SB114: Bill Text

SB114,2,2 An Act to repeal 20.115 (4) (g), 20.115 (4) (h), 20.455 (2) (g), 20.505 (8) (g), 20.505 (8) (i), 562.077 and 563.05 (6); to renumber 563.135 and 563.80; to amend 20.003 (5), 20.115 (4) (a), 20.115 (4) (b), 20.435 (7) (kg), 20.455 (2) (r), 20.505 (8) (h), 20.505 (8) (j), 20.566 (2) (r), 20.566 (8), 20.835 (2) (q), 20.835 (3) (q), 25.17 (1) (jr), 25.75 (title), 25.75 (2), 25.75 (3) (intro.), 25.75 (3) (a), 25.75 (3) (b) 4., 25.75 (3) (e), 66.058 (3) (c) 8., 79.10 (1m), 79.10 (2), 79.10 (5), 79.10 (7m) (b) (title) and 1. a., 79.10 (9) (bm), 79.10 (9) (c), 79.10 (11) (title), (b) and (c), 79.11 (3) (b), 93.31, 562.02 (2) (f), 562.04 (1) (b) 4., 562.04 (2) (d), 562.05 (2), 562.065 (3) (d) (title) and 2., 562.065 (3m) (c) (title) and 2., 562.065 (4), 562.09 (2) (e), 562.124 (2), 563.13 (4), 563.16, 563.92 (2), 563.98 (1g), 565.02 (6) and 565.02 (7); and to create 20.505 (8) (q), 20.505 (8) (r), 20.835 (3) (r), 25.75 (1) (am), 25.75 (1) (d), 25.75 (3) (f), 79.10 (1) (dm), 79.10 (7r), 79.10 (10), 562.065 (3) (cm), 563.055 (6), 563.135 (2m), 563.22 (2) (c) and 563.80 (2m) of the statutes; relating to: the property tax lottery credit and making an appropriation.

Analysis by the Legislative Reference Bureau

Under current law, every owner of taxable real property is entitled to a property tax lottery credit regardless of whether the owner's taxable real property is the owner's primary residence. The state constitution requires that all lottery proceeds, less money used for the regulation of and enforcement of laws relating to the lottery, be applied to the property tax lottery credit.

On April 6, 1999, Wisconsin voters approved amendments to sections 24 (3), (5) and (6) (a) of article IV of the state constitution. The amendments require all moneys received by the state that are attributable to bingo, pari-mutuel on-track betting and the lottery, less the moneys used for the regulation of or enforcement of laws relating to bingo, pari-mutuel on-track betting and the lottery, be used for property tax relief for state residents regardless of the income or age of the resident.

This bill restores the language of the property tax lottery credit that existed prior to the 1997-1998 legislative session. The bill changes the name of the property tax lottery credit to the property tax gaming credit and provides a property tax gaming credit to any taxpayer whose primary residence is on a parcel of taxable property. An eligible taxpayer must file an application with the county or municipality treasurer to receive the credit.

This bill also changes the name of the lottery fund to the gaming fund and requires that all moneys received by the state that are attributable to bingo and pari-mutuel on-track betting be deposited into the gaming fund. All of these moneys plus lottery proceeds, less any moneys used for general program operations and law enforcement relating to bingo, pari-mutuel on-track betting and the lottery, must be used for property tax relief.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

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

SB114, s. 1 Section 1. 20.003 (5) of the statutes is amended to read:

SB114,3,2 20.003 (5) Required lottery gaming fund balance. (a) The legislature may not enact any bill directly or indirectly affecting the lottery gaming fund if the bill would cause the estimated lottery gaming fund balance on June 30 of any fiscal year, as projected under s. 20.005 (1), to be less than 2% of the estimated gross lottery revenues, as defined in s. 25.75 (1) (b), for that fiscal year, as projected under s. 20.005 (1).

SB114,3,6 (b) Beginning with the summary under s. 20.005 (1) that is included in the 1991-93 biennial budget bill, the summary under s. 20.005 (1) shall separately list estimated lottery gaming fund balances and estimated gross lottery revenues, as defined in s. 25.75 (1) (b).

SB114, s. 2 Section 2. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table - See PDF for table

SB114, s. 3 Section 3. 20.115 (4) (a) of the statutes is amended to read:

SB114,3,13 20.115 (4) (a) Aid to Wisconsin livestock breeders association. The amounts in the schedule, less moneys available under par. (h), for the purpose of aid to the Wisconsin livestock breeders association for the conduct of junior livestock shows and other livestock educational programs under s. 93.31.

SB114, s. 4 Section 4. 20.115 (4) (b) of the statutes is amended to read:

SB114,4,8 20.115 (4) (b) Aids to county and district fairs. A sum sufficient The amounts in the schedule to provide state aids to counties and agricultural societies, associations or boards and to incorporated dairy or livestock associations, not to exceed $15,000 per fair as provided in s. 93.23. No moneys in excess of the difference between $585,000 and the amount of moneys available under par. (g) in each fiscal year may be expended from this appropriation. If the total due the several counties and agricultural societies under this paragraph exceeds $585,000 the amounts in the schedule, the department shall equitably prorate that amount.

SB114, s. 5 Section 5. 20.115 (4) (g) of the statutes is repealed.

SB114, s. 6 Section 6. 20.115 (4) (h) of the statutes is repealed.

SB114, s. 7 Section 7. 20.435 (7) (kg) of the statutes is amended to read:

SB114,4,15 20.435 (7) (kg) Compulsive gambling awareness campaigns. The amounts in the schedule for the purpose of awarding grants under s. 46.03 (43). All moneys transferred from ss. s. 20.505 (8) (g) and (h) and 20.566 (8) (q) shall be credited to this appropriation account.

SB114, s. 8 Section 8. 20.455 (2) (g) of the statutes is repealed.

SB114, s. 9 Section 9. 20.455 (2) (r) of the statutes is amended to read:

SB114,4,20 20.455 (2) (r) Gaming law enforcement; lottery gaming revenues. From the lottery gaming fund, the amounts in the schedule for the performance of the department's gaming law enforcement responsibilities as specified in s. 165.70 (3m).

SB114, s. 10 Section 10. 20.505 (8) (g) of the statutes is repealed.

SB114, s. 11 Section 11. 20.505 (8) (h) of the statutes is amended to read:

SB114,5,4 20.505 (8) (h) General program operations; Indian gaming. The amounts in the schedule for general program operations under ch. 569. All Indian gaming receipts, as defined in s. 569.01 (1m), less the amounts appropriated under s. 20.455 (2) (gc), shall be credited to this appropriation account. Annually, of the moneys received under this appropriation account, an amount equal to 50% of the amount in the schedule under s. 20.435 (7) (kg) shall be transferred to the appropriation account under s. 20.435 (7) (kg).

SB114, s. 12 Section 12. 20.505 (8) (i) of the statutes is repealed.

SB114, s. 13 Section 13. 20.505 (8) (j) of the statutes is amended to read:

SB114,5,11 20.505 (8) (j) General program operations; charitable raffles and crane games. The amounts in the schedule for general program operations under chs. subch. VIII of ch. 563 and ch. 564.All moneys received by the department of administration under ch. 563, except s. 563.80, and under s. ss. 563.92 (2), 563.98 (1g) and 564.02 (2) shall be credited to this appropriation account.

SB114, s. 14 Section 14. 20.505 (8) (q) of the statutes is created to read:

SB114,5,14 20.505 (8) (q) General program operations; racing. From the gaming fund, the amounts in the schedule for general program operations under ch. 562.

SB114, s. 15 Section 15. 20.505 (8) (r) of the statutes is created to read:

SB114,5,18 20.505 (8) (r) General program operations; bingo. From the gaming fund, the amounts in the schedule for general program operations relating to bingo under subchs. II to VII of ch. 563.

SB114, s. 16 Section 16. 20.566 (2) (r) of the statutes is amended to read:

SB114,5,21 20.566 (2) (r) Lottery Gaming credit administration. From the lottery gaming fund, the amounts in the schedule for the administration of the lottery gaming credit.

SB114, s. 17 Section 17. 20.566 (8) of the statutes is amended to read:

SB114,6,2 20.566 (8) Lottery. (q) General program operations. From the lottery gaming fund, the amounts in the schedule for general program operations under ch. 565. Annually, of the moneys appropriated under this paragraph, an amount equal to 36% of the amount in the schedule under s. 20.435 (7) (kg) shall be transferred to the appropriation account under s. 20.435 (7) (kg).

SB114,6,4 (r) Retailer compensation. From the lottery gaming fund, a sum sufficient to pay compensation to retailers under s. 565.10 (14) (b).

SB114,6,6 (s) Prizes. From the lottery gaming fund, a sum sufficient to pay holders of winning lottery tickets or lottery shares under ch. 565.

SB114,6,9 (v) Vendor fees. From the lottery gaming fund, a sum sufficient to pay vendors for on-line and instant ticket services and supplies provided by the vendors under contract under s. 565.25 (2) (a).

SB114, s. 18 Section 18. 20.835 (2) (q) of the statutes is amended to read:

SB114,6,13 20.835 (2) (q) Farmland tax relief credit. From the lottery gaming fund, a sum sufficient to pay the aggregate claims approved under ss. 71.07 (3m) (c), 71.28 (2m) (c) and 71.47 (2m) (c).

SB114, s. 19 Section 19. 20.835 (3) (q) of the statutes is amended to read:

SB114,6,16 20.835 (3) (q) Lottery Gaming credit. From the lottery gaming fund, a sum sufficient to make the payments under s. 79.10 (5).

SB114, s. 20 Section 20. 20.835 (3) (r) of the statutes is created to read:

SB114,6,20 20.835 (3) (r) Gaming credit precertification. From the gaming fund, a sum sufficient to make payments under s. 79.10 (7r) to counties and cities for precertification of the gaming credit.

SB114, s. 21 Section 21. 25.17 (1) (jr) of the statutes is amended to read:

SB114,6,22 25.17 (1) (jr) Lottery Gaming fund (s. 25.75);

SB114, s. 22 Section 22. 25.75 (title) of the statutes is amended to read:

SB114,6,24 25.75 (title) Lottery Gaming fund.

SB114, s. 23 Section 23. 25.75 (1) (am) of the statutes is created to read:

SB114,7,2 25.75 (1) (am) "Bingo revenues" means all moneys required to be deposited into the gaming fund under ch. 563.

SB114, s. 24 Section 24. 25.75 (1) (d) of the statutes is created to read:

SB114,7,5 25.75 (1) (d) "Pari-mutuel wagering revenues" means all moneys required to be deposited into the gaming fund under ch. 562.

SB114, s. 25 Section 25. 25.75 (2) of the statutes is amended to read:

SB114,7,15 25.75 (2) Creation. There is created a separate nonlapsible trust fund known as the lottery gaming fund, to consist of gross lottery revenues received by the department of revenue, bingo revenues and pari-mutuel wagering revenues and earnings from these revenues. Revenues deposited in the gaming fund shall be used for the purposes specified in this section, for the general program operations of the department of administration relating to pari-mutuel wagering under ch. 562 and bingo under ch. 563, for the payment of the farmland tax relief credit under ss. 71.07 (3m), 71.28 (2m) and 71.47 (2m) and for the payment of the gaming credit under s. 79.10 (5).

SB114, s. 26 Section 26. 25.75 (3) (intro.) of the statutes is amended to read:

SB114,7,19 25.75 (3) Distribution of gross lottery revenues. (intro.) Amounts The distribution of the gross lottery revenues in the gaming fund shall be distributed as follows subject to all of the following:

SB114, s. 27 Section 27. 25.75 (3) (a) of the statutes is amended to read:

SB114,7,23 25.75 (3) (a) Prizes. An amount equal to at least 50% of each year's gross lottery revenues from the sale of lottery tickets and lottery shares shall be returned as prizes to the holders of winning lottery tickets or lottery shares sold during that year.

SB114, s. 28 Section 28. 25.75 (3) (b) 4. of the statutes is amended to read:

SB114,8,3 25.75 (3) (b) 4. Moneys Any moneys derived from gross lottery revenues that are appropriated from the lottery gaming fund under s. 20.455 (2) (r) shall not be included.

SB114, s. 29 Section 29. 25.75 (3) (e) of the statutes is amended to read:

SB114,8,8 25.75 (3) (e) Lottery Gaming credit state administration expenses. From the appropriation under s. 20.566 (2) (r), lottery proceeds, bingo revenues and pari-mutuel wagering revenues shall be used to offset department of revenue expenses in administering the lottery gaming credit.

SB114, s. 30 Section 30. 25.75 (3) (f) of the statutes is created to read:

SB114,8,12 25.75 (3) (f) Gaming credit precertification. From the appropriation under s. 20.835 (3) (r), lottery proceeds shall be used to make payments under s. 79.10 (7r) to counties and cities for precertification of the gaming credit.

SB114, s. 31 Section 31. 66.058 (3) (c) 8. of the statutes is amended to read:

SB114,8,23 66.058 (3) (c) 8. The credit under s. 79.10 (9) (bm), as it applies to the principal dwelling on a parcel of taxable property shall apply to the estimated fair market value of a mobile home that is the principal dwelling of the owner. The owner of the mobile home shall file a claim for the credit with the treasurer of the municipality in which the property is located no later than January 31. To obtain the credit under s. 79.10 (9) (bm), the owner shall attest on the claim that the mobile home is the owner's principal dwelling, as defined in s. 79.10 (1) (dm). The treasurer shall reduce the owner's parking permit fee by the amount of any allowable credit. The treasurer shall furnish notice of all amounts claims for credits filed under this subdivision to the department of revenue as provided under s. 79.10 (1m).

SB114, s. 32 Section 32. 79.10 (1) (dm) of the statutes is created to read:

SB114,9,2 79.10 (1) (dm) "Principal dwelling" means any dwelling that is used by the owner of the dwelling as a primary residence.

SB114, s. 33 Section 33. 79.10 (1m) of the statutes is amended to read:

SB114,9,7 79.10 (1m) (a) Each municipality shall notify the department of revenue of the total amount of credits to be paid claimed by taxpayers under sub. (9) (bm) and the total number of parcels of taxable real property and personal property accounts in the municipality that are eligible for the credit under sub. (5).

SB114,9,10 (b) Counties and municipalities shall submit to the department of revenue all data related to the lottery gaming credit and requested by the department of revenue.

SB114, s. 34 Section 34. 79.10 (2) of the statutes is amended to read:

SB114,9,19 79.10 (2) Notice to municipalities. On or before December 1 of the year preceding the distribution under sub. (7m) (a), the department of revenue shall notify the clerk of each town, village and city of the estimated fair market value, as determined under sub. (11), to be used to calculate the lottery gaming credit under sub. (5) and of the amount to be distributed to it under sub. (7m) (a) on the following 4th Monday in July. The anticipated receipt of such distribution shall not be taken into consideration in determining the tax rate of the municipality but shall be applied as tax credits.

SB114, s. 35 Section 35. 79.10 (5) of the statutes is amended to read:

SB114,9,25 79.10 (5) Lottery Gaming credit. Each municipality shall receive, from the appropriation under s. 20.835 (3) (q), an amount determined by multiplying the school tax rate by the estimated fair market value, not exceeding the value determined under sub. (11), of every parcel of taxable real property and every personal property account in the municipality on which a principal dwelling is located in the municipality and for which a claim for the credit under sub. (9) (bm) is made by the owner of the principal dwelling.

SB114, s. 36 Section 36. 79.10 (7m) (b) (title) and 1. a. of the statutes are amended to read:

SB114,10,4 79.10 (7m) (b) (title) Lottery Gaming credit.

SB114,10,9 1. a. The amount determined under sub. (5) with respect to the number of parcels of taxable real property and personal property accounts claims filed for which the town, village or city has furnished notice under sub. (1m) by March 1 shall be distributed from the appropriation under s. 20.835 (3) (q) by the department of administration on the 4th Monday in March.

SB114, s. 37 Section 37. 79.10 (7r) of the statutes is created to read:

SB114,10,14 79.10 (7r) Gaming credit certification reimbursement. (a) A county or city that performs the certification procedure under sub. (10) (a) shall receive, from the appropriation under s. 20.835 (3) (r), 50 cents for each gaming credit certified for a principal dwelling located in that county or city.

SB114,10,19 (b) The amounts determined under par. (a) shall be distributed by the department of administration on the first Friday in September, 2000, and every 5th year thereafter, based on applications on file with the county or city on August 1. A county or city shall inform the department of revenue of the number of applications on file before August 16.

SB114,10,25 (c) If the department of revenue determines before August 1 of the year following a distribution under par. (b) that a county or city received an overpayment or underpayment under par. (b) because of a late application or an erroneous payment, the department of revenue shall correct the overpayment or underpayment by reducing or increasing the subsequent year's distribution under par. (b). Corrections shall be made without interest.

SB114, s. 38 Section 38. 79.10 (9) (bm) of the statutes is amended to read:

SB114,11,8 79.10 (9) (bm) Lottery Gaming credit. Except as provided in ss. 79.175 and 79.18, every owner of taxable personal property or a principal dwelling on a parcel of taxable real property is entitled to receive a lottery gaming credit in an amount determined by multiplying the estimated fair market value of the personal property or of the parcel of taxable real property, not exceeding the value determined under sub. (11), by the school tax rate. The owner shall receive the credit if the owner claims the credit in the manner provided under sub. (10) (a).