SB122-SSA1,1,4 1An Act to renumber and amend 70.11 (21) (a); to amend 74.35 (2m), 74.35 (5)
2(d), 76.025 (1), 76.81, 77.54 (26), 79.04 (1) (a) and 79.04 (2) (a); and to create
370.11 (21) (ab) of the statutes; relating to: the property tax exemption for waste
4treatment facilities.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB122-SSA1, s. 1 5Section 1. 70.11 (21) (a) of the statutes is renumbered 70.11 (21) (am) and
6amended to read:
SB122-SSA1,2,107 70.11 (21) (am) All property purchased or constructed as a waste treatment
8facility used for the treatment of exclusively and directly to remove, store, or cause
9a physical or chemical change in
industrial wastes, as defined in s. 281.01 (5), waste
10or air contaminants, as defined in s. 285.01 (1), but not for other wastes, as defined
11in s. 281.01 (7),
for the purpose of abating or eliminating pollution of surface waters,

1the air, or waters of the state if that property is not used to grow agricultural products
2for sale and, if the property's owner is taxed under ch. 76, if the property is approved
3by the department of revenue. For the purposes of this subsection, "industrial waste"
4also includes wood chips, sawdust, and other wood residue from the paper and wood
5products manufacturing process that can be used as fuel and would otherwise be
6considered superfluous, discarded, or fugitive material.
The department of natural
7resources and department of health and family services shall make
8recommendations upon request to the department of revenue regarding such
9property. All property purchased or upon which construction began prior to
10July 31, 1975, shall be subject to s. 70.11 (21), 1973 stats.
SB122-SSA1, s. 2 11Section 2. 70.11 (21) (ab) of the statutes is created to read:
SB122-SSA1,2,1212 70.11 (21) (ab) In this subsection:
SB122-SSA1,2,1313 1. "Air contaminants" has the meaning given in s. 285.01 (1).
SB122-SSA1,2,1814 2. "Industrial waste" means waste resulting from any process of industry,
15trade, or business, or the development of any natural resource, that has no monetary
16or market value, except as provided in subd. 3. b., and that would otherwise be
17considered superfluous, discarded, or fugitive material. "Industrial waste" does not
18include other wastes, as defined in s. 281.01 (7).
SB122-SSA1,2,2019 3. "Used exclusively" means to the exclusion of all other uses except any of the
20following:
SB122-SSA1,2,2121 a. For other use not exceeding 5 percent of total use.
SB122-SSA1,3,222 b. To produce heat or steam for a manufacturing process, if the fuel consists of
23either 95 percent or more industrial waste that would otherwise be considered
24superfluous, discarded, or fugitive material or 50 percent or more of wood chips,
25sawdust, or other wood residue from the paper and wood products manufacturing

1process, if the wood chips, sawdust, or other wood residue would otherwise be
2considered superfluous, discarded, or fugitive material.
SB122-SSA1, s. 3 3Section 3. 74.35 (2m) of the statutes is amended to read:
SB122-SSA1,3,74 74.35 (2m) Exclusive procedure. A claim that property is exempt, other than
5a claim that property is exempt under s. 70.11 (21) (a) or (27), may be made only in
6an action under this section. Such a claim may not be made by means of an action
7under s. 74.33 or an action for a declaratory judgment under s. 806.04.
SB122-SSA1, s. 4 8Section 4. 74.35 (5) (d) of the statutes is amended to read:
SB122-SSA1,3,119 74.35 (5) (d) No claim may be made under this section based on the contention
10that the tax was unlawful because the property is exempt from taxation under s.
1170.11 (21) (a) or (27).
SB122-SSA1, s. 5 12Section 5. 76.025 (1) of the statutes is amended to read:
SB122-SSA1,3,2413 76.025 (1) The property taxable under s. 76.13 shall include all franchises, and
14all real and personal property of the company used or employed in the operation of
15its business, excluding property that is exempt from the property tax under s. 70.11
16(39) and (39m), such motor vehicles as are exempt under s. 70.112 (5) and treatment
17plant and pollution abatement equipment exempt under s. 70.11 (21) (a). The
18taxable property shall include all title and interest of the company referred to in such
19property as owner, lessee or otherwise, and in case any portion of the property is
20jointly used by 2 or more companies, the unit assessment shall include and cover a
21proportionate share of that portion of the property jointly used so that the
22assessments of the property of all companies having any rights, title or interest of
23any kind or nature whatsoever in any such property jointly used shall, in the
24aggregate, include only one total full value of such property.
SB122-SSA1, s. 6 25Section 6. 76.81 of the statutes is amended to read:
SB122-SSA1,4,11
176.81 Imposition. There is imposed a tax on the real property of, and the
2tangible personal property of, every telephone company, excluding property that is
3exempt from the property tax under s. 70.11 (39) and (39m), motor vehicles that are
4exempt under s. 70.112 (5), property that is used less than 50% in the operation of
5a telephone company, as provided under s. 70.112 (4) (b), and treatment plant and
6pollution abatement equipment that is exempt under s. 70.11 (21) (a). Except as
7provided in s. 76.815, the rate for the tax imposed on each description of real property
8and on each item of tangible personal property is the net rate for the prior year for
9the tax under ch. 70 in the taxing jurisdictions where the description or item is
10located. The real and tangible personal property of a telephone company shall be
11assessed as provided under s. 70.112 (4) (b).
SB122-SSA1, s. 7 12Section 7. 77.54 (26) of the statutes is amended to read:
SB122-SSA1,4,2513 77.54 (26) The gross receipts from the sales of and the storage, use, or other
14consumption of tangible personal property which becomes a component part of an
15industrial waste treatment facility that is exempt under s. 70.11 (21) (a) or that
16would be exempt under s. 70.11 (21) (a) if the property were taxable under ch. 70, or
17tangible personal property which becomes a component part of a waste treatment
18facility of this state or any agency thereof, or any political subdivision of the state or
19agency thereof as provided in s. 40.02 (28). The exemption includes replacement
20parts therefor, and also applies to chemicals and supplies used or consumed in
21operating a waste treatment facility and to purchases of tangible personal property
22made by construction contractors who transfer such property to their customers in
23fulfillment of a real property construction activity. This exemption does not apply
24to tangible personal property installed in fulfillment of a written construction
25contract entered into, or a formal written bid made, prior to July 31, 1975.
SB122-SSA1, s. 8
1Section 8. 79.04 (1) (a) of the statutes is amended to read:
SB122-SSA1,5,252 79.04 (1) (a) An amount from the shared revenue account or, for the
3distribution in 2003, from the appropriation under s. 20.835 (1) (t), 2003 stats.,
4determined by multiplying by 3 mills in the case of a town, and 6 mills in the case
5of a city or village, the first $125,000,000 of the amount shown in the account, plus
6leased property, of each public utility except qualified wholesale electric companies,
7as defined in s. 76.28 (1) (gm), on December 31 of the preceding year for "production
8plant, exclusive of land," "general structures," and "substations," in the case of light,
9heat and power companies, electric cooperatives or municipal electric companies, for
10all property within a municipality in accordance with the system of accounts
11established by the public service commission or rural electrification administration,
12less depreciation thereon as determined by the department of revenue and less the
13value of treatment plant and pollution abatement equipment, as defined under s.
1470.11 (21) (a), as determined by the department of revenue plus an amount from the
15shared revenue account or, for the distribution in 2003, from the appropriation under
16s. 20.835 (1) (t), 2003 stats., determined by multiplying by 3 mills in the case of a
17town, and 6 mills in the case of a city or village, of the first $125,000,000 of the total
18original cost of production plant, general structures, and substations less
19depreciation, land and approved waste treatment facilities of each qualified
20wholesale electric company, as defined in s. 76.28 (1) (gm), as reported to the
21department of revenue of all property within the municipality. The total of amounts,
22as depreciated, from the accounts of all public utilities for the same production plant
23is also limited to not more than $125,000,000. The amount distributable to a
24municipality under this subsection and sub. (6) in any year shall not exceed $300
25times the population of the municipality.
SB122-SSA1, s. 9
1Section 9. 79.04 (2) (a) of the statutes is amended to read:
SB122-SSA1,7,102 79.04 (2) (a) Annually, except for production plants that begin operation after
3December 31, 2003, or begin operation as a repowered production plant after
4December 31, 2003, the department of administration, upon certification by the
5department of revenue, shall distribute from the shared revenue account or, for the
6distribution in 2003, from the appropriation under s. 20.835 (1) (t), 2003 stats., to any
7county having within its boundaries a production plant, general structure, or
8substation, used by a light, heat or power company assessed under s. 76.28 (2) or
976.29 (2), except property described in s. 66.0813 unless the production plant or
10substation is owned or operated by a local governmental unit that is located outside
11of the municipality in which the production plant or substation is located, or by an
12electric cooperative assessed under ss. 76.07 and 76.48, respectively, or by a
13municipal electric company under s. 66.0825 an amount determined by multiplying
14by 6 mills in the case of property in a town and by 3 mills in the case of property in
15a city or village the first $125,000,000 of the amount shown in the account, plus
16leased property, of each public utility except qualified wholesale electric companies,
17as defined in s. 76.28 (1) (gm), on December 31 of the preceding year for "production
18plant, exclusive of land," "general structures," and "substations," in the case of light,
19heat and power companies, electric cooperatives or municipal electric companies, for
20all property within the municipality in accordance with the system of accounts
21established by the public service commission or rural electrification administration,
22less depreciation thereon as determined by the department of revenue and less the
23value of treatment plant and pollution abatement equipment, as defined under s.
2470.11 (21) (a), as determined by the department of revenue plus an amount from the
25shared revenue account or, for the distribution in 2003, from the appropriation under

1s. 20.835 (1) (t), 2003 stats., determined by multiplying by 6 mills in the case of
2property in a town, and 3 mills in the case of property in a city or village, of the total
3original cost of production plant, general structures, and substations less
4depreciation, land and approved waste treatment facilities of each qualified
5wholesale electric company, as defined in s. 76.28 (1) (gm), as reported to the
6department of revenue of all property within the municipality. The total of amounts,
7as depreciated, from the accounts of all public utilities for the same production plant
8is also limited to not more than $125,000,000. The amount distributable to a county
9under this subsection and sub. (6) in any year shall not exceed $100 times the
10population of the county.
SB122-SSA1, s. 10 11Section 10. Nonstatutory provisions.
SB122-SSA1,7,21 12(1) Property tax exemption. Notwithstanding any other provision of chapter
1370 of the statutes, property tax assessments under section 70.11 (21) of the statutes,
14as affected by this act, as of January 1, 2007, supersede any other property tax
15assessments under section 70.11 (21), 2005 stats., for property tax assessments as
16of January 1, 2007, that are made prior to the effective date of this subsection.
17Notwithstanding sections 70.47 (7) and 70.995 (8) of the statutes, an objection to a
18property tax assessment under section 70.11 (21) of the statutes, as affected by this
19act, for property tax assessments as of January 1, 2007, may be filed no later than
2060 days after the effective date of this subsection or no later than the time allowed
21under sections 70.47 (7) and 70.995 (8) of the statutes, whichever is later.
SB122-SSA1,8,2 22(2) Sales and use tax exemption. Section 77.54 (26) of the statutes, as affected
23by this act, does not apply to tangible personal property purchased in fulfillment of
24a contract to construct, repair, or improve a waste treatment facility, if the contract
25is entered into, or a formal bid is made, prior to the effective date of this subsection

1and the tangible personal property is affixed to and made a structural part of the
2waste treatment facility.
SB122-SSA1, s. 11 3Section 11. Initial applicability.
SB122-SSA1,8,64 (1) The treatment of sections 70.11 (21) (a) and (ab) and 74.35 (2m) and (5) (d)
5of the statutes first applies retroactively to the property tax assessments as of
6January 1, 2007.
SB122-SSA1, s. 12 7Section 12. Effective dates. This act takes effect retroactively on January
81, 2007, except as follows:
SB122-SSA1,8,109 (1) The treatment of section 77.54 (26) of the statutes takes effect on the first
10day of the 2nd month beginning after publication.
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