AB774: Bill Text

AB774,4,22 76.48 (1r) Except as provided in s. 76.29, every electric cooperative shall pay, in lieu of other general property and income or franchise taxes, an annual license fee equal to its apportionment factor multiplied by its gross revenues; excluding for the tax period, as defined in s. 76.29 (1) (f), gross revenues that are subject to the license fee under s. 76.29; multiplied by 3.19%. Real Subject to s. 70.112 (4) (a) and (am), real estate and personal property not used primarily for the purpose of generating, transmitting or distributing electric energy are subject to general property taxes. If a general structure is used in part to generate, transmit or distribute electric energy and in part for nonoperating purposes, the license fee imposed by this section is in place of the percentage of all other general property taxes that fairly measures and represents the extent of the use in generating, transmitting or distributing electric energy, and the balance is subject to local assessment and taxation, except that the entire general structure is subject to special assessments for local improvements.

AB774, s. 7 Section 7. 76.48 (3d) of the statutes is created to read:

AB774,5,4 76.48 (3d) Beginning with calendar year 2006, an electric cooperative may claim as a credit against the fees imposed under sub. (1r) an amount equal to the amount of property taxes imposed under ch. 70 on general structures and substations that the electric cooperative paid in the calendar year. An electric cooperative that claims the credit under this subsection shall subtract the amount of the credit from the license fee payment that is due on or before May 10.

AB774, s. 8 Section 8. 79.005 (4) of the statutes, as created by 2003 Wisconsin Act 31, is repealed.

AB774, s. 9 Section 9. 79.04 (1) (intro.) of the statutes, as affected by 2003 Wisconsin Act 31, is amended to read:

AB774,5,19 79.04 (1) (intro.) Annually, except for production plants that begin operation after December 31, 2003, or begin operation as a repowered production plant after December 31, 2003, the department of administration, upon certification by the department of revenue, shall distribute to a municipality having within its boundaries a hydroelectric production plant, general structure, or substation or wind farm, used by a light, heat, or power company assessed under s. 76.28 (2) or 76.29 (2), except property described in s. 66.0813 unless the hydroelectric production plant or substation wind farm is owned or operated by a local governmental unit located outside of the municipality, or by an electric cooperative assessed under ss. 76.07 and 76.48, respectively, or by a municipal electric company under s. 66.0825 the amount determined as follows:

AB774, s. 10 Section 10. 79.04 (1) (a) of the statutes, as affected by 2003 Wisconsin Acts 31 and 33, is amended to read:

AB774,6,21 79.04 (1) (a) An amount from the shared revenue account or, for the distribution in 2003, from the appropriation under s. 20.835 (1) (t) determined by multiplying by 3 mills in the case of a town, and 6 mills in the case of a city or village, the first $125,000,000 of the amount shown in the account attributable to a hydroelectric plant or wind farm, plus leased property, of each public utility except qualified wholesale electric companies, as defined in s. 76.28 (1) (gm), on December 31 of the preceding year for "production plant, exclusive of land," "general structures," and "substations," in the case of light, heat and power companies, electric cooperatives or municipal electric companies, for all property within a municipality in accordance with the system of accounts established by the public service commission or rural electrification administration, less depreciation thereon as determined by the department of revenue and less the value of treatment plant and pollution abatement equipment, as defined under s. 70.11 (21) (a), as determined by the department of revenue plus an amount from the shared revenue account or, for the distribution in 2003, from the appropriation under s. 20.835 (1) (t) determined by multiplying by 3 mills in the case of a town, and 6 mills in the case of a city or village, of the first $125,000,000 of the total original cost of a hydroelectric production plant, general structures, and substations or wind farm, less depreciation, land and approved waste treatment facilities of each qualified wholesale electric company, as defined in s. 76.28 (1) (gm), as reported to the department of revenue of all property within the municipality. The total of amounts, as depreciated, from the accounts of all public utilities for the same hydroelectric production plant or wind farm is also limited to not more than $125,000,000. The amount distributable to a municipality under this subsection and sub. (6) in any year shall not exceed $300 times the population of the municipality.

AB774, s. 11 Section 11. 79.04 (1) (b) 2. of the statutes, as affected by 2003 Wisconsin Act 31, is amended to read:

AB774,7,5 79.04 (1) (b) 2. When a light, heat or power company no longer uses property described under par. (a) as a hydroelectric production plant, substation, or general structure or wind farm in a municipality, the amount established under subd. 1. shall be reduced by the proportion that the property that is no longer used bears to the total value of all property described in par. (a) in the municipality. The proportion shall be determined according to the proportional value of the property when the light, heat or power company stops using the property.

AB774, s. 12 Section 12. 79.04 (1) (c) 1. of the statutes, as affected by 2003 Wisconsin Act 31, is amended to read:

AB774,7,13 79.04 (1) (c) 1. The payment for any municipality in which a hydroelectric production plant or wind farm is located, which the public service commission certifies to the department of revenue will produce a nominal rated capacity of 200 megawatts or more, shall be no less than $75,000 annually, except that the amount distributable to a municipality in any year shall not exceed the per capita limit specified in par. (a).

AB774, s. 13 Section 13. 79.04 (1) (c) 2. of the statutes is amended to read:

AB774,7,24 79.04 (1) (c) 2. If a hydroelectric production plant or wind farm is located in more than one municipality, the total payment under subd. 1. shall be apportioned according to the amounts shown on the preceding December 31 for the hydroelectric production plant or wind farm in the account described in par. (a) for "production plant exclusive of land" within each municipality for all public utilities except qualified wholesale electric companies, as defined in s. 76.28 (1) (gm), or according to the value as reported to the department of revenue under par. (a) of the hydroelectric production plant or wind farm within each municipality for each qualified wholesale electric company. The payment to each municipality under this subdivision shall be no less than $15,000 annually.

AB774, s. 14 Section 14. 79.04 (1) (c) 3. of the statutes, as affected by 2003 Wisconsin Act 31, is amended to read:

AB774,8,11 79.04 (1) (c) 3. If a hydroelectric production plant or wind farm with a nominal rated capacity of 200 megawatts or more is decommissioned or becomes nonutility property, the $75,000 minimum guaranteed payment under subd. 1. shall continue but diminish by $7,500 annually, except that the minimum guaranteed payment under this subdivision shall cease in the year following the first year in which the property becomes taxable by the taxation district. In this subdivision, "nonutility property" has the meaning set forth in the uniform system of accounts established by the public service commission. This subdivision does not apply after the distributions in 2004.

AB774, s. 15 Section 15. 79.04 (2) (a) of the statutes, as affected by 2003 Wisconsin Acts 31 and 33, is amended to read:

AB774,9,24 79.04 (2) (a) Annually, except for production plants that begin operation after December 31, 2003, or begin operation as a repowered production plant after December 31, 2003, the department of administration, upon certification by the department of revenue, shall distribute from the shared revenue account or, for the distribution in 2003, from the appropriation under s. 20.835 (1) (t) to any county having within its boundaries a hydroelectric production plant, general structure, or substation or wind farm, used by a light, heat or power company assessed under s. 76.28 (2) or 76.29 (2), except property described in s. 66.0813 unless the hydroelectric production plant or substation wind farm is owned or operated by a local governmental unit that is located outside of the municipality in which the hydroelectric production plant or substation wind farm is located, or by an electric cooperative assessed under ss. 76.07 and 76.48, respectively, or by a municipal electric company under s. 66.0825 an amount determined by multiplying by 6 mills in the case of property in a town, and by 3 mills in the case of property in a city or village, the first $125,000,000 of the amount shown in the account attributable to a hydroelectric production plant or wind farm, plus leased property, of each public utility except qualified wholesale electric companies, as defined in s. 76.28 (1) (gm), on December 31 of the preceding year for "production plant, exclusive of land," "general structures," and "substations," in the case of light, heat and power companies, electric cooperatives or municipal electric companies, for all property within the municipality in accordance with the system of accounts established by the public service commission or rural electrification administration, less depreciation thereon as determined by the department of revenue and less the value of treatment plant and pollution abatement equipment, as defined under s. 70.11 (21) (a), as determined by the department of revenue plus an amount from the shared revenue account or, for the distribution in 2003, from the appropriation under s. 20.835 (1) (t) determined by multiplying by 6 mills in the case of property in a town, and 3 mills in the case of property in a city or village, of the total original cost of a hydroelectric production plant, general structures, and substations or wind farm, less depreciation, land and approved waste treatment facilities of each qualified wholesale electric company, as defined in s. 76.28 (1) (gm), as reported to the department of revenue of all property within the municipality. The total of amounts, as depreciated, from the accounts of all public utilities for the same hydroelectric production plant or wind farm is also limited to not more than $125,000,000. The amount distributable to a county under this subsection and sub. (6) in any year shall not exceed $100 times the population of the county.

AB774, s. 16 Section 16. 79.04 (2) (am) 2. of the statutes, as affected by 2003 Wisconsin Act 31, is amended to read:

AB774,10,9 79.04 (2) (am) 2. When a light, heat or power company no longer uses property described under par. (a) as a hydroelectric production plant, substation, or general structure or wind farm in a county, the amount established under subd. 1. shall be reduced by the proportion that the property that is no longer used bears to the total value of all property described in par. (a) in the county. The proportion shall be determined according to the proportional value of the property when the light, heat or power company stops using the property.

AB774, s. 17 Section 17. 79.04 (2) (b) of the statutes is amended to read:

AB774,10,16 79.04 (2) (b) The payment under par. (a) for any county in which a hydroelectric production plant or wind farm is located, which the public service commission certifies to the department of revenue will produce a nominal rated capacity of 200 megawatts or more, shall be not less than $75,000 annually, except that the amount distributable to a county in any year shall not exceed the per capita limit specified in par. (a).

AB774, s. 18 Section 18. 79.04 (3m) of the statutes, as created by 2003 Wisconsin Act 31, is repealed.

AB774, s. 19 Section 19. 79.04 (6) (a) of the statutes, as created by 2003 Wisconsin Act 31, is amended to read:

AB774,11,8 79.04 (6) (a) Annually, beginning in 2005, for production plants that begin operation after December 31, 2003, or begin operation as a repowered production plant after December 31, 2003 are not hydroelectric production plants or wind farms, the department of administration, upon certification by the department of revenue, shall distribute payments from the public utility account, as determined under par. (b), to each municipality and county in which a production plant is located, if the production plant has a name-plate capacity of at least one megawatt and is used by a light, heat, or power company assessed under s. 76.28 (2) or 76.29 (2), except property described in s. 66.0813, unless the production plant is owned or operated by a local governmental unit located outside of the municipality; by a qualified wholesale electric company, as defined in s. 76.28 (1) (gm); by a wholesale merchant plant, as defined in s. 196.491 (1) (w); by an electric cooperative assessed under ss. 76.07 and 76.48, respectively; or by a municipal electric company under s. 66.0825.

AB774, s. 20 Section 20. 196.491 (3) (gm) of the statutes, as affected by 2003 Wisconsin Act 89, is amended to read:

AB774,11,24 196.491 (3) (gm) The commission may not approve an application filed after October 29, 1999, under this subsection for a certificate of public convenience and necessity for a high-voltage transmission line that is designed for operation at a nominal voltage of 345 kilovolts or more unless the approval includes the condition that the applicant shall pay the fees specified in sub. (3g) (a). If the commission has approved an application under this subsection for a certificate of public convenience and necessity for a high-voltage transmission line that is designed for operation at a nominal voltage of 345 kilovolts or more that was filed after April 1, 1999, and before October 29, 1999, the commission shall require the applicant to pay the fees specified in sub. (3g) (a). For any application subject to this paragraph, the commission shall determine the cost net book value of the high-voltage transmission line, identify the counties, towns, villages and cities through which the high-voltage transmission line is routed and allocate the amount of investment associated with the high-voltage transmission line to each such county, town, village and city.

AB774, s. 21 Section 21. Nonstatutory provisions.

AB774,12,8 (1) Proposal to impose general local property taxes on utility property. No later than December 31, 2004, the department of revenue shall submit a proposal to the legislature under section 13.172 (2) of the statutes regarding imposing local general property taxes under chapter 70 of the statutes on the property of electric cooperatives and light, heat, and power companies beginning with the property tax assessments as of January 1, 2007. The proposal shall include distribution and transmission property and property included in the production plant account that does not directly generate electricity.

AB774, s. 22 Section 22. Initial applicability.

AB774,12,11 (1) The treatment of sections 76.28 (9) and 76.48 (1r) of the statutes first applies to the property tax assessments as of January 1, 2005.

AB774,12,14 (2) The treatment of sections 79.005 (4) and 79.04 (1) (intro.), (a), (b) 2., and (c) 1., 2., and 3., (2) (a), (am) 2., and (b), and (6) (a) of the statutes first applies to distributions made on the 4th Monday of July, 2005.

AB774,12,15 (End)