LRB-2108/1
JK:wlj:rs
2005 - 2006 LEGISLATURE
March 16, 2005 - Introduced by Representatives Ainsworth, Hahn, Hines,
Lothian, Musser, Nerison, Ott, Owens, Townsend and Van Roy, cosponsored
by Senators Kedzie, Breske and Roessler. Referred to Committee on Ways
and Means.
AB224,1,2
1An Act to amend 76.39 (2); and
to create 76.39 (1) (am) of the statutes;
relating
2to: the tax rate of the tax imposed on car line companies.
Analysis by the Legislative Reference Bureau
Under current law, the state annually imposes a tax on car line companies that
is equal to 3 percent of a car line company's gross earnings in this state. A car line
company is any person, not including a person who operates a railroad, who is in the
business of leasing or otherwise furnishing car line equipment to a railroad.
Under this bill, the tax imposed on a car line company is equal to the amount
of the car line company's gross earnings in this state multiplied by the average net
rate of taxation, as determined by the Department of Revenue. The average net rate
of taxation is determined by subtracting the total state property tax credits paid in
the year from the total of all general property taxes paid in this state in the year and
dividing the result by the state assessment of all general property in this state.
For further information see the state 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:
AB224, s. 1
3Section
1. 76.39 (1) (am) of the statutes is created to read:
AB224,1,54
76.39
(1) (am) "Average net rate of taxation" means the average net rate of
5taxation determined under s. 76.126 as of June of the year prior to the assessment.
AB224, s. 2
1Section
2. 76.39 (2) of the statutes is amended to read:
AB224,2,82
76.39
(2) There is levied annually a gross earnings tax in lieu of all property
3taxes on the car line equipment of a car line company equal to
3% of the gross
4earnings in this state
multiplied by the average net rate of taxation. Every railroad
5company operating in this state shall, upon making payment to each car line
6company for use of its cars, withhold
3% of the amount
constituting the gross
7earnings in this state of such of the tax imposed under this subsection on the car line
8company.
AB224,2,1010
(1) This act first applies to tax payments that are due on September 10, 2005.
