AB495: Bill Text

LRB-2310/1

JK:emw

2015 - 2016 LEGISLATURE

2015 Assembly BILL 495

November 10, 2015 - Introduced by Representatives Zepnick and Berceau. Referred to Committee on Transportation.

AB495,1,6 An Act to amend chapter 77 (title), subchapter V (title) of chapter 77 [precedes 77.70], 77.71 (intro.), 77.71 (1), 77.71 (2), 77.71 (3), 77.71 (4), 77.73 (2), 77.73 (3), 77.75, 77.76 (1), 77.76 (2), 77.76 (4), 77.77 and 77.78; and to create 20.566 (1) (gh), 20.835 (4) (gh), 77.701 and 77.76 (3r) of the statutes; relating to: a municipal sales and use tax for transportation purposes and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill allows a municipality to enact an ordinance to impose a sales and use tax on the sale or use of motor vehicle fuel in the municipality. The municipality must use the tax revenue for transportation purposes. The tax rate may not exceed 5 percent of the sales price.

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:

AB495,1 Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

AB495,2 Section 2. 20.566 (1) (gh) of the statutes is created to read:

AB495,2,6 20.566 (1) (gh) Administration of municipality taxes. From the moneys transferred from the appropriation account under s. 20.835 (4) (gh), the amounts in the schedule for administering the municipality taxes imposed under s. 77.701. Notwithstanding s. 20.001 (3) (a), at the end of the fiscal year the unencumbered balance of this appropriation account lapses to the general fund.

AB495,3 Section 3. 20.835 (4) (gh) of the statutes is created to read:

AB495,2,12 20.835 (4) (gh) Municipality taxes. All moneys received from the taxes imposed under s. 77.701 for distribution to the municipalities that enact an ordinance imposing taxes under that section and for interest payments on refunds under s. 77.76 (3r), except that 1.75 percent of those tax revenues collected under that section shall be credited to the appropriation account under s. 20.566 (1) (gh).

AB495,4 Section 4. Chapter 77 (title) of the statutes is amended to read:

AB495,2,14 CHAPTER 77

AB495,2,16 TAXATION OF FOREST CROPLANDS; REAL ESTATE TRANSFER FEES;

AB495,2,18 SALES AND USE TAXES; COUNTY, Municipality, AND SPECIAL DISTRICT

AB495,3,7 SALES AND USE TAXES; MANAGED FOREST LAND; ECONOMIC DEVELOPMENT SURCHARGE; LOCAL FOOD and BEVERAGE TAX; LOCAL RENTAL CAR TAX; PREMIER RESORT AREA TAXES; STATE RENTAL VEHICLE FEE; DRY CLEANING FEES

AB495,5 Section 5. Subchapter V (title) of chapter 77 [precedes 77.70] of the statutes is amended to read:

AB495,3,10 CHAPTER 77

AB495,3,11 SUBCHAPTER V

AB495,3,12 COUNTY, municipality, AND

AB495,3,13 SPECIAL DISTRICT SALES AND USE TAXES

AB495,6 Section 6. 77.701 of the statutes is created to read:

AB495,3,25 77.701 Adoption by municipal ordinance. A municipality may adopt an ordinance to impose a sales and use tax under this subchapter at the rate of no more than 5 percent of the sales price or purchase price on the sale or use of motor vehicle fuel in the municipality. The taxes may be imposed only on motor vehicle fuel that is subject to taxation under subch. I of ch. 78 and only to use for transportation purposes. An ordinance adopted under this section shall be effective on January 1, April 1, July 1, or October 1. A certified copy of the ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The repeal of any such ordinance shall be effective on December 31. A certified copy of a repeal ordinance shall be delivered to the secretary of revenue at least 120 days before the effective date of the repeal.

AB495,7 Section 7. 77.71 (intro.) of the statutes is amended to read:

AB495,4,5 77.71 Imposition of county and special district local sales and use taxes. (intro.) Whenever a county sales and use tax an ordinance is adopted enacted under s. 77.70 or 77.701, or a special district resolution is adopted under s. 77.705 or 77.706, the following taxes are imposed:

AB495,8 Section 8. 77.71 (1) of the statutes is amended to read:

AB495,4,17 77.71 (1) For the privilege of selling, licensing, leasing, or renting tangible personal property and the items, property, and goods specified under s. 77.52 (1) (b), (c), and (d), and for the privilege of selling, licensing, performing, or furnishing services a sales tax is imposed upon retailers at the rates under s. 77.70 in the case of a county tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the sales price from the sale, license, lease, or rental of tangible personal property and the items, property, and goods specified under s. 77.52 (1) (b), (c), and (d), except property taxed under sub. (4), sold, licensed, leased, or rented at retail in the county, municipality, or special district, or from selling, licensing, performing, or furnishing services described under s. 77.52 (2) in the county, municipality, or special district.

AB495,9 Section 9. 77.71 (2) of the statutes is amended to read:

AB495,5,8 77.71 (2) An excise tax is imposed at the rates under s. 77.70 in the case of a county tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the purchase price upon every person storing, using, or otherwise consuming in the county , municipality, or special district tangible personal property, or items, property, or goods specified under s. 77.52 (1) (b), (c), or (d), or services if the tangible personal property, item, property, good, or service is subject to the state use tax under s. 77.53, except that a receipt indicating that the tax under sub. (1), (3), or (4) has been paid relieves the buyer of liability for the tax under this subsection and except that if the buyer has paid a similar local tax in another state on a purchase of the same tangible personal property, item, property, good, or service that tax shall be credited against the tax under this subsection and except that for motor vehicles that are used for a purpose in addition to retention, demonstration, or display while held for sale in the regular course of business by a dealer the tax under this subsection is imposed not on the purchase price but on the amount under s. 77.53 (1m).

AB495,10 Section 10. 77.71 (3) of the statutes is amended to read:

AB495,5,21 77.71 (3) An excise tax is imposed upon a contractor engaged in construction activities within the county, municipality, or special district at the rates under s. 77.70 in the case of a county tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the purchase price of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) that are used in constructing, altering, repairing, or improving real property and that became a component part of real property in that county, municipality, or special district, except that if the contractor has paid the sales tax of a county, municipality, or special district in this state on that tangible personal property, item, property, or good, or has paid a similar local sales tax in another state on a purchase of the same tangible personal property, item, property, or good, that tax shall be credited against the tax under this subsection.

AB495,11 Section 11. 77.71 (4) of the statutes is amended to read:

AB495,6,8 77.71 (4) An excise tax is imposed at the rates under s. 77.70 in the case of a county tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under s. 77.705 or 77.706 in the case of a special district tax of the purchase price upon every person storing, using, or otherwise consuming a motor vehicle, boat, recreational vehicle, as defined in s. 340.01 (48r), or aircraft, if that property must be registered or titled with this state and if that property is to be customarily kept in a county that has in effect an ordinance under s. 77.70, in a municipality that has in effect an ordinance under s. 77.701, or in a special district that has in effect a resolution under s. 77.705 or 77.706, except that if the buyer has paid a similar local sales tax in another state on a purchase of the same property that tax shall be credited against the tax under this subsection.

AB495,12 Section 12. 77.73 (2) of the statutes is amended to read:

AB495,6,17 77.73 (2) Counties, municipalities, and special districts do not have jurisdiction to impose the tax under s. 77.71 (2) in regard to items, property, and goods under s. 77.52 (1) (b), (c), and (d), and tangible personal property, except snowmobiles, trailers, semitrailers, all-terrain vehicles, and utility terrain vehicles, purchased in a sale that is consummated in another county, municipality, or special district in this state that does not have in effect an ordinance or resolution imposing the taxes under this subchapter and later brought by the buyer into the county, municipality, or special district that has imposed a tax under s. 77.71 (2).

AB495,13 Section 13. 77.73 (3) of the statutes is amended to read:

AB495,7,3 77.73 (3) Counties, municipalities, and special districts have jurisdiction to impose the taxes under this subchapter on retailers who file, or who are required to file, an application under s. 77.52 (7) or who register, or who are required to register, under s. 77.53 (9) or (9m), regardless of whether such retailers are engaged in business in the county, municipality, or special district, as provided in s. 77.51 (13g). A retailer who files, or is required to file, an application under s. 77.52 (7) or who registers, or is required to register, under s. 77.53 (9) or (9m) shall collect, report, and remit to the department the taxes imposed under this subchapter for all counties, municipalities, or special districts that have an ordinance or resolution imposing the taxes under this subchapter.

AB495,14 Section 14. 77.75 of the statutes is amended to read:

AB495,7,9 77.75 Reports. Every person subject to county, municipality, or special district sales and use taxes shall, for each reporting period, record that person's sales made in the county, municipality, or special district that has imposed those taxes separately from sales made elsewhere in this state and file a report as prescribed by the department of revenue.

AB495,15 Section 15. 77.76 (1) of the statutes is amended to read:

AB495,7,17 77.76 (1) The department of revenue shall have full power to levy, enforce, and collect county, municipality, and special district sales and use taxes and may take any action, conduct any proceeding, impose interest and penalties, and in all respects proceed as it is authorized to proceed for the taxes imposed by subch. III. The department of transportation and the department of natural resources may administer the county, municipality, and special district sales and use taxes in regard to items under s. 77.61 (1).

AB495,16 Section 16. 77.76 (2) of the statutes is amended to read:

AB495,7,22 77.76 (2) Judicial and administrative review of departmental determinations shall be as provided in subch. III for state sales and use taxes, and no county, municipality, or special district may intervene in any matter related to the levy, enforcement, and collection of the taxes under this subchapter.

AB495,17 Section 17. 77.76 (3r) of the statutes is created to read:

AB495,8,14 77.76 (3r) From the appropriation under s. 20.835 (4) (gh), the department shall distribute 98.25 percent of the municipality taxes reported for each enacting municipality, minus the municipality portion of the retailers' discounts, to the municipality and shall indicate the taxes reported by each taxpayer, no later than 75 days following the last day of the calendar quarter in which such amounts were reported. In this subsection, the "municipality portion of the retailers' discount" is the amount determined by multiplying the total retailers' discount by a fraction the numerator of which is the gross municipality sales and use taxes payable and the denominator of which is the sum of the gross state and municipality sales and use taxes payable. The municipality taxes distributed shall be increased or decreased to reflect subsequent refunds, audit adjustments, and all other adjustments of the municipality taxes previously distributed. Interest paid on refunds of municipality sales and use taxes shall be paid from the appropriation under s. 20.835 (4) (gh) at the rate paid by this state under s. 77.60 (1) (a). Any municipality receiving a report under this subsection is subject to the duties of confidentiality to which the department of revenue is subject under s. 77.61 (5) and (6).