2013 - 2014 LEGISLATURE
April 25, 2013 - Introduced by Representatives Endsley, LeMahieu, Thiesfeldt,
Kestell, Marklein, Ripp, Murphy, A. Ott, Schraa, Tranel, Tittl, Stone,
Spiros and Mursau, cosponsored by Senators Leibham, Gudex, Grothman,
Kedzie, Tiffany, Olsen, T. Cullen, Lasee, Schultz and Moulton. Referred to
Committee on Ways and Means.
AB167,1,3 1An Act to renumber 70.995 (3); to amend 70.11 (27) (a) 5., 70.11 (27) (a) 6m.
2and 70.11 (27) (a) 7.; and to create 70.995 (3) (b) of the statutes; relating to:
3assessing property used for aging cheese as manufacturing property.
Analysis by the Legislative Reference Bureau
Under current law, the Department of Revenue assesses manufacturing
property for property tax purposes. In addition to other criteria, property specified
under certain major group classifications in the Standard Industrial Classification
Manual, published by the federal government, is considered manufacturing
property. Under current law, property used for activities classified under the major
group code for food and kindred products is considered manufacturing property. This
bill clarifies that property used for aging cheese on behalf of others is manufacturing
property.
Under current law, manufacturing machinery and specific processing
equipment are exempt from the property tax. Under the bill, machinery and
equipment used in the process of aging cheese is exempt from the property tax.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.

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:
AB167,1 1Section 1. 70.11 (27) (a) 5. of the statutes is amended to read:
AB167,2,172 70.11 (27) (a) 5. "Production process" means the manufacturing activities
3beginning with conveyance of raw materials from plant inventory to a work point of
4the same plant and ending with conveyance of the finished product to the place of
5first storage on the plant premises, including conveyance of work in process directly
6from one manufacturing operation to another in the same plant, including the
7holding for 3 days or less of work in process to ensure the uninterrupted flow of all
8or part of the production process and including quality control activities during the
9time period specified in this subdivision but excluding storage, machine repair and
10maintenance, research and development, plant communication, advertising,
11marketing, plant engineering, plant housekeeping and employee safety and fire
12prevention activities; and excluding generating, transmitting, transforming and
13furnishing electric current for light or heat; generating and furnishing steam;
14supplying hot water for heat, power or manufacturing; and generating and
15furnishing gas for lighting or fuel or both. For purposes of this subdivision, the time
16period for chemical change in aging cheese shall be determined by the cheesemaker,
17owner, or processor.
AB167,2 18Section 2. 70.11 (27) (a) 6m. of the statutes is amended to read:
AB167,3,619 70.11 (27) (a) 6m. "Storage" means the holding or safekeeping of raw materials
20or components before introduction into the production process; the holding,
21safekeeping or preservation of work in process or of components outside the

1production process; and the holding or safekeeping of finished products or of
2components after completion of the production process; whether or not any natural
3processes occur during that holding, safekeeping or preservation; but "storage" does
4not include the holding for 3 days or less of work in process to ensure the
5uninterrupted flow of all or part of the production process. " Storage" also does not
6include aging cheese.
AB167,3 7Section 3. 70.11 (27) (a) 7. of the statutes is amended to read:
AB167,3,108 70.11 (27) (a) 7. "Used directly" means used so as to cause a physical or chemical
9change in raw materials or to cause a movement of raw materials, work in process
10or finished products, including aging cheese.
AB167,4 11Section 4. 70.995 (3) of the statutes is renumbered 70.995 (3) (a).
AB167,5 12Section 5. 70.995 (3) (b) of the statutes is created to read:
AB167,3,2013 70.995 (3) (b) For purposes of sub. (2) (c), entities that age cheese on behalf of
14others are considered establishments that primarily manufacture cheese under code
152022 of the Standard Industrial Classification Manual, 1987 edition, published by
16the U.S. office of management and budget, regardless of whether the entity that ages
17the cheese made or owns the cheese. For purposes of this paragraph, the process of
18aging cheese includes the aging, curing, or ripening of cheese; as determined by the
19cheesemaker, owner, or processor; under circumstances in which the cheese is
20constantly monitored and subject to a controlled temperature, airflow, and humidity.
AB167,6 21Section 6. Initial applicability.
AB167,3,2222 (1) This act first applies to the property tax assessments as of January 1, 2013.
AB167,3,2323 (End)
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