SB422: Bill Text

LRB-3968/1

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2005 - 2006 LEGISLATURE

2005 Senate BILL 422

November 3, 2005 - Introduced by Senator Reynolds. Referred to Committee on Natural Resources and Transportation.

SB422,1,4 An Act to create 25.40 (1) (bn) and 78.23 of the statutes; relating to: the annual adjustment of the motor vehicle fuel tax rate and depositing sales and use tax revenues from the sale or use of motor vehicle parts into the transportation fund.

Analysis by the Legislative Reference Bureau

Under current law, the rate of the motor vehicle fuel tax is annually adjusted by multiplying the tax rate by the percentage change in the annual average U.S. Consumer Price Index.

Under this bill, if the motor vehicle fuel tax is no longer annually adjusted, annually, beginning in 2007, an amount from the sales and use taxes imposed on the sale or use of motor vehicle parts will be deposited into the transportation fund. That amount is equal to the difference between the amount of motor vehicle fuel taxes that would have been generated in the current fiscal year if the annual adjustment of the motor vehicle fuel tax was in effect and the amount of the motor vehicle fuel taxes actually generated in the current fiscal year.

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:

SB422, s. 1 Section 1. 25.40 (1) (bn) of the statutes is created to read:

SB422,2,3 25.40 (1) (bn) From the taxes imposed under ss. 77.52 and 77.53 on the sale or use of motor vehicle parts, all moneys deposited under s. 78.23 (2).

SB422, s. 2 Section 2. 78.23 of the statutes is created to read:

SB422,2,7 78.23 Deposit into the transportation fund. (1) Beginning in 2007, on or before June 30 of each year, the department of revenue, in consultation with the department of transportation, shall determine all of the following:

SB422,2,10 (a) An estimate of the amount of the tax imposed under s. 78.01 that would have been generated in the current fiscal year if the tax rate under s. 78.01 had been adjusted annually through that year as provided under s. 78.015, 2003 stats.

SB422,2,12 (b) An estimate of the amount of the tax imposed under s. 78.01 that was actually generated in the current fiscal year.

SB422,2,15 (c) An estimate of the amount of taxes imposed under ss. 77.52 and 77.53 on the sale or use of motor vehicle parts that were actually generated in the current fiscal year.

SB422,2,19 (2) Beginning in 2007, on or before June 30 of each year, the amount calculated by subtracting the amount determined under sub. (1) (b) from the amount determined under sub. (1) (a), not to exceed the amount determined under sub. (1) (c), shall be deposited into the transportation fund.

SB422,2,20 (End)