76.06
76.06
General powers of investigation. In any matter material to the valuation, assessment or taxation of property under this subchapter, the department may, in its discretion, exercise any and all of the powers conferred upon it by
ss. 73.03 and
73.04 (1); and every state, county, city, village, town and other public officer shall make return to the department in such form as it shall prescribe, of all information it shall call for. Persons serving the process of the department shall receive the same compensation allowed by law to sheriffs for similar service; and persons appearing before the department in obedience to its summons shall, in the discretion of the department, receive the same compensation as a witness in the circuit court; such fees and compensation to be audited by the department of administration on the certificate of the department, and charged to the proper appropriation for the department of revenue. The records, books, accounts and papers of any company defined in
s. 76.02 to be assessed under this subchapter, except as otherwise provided, shall be subject to the visitation, inspection and examination by said department or by such person as it may designate for that purpose.
76.06 History
History: 1979 c. 102 s.
236 (1).
76.07(1)(1)
Duty of department. The department on or before August 1 in each year in the case of railroad companies and sleeping car companies, and on or before September 15 in the case of air carrier companies, conservation and regulation companies and pipeline companies, shall, according to its best knowledge and judgment, ascertain and determine the full market value of the property of each company within the state.
76.07(2)
(2) Relation to state valuation; description. The value of the property of each of said companies for assessment shall be made on the same basis and for the same period of time, as near as may be, as the value of the general property of the state is ascertained and determined. The department shall prepare an assessment roll and place thereon after the name of each of said companies assessed, the following general description of the property of such company, to wit: "Real estate, right-of-way, tracks, stations, terminals, appurtenances, rolling stock, equipment, franchises and all other real estate and personal property of said company," in the case of railroads, and "Real estate, right-of-way, poles, wires, conduits, cables, devices, appliances, instruments, franchises and all other real and personal property of said company," in the case of conservation and regulation companies, and "Real estate, appurtenances, rolling stock, equipment, franchises, and all other real estate and personal property of said company," in the case of sleeping car and air carrier companies, and "Land and land rights, structures, improvements, mains, pumping and regulation equipment, services, appliances, instruments, franchises and all other real and personal property of said company," in the case of pipeline companies, which description shall be deemed and held to include the entire property and franchises of the company specified and all title and interest therein.
76.07(3)
(3) Assessment. For the purpose of determining the full market value of the property of each company appearing on the assessment roll, the department may view and inspect the property of such company and shall consider the reports filed in compliance with
s. 76.04 and the reports and returns of the company filed in the office of any officer of this state, and other evidence or information bearing upon the full market value of the property of the company assessed. In case of companies which own or use property lying partly within and partly without the state, the department shall value and assess only the property within this state, using the methods under
subs. (4g) and
(4r). When the full market value of the property of a company within this state has been determined, the amount shall be entered upon the assessment roll opposite the name of the company and shall be the assessment of the entire property of such company within this state for the levy of taxes thereon, subject to review and correction. The department shall thereupon give notice by certified mail to each company assessed of the amount of its assessment as entered upon such roll.
76.07(4g)
(4g) Determining the property in this state. The department shall determine the property in this state of railroad companies, air carrier companies, pipeline companies and telephone companies in the following manner:
76.07(4g)(a)
(a)
Railroad companies. For railroad companies:
76.07(4g)(a)1.
1. Determine the ton miles of revenue freight handled in this state.
76.07(4g)(a)2.
2. Divide the amount under
subd. 1. by the ton miles of revenue freight handled everywhere.
76.07(4g)(a)4.
4. Determine the number of cars originated, terminated, received at connections, delivered at connections or otherwise handled in this state.
76.07(4g)(a)5.
5. Divide the amount under
subd. 4. by the number of cars originated, terminated, received at connections, delivered at connections or otherwise handled everywhere.
76.07(4g)(a)7.
7. Determine the tons of revenue freight on line, both originated and terminated, and at connections, both received and delivered, in this state.
76.07(4g)(a)8.
8. Divide the amount under
subd. 7. by the tons of revenue freight on line, both originated and terminated, and at connections, both received and delivered, everywhere.
76.07(4g)(a)10.
10. Determine the depreciated cost of road property owned or rented by the company and used in the operation of the company's business in this state.
76.07(4g)(a)11.
11. Determine the depreciated cost of migratory road property owned or rented by the company and used in the operation of the company's business.
76.07(4g)(a)12.
12. Multiply the amount under
subd. 11. by a fraction the numerator of which is the unit miles in this state and the denominator of which is the unit miles everywhere.
76.07(4g)(a)13.
13. Divide the sum of the amounts under
subds. 10. and
12. by the depreciated cost of road property everywhere.
76.07(4g)(a)16.
16. Multiply the fraction under
subd. 15. by the full market value of the company's property everywhere.
76.07(4g)(b)
(b)
Air carrier companies. For air carrier companies:
76.07(4g)(b)1.
1. Determine the depreciated original cost of the real and tangible personal property owned or rented by the company in this state and used in the operation of the company's business.
76.07(4g)(b)2.
2. Determine the depreciated original cost of the company's migratory tangible personal property owned or rented by the company and used in the operation of the company's business.
76.07(4g)(b)3.
3. Multiply the amount under
subd. 2. by a fraction the numerator of which is the total of flight hours in this state and the denominator of which is the flight hours everywhere.
76.07(4g)(b)5.
5. Divide the amount under
subd. 4. by the depreciated original cost of the real and tangible personal property owned or rented by the company everywhere and used in the operation of the company's business.
76.07(4g)(b)7.
7. Determine transport revenue by adding revenue received for transporting passengers and property on flights either originating at, or connecting at, airports in this state.
76.07(4g)(b)8.
8. Determine transport-related revenue by adding public service revenue allocated to this state on the basis of routes for which the company is authorized to receive subsidy payments, mutual aid allocated to this state on the basis of the ratio of transport revenues allocated to this state to transport revenues everywhere in the previous year, in-flight sales allocated to this state as they are allocated under
s. 77.51 (14r) and all other transport-related revenues from sales made in this state.
76.07(4g)(b)9.
9. Divide the sum of the amounts under
subds. 7. and
8. by the transport and transport-related revenues everywhere.
76.07(4g)(b)11.
11. Determine the tons of revenue passengers and revenue cargo first received either as originating traffic or as connecting traffic in this state or finally discharged by the company in this state.
76.07(4g)(b)12.
12. Determine the tons of revenue passengers and revenue cargo received or finally discharged at airports everywhere.
76.07(4g)(b)16.
16. Multiply the fraction under
subd. 15. by the full market value of the company's property everywhere.
76.07(4g)(c)
(c)
Natural gas pipelines. For natural gas pipelines, except liquefied gas pipelines:
76.07(4g)(c)1.
1. Determine the gross cost of gas plant in service in this state, except motor vehicles exempt from the property tax under
s. 70.112 (5), and of all other property owned or rented by the company and used in the operation of the company's business in this state and included in the base for purposes of rate regulation by the federal energy regulatory commission.
76.07(4g)(c)2.
2. Determine the gross cost of gas plant in service everywhere, except motor vehicles specified under
s. 70.112 (5), and of all other property owned or rented by the company and used in the operation of the company's business everywhere and included in the base for purposes of rate regulation by the federal energy regulatory commission.
76.07(4g)(c)4.
4. Multiply the fraction under
subd. 3. by the full market value of the company's property everywhere.
76.07(4g)(d)
(d)
Other pipeline companies. For pipeline companies except those under
par. (c):
76.07(4g)(d)1.
1. Determine the gross cost of line of pipe owned or rented by the company and used in the operation of the company's business in this state.
76.07(4g)(d)2.
2. Determine the gross cost of line of pipe owned or rented by the company and used in the operation of the company's business everywhere.
76.07(4g)(d)6.
6. Determine the barrel miles transported in this state.
76.07(4g)(d)10.
10. Determine the number of barrels received and delivered in this state.
76.07(4g)(d)11.
11. Determine the number of barrels received and delivered everywhere.
76.07(4g)(d)15.
15. Determine the gross cost of all property owned or rented by the company and used in the company's business everywhere.
76.07(4g)(d)18.
18. Determine the gross cost of property owned or rented by the company and used in the operation of the company's business other than pipe in this state.
76.07(4g)(d)19.
19. Determine the gross cost of all property owned or rented by the company and used in the operation of the company's business everywhere.
76.07(4g)(d)22.
22. Multiply the fraction under
subd. 21. by the full market value of the company's property everywhere.
76.07(4r)
(4r) Adjustment of factors. In making the determinations under
sub. (4g), the department may adjust any factor or use any other factor in order to reflect more accurately the company's property in this state if in the department's judgment the factor or combination of factors does not produce a substantially just and correct determination or if during the 12 months preceding the assessment date any of the following conditions applies:
76.07(4r)(a)
(a) The company began operating in this state and the results of its operations during the first year materially distort the allocation of property to this state.
76.07(4r)(b)
(b) The company's service was interrupted so that the allocation of property to this state is materially distorted.
76.07(4r)(c)
(c) The company acquired or disposed of assets having a substantial value that are situated so as materially to distort the allocation of property to this state.
76.07(4r)(d)
(d) Another event occurred which materially distorted the allocation of property to this state.
76.07(5)(a)(a) The full market value of the operating property of a company listed in
s. 76.01 shall be determined by applying recognized appraisal methods, which may include, but are not limited to, the capitalized income, cost, and stock and debt indicators of value, regardless of the method of accounting for legitimate business purposes used by the taxpayer. The department shall give due consideration to generally accepted accounting principles and regulated accounting practices.
76.07(5)(b)
(b) The department shall promulgate rules relating to the general principles of the indicators of value under
par. (a).
76.07 Annotation
Railroad's working capital was properly assessed as operating property. Valuation of railroads discussed. Soo Line R. Co. v. Department of Revenue, 97 W (2d) 56, 292 NW (2d) 869 (1980).
76.075
76.075
Adjustments of assessments. Within 4 years after the due date, or extended due date, of the report under
s. 76.04, any person subject to taxation under this subchapter may request the department to make, or the department may make, an adjustment to the data under
s. 76.07 (4g) or
(4r) submitted by the person. If an adjustment under this section results in an increase in the tax due under this subchapter, the person shall pay the amount of the tax increase plus interest on that amount at the rate of 1% per month from the due date or extended due date of the report under
s. 76.04 until the date of final determination and interest at the rate of 1.5% per month from the date of final determination until the date of payment. If an adjustment under this section results in a decrease in the tax due under this subchapter, the department shall refund the appropriate amount plus interest at the rate of 0.75% per month from the due date or extended due date under
s. 76.04 until the date of refund.
Sections 71.74 (1) and
(2) and
71.75 (6) and
(7), as they apply to income and franchise tax adjustments, apply to adjustments under this section. Review of the adjustments is as stated in
s. 76.08.
76.075 History
History: 1989 a. 31.
76.08
76.08
Review of assessment. 76.08(1)
(1) Notice of the assessments determined under
s. 76.07 and of adjustments under
s. 76.075 shall be given by certified mail to each company the property of which has been assessed, and the notice of assessment shall be mailed on or before the assessment date specified in
s. 76.07 (1). Any company aggrieved by the assessment or adjustment of its property thus made may have its assessment or adjustment redetermined by the Dane county circuit court if within 30 days after notice of assessment or adjustment is mailed to the company under
s. 76.07 (3) an action for the redetermination is commenced by filing a summons and complaint with that court, and service of authenticated copies of the summons and complaint is made upon the department of revenue. No answer need be filed by the department and the allegations of the complaint in opposition to the assessment or adjustment shall be deemed denied. Upon the filing of the summons and complaint the court shall set the matter for hearing without a jury. If the plaintiff fails to file the summons and complaint within 5 days of service upon the department, the department may file a copy thereof with the court in lieu of the original. The department may be named as the defendant in any such action and shall appear and be represented by its counsel in all proceedings connected with the action but, on the request of the secretary of revenue, the attorney general may participate with or serve in lieu of departmental counsel. In an action for redetermination of an adjustment, only the issues raised in the department's adjustment under
s. 76.075 may be raised.
76.08(2)
(2) If as the result of an action pursuant to
sub. (1) the assessment as found by the department is increased by the court, any resulting increase in the tax shall be collected upon final determination of the action as other taxes levied and assessed under
ss. 76.01 to
76.26 are collected.
76.08 History
History: 1971 c. 125 s.
521; Sup. Ct. Order, 67 W (2d) 585, 751 (1975);
1977 c. 449;
1989 a. 31.
76.08 Note
Judicial Council Committee Note, 1974: Sub. (1) amended to conform to the new mode of commencement of action under s. 801.02. As amended, this section would require both the filing and the service on the department within 30 days after the mailing of the notice of assessment. [Re Order effective Jan. 1, 1976]
76.09
76.09
Assessment of omitted property. Any property subject to assessment under this subchapter which has been omitted from assessment or which has not been included in any assessment already made in any of the 5 next previous years by mistake or inadvertence unless previously reassessed for the same year or years, shall be entered by the department upon its assessment and tax roll once additionally for each year so omitted, designating each additional entry as omitted for the year of omission and fixing the valuation and tax to each entry for a former year as the same should then have been assessed according to the best judgment of the department. The proceedings related to an assessment under this section shall be had and hearings given as far as practicable in accordance with this subchapter.
76.09 History
History: 1979 c. 102 s.
236 (1);
1995 a. 225.
76.10
76.10
Review of state assessment; notice of hearing; decision; time limits; notice of decision; action to review decision; error adjusted.
