Amendment ASA2-AB245

ASSEMBLY SUBSTITUTE AMENDMENT 2, TO ASSEMBLY BILL 245

May 17, 2023 - Offered by Representatives Neubauer, Haywood, Subeck, Billings, C. Anderson, Andraca, Baldeh, Bare, Clancy, Conley, Considine, Doyle, Drake, Emerson, Goyke, Hong, Joers, Madison, McGuire, Moore Omokunde, Ohnstad, Ortiz-Velez, Ratcliff, Shelton, Sinicki, Snodgrass, Stubbs, Vining and Cabrera.

AB245-ASA2,2,24 An Act to repeal 60.85 (1) (f), 66.1105 (2) (d), 70.043, 70.11 (42), 70.47 (15), 70.53 (1) (a), 71.07 (5n) (a) 5. d., 71.28 (5n) (a) 5. d., 76.07 (4g) (a) 11. and 12. and 76.69; to renumber 79.096 (1); to renumber and amend 77.51 (12t), 77.70, 79.02 (3) (a) and 79.096 (2) (a); to amend 26.03 (1m) (b) (intro.), 33.01 (9) (a), 33.01 (9) (am) 1. and 2., 33.01 (9) (ar) 1., 33.01 (9) (b) 1., 60.85 (1) (h) 1. c., 60.85 (1) (o), 66.0435 (3) (c) 1. (intro.), 66.0435 (3) (g), 66.0435 (9), 66.1105 (2) (f) 1. c., 66.1105 (2) (i) 2., 66.1106 (1) (k), 70.02, 70.04 (1r), 70.05 (5) (a) 1., 70.10, 70.119 (3) (c), 70.13 (1), 70.13 (2), 70.13 (3), 70.13 (7), 70.15 (2), 70.17 (1), 70.174, 70.18 (1), 70.18 (2), 70.19, 70.20, 70.21 (1), 70.21 (1m) (intro.), 70.21 (2), 70.22 (1), 70.22 (2) (a), 70.27 (1), 70.27 (3) (a), 70.27 (4), 70.27 (5), 70.27 (7) (b), 70.29, 70.30 (intro.), 70.34, 70.345, 70.35 (1), 70.35 (2), 70.35 (3), 70.35 (4), 70.35 (5), 70.36 (1), 70.36 (2), 70.43 (2), 70.44 (1), 70.47 (7) (aa), 70.49 (2), 70.50, 70.52, 70.65 (2) (a) 2., 70.65 (2) (b) (intro.), 70.68 (1), 70.73 (1) (b), 70.73 (1) (c), 70.73 (1) (d), 70.84, 70.855 (1) (intro.), 70.855 (1) (a), 70.855 (1) (b), 70.995 (1) (a), 70.995 (4), 70.995 (5), 70.995 (7) (b), 70.995 (8) (b) 1., 70.995 (12) (a), 71.07 (5n) (a) 5. a., 71.07 (5n) (a) 9. (intro.), 71.07 (5n) (a) 9. a., 71.07 (5n) (d) 2., 71.07 (6e) (a) 5., 71.07 (9) (a) 3., 71.17 (2), 71.28 (5n) (a) 5. a., 71.28 (5n) (a) 9. (intro.), 71.28 (5n) (a) 9. a., 71.28 (5n) (d) 2., 71.52 (7), 73.01 (5) (a), 76.02 (1), 76.03 (1), 76.07 (2), 76.07 (4g) (a) 10., 76.07 (4g) (a) 13., 76.125 (1), 76.24 (2) (a), 76.31, 76.82, chapter 77 (title), 77.04 (1), 77.54 (20n) (d) 2., 77.54 (20n) (d) 3., 77.54 (57d) (b) 1., subchapter V (title) of chapter 77 [precedes 77.70], 77.71, 77.73 (2), (2m) and (3), 77.75, 77.76 (1), 77.76 (2), 77.76 (3), 77.76 (4), 77.77 (1) (a), 77.77 (1) (b), 77.77 (3), 77.78, 77.84 (1), 78.55 (1), 79.015, 79.02 (2) (b), 79.05 (2) (c), 174.065 (3), 815.18 (3) (intro.) and 978.05 (6) (a); to create 16.5185 (3), 16.5186, 20.835 (1) (q), 25.17 (1) (jf), 25.491, 59.875 (4), 60.85 (5) (j), 62.625, 66.1105 (5) (j), 66.1106 (4) (e), 70.015, 70.111 (28), 70.17 (3), 70.995 (5n), 71.07 (5n) (a) 9. c., 71.28 (5n) (a) 9. c., 73.03 (77), 76.025 (5), 76.074, 77.51 (12t) (a) to (c), 77.70 (2), 77.701, 77.76 (3r), 79.036, 79.096 (1) (b), 79.096 (2) (a) 2., 79.096 (2) (c), 79.096 (2) (d) and 706.05 (2m) (b) 3. of the statutes; and to affect Laws of 1937, chapter 201, section 1 (4), Laws of 1937, chapter 201, section 14A, Laws of 1937, chapter 201, section 21, Laws of 1937, chapter 396, section 1 (3) (b), Laws of 1937, chapter 396, section 1 (4) (e) 2m., Laws of 1937, chapter 396, section 15 (1) and Laws of 1937, chapter 396, section 16A; relating to: county and municipal aid; imposing a city sales tax and an additional county sales tax; allowing newly hired city and county employees of certain city agencies and counties to be enrolled in the Wisconsin Retirement System; eliminating the personal property tax; exceptions to local levy limits; and making an appropriation.

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

AB245-ASA2,1 Section 1. 16.5185 (3) of the statutes is created to read:

AB245-ASA2,3,4 16.5185 (3) On December 30, 2024, and on each December 30 thereafter, the secretary shall transfer from the local government fund to the transportation fund $8,000,000.

AB245-ASA2,2 Section 2 . 16.5186 of the statutes is created to read:

AB245-ASA2,3,8 16.5186 Transfers to the local government fund. Beginning in fiscal year 2024-25, in each fiscal year, the secretary shall transfer from the general fund to the local government fund the amount specified under s. 25.491.

AB245-ASA2,3 Section 3. 20.835 (1) (q) of the statutes is created to read:

AB245-ASA2,3,11 20.835 (1) (q) Supplemental county and municipal aid. From the local government fund, a sum sufficient to make the payments under s. 79.036.

AB245-ASA2,4 Section 4 . 25.17 (1) (jf) of the statutes is created to read:

AB245-ASA2,3,13 25.17 (1) (jf) Local government fund (s. 25.491);

AB245-ASA2,5 Section 5 . 25.491 of the statutes is created to read:

AB245-ASA2,3,19 25.491 Local government fund. (1) There is established a separate nonlapsible trust fund designated as the local government fund, to consist of an amount equal to 20 percent of the amount of revenues received from the taxes imposed under ss. 77.52 and 77.53 in each fiscal year, as specified under s. 20.005 (1), less the following amounts:

AB245-ASA2,3,20 (a) The amount distributed under s. 79.01 (1).

AB245-ASA2,3,21 (b) The amount distributed under s. 79.01 (2d).

AB245-ASA2,3,22 (c) The amount distributed under s. 79.096.

AB245-ASA2,4,8 (2) There is established in the local government fund a separate account that is designated the “supplemental county aid account” to make the payments to counties under s. 79.036. In fiscal year 2024-25, $127,300,000 shall be credited to this account. In fiscal year 2025-26, and in each fiscal year thereafter, an amount equal to the amount credited to this account in the previous fiscal year, increased by the percentage change in the amount of revenues received from the taxes imposed under ss. 77.52 and 77.53 from the previous fiscal year to the current fiscal year, as specified for that fiscal year under s. 20.005 (1) by the biennial budget act.

AB245-ASA2,4,17 (3) There is established in the local government fund a separate account that is designated the “supplemental municipal aid account” to make the payments to municipalities under s. 79.036. In fiscal year 2024-25, $400,000,000 shall be credited to this account. In fiscal year 2025-26, and in each fiscal year thereafter, an amount equal to the amount credited to this account in the previous fiscal year, increased by the percentage change in the amount of revenues received from the taxes imposed under ss. 77.52 and 77.53 from the previous fiscal year to the current fiscal year, as specified for that fiscal year under s. 20.005 (1) by the biennial budget act.

AB245-ASA2,5,2 (4) There is established in the local government fund a separate account that is designated “supplemental municipal aid; equalized value per capita account” to make the payments to municipalities under s. 79.036. In fiscal year 2024-25, $48,900,000 shall be credited to this account. In fiscal year 2025-26, and in each fiscal year thereafter, an amount equal to the amount credited to this account in the previous fiscal year, increased by the percentage change in the amount of revenues received from the taxes imposed under ss. 77.52 and 77.53 from the previous fiscal year to the current fiscal year, as specified for that fiscal year under s. 20.005 (1) by the biennial budget act.

AB245-ASA2,6 Section 6 . 26.03 (1m) (b) (intro.) of the statutes is amended to read:

AB245-ASA2,5,8 26.03 (1m) (b) (intro.) Paragraph (a) 1. does not apply to a person harvesting raw forest products on public lands, as defined in s. 70.13 (7), 2021 stats., to a person harvesting raw forest products for fuel wood for his or her home consumption, to a person harvesting for the purpose of clearing the land for agricultural use or to a person harvesting from the person's own land, any of the following:

AB245-ASA2,7 Section 7 . 33.01 (9) (a) of the statutes is amended to read:

AB245-ASA2,5,13 33.01 (9) (a) For the purpose of receiving notice under this chapter, a person whose name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year.

AB245-ASA2,8 Section 8 . 33.01 (9) (am) 1. and 2. of the statutes are amended to read:

AB245-ASA2,5,17 33.01 (9) (am) 1. A person whose name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year.

AB245-ASA2,5,21 2. The spouse of a person whose name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year if the spouse is referred to on that tax roll.

AB245-ASA2,9 Section 9 . 33.01 (9) (ar) 1. of the statutes is amended to read:

AB245-ASA2,5,25 33.01 (9) (ar) 1. The person's name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year.

AB245-ASA2,10 Section 10. 33.01 (9) (b) 1. of the statutes is amended to read:

AB245-ASA2,6,4 33.01 (9) (b) 1. Whose name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year; or

AB245-ASA2,11 Section 11 . 59.875 (4) of the statutes is created to read:

AB245-ASA2,6,14 59.875 (4) Annual investment return assumptions. Notwithstanding any provision of law or actuarial rule, beginning on the date a county elects to join the Wisconsin Retirement System under s. 40.21 (1), in any retirement system established under chapter 201, laws of 1937, the required annual employer contribution shall be calculated using an annual investment return assumption that is the same as or less than the annual investment return assumption used by the Wisconsin Retirement System. The investment return assumptions in this subsection shall supersede any investment return assumption adopted by the county retirement system's actuary or county retirement board.

AB245-ASA2,12 Section 12 . 60.85 (1) (f) of the statutes is repealed.

AB245-ASA2,13 Section 13 . 60.85 (1) (h) 1. c. of the statutes is amended to read:

AB245-ASA2,6,20 60.85 (1) (h) 1. c. Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the town of real or personal property within a tax incremental district for consideration which is less than its cost to the town.

AB245-ASA2,14 Section 14 . 60.85 (1) (o) of the statutes is amended to read:

AB245-ASA2,6,23 60.85 (1) (o) “Taxable property" means all real and personal taxable property located in a tax incremental district.

AB245-ASA2,15 Section 15. 60.85 (5) (j) of the statutes is created to read:

AB245-ASA2,7,7 60.85 (5) (j) Upon receiving a written application from the town clerk, in a form prescribed by the department of revenue, the department shall recalculate the base value of a tax incremental district affected by 2023 Wisconsin Act .... (this act) to remove the value of the personal property. A request received under this paragraph no later than October 31 is effective in the year following the year in which the request is made. A request received after October 31 is effective in the 2nd year following the year in which the request is made.

AB245-ASA2,16 Section 16 . 62.625 of the statutes is created to read:

AB245-ASA2,7,17 62.625 Annual investment return assumptions. Notwithstanding any provision of law or actuarial rule, beginning on the date a 1st class city elects to join the Wisconsin Retirement System under s. 40.21 (1), in any retirement system established under chapter 396, laws of 1937, the required annual employer contribution shall be calculated using an annual investment return assumption that is the same as or less than the annual investment return assumption used by the Wisconsin Retirement System. The investment return assumptions in this section shall supersede any investment return assumption adopted by the city retirement system's actuary or city retirement board.

AB245-ASA2,17 Section 17. 66.0435 (3) (c) 1. (intro.) of the statutes is amended to read:

AB245-ASA2,7,25 66.0435 (3) (c) 1. (intro.) In addition to the license fee provided in pars. (a) and (b), each licensing authority shall collect from each unit occupying space or lots in a community in the licensing authority, except from recreational mobile homes as provided under par. (cm), from manufactured and mobile homes that constitute improvements to real property under s. 70.043 (1), from recreational vehicles as defined in s. 340.01 (48r), and from camping trailers as defined in s. 340.01 (6m), a monthly municipal permit fee computed as follows:

AB245-ASA2,18 Section 18. 66.0435 (3) (g) of the statutes is amended to read:

AB245-ASA2,8,4 66.0435 (3) (g) Failure to timely pay the tax prescribed in this subsection shall be treated as a default in payment of personal property tax and is subject to all procedures and penalties applicable under chs. 70 and 74.

AB245-ASA2,19 Section 19. 66.0435 (9) of the statutes is amended to read:

AB245-ASA2,8,15 66.0435 (9) Municipalities; monthly municipal permit fees on recreational mobile homes and recreational vehicles. A licensing authority may assess monthly municipal permit fees at the rates under this section on recreational mobile homes and recreational vehicles, as defined in s. 340.01 (48r), except recreational mobile homes and recreational vehicles that are located in campgrounds licensed under s. 97.67, recreational mobile homes that constitute improvements to real property under s. 70.043 (1), and recreational mobile homes or recreational vehicles that are located on land where the principal residence of the owner of the recreational mobile home or recreational vehicle is located, regardless of whether the recreational mobile home or recreational vehicle is occupied during all or part of any calendar year.

AB245-ASA2,20 Section 20 . 66.1105 (2) (d) of the statutes is repealed.

AB245-ASA2,21 Section 21 . 66.1105 (2) (f) 1. c. of the statutes is amended to read:

AB245-ASA2,8,20 66.1105 (2) (f) 1. c. Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the city of real or personal property within a tax incremental district for consideration which is less than its cost to the city.

AB245-ASA2,22 Section 22. 66.1105 (2) (i) 2. of the statutes is amended to read:

AB245-ASA2,9,2 66.1105 (2) (i) 2. For purposes of any agreement between the taxing jurisdiction and a developer regarding the tax incremental district entered into prior to April 5, 2018 the effective date of this subdivision .... [LRB inserts date], “tax increment” includes the amount that a taxing jurisdiction is obligated to attribute to a tax incremental district under s. 79.096 (3).

AB245-ASA2,23 Section 23 . 66.1105 (5) (j) of the statutes is created to read:

AB245-ASA2,9,10 66.1105 (5) (j) Upon receiving a written application from the city clerk, in a form prescribed by the department of revenue, the department shall recalculate the base value of a tax incremental district affected by 2023 Wisconsin Act .... (this act) to remove the value of the personal property. A request received under this paragraph no later than October 31 is effective in the year following the year in which the request is made. A request received after October 31 is effective in the 2nd year following the year in which the request is made.

AB245-ASA2,24 Section 24 . 66.1106 (1) (k) of the statutes is amended to read:

AB245-ASA2,9,13 66.1106 (1) (k) “Taxable property" means all real and personal taxable property located in an environmental remediation tax incremental district.

AB245-ASA2,25 Section 25. 66.1106 (4) (e) of the statutes is created to read:

AB245-ASA2,9,21 66.1106 (4) (e) Upon receiving a written application from the clerk of a political subdivision, in a form prescribed by the department of revenue, the department shall recalculate the base value of a tax incremental district affected by 2023 Wisconsin Act .... (this act) to remove the value of the personal property. A request received under this paragraph no later than October 31 is effective in the year following the year in which the request is made. A request received after October 31 is effective in the 2nd year following the year in which the request is made.

AB245-ASA2,26 Section 26. 70.015 of the statutes is created to read:

AB245-ASA2,9,24 70.015 Sunset. Beginning with the property tax assessments as of January 1, 2024, no tax shall be levied under this chapter on personal property.

AB245-ASA2,27 Section 27 . 70.02 of the statutes is amended to read:

AB245-ASA2,10,5 70.02 Definition of general property. General property is all the taxable real and personal property defined in ss. 70.03 and 70.04 except that which is taxed under ss. 70.37 to 70.395 and ch. 76 and subchs. I and VI of ch. 77. General property includes manufacturing property subject to s. 70.995, but assessment of that property shall be made according to s. 70.995.

AB245-ASA2,28 Section 28. 70.04 (1r) of the statutes is amended to read:

AB245-ASA2,10,12 70.04 (1r) Toll bridges; private railroads and bridges; saw Saw logs, timber, and lumber, either upon land or afloat; steamboats, ships, and other vessels, whether at home or abroad; ferry boats, including the franchise for running the same; ice cut and stored for use, sale, or shipment; beginning May 1, 1974, and manufacturing machinery and equipment as defined in s. 70.11 (27), and entire property of companies defined in s. 76.28 (1), located entirely within one taxation district.

AB245-ASA2,29 Section 29 . 70.043 of the statutes is repealed.

AB245-ASA2,30 Section 30 . 70.05 (5) (a) 1. of the statutes is amended to read:

AB245-ASA2,10,17 70.05 (5) (a) 1. “Assessed value" means with respect to each taxation district the total values established under ss. s. 70.32 and 70.34, but excluding manufacturing property subject to assessment under s. 70.995.

AB245-ASA2,31 Section 31. 70.10 of the statutes is amended to read:

AB245-ASA2,11,2 70.10 Assessment, when made, exemption. The assessor shall assess all real and personal taxable property as of the close of January 1 of each year. Except in cities of the 1st class and 2nd class cities that have a board of assessors under s. 70.075, the assessment shall be finally completed before the first Monday in April. All real property conveyed by condemnation or in any other manner to the state, any county, city, village or town by gift, purchase, tax deed or power of eminent domain before January 2 in such year shall not be included in the assessment. Assessment of manufacturing property subject to s. 70.995 shall be made according to that section.

AB245-ASA2,32 Section 32 . 70.11 (42) of the statutes is repealed.

AB245-ASA2,33 Section 33 . 70.111 (28) of the statutes is created to read:

AB245-ASA2,11,8 70.111 (28) Business and manufacturing personal property. (a) Beginning with the property tax assessments applicable to the January 1, 2024, assessment year, personal property, as defined in s. 70.04, including steam and other vessels, furniture, and equipment.

AB245-ASA2,11,9 (b) The exemption under par. (a) does not apply to the following:

AB245-ASA2,11,10 1. Property assessed as real property under s. 70.17 (3).

AB245-ASA2,11,11 2. Property subject to taxation under s. 76.025 (2).

AB245-ASA2,11,14 (c) A taxing jurisdiction may include the most recent valuation of personal property described under par. (a) that is located in the taxing jurisdiction for purposes of complying with debt limitations applicable to the jurisdiction.

AB245-ASA2,34 Section 34. 70.119 (3) (c) of the statutes is amended to read:

AB245-ASA2,11,19 70.119 (3) (c) “Municipality" means cities, villages, towns, counties, and metropolitan sewerage districts with general taxing authority, except that for distributions after December 31, 2023, “municipality” does not include counties and metropolitan sewerage districts.

AB245-ASA2,35 Section 35 . 70.13 (1) of the statutes is amended to read:

AB245-ASA2,12,2 70.13 (1) All For assessments made before January 1, 2024, all personal property shall be assessed in the assessment district where the same is located or customarily kept except as otherwise specifically provided. Personal property in transit within the state on the first day of January shall be assessed in the district in which the same is intended to be kept or located, and personal property having no fixed location shall be assessed in the district where the owner or the person in charge or possession thereof resides, except as provided in sub. (5).

AB245-ASA2,36 Section 36 . 70.13 (2) of the statutes is amended to read:

AB245-ASA2,12,10 70.13 (2) Saw For assessments made before January 1, 2024, saw logs or timber in transit, which are to be sawed or manufactured in any mill in this state, shall be deemed located and shall be assessed in the district in which such mill is located. Saw logs or timber shall be deemed in transit when the same are being transported either by water or rail, but when such logs or timber are banked, decked, piled or otherwise temporarily stored for transportation in any district, they shall be deemed located, and shall be assessed in such district.

AB245-ASA2,37 Section 37 . 70.13 (3) of the statutes is amended to read:

AB245-ASA2,12,24 70.13 (3) On For assessments made before January 1, 2024, on or before the tenth day of January in each year the owner of logs or timber in transit shall furnish the assessor of the district in which the mill at which the logs or timber will be sawed or manufactured is located a verified statement of the amount, character and value of all the logs and timber in transit on the first day of January preceding, and the owner of the logs or timber shall furnish to the assessor of the district in which the logs and timber were located on the first day of January preceding, a like verified statement of the amount, character and value thereof. Any assessment made in accordance with the owner's statement shall be valid and binding on the owner notwithstanding any subsequent change as to the place where the same may be sawed or manufactured. If the owner of the logs or timber shall fail or refuse to furnish the statement herein provided for, or shall intentionally make a false statement, that owner shall be subject to the penalties prescribed by s. 70.36.