determined by multiplying the school property tax credit that would be available to them if both spouses were domiciled in this state during the entire taxable year by a fraction the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income. No credit is allowed under this subsection on a joint return if both spouses are nonresidents of this state.

SB114-SSA3,9,7 (d) Before October 16, the department of administration shall determine the total funds available for distribution under this subsection in the following year and the percentage of property taxes or rent constituting property taxes that a claimant may claim under par. (b) in the current taxable year and shall inform the joint committee on finance of that total and percentage. Total funds available for distribution shall be all moneys projected to be transferred to the lottery fund under ss. 20.455 (2) (g) and 20.505 (8) (am), (g) and (jm) and all existing and projected lottery proceeds and interest for the fiscal year of the distribution, less the amount estimated to be expended under ss. 20.455 (2) (r), 20.566 (2) (r) and 20.835 (2) (q) and less the required reserve under s. 20.003 (5). The joint committee on finance may revise the total amount to be distributed or the percentage under par. (b) if it does so at a meeting that takes place before November 1. If the joint committee on finance does not schedule a meeting to take place before November 1, the total determined by the department of administration shall be the total amount estimated to be distributed under this subsection in the following year and the percentage determined by the department of administration shall be the percentage of property taxes or rent constituting property taxes that a claimant may claim under par. (b) in the current taxable year.

SB114-SSA3,9,12 (e) If the allowable amount of the claim under this subsection exceeds the income taxes otherwise due on the claimant's income, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft or other draft drawn from the appropriation under s. 20.835 (2) (r).

SB114-SSA3,9,14 (f) No credit may be allowed under this subsection unless it is claimed within the period specified in s. 71.75 (2).

SB114-SSA3,9,18 (g) In any case in which a principal dwelling is rented by a person from another person under circumstances deemed by the department to be not at arm's length, the department may determine rent at arm's length, and, for purposes of this subsection, such determination shall be final.

SB114-SSA3,9,20 (h) Section 71.28 (4) (g) and (h) as it relates to the credit under s. 71.28 (4) relates to the credit under this subsection.

SB114-SSA3, s. 23 Section 23. 71.08 (1) (intro.) of the statutes is amended to read:

SB114-SSA3,9,25 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3s), (6) and, (9b) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and (3) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and (3) and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

SB114-SSA3, s. 24 Section 24. 71.10 (4) (i) of the statutes is amended to read:

SB114-SSA3,10,12 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under subch. IX, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s. 71.07 (2fd), lottery and gaming credit under s. 71.07 (9b), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB114-SSA3, s. 25 Section 25. 74.09 (3) (b) 6. of the statutes is repealed.

SB114-SSA3, s. 26 Section 26. 74.09 (3) (b) 7. of the statutes is repealed.

SB114-SSA3, s. 27 Section 27. 74.09 (3) (f) of the statutes is repealed.

SB114-SSA3, s. 28 Section 28. 74.29 of the statutes is amended to read:

SB114-SSA3,10,23 74.29 August settlement. On or before August 20, the county treasurer shall pay in full to the proper treasurer all real property taxes, including taxes offset by the credit under s. 79.10 (5), and special taxes included in the tax roll which have not previously been paid to, or retained by, the proper treasurer. A county may, by resolution adopted by the county board, direct the county treasurer to pay in full to the proper treasurer all special assessments and special charges included in the tax roll which have not previously been paid to, or retained by, the proper treasurer.

SB114-SSA3, s. 29 Section 29. 77.22 (2) (intro.) of the statutes is amended to read:

SB114-SSA3,11,3 77.22 (2) (intro.) The secretary of revenue shall prescribe the form required under sub. (1). The form shall include an application for a credit under s. 79.10 (5) and shall provide for the submission of the following:

SB114-SSA3, s. 30 Section 30. 77.23 of the statutes is amended to read:

SB114-SSA3,11,11 77.23 Disposition of fees and returns. On or before the 15th day of each month the register shall submit to the county treasurer transfer fees collected together with the returns filed in the office during the preceding month for the treasurer's transmission to the department of revenue under s. 77.24 and shall submit to the county treasurer, or to the city treasurer if the property is located in a city that collects taxes under s. 74.87, all applications for credits under s. 79.10 (5) that the county register of deeds receives during the preceding month.

SB114-SSA3, s. 31 Section 31. 79.10 (1m) of the statutes is repealed.

SB114-SSA3, s. 32 Section 32. 79.10 (2) of the statutes is amended to read:

SB114-SSA3,11,21 79.10 (2) Notice to municipalities. On or before December 1 of the year preceding the distribution under sub. (7m) (a), the department of revenue shall notify the clerk of each town, village and city of the estimated fair market value, as determined under sub. (11), to be used to calculate the lottery credit under sub. (5) and of the amount to be distributed to it under sub. (7m) (a) on the following 4th Monday in July. The anticipated receipt of such distribution shall not be taken into consideration in determining the tax rate of the municipality but shall be applied as tax credits.

SB114-SSA3, s. 33 Section 33. 79.10 (5) of the statutes is repealed.

SB114-SSA3, s. 34 Section 34. 79.10 (6m) of the statutes is amended to read:

SB114-SSA3,12,12 79.10 (6m) Corrections of state property tax credit payments. If the department of administration or the department of revenue determines by October 1 of the year of any distribution under subs. sub. (4) and (5) that there was an overpayment or underpayment made in that year's distribution by the department of administration to municipalities, as determined under subs. sub. (4) and (5), because of an error by the department of administration, the department of revenue or any municipality, the overpayment or underpayment shall be corrected as provided in this subsection. Any overpayment shall be corrected by reducing the subsequent year's distribution, as determined under subs. sub. (4) and (5), by an amount equal to the amount of the overpayment. Any underpayment shall be corrected by increasing the subsequent year's distribution, as determined under subs. sub. (4) and (5), by an amount equal to the amount of the underpayment. Corrections shall be made in the distributions to all municipalities affected by the error. Corrections shall be without interest.

SB114-SSA3, s. 35 Section 35. 79.10 (7m) (a) of the statutes is renumbered 79.10 (7m), and 79.10 (7m) (b), as renumbered, is amended to read:

SB114-SSA3,12,21 79.10 (7m) (b) The town, village or city treasurer shall settle for the amounts distributed under this paragraph subsection on the 4th Monday in July with the appropriate county treasurer not later than August 15. Failure to settle timely under this subdivision paragraph subjects the town, village or city treasurer to the penalties under s. 74.31. On or before August 20, the county treasurer shall settle with each taxing jurisdiction, including towns, villages and cities except 1st class cities, in the county.

SB114-SSA3, s. 36 Section 36. 79.10 (7m) (b) of the statutes is repealed.

SB114-SSA3, s. 37 Section 37. 79.10 (9) (b) of the statutes is amended to read:

SB114-SSA3,13,6 79.10 (9) (b) Property tax relief credit. Except as provided in ss. 79.175 and 79.18, every property taxpayer of the municipality having assessed property shall receive a tax credit in an amount determined by applying the percentage of the amount of the value of property assessed to the taxpayer to the amount of the distribution to be made to the municipality under sub. (7m) (a), as stated in the December 1 notification from the department of revenue, except that no taxpayer may receive a credit larger than the total amount of property taxes to be paid on each parcel for which tax is levied for that year by that taxpayer.

SB114-SSA3, s. 38 Section 38. 79.10 (9) (bm) of the statutes is repealed.

SB114-SSA3, s. 39 Section 39. 79.10 (9) (c) of the statutes is amended to read:

SB114-SSA3,13,11 79.10 (9) (c) Credits shown on tax bill. The lottery credit under par. (bm) shall reduce the property taxes otherwise payable, and the credit under par. (b) shall reduce the property taxes otherwise payable.