Amendment AA1-AB554

LRBa1335/1

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2015 - 2016 LEGISLATURE

ASSEMBLY AMENDMENT 1, TO ASSEMBLY BILL 554

December 14, 2015 - Offered by Representative August.

AB554-AA1,1,1 At the locations indicated, amend the bill as follows:

AB554-AA1,1,2 1. Page 1, line 4: after "companies" insert ", imposing a tax on water utilities,".

AB554-AA1,1,3 2. Page 1, line 5: delete "to investor-owned public utilities".

AB554-AA1,1,4 3. Page 4, line 3: delete "to an investor-owned public utility".

AB554-AA1,1,5 4. Page 4, line 19: after that line insert:

AB554-AA1,1,6 " Section 3b. 70.112 (4) (a) of the statutes is amended to read:

AB554-AA1,2,7 70.112 (4) (a) All special property assessed under ss. 76.01 to 76.26 and property of any light, heat, and power company taxed under s. 76.28, water utility taxed under s. 76.95, car line company, and electric cooperative association that is used and useful in the operation of the business of such company or association. If a general structure for which an exemption is sought under this section is used and useful in part in the operation of any public utility assessed under ss. 76.01 to 76.26 or of the business of any light, heat, and power company taxed under s. 76.28, water utility taxed under s. 76.95, car line company, or electric cooperative association and in part for nonoperating purposes of the public utility or company or association, that general structure shall be assessed for taxation under this chapter at the percentage of its full market value that fairly measures and represents the extent of its use for nonoperating purposes. Nothing provided in this paragraph shall exclude any real estate or any property which is separately accounted for under s. 196.59 from special assessments for local improvements under s. 66.0705.

AB554-AA1,3d Section 3d. 76.28 (1) (e) (intro.) of the statutes is amended to read:

AB554-AA1,2,17 76.28 (1) (e) (intro.) "Light, heat and power companies" means any person, association, company, or corporation, including corporations described in s. 66.0813, qualified wholesale electric companies, and transmission companies and except only business enterprises carried on exclusively either for the private use of the person, association, company, or corporation engaged in them, or for the private use of a person, association, company, or corporation owning a majority of all outstanding capital stock or who control the operation of business enterprises and except electric cooperatives taxed under s. 76.48 and water utilities taxed under s. 76.95 that engage in any of the following businesses:

AB554-AA1,3f Section 3f. Subchapter VI (title) of chapter 76 [precedes 76.94] of the statutes is created to read:

AB554-AA1,2,20 chapter 76

AB554-AA1,2,21 water utility tax

AB554-AA1,3g Section 3g. 76.94 of the statutes is created to read:

AB554-AA1,2,23 76.94 Definitions. In this subchapter:

AB554-AA1,3,4 (1) "Assessment ratio" means the decimal fraction rounded to the nearest ten thousandth obtained by dividing the assessed value of all taxable nonmanufacturing property, as specified in the clerk's statement of assessment file with the department of revenue, by the value of all taxable nonmanufacturing property in the taxation district as determined by the department of revenue prior to adjustments under s. 70.57.

AB554-AA1,3,6 (2) "Gross book value for the calender year" means the gross book value as of January 1 of the calendar year.

AB554-AA1,3,7 (3) "Municipality" means a city, village, or town.

AB554-AA1,3,12 (4) "Water utility" means a public utility, as defined under s. 196.01 (5), not including a municipal public utility as defined under s. 66.0801 (1) (a), that produces, delivers, or furnishes water either directly or indirectly to or for the public and that is authorized to render service under s. 196.49 (1) (am) after the effective date of this subsection .... [LRB inserts date].

AB554-AA1,3,15 (5) "Local and school tax rates for the calendar year" means the local and school tax rates determined by the taxing jurisdictions of the taxation district where the utility is located for the same calendar year.

AB554-AA1,3h Section 3h. 76.95 of the statutes is created to read:

AB554-AA1,3,22 76.95 Imposition. There is imposed on each water utility an annual tax which shall be levied and collected no later than May 1 by the municipality in which the water utility is located in an amount determined by applying the local and school tax rates for the calendar year to the water utility's gross book value for the calendar year, plus the value of the utility's materials and supplies multiplied by the assessment ratio for the taxation district where the utility is located.

AB554-AA1,3i Section 3i. 76.96 of the statutes is created to read:

AB554-AA1,3,25 76.96 Reduced tax. A municipality may levy and collect a tax imposed under s. 76.95 in an amount less than the amount determined under s. 76.95.

AB554-AA1,3j Section 3j. 76.97 of the statutes is created to read:

AB554-AA1,4,4 76.97 Increased tax. A municipality may levy and collect a tax imposed under s. 76.95 in an amount greater than the amount determined under s. 76.95 only with the approval of the public service commission.

AB554-AA1,3k Section 3k. 76.98 of the statutes is created to read:

AB554-AA1,4,8 76.98 Excluded property. A municipality shall exclude from the calculation of the tax imposed under s. 76.95 the value of any water utility property that is outside the boundaries of the municipality.

AB554-AA1,3L Section 3L. 76.99 of the statutes is created to read:

AB554-AA1,4,13 76.99 Administration. A municipality that levies and collects the tax imposed under s. 76.95 shall provide notice on or before April 1 of each year to each water utility located in the municipality that is subject to the tax of the amount of the tax owed.".

AB554-AA1,4,14 (End)