AB1003: Bill Text

Analysis by the Legislative Reference Bureau

This bill changes references to industry classifications set forth in the Standard Industrial Classification manual to those in the North American Industry Classification System, 2012 edition, and any subsequent edition. The SIC manual was last updated in 1987. Both the SIC manual and the NAICS are published by the federal government.

Industry classifications are used under current law for the following purposes:

1. To assess manufacturing property for property tax purposes. Taxpayers who own property assessed as manufacturing are also eligible to claim certain income tax credits and sales and use tax exemptions.

2. To determine whether a county or municipality may qualify as a premier resort area and impose the premier resort area sales tax on sellers in the area based on their industry classifications.

3. To determine eligibility for the property tax exemption for rented personal property.

4. To report the classification of each place of business in this state when obtaining a business tax registration certificate.

5. To administer the clean water fund program.

6. To determine which facilities must comply with toxic chemical release form requirements under federal law and submit copies of such forms to the Department of Natural Resources.

7. To determine the activities in this state in which a nonresident may hold an interest. Current law allows a nonresident to hold an interest in activities classified as manufacturing or mercantile.

This bill also requires all state agencies to use the North American Industry Classification System in order to determine the industrial classification of any property, entity, or activity included in any program administered by the agencies.

Finally, the bill requires taxation districts to assess property at full value at least once in every eight-year period and requires the Department of Revenue to assess manufacturing property at full value at least once in every eight-year period. Current law requires such assessments at least once in every five-year period.

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:

AB1003,1 Section 1 . 16.316 of the statutes is created to read:

AB1003,3,4 16.316 Industrial classification codes. (1) Notwithstanding the changes made by 2017 Wisconsin Act ... (this act), property, businesses, facilities, and activities that satisfied the industrial classifications under ss. 66.1113 (1) (d), 2015 stats., 70.111 (22), 2015 stats., 70.995 (1) (d) and (2), 2015 stats., 77.53 (9) (a), 2015 stats., 77.994 (1), 2015 stats., 281.58 (1) (c) 1., 2015 stats., 323.60 (5) (d) 3., 2015 stats., and 710.02 (2) (e) and (f), 2015 stats., before January 1, 2019, satisfy the industrial classifications under ss. 66.1113 (1) (d), 70.111 (22), 70.995 (1) (d) and (2), 77.53 (9) (a), 77.994 (1), 281.58 (1) (c) 1., 323.60 (5) (d) 3., and 710.02 (2) (e) and (f) after December 31, 2018.

AB1003,3,10 (2) Beginning on January 1, 2019, the departments, including the department of administration, shall use the North American Industry Classification System, 2012 edition, and any subsequent edition, published by the U.S. office of management and budget, in order to determine the industrial classification of any property, entity, or activity included in any program administered by the departments.

AB1003,2 Section 2. 66.1113 (1) (d) (intro.) of the statutes is amended to read:

AB1003,3,15 66.1113 (1) (d) (intro.) “Tourism-related retailers" means retailers classified in the standard industrial classification manual, 1987 North American Industry Classification System, 2012 edition, and any subsequent edition, published by the U.S. office of management and budget under the following industry numbers sectors:

AB1003,3 Section 3 . 66.1113 (1) (d) 1. to 21. of the statutes are repealed.

AB1003,4 Section 4 . 66.1113 (1) (d) 1m., 3m., 4m., 5m., 6m., 7m., 8m., 9m., 10m., 11m., 12m., 13m., 14m., 15m., 16m., 17m., 18m., 19m., 20m., 21m., 22m., 23m., 24m., 25m., 26m., 27m., 28m., 29m., 30m., 31m., 32m., 33m., 34m., 35m., 36m., 37m., 38m., 39m., 40m., 41m., 42m., 43m., 44m., 45m. and 46m. of the statutes are created to read:

AB1003,3,21 66.1113 (1) (d) 1m. 311811 — Retail bakeries.

AB1003,3,22 3m. 445291 — Baked goods stores.

AB1003,3,23 4m. 445292 — Confectionery and nut stores.

AB1003,3,24 5m. 445299 — All other specialty food stores.

AB1003,3,25 6m. 445310 — Beer, wine, and liquor stores.

AB1003,4,1 7m. 446110 — Pharmacies and drug stores.

AB1003,4,2 8m. 447110 — Gasoline stations with convenience stores.

AB1003,4,3 9m. 447190 — Other gasoline stations.

AB1003,4,4 10m. 451110 — Sporting goods stores.

AB1003,4,5 11m. 452910 — Warehouse clubs and supercenters.

AB1003,4,6 12m. 452990 — All other general merchandise stores.

AB1003,4,7 13m. 453220 — Gift, novelty, and souvenir stores.

AB1003,4,8 14m. 487110 — Scenic and sightseeing transportation, land.

AB1003,4,9 15m. 487210 — Scenic and sightseeing transportation, water.

AB1003,4,10 16m. 487990 — Scenic and sightseeing transportation, other.

AB1003,4,11 17m. 532292 — Recreational goods rental.

AB1003,4,12 18m. 561599 — All other travel arrangement and reservation services.

AB1003,4,13 19m. 611620 — Sports and recreation instruction.

AB1003,4,14 20m. 611699 — All other miscellaneous schools and instruction.

AB1003,4,15 21m. 711110 — Theater companies and dinner theaters.

AB1003,4,16 22m. 711190 — Other performing arts companies.

AB1003,4,17 23m. 711212 — Racetracks.

AB1003,4,18 24m. 711219 — Other spectator sports.

AB1003,4,20 25m. 711310 — Promoters of performing arts, sports, and similar events with facilities.

AB1003,4,22 26m. 711320 — Promoters of performing arts, sports, and similar events without facilities.

AB1003,4,23 27m. 712190 — Nature parks and other similar institutions.

AB1003,4,24 28m. 713110 — Amusement and theme parks.

AB1003,4,25 29m. 713120 — Amusement arcades.

AB1003,5,1 30m. 713210 — Casinos (except casino hotels).

AB1003,5,2 31m. 713290 — Other gambling industries.

AB1003,5,3 32m. 713910 — Golf courses and country clubs.

AB1003,5,4 33m. 713920 — Skiing facilities.

AB1003,5,5 34m. 713940 — Fitness and recreational sports centers.

AB1003,5,6 35m. 713990 — All other amusement and recreation industries.

AB1003,5,7 36m. 721110 — Hotels (except casino hotels) and motels.

AB1003,5,8 37m. 721120 — Casino hotels.

AB1003,5,9 38m. 721191 — Bed-and-breakfast inns.

AB1003,5,10 39m. 721199 — All other traveler accommodation.

AB1003,5,11 40m. 721211 — RV (recreational vehicle) parks and campgrounds.

AB1003,5,12 41m. 721214 — Recreational and vacation camps (except campgrounds).

AB1003,5,13 42m. 722410 — Drinking places (alcoholic beverages).

AB1003,5,14 43m. 722511 — Full-service restaurants.

AB1003,5,15 44m. 722513 — Limited-service restaurants.

AB1003,5,16 45m. 722514 — Cafeterias, grill buffets, and buffets.

AB1003,5,17 46m. 722515 — Snack and nonalcoholic beverage bars.

AB1003,5 Section 5. 70.111 (22) (a) of the statutes is amended to read:

AB1003,6,7 70.111 (22) (a) Except as provided in par. (b), personal property held for rental for periods of one month or less to multiple users for their temporary use, if the property is not rented with an operator, if the owner is not a subsidiary or affiliate of any other enterprise and the owner is engaged in the rental of the property subject to the exemption to the other enterprise, if the owner is classified in group number 735, industry number 7359 of the 1987 standard industrial classification manual under 532310, 532411, 532412, 532420, and 532490 of the North American Industry Classification System, 2012 edition, and any subsequent edition, published by the U.S. office of management and budget and if the property is equipment, including construction equipment but not including automotive and computer-related equipment, television sets, video recorders and players, cameras, photographic equipment, audiovisual equipment, photocopying equipment, sound equipment, public address systems and video tapes; party supplies; appliances; tools; dishes; silverware; tables; or banquet accessories.

AB1003,6 Section 6. 70.111 (22) (b) of the statutes is amended to read:

AB1003,6,17 70.111 (22) (b) Personal property held primarily for rental for periods of 364 days or less to multiple users for their temporary use, if the property is not rented with an operator, if the owner is not a subsidiary or affiliate of any other enterprise and the owner is engaged in the rental of the property subject to the exemption to the other enterprise, if the owner is classified under 532412 of the North American Industry Classification System, 2012 edition, and any subsequent edition, published by the U.S. bureau of the census office of management and budget, and if the property is heavy equipment used for construction, mining, or forestry, including bulldozers, earthmoving equipment, well-drilling machinery and equipment, or cranes.

AB1003,7 Section 7. 70.995 (1) (d) of the statutes is amended to read:

AB1003,6,23 70.995 (1) (d) Except for the activities under sub. (2), activities not classified as manufacturing in the standard industrial classification manual, North American Industry Classification System, 1987 2012 edition, and any subsequent edition, published by the U.S. office of management and budget are not manufacturing for this section.

AB1003,8 Section 8. 70.995 (2) (intro.) of the statutes is amended to read:

AB1003,7,8 70.995 (2) Further classification. (intro.) In addition to the criteria set forth in sub. (1), property shall be deemed prima facie manufacturing property and eligible for assessment under this section if it is included in one of the following major group sector classifications set forth in the standard industrial classification manual, 1987 North American Industry Classification System, 2012 edition, and any subsequent edition, published by the U.S. office of management and budget. For the purposes of this section, any other property described in this subsection shall also be deemed manufacturing property and eligible for assessment under this section:

AB1003,9 Section 9 . 70.995 (2) (a) to (w) of the statutes are repealed.

AB1003,10 Section 10 . 70.995 (2) (am), (bm), (cm), (dm), (em), (fm), (gm), (hm), (im), (jm), (km), (Lm), (mm), (nm), (om), (pm), (qm), (rm), (sm), (tm), (um), (vm) and (wm) of the statutes are created to read:

AB1003,7,13 70.995 (2) (am) 21 — Mining.

AB1003,7,14 (bm) 31 to 33 — Manufacturing.

AB1003,7,15 (cm) 111998 — All other miscellaneous crop farming.

AB1003,7,16 (dm) 112519 — Other aquaculture.

AB1003,7,17 (em) 113310 — Logging.

AB1003,7,18 (fm) 238910 — Site preparation contractors.

AB1003,7,19 (gm) 488390 — Other support activities for water transportation.

AB1003,7,20 (hm) 511110 — Newspaper publishers.

AB1003,7,21 (im) 511120 — Periodical publishers.

AB1003,7,22 (jm) 511130 — Book publishers.

AB1003,7,23 (km) 511140 — Directory and mailing list publishers.