Amendment ASA1-SB55

SB55-ASA1,840,20 76.28 (1) (f) "Payroll factor" means a fraction the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period, except that compensation solely related to the production of nonoperating revenues shall be excluded from the numerator and denominator of the payroll factor and except that compensation related to the production of both operating and nonoperating revenue shall be partially excluded from the numerator and denominator of the payroll factor so as to exclude as near as possible the portion of compensation related to the production of nonoperating revenue. Compensation is paid in this state if the individual's service is performed entirely within this state, or if the individual's service is performed both within and outside this state but the service performed outside this state is incidental to the individual's service within this state, or if some of the service is performed in this state and the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in this state or the base of operations or the place from which the service is directed or controlled is not in any state in which part of the service is performed and the individual's residence is in this state. In this paragraph, "compensation" includes management and service fees paid to an affiliated service corporation pursuant to 15 USC 79.

SB55-ASA1, s. 2234m Section 2234m. 76.28 (1) (gm) of the statutes is renumbered 76.28 (1) (gm) (intro.) and amended to read:

SB55-ASA1,840,24 76.28 (1) (gm) (intro.) "Qualified wholesale electric company" means any all of the following:

SB55-ASA1,841,6 1. Any person that owns or operates facilities for the generation and sale of electricity to a public utility, as defined in s. 196.01 (5), or to any other entity that sells electricity directly to the public, except that "qualified wholesale electric company" does not include any person that sells less than 95% of its net production of electricity or that does not own, operate, or control electric generating facilities that have a total power production capacity of at least 50 megawatts.

SB55-ASA1, s. 2234n Section 2234n. 76.28 (1) (gm) 2. of the statutes is created to read:

SB55-ASA1,841,9 76.28 (1) (gm) 2. A wholesale merchant plant, as defined in s. 196.491 (1) (w), that has a total power production capacity of at least 50 megawatts.

SB55-ASA1, s. 1226 Section 1226. 76.28 (2) (a) of the statutes is amended to read:

SB55-ASA1,841,20 76.28 (2) (a) There Except as provided in s. 76.29, there is imposed on every light, heat and power company an annual license fee to be assessed by the department on or before May 1, 1985, and every May 1 thereafter measured by the gross revenues of the preceding year; excluding for the tax period, as defined in s. 76.29 (1) (f), gross revenues that are subject to the license fee under s. 76.29; at the rates and by the methods set forth under pars. (b) to (d). The fee shall become delinquent if not paid when due and when delinquent shall be subject to interest at the rate of 1.5% per month until paid. Payment in full of the May 1 assessment constitutes a license to carry on business for the 12-month period commencing on the preceding January 1.

SB55-ASA1, s. 1227 Section 1227. 76.29 of the statutes is created to read:

SB55-ASA1,841,23 76.29 License fee for selling electricity at wholesale. (1) Definitions. In this section:

SB55-ASA1,841,24 (a) "Apportionment factor" has the meaning given in s. 76.28 (1) (a).

SB55-ASA1,841,25 (b) "Department" means the department of revenue.

SB55-ASA1,842,1 (c) "Electric cooperative" has the meaning given in s. 76.48 (1g) (c).

SB55-ASA1,842,3 (d) "Gross revenues" means total revenues from the sale of electricity for resale by the purchaser of the electricity.

SB55-ASA1,842,5 (e) "Light, heat, and power companies" has the meaning given in s. 76.28 (1) (e).

SB55-ASA1,842,7 (f) "Tax period" means each calendar year or portion of a calender year from January 1, 2004, to December 31, 2009.

SB55-ASA1,842,18 (2) Imposition. There is imposed on every light, heat, and power company and electric cooperative that owns an electric utility plant, an annual license fee to be assessed by the department on or before May 1, 2005, and every May 1 thereafter, ending with the assessment on May 1, 2010, measured by the gross revenues of the preceding tax period in an amount equal to the apportionment factor multiplied by gross revenues multiplied by 1.59%. The fee shall become delinquent if not paid when due and when delinquent shall be subject to interest at the rate of 1.5% per month until paid. Gross revenues earned by a light, heat, and power company after December 31, 2009, are subject to the license fee imposed under s. 76.28 (2). Gross revenues earned by an electric cooperative after December 31, 2009, are subject to the license fee imposed under s. 76.48 (1r).

SB55-ASA1,842,20 (3) Administration. Section 76.28 (3) (c) and (4) to (11), as it applies to the fee imposed under s. 76.28 (2), applies to the fee imposed under this section.

SB55-ASA1, s. 2236m Section 2236m. 76.31 of the statutes is created to read:

SB55-ASA1,843,4 76.31 Determination of ad valorem tax receipts for hub facility exemptions. By July 1, 2004, and every July 1 thereafter, the department shall determine the total amount of the tax imposed under subch. I of ch. 76 that was paid by each air carrier company, as defined in s. 70.11 (42) (a) 1., whose property is exempt from taxation under s. 70.11 (42) (b) for the most recent taxable year that the air carrier company paid the tax imposed under subch. I of ch. 76. The total amount determined under this section shall be transferred under s. 20.855 (4) (fm) to the transportation fund.

SB55-ASA1, s. 1228 Section 1228. 76.48 (1r) of the statutes is amended to read:

SB55-ASA1,843,18 76.48 (1r) Every Except as provided in s. 76.29, every electric cooperative shall pay, in lieu of other general property and income or franchise taxes, an annual license fee equal to its apportionment factor multiplied by its gross revenues ; excluding for the tax period, as defined in s. 76.29 (1) (f), gross revenues that are subject to the license fee under s. 76.29; multiplied by 3.19%. Real estate and personal property not used primarily for the purpose of generating, transmitting or distributing electric energy are subject to general property taxes. If a general structure is used in part to generate, transmit or distribute electric energy and in part for nonoperating purposes, the license fee imposed by this section is in place of the percentage of all other general property taxes that fairly measures and represents the extent of the use in generating, transmitting or distributing electric energy, and the balance is subject to local assessment and taxation, except that the entire general structure is subject to special assessments for local improvements.

SB55-ASA1, s. 1229 Section 1229. 76.81 of the statutes is amended to read:

SB55-ASA1,844,5 76.81 Imposition. There is imposed a tax on the real property of, and the tangible personal property of, every telephone company, excluding property that is exempt from the property tax under s. 70.11 (39), motor vehicles that are exempt under s. 70.112 (5), property that is used less than 50% in the operation of a telephone company, as provided under s. 70.112 (4) (b), 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. The real and tangible personal property of a telephone company shall be assessed as provided under s. 70.112 (4) (b).

SB55-ASA1, s. 1230 Section 1230. 77.51 (20) of the statutes is amended to read:

SB55-ASA1,844,14 77.51 (20) "Tangible personal property" means all tangible personal property of every kind and description and includes electricity, natural gas, steam, and water, and also leased property affixed to realty if the lessor has the right to remove the property upon breach or termination of the lease agreement, unless the lessor of the property is also the lessor of the realty to which the property is affixed. "Tangible personal property" also includes coins and stamps of the United States sold or traded as collectors' items above their face value and computer programs except, including custom computer programs.

SB55-ASA1, s. 1231 Section 1231. 77.52 (2) (a) 10. of the statutes is amended to read:

SB55-ASA1,846,7 77.52 (2) (a) 10. Except for installing or applying tangible personal property which, when installed or applied, will constitute an addition or capital improvement of real property, the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection and maintenance of all items of tangible personal property unless, at the time of such repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection or maintenance, a sale in this state of the type of property repaired, serviced, altered, fitted, cleaned, painted, coated, towed, inspected or maintained would have been exempt to the customer from sales taxation under this subchapter, other than the exempt sale of a motor vehicle or truck body to a nonresident under s. 77.54 (5) (a) and other than nontaxable sales under s. 77.51 (14r). For purposes of this paragraph, the following items shall be deemed to have retained their character as tangible personal property, regardless of the extent to which any such item is fastened to, connected with or built into real property: furnaces, boilers, stoves, ovens, including associated hoods and exhaust systems, heaters, air conditioners, humidifiers, dehumidifiers, refrigerators, coolers, freezers, water pumps, water heaters, water conditioners and softeners, clothes washers, clothes dryers, dishwashers, garbage disposal units, radios and radio antennas, incinerators, television receivers and antennas, record players, tape players, jukeboxes, vacuum cleaners, furniture and furnishings, carpeting and rugs, bathroom fixtures, sinks, awnings, blinds, gas and electric logs, heat lamps, electronic dust collectors, grills and rotisseries, bar equipment, intercoms, recreational, sporting, gymnasium and athletic goods and equipment including by way of illustration but not of limitation bowling alleys, golf practice equipment, pool tables, punching bags, ski tows and swimming pools; office, restaurant and tavern type equipment in offices, business facilities, schools, and hospitals but not in residential facilities including personal residences, apartments, long-term care facilities, as defined under s. 16.009 (1) (em), state institutions, as defined under s. 101.123 (1) (i), or similar facilities, including by way of illustration but not of limitation lamps, chandeliers, and fans, venetian blinds, canvas awnings, office and business machines, ice and milk dispensers, beverage-making equipment, vending machines, soda fountains, steam warmers and tables, compressors, condensing units and evaporative condensers, pneumatic conveying systems; laundry, dry cleaning, and pressing machines, power tools, burglar alarm and fire alarm fixtures, electric clocks and electric signs. "Service" does not include services performed by veterinarians. The tax imposed under this subsection applies to the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of items listed in this subdivision, regardless of whether the installation or application of tangible personal property related to the items is an addition to or a capital improvement of real property, except that the tax imposed under this subsection does not apply to the original installation or the complete replacement of an item listed in this subdivision, if such installation or replacement is a real property construction activity under s. 77.51 (2).

SB55-ASA1, s. 2245d Section 2245d. 77.52 (2) (a) 10. of the statutes, as affected by 2001 Wisconsin Act .... (this act), is amended to read:

SB55-ASA1,848,2 77.52 (2) (a) 10. Except for installing or applying tangible personal property which, when installed or applied, will constitute an addition or capital improvement of real property, the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection and maintenance of all items of tangible personal property unless, at the time of such repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection or maintenance, a sale in this state of the type of property repaired, serviced, altered, fitted, cleaned, painted, coated, towed, inspected or maintained would have been exempt to the customer from sales taxation under this subchapter, other than the exempt sale of a motor vehicle or truck body to a nonresident under s. 77.54 (5) (a) and other than nontaxable sales under s. 77.51 (14r). For purposes of this paragraph, the following items shall be deemed to have retained their character as tangible personal property, regardless of the extent to which any such item is fastened to, connected with or built into real property: furnaces, boilers, stoves, ovens, including associated hoods and exhaust systems, heaters, air conditioners, humidifiers, dehumidifiers, refrigerators, coolers, freezers, water pumps, water heaters, water conditioners and softeners, clothes washers, clothes dryers, dishwashers, garbage disposal units, radios and radio antennas, incinerators, television receivers and antennas, record players, tape players, jukeboxes, vacuum cleaners, furniture and furnishings, carpeting and rugs, bathroom fixtures, sinks, awnings, blinds, gas and electric logs, heat lamps, electronic dust collectors, grills and rotisseries, bar equipment, intercoms, recreational, sporting, gymnasium and athletic goods and equipment including by way of illustration but not of limitation bowling alleys, golf practice equipment, pool tables, punching bags, ski tows and swimming pools; equipment in offices, business facilities, schools and hospitals but not in residential facilities including personal residences, apartments, long-term care facilities, as defined under s. 16.009 (1) (em), state institutions, as defined under s. 101.123 (1) (i), Type 1 secured correctional facilities, as defined in s. 938.02 (19), or similar facilities, including by way of illustration but not of limitation lamps, chandeliers, and fans, venetian blinds, canvas awnings, office and business machines, ice and milk dispensers, beverage-making equipment, vending machines, soda fountains, steam warmers and tables, compressors, condensing units and evaporative condensers, pneumatic conveying systems; laundry, dry cleaning, and pressing machines, power tools, burglar alarm and fire alarm fixtures, electric clocks and electric signs. "Service" does not include services performed by veterinarians. The tax imposed under this subsection applies to the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of items listed in this subdivision, regardless of whether the installation or application of tangible personal property related to the items is an addition to or a capital improvement of real property, except that the tax imposed under this subsection does not apply to the original installation or the complete replacement of an item listed in this subdivision, if such installation or replacement is a real property construction activity under s. 77.51 (2).

SB55-ASA1, s. 1232 Section 1232. 77.54 (9a) (a) of the statutes is amended to read:

SB55-ASA1,848,5 77.54 (9a) (a) This state or any agency thereof and, the University of Wisconsin Hospitals and Clinics Authority, and the Fox River Navigational System Authority.

SB55-ASA1, s. 2246m Section 2246m. 77.54 (45) of the statutes is amended to read:

SB55-ASA1,848,15 77.54 (45) The gross receipts from the sale of and the use or other consumption of a onetime license or similar right to purchase admission to professional football games at a football stadium, as defined in s. 229.821 (6), that is granted by a municipality; a local professional football stadium district; or a professional football team or related party, as defined in s. 229.821 (12); if the person who buys the license or right is entitled, at the time the license or right is transferred to the person, to purchase admission to at least 3 professional football games in this state during one football season. The exemption under this subsection does not apply to a license or right that is sold after December 31, 2003.

SB55-ASA1, s. 2247b Section 2247b. 77.76 (3) of the statutes is amended to read:

SB55-ASA1,849,9 77.76 (3) From the appropriation under s. 20.835 (4) (g) the department shall distribute 98.25% of the county taxes reported for each enacting county, minus the county portion of the retailers' discounts, to the county and shall indicate the taxes reported by each taxpayer, no later than the end of the 3rd month 75 days following the end last day of the calendar quarter in which such amounts were reported. In this subsection, the "county portion of the retailers' discount" is the amount determined by multiplying the total retailers' discount by a fraction the numerator of which is the gross county sales and use taxes payable and the denominator of which is the sum of the gross state and county sales and use taxes payable. The county taxes distributed shall be increased or decreased to reflect subsequent refunds, audit adjustments and all other adjustments of the county taxes previously distributed. Interest paid on refunds of county sales and use taxes shall be paid from the appropriation under s. 20.835 (4) (g) at the rate paid by this state under s. 77.60 (1) (a). The county may retain the amount it receives or it may distribute all or a portion of the amount it receives to the towns, villages, cities and school districts in the county. Any county receiving a report under this subsection is subject to the duties of confidentiality to which the department of revenue is subject under s. 77.61 (5).

SB55-ASA1, s. 2247d Section 2247d. 77.82 (1) (a) 2. of the statutes is amended to read:

SB55-ASA1,849,12 77.82 (1) (a) 2. At least 80% 65% of the parcel must be producing or capable of producing a minimum of 20 cubic feet of merchantable timber per acre per year.

SB55-ASA1, s. 2247h Section 2247h. 77.82 (1) (b) 1. of the statutes is amended to read:

SB55-ASA1,849,17 77.82 (1) (b) 1. A parcel of which more than 20% 35% consists of land that is unsuitable for producing merchantable timber, including water, marsh, muskeg, bog, rock outcrops, or sand dunes, farmland, roadway or railroad and utility rights-of-way.

SB55-ASA1, s. 2247p Section 2247p. 77.82 (1) (b) 1g. of the statutes is created to read:

SB55-ASA1,849,25 77.82 (1) (b) 1g. A parcel of which more than 20% consists of land that is farmland, roadway, or a railroad or utility right-of-way or that is not capable of producing merchantable timber because the production would affect the land's natural resources including land that contains sensitive soil, as determined by the department, endangered species as defined in s. 29.604 (2) (a), threatened species, as defined in s. 29.604 (2) (b), or an archeological site, or land that lacks sound forestry regeneration options, as determined by the department.

SB55-ASA1, s. 2247t Section 2247t. 77.82 (7) (a) 3. of the statutes is amended to read:

SB55-ASA1,850,3 77.82 (7) (a) 3. That a stand of merchantable timber will be developed on at least 80% 65% of the land within a reasonable period of time.

SB55-ASA1, s. 1233 Section 1233. 77.92 (4) of the statutes is amended to read:

SB55-ASA1,850,19 77.92 (4) "Net business income", with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), and (3g), and (3s); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions from farming. "Net business income", with respect to a natural person, estate, or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

SB55-ASA1, s. 1234 Section 1234. 77.94 (1) (b) of the statutes is amended to read:

SB55-ASA1,850,25 77.94 (1) (b) On an entity under s. 77.93 (2) or, (3), or (5), except an entity that has less than $4,000,000 of gross receipts, an amount equal to the amount calculated by multiplying net business income as allocated or apportioned to this state by means of the methods under s. 71.04, for the taxable year of the entity by 0.2 %, up to a maximum of $9,800, or $25, whichever is greater.

SB55-ASA1, s. 1235 Section 1235. 77.94 (1) (c) of the statutes is repealed.

SB55-ASA1, s. 2250m Section 2250m. 77.994 (1) of the statutes is repealed and recreated to read:

SB55-ASA1,851,9 77.994 (1) Except as provided in sub. (2) and subject to sub. (3), a municipality or a county all of which is included in a premier resort area under s. 66.1113 may, by ordinance, impose a tax at a rate of 0.5% of the gross receipts from the sale, lease, or rental in the municipality or county of goods or services that are taxable under subch. III made by businesses that are classified in the North American Industry Classification System, 1997 edition, published by the U.S. office of management and budget, under the following industry numbers:

SB55-ASA1,851,10 (a) 452990 — All other general merchandise stores.

SB55-ASA1,851,11 (b) 445292 — Confectionery and nut stores.

SB55-ASA1,851,12 (c) 445299 — All other specialty food stores.

SB55-ASA1,851,13 (d) 311811 — Retail bakeries.

SB55-ASA1,851,14 (e) 447100 — Gasoline stations.

SB55-ASA1,851,15 (f) 722110 — Full-service restaurants.

SB55-ASA1,851,16 (g) 722210 — Limited-service eating places.

SB55-ASA1,851,17 (h) 722300 — Special food services.

SB55-ASA1,851,18 (i) 722410 — Drinking places.

SB55-ASA1,851,19 (j) 446110 — Pharmacies and drug stores.

SB55-ASA1,851,20 (k) 445310 — Beer, wine, and liquor stores.

SB55-ASA1,851,21 (L) 451110 — Sporting goods stores.

SB55-ASA1,851,22 (m) 443130 — Camera and photographic supply stores.

SB55-ASA1,851,23 (n) 453220 — Gift, novelty, and souvenir stores.

SB55-ASA1,851,24 (o) 721110 — Hotels and motels.

SB55-ASA1,851,25 (p) 721120 — Casino hotels.

SB55-ASA1,852,1 (q) 721191 — Bed-and-breakfast inns.

SB55-ASA1,852,2 (r) 721199 — All other traveler accommodations.

SB55-ASA1,852,3 (s) 721214 — Recreational and vacation camps.

SB55-ASA1,852,4 (t) 721211 — Recreational vehicle parks and campgrounds.

SB55-ASA1,852,5 (u) 711212 — Racetracks.

SB55-ASA1,852,6 (v) 713910 — Golf courses and country clubs.

SB55-ASA1,852,7 (w) 713100 — Amusement parks and arcades.

SB55-ASA1,852,8 (x) 713200 — Gambling industries.

SB55-ASA1,852,9 (y) 713920 — Skiing facilities.

SB55-ASA1,852,10 (z) 713990 — All other amusement and recreation industries.

SB55-ASA1, s. 2250n Section 2250n. 77.994 (3) of the statutes is created to read:

SB55-ASA1,852,15 77.994 (3) If a premier resort area has imposed a tax under this subchapter that is based on the standard industrial classification manual, 1987 edition, published by the U.S. office of management and budget, the tax imposed by the premier resort area applies to the businesses specified under sub. (1).

SB55-ASA1, s. 1236 Section 1236. 77.996 (2) (intro.) of the statutes is amended to read:

SB55-ASA1,852,19 77.996 (2) (intro.) "Dry cleaning facility" means a facility that dry cleans apparel or household fabrics for the general public using a dry cleaning product, other than the following facilities:

SB55-ASA1, s. 1237 Section 1237. 77.996 (3) of the statutes is amended to read:

SB55-ASA1,852,25 77.996 (3) "Dry cleaning solvent product" means a chlorine-based or hydrocarbon-based formulation or product that is used as a primary cleaning agent in dry cleaning facilities hazardous substance used to clean apparel or household fabrics, except a hazardous substance used to launder apparel or household products.

SB55-ASA1, s. 1238 Section 1238. 77.9962 of the statutes is amended to read:

SB55-ASA1,853,7 77.9962 Dry cleaning solvents products fee. There is imposed on each person who sells a dry cleaning solvent product to a dry cleaning facility a fee equal to $5 per gallon of perchloroethylene sold and 75 cents per gallon of a hydrocarbon-based solvent any dry cleaning product sold, other than perchloroethylene. The fees for the previous 3 months are due on January 25, April 25, July 25, and October 25.

SB55-ASA1, s. 1239 Section 1239. 77.9963 of the statutes is repealed.

SB55-ASA1, s. 1240 Section 1240. 78.55 (1) of the statutes is amended to read:

SB55-ASA1,853,11 78.55 (1) "Air carrier company" has the meaning given in s. 76.02 (1) 70.11 (42) (a) 1.

SB55-ASA1, s. 1241 Section 1241. 79.04 (1) (intro.) of the statutes is amended to read: