AB774-ASA1,1,7 1An Act to amend 16.969 (2) (a), 70.112 (4) (a), 76.28 (9), 76.29 (2), 79.04 (1)
2(intro.), 79.04 (1) (b) 1., 79.04 (2) (a), 79.04 (2) (am) 1., 79.04 (6) (a) and 196.491
3(3) (gm); and to create 70.112 (4) (am), 70.995 (2) (zm), 76.28 (3) (e), 76.48 (3d)
4and 79.04 (4m) of the statutes; relating to: public utility aid payments,
5imposing local general property taxes on production plant general structures
6and substations, and creating a credit against license fees imposed on light,
7heat, and power companies and electric cooperatives.
Analysis by the Legislative Reference Bureau
Under current law, beginning in 2005, each county and municipality in which
a power production plant is located receives a state aid payment based on the net
book value of the production plant, for production plants that, generally, began
operation before January 1, 2004, or based on the production plant's megawatt
capacity, for production plants that began operation after December 31, 2003. Under
this substitute amendment, beginning in 2005, if in any year the payments to the
municipality and county in which a production plant is located would be greater
based on the production plant's name-plate capacity than on the depreciated net
book value of the production plant, the municipality and county will receive

payments based on the production plant's name-plate capacity beginning in that
year and in each year thereafter.
Under current law, generally, the property of a light, heat, and power company,
including general structures and substations, is exempt from the imposition of local
general property taxes, if the company is subject to license fees. Under the substitute
amendment, beginning with the property tax assessments as of January 1, 2005, a
general structure that is owned or leased by a light, heat, and power company is
subject to local general property taxes. In addition, beginning with the property tax
assessments as of January 1, 2006, a substation of a light, heat, and power company,
not including transmission substation property, is subject to local general property
taxes. However, the property of a light, heat, and power company that is located
within the municipality that operates the company is not subject to property taxes.
In addition, beginning with license fees that are due in 2006, a light, heat, and
power company may claim as a credit against its license fee liability an amount equal
to the amount of the property taxes that the company paid in the calendar year on
general structures and substations. An electric cooperative may also claim a credit
against its license fee liability in an amount equal to the amount of any payments
in lieu of property taxes that the cooperative paid in the calendar year, not to exceed
the amount of property taxes that the cooperative would have paid had it's property
been subject to property taxes. If the credit claimed by a light, heat, and power
company or an electric cooperative exceeds the license fee liability of the company or
cooperative, the state will not issue a refund check, but the company or cooperative
may carry forward any remaining credit to the 15 following years.
This substitute amendment, in contrast to the bill, retains the provision under
current law that allows state aid payments, based on a production plant's net book
value, that are paid to a municipality and county in which an ash disposal facility
is located to include an amount that is equal to twice the net book value of the ash
disposal facility.
Under current law, a person who is issued a certificate of public convenience
and necessity for a high-voltage transmission line must pay the Department of
Administration an annual impact fee equal to 0.3 percent of the cost of the
high-voltage transmission line. Under the substitute amendment, the annual
impact fee is equal to 0.3 percent of the net book value of the high-voltage
transmission line.
Finally, the substitute amendment requires the Department of Revenue to
submit a proposal to the legislature, no later than December 31, 2004, regarding
imposing local general property taxes on all property of electric cooperatives and
light, heat, and power companies beginning with the property tax assessments as of
January 1, 2007.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB774-ASA1, s. 1 1Section 1. 16.969 (2) (a) of the statutes is amended to read:
AB774-ASA1,3,3
116.969 (2) (a) An annual impact fee in an amount equal to 0.3% of the cost net
2book value
of the high-voltage transmission line, as determined by the commission
3under s. 196.491 (3) (gm).
AB774-ASA1, s. 2 4Section 2. 70.112 (4) (a) of the statutes is amended to read:
AB774-ASA1,3,185 70.112 (4) (a) All Except as provided in par. (am), all special property assessed
6under ss. 76.01 to 76.26 and property of any light, heat, and power company taxed
7under s. 76.28, car line company, and electric cooperative association that is used and
8useful in the operation of the business of such company or association. If Except as
9provided in par. (am) 1., if
a general structure for which an exemption is sought under
10this section is used and useful in part in the operation of any public utility assessed
11under ss. 76.01 to 76.26 or of the business of any light, heat, and power company
12taxed under s. 76.28, car line company, or electric cooperative association and in part
13for nonoperating purposes of the public utility or company or association, that
14general structure shall be assessed for taxation under this chapter at the percentage
15of its full market value that fairly measures and represents the extent of its use for
16nonoperating purposes. Nothing provided in this paragraph shall exclude any real
17estate or any property which is separately accounted for under s. 196.59 from special
18assessments for local improvements under s. 66.0705.
AB774-ASA1, s. 3 19Section 3. 70.112 (4) (am) of the statutes is created to read:
AB774-ASA1,3,2420 70.112 (4) (am) 1. Except as provided in subd. 3., beginning with the property
21tax assessments as of January 1, 2005, a general structure owned or leased by a light,
22heat, and power company taxed under s. 76.28 or 76.29 is subject to general property
23taxes and, beginning with distributions in 2005, shall not be included in the
24calculation of payments under s. 79.04 (1) and (2).
AB774-ASA1,4,6
12. Except as provided in subd. 3., beginning with the property tax assessments
2as of January 1, 2006, a substation of a light, heat, and power company taxed under
3s. 76.28 or 76.29 is subject to general property taxes and, beginning with
4distributions in 2006, shall not be included in the calculation of payments under s.
579.04 (1) and (2), except that this subdivision does not apply to transmission
6substation property.
AB774-ASA1,4,97 3. This paragraph does not apply to the property of a light, heat, and power
8company that is located within the boundaries of the municipality that operates the
9company and for which payments are made under s. 66.0811 (2).
AB774-ASA1,4,1110 4. Property subject to taxation under this paragraph shall be assessed by the
11department of revenue, as provided under s. 70.995.
AB774-ASA1, s. 4 12Section 4. 70.995 (2) (zm) of the statutes is created to read:
AB774-ASA1,4,1313 70.995 (2) (zm) Property described under s. 70.112 (4) (am).
AB774-ASA1, s. 5 14Section 5. 76.28 (3) (e) of the statutes is created to read:
AB774-ASA1,4,2415 76.28 (3) (e) Beginning with the fees due in calendar year 2006, a light, heat,
16and power company may claim as a credit against the fees imposed under sub. (2) and
17s. 76.29 (2) an amount equal to the amount of property taxes imposed under ch. 70
18on general structures and substations that the light, heat, and power company paid
19in the then current calendar year. If a credit computed under this paragraph is not
20entirely offset against the license fees otherwise due for the then current calendar
21year, the unused balance may be carried forward and credited against license fees
22otherwise due for the following 15 calender years to the extent not offset by the
23license fees otherwise due in all intervening years between the year in which the
24property taxes were paid and the year in which the carry-forward credit is claimed.
AB774-ASA1, s. 6 25Section 6. 76.28 (9) of the statutes is amended to read:
AB774-ASA1,5,14
176.28 (9) Property subject to local tax. The Except as provided in s. 70.112
2(4) (am) the
license fees imposed by this section upon the gross revenues of light, heat
3and power companies as defined in sub. (1) (e) shall be in lieu of all other taxes on
4all property used and useful in the operation of the business of such companies in this
5state, except that the same shall be subject to special assessments for local
6improvements. If a general structure is used and useful in part in the operation of
7the business of those companies in this state and in part for nonoperating purposes,
8the license fees imposed by this section are in place of the percentage of all other taxes
9on the property that fairly measures and represents the extent of the use and
10usefulness in the operation of the business of those companies in this state, and the
11balance is subject to local assessment and taxation, except that the entire general
12structure is subject to special assessments for local improvements. Property under
13s. 76.025 (2) shall not be taxed under this section, but shall be subject to local
14assessment and taxation.
AB774-ASA1, s. 7 15Section 7. 76.29 (2) of the statutes is amended to read:
AB774-ASA1,6,216 76.29 (2) Imposition. There Subject to the credits under ss. 76.28 (3) (e) and
1776.48 (3d), there
is imposed on every light, heat, and power company and electric
18cooperative that owns an electric utility plant, an annual license fee to be assessed
19by the department on or before May 1, 2005, and every May 1 thereafter, ending with
20the assessment on May 1, 2010, measured by the gross revenues of the preceding tax
21period in an amount equal to the apportionment factor multiplied by gross revenues
22multiplied by 1.59%. The fee shall become delinquent if not paid when due and when
23delinquent shall be subject to interest at the rate of 1.5% per month until paid. Gross
24revenues earned by a light, heat, and power company after December 31, 2009, are
25subject to the license fee imposed under s. 76.28 (2). Gross revenues earned by an

1electric cooperative after December 31, 2009, are subject to the license fee imposed
2under s. 76.48 (1r).
AB774-ASA1, s. 8 3Section 8. 76.48 (3d) of the statutes is created to read:
AB774-ASA1,6,154 76.48 (3d) Beginning with the fees due in calendar year 2006, an electric
5cooperative may claim as a credit against the fees imposed under sub. (1r) and s.
676.29 (2) an amount equal to the amount of any payments in lieu of property taxes
7that the electric cooperative paid in the then current calendar year, not to exceed the
8amount of property taxes that the cooperative would have paid in that year had the
9cooperative's property been subject to taxation under ch. 70. If a credit computed
10under this paragraph is not entirely offset against the license fees otherwise due for
11the then current calendar year, the unused balance may be carried forward and
12credited against license fees otherwise due for the following 15 calender years to the
13extent not offset by the license fees otherwise due in all intervening years between
14the year in which the payments were paid and the year in which the carry-forward
15credit is claimed.
AB774-ASA1, s. 9 16Section 9. 79.04 (1) (intro.) of the statutes, as affected by 2003 Wisconsin Act
1731
, is amended to read:
AB774-ASA1,7,318 79.04 (1) (intro.) Annually, except for production plants that begin operation
19after December 31, 2003, or begin operation as a repowered production plant after
20December 31, 2003, and except as provided in sub. (4m) and under s. 70.112 (4) (am),
21the department of administration, upon certification by the department of revenue,
22shall distribute to a municipality having within its boundaries a production plant,
23general structure, or substation, used by a light, heat, or power company assessed
24under s. 76.28 (2) or 76.29 (2), except property described in s. 66.0813 unless the
25production plant or substation is owned or operated by a local governmental unit

1located outside of the municipality, or by an electric cooperative assessed under ss.
276.07 and 76.48, respectively, or by a municipal electric company under s. 66.0825
3the amount determined as follows:
AB774-ASA1, s. 10 4Section 10. 79.04 (1) (b) 1. of the statutes is amended to read:
AB774-ASA1,7,105 79.04 (1) (b) 1. Beginning with the distribution under this subsection in 1991,
6and ending with the distribution under this subsection in 2004, the amount
7determined under par. (a) to value property used by a light, heat or power company
8in a municipality may not be less than the amount determined to value the property
9for the distribution to the municipality under this subsection in 1990, subject to
10subds. 2., 3. and 4.
AB774-ASA1, s. 11 11Section 11. 79.04 (2) (a) of the statutes, as affected by 2003 Wisconsin Acts 31
12and 33, is amended to read:
AB774-ASA1,8,2113 79.04 (2) (a) Annually, except for production plants that begin operation after
14December 31, 2003, or begin operation as a repowered production plant after
15December 31, 2003, and except as provided in sub. (4m) and under s. 70.112 (4) (am),
16the department of administration, upon certification by the department of revenue,
17shall distribute from the shared revenue account or, for the distribution in 2003, from
18the appropriation under s. 20.835 (1) (t) to any county having within its boundaries
19a production plant, general structure, or substation, used by a light, heat or power
20company assessed under s. 76.28 (2) or 76.29 (2), except property described in s.
2166.0813 unless the production plant or substation is owned or operated by a local
22governmental unit that is located outside of the municipality in which the production
23plant or substation is located, or by an electric cooperative assessed under ss. 76.07
24and 76.48, respectively, or by a municipal electric company under s. 66.0825 an
25amount determined by multiplying by 6 mills in the case of property in a town and

1by 3 mills in the case of property in a city or village the first $125,000,000 of the
2amount shown in the account, plus leased property, of each public utility except
3qualified wholesale electric companies, as defined in s. 76.28 (1) (gm), on December
431 of the preceding year for "production plant, exclusive of land," "general
5structures," and "substations," in the case of light, heat and power companies,
6electric cooperatives or municipal electric companies, for all property within the
7municipality in accordance with the system of accounts established by the public
8service commission or rural electrification administration, less depreciation thereon
9as determined by the department of revenue and less the value of treatment plant
10and pollution abatement equipment, as defined under s. 70.11 (21) (a), as determined
11by the department of revenue plus an amount from the shared revenue account or,
12for the distribution in 2003, from the appropriation under s. 20.835 (1) (t) determined
13by multiplying by 6 mills in the case of property in a town, and 3 mills in the case of
14property in a city or village, of the total original cost of production plant, general
15structures, and substations less depreciation, land and approved waste treatment
16facilities of each qualified wholesale electric company, as defined in s. 76.28 (1) (gm),
17as reported to the department of revenue of all property within the municipality. The
18total of amounts, as depreciated, from the accounts of all public utilities for the same
19production plant is also limited to not more than $125,000,000. The amount
20distributable to a county under this subsection and sub. (6) in any year shall not
21exceed $100 times the population of the county.
AB774-ASA1, s. 12 22Section 12. 79.04 (2) (am) 1. of the statutes is amended to read:
AB774-ASA1,9,223 79.04 (2) (am) 1. Beginning with the distribution under this subsection in 1991,
24and ending with the distribution under this subsection in 2004, the amount
25determined under par. (a) to value property used by a light, heat or power company

1in a county may not be less than the amount determined to value the property for the
2distribution to the county under this subsection in 1990, subject to subds. 2. and 3.
AB774-ASA1, s. 13 3Section 13. 79.04 (4m) of the statutes is created to read:
AB774-ASA1,9,104 79.04 (4m) Beginning with distributions in 2005, for production plants
5described under subs. (1) and (2), if in any year the payments to the municipality and
6county in which the production plant is located would be greater under subs. (6) and
7(7) based on the production plant's name-plate capacity than under sub. (1) or (2)
8based on the depreciated net book value of the production plant, the municipality and
9county shall receive payments under subs. (6) and (7), rather than under sub. (1) or
10(2), beginning in that year and in each year thereafter.
AB774-ASA1, s. 14 11Section 14. 79.04 (6) (a) of the statutes, as created by 2003 Wisconsin Act 31,
12is amended to read:
AB774-ASA1,9,2513 79.04 (6) (a) Annually, beginning in 2005, for production plants that begin
14operation after December 31, 2003, or begin operation as a repowered production
15plant after December 31, 2003, except as provided in sub. (4m), the department of
16administration, upon certification by the department of revenue, shall distribute
17payments from the public utility account, as determined under par. (b), to each
18municipality and county in which a production plant is located, if the production
19plant has a name-plate capacity of at least one megawatt and is used by a light, heat,
20or power company assessed under s. 76.28 (2) or 76.29 (2), except property described
21in s. 66.0813, unless the production plant is owned or operated by a local
22governmental unit located outside of the municipality; by a qualified wholesale
23electric company, as defined in s. 76.28 (1) (gm); by a wholesale merchant plant, as
24defined in s. 196.491 (1) (w); by an electric cooperative assessed under ss. 76.07 and
2576.48, respectively; or by a municipal electric company under s. 66.0825.
AB774-ASA1, s. 15
1Section 15. 196.491 (3) (gm) of the statutes, as affected by 2003 Wisconsin Act
289
, is amended to read:
AB774-ASA1,10,163 196.491 (3) (gm) The commission may not approve an application filed after
4October 29, 1999, under this subsection for a certificate of public convenience and
5necessity for a high-voltage transmission line that is designed for operation at a
6nominal voltage of 345 kilovolts or more unless the approval includes the condition
7that the applicant shall pay the fees specified in sub. (3g) (a). If the commission has
8approved an application under this subsection for a certificate of public convenience
9and necessity for a high-voltage transmission line that is designed for operation at
10a nominal voltage of 345 kilovolts or more that was filed after April 1, 1999, and
11before October 29, 1999, the commission shall require the applicant to pay the fees
12specified in sub. (3g) (a). For any application subject to this paragraph, the
13commission shall determine the cost net book value of the high-voltage transmission
14line, identify the counties, towns, villages and cities through which the high-voltage
15transmission line is routed and allocate the amount of investment associated with
16the high-voltage transmission line to each such county, town, village and city.
AB774-ASA1, s. 16 17Section 16. Nonstatutory provisions.
AB774-ASA1,11,218 (1) Proposal to impose general local property taxes on utility property. No
19later than December 31, 2004, the department of revenue shall submit a proposal to
20the legislature under section 13.172 (2) of the statutes regarding imposing local
21general property taxes under chapter 70 of the statutes on the property of electric
22cooperatives and light, heat, and power companies beginning with the property tax
23assessments as of January 1, 2007. The proposal shall include distribution and

1transmission property and property included in the production plant account that
2does not directly generate electricity.
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