Sales tax exemption for energy systems
Current law provides a sales and use tax exemption for a product that has as
its power source wind energy, direct radiant energy received from the sun, or gas
generated from anaerobic digestion of animal manure and other agricultural waste,
if the product produces at least 200 watts of alternating current or 600 British
thermal units per day. The sale of electricity or energy produced by the product is
also exempt.
The bill modifies current law so that the exemption applies to solar power
systems and wind energy systems that produce electrical or heat energy directly
from the sun or wind and are capable of continuously producing at least 200 watts
of alternating current or 600 British thermal units. In addition, the exemption
applies to a waste energy system that produces electrical or heat energy directly from
gas generated from anaerobic digestion of animal manure and other agricultural
waste and are capable of continuously producing at least 200 watts of alternating
current or 600 British thermal units. A system for which the exemption applies
includes tangible personal property sold with the system that is used primarily to
store or facilitate the storage of the electrical or heat energy produced by the system.
Vapor products
Current law imposes a tax on vapor products, which are any noncombustible
products that produce vapor or aerosol for inhalation from the application of a
heating element to a liquid or other substance that is depleted as the product is used,
regardless of whether the liquid or other substance contains nicotine. The tax is
imposed at the rate of 5 cents per milliliter of the liquid or other substance based on
the volume as listed by the manufacturer.
The bill taxes vapor products at the rate of 71 percent of the manufacturer's list
price and modifies the definition of “vapor product.” Under the bill, “vapor product”
means a noncombustible product that employs a heating element, power source,
electronic circuit, or other electronic, chemical, or mechanical means that can be used
to produce vapor from a solution or other substance, regardless of whether the
product contains nicotine. A “vapor product” is defined to include an electronic
cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or
device, as well as any container of a solution or other substance that is intended to
be used with these items. The bill specifies that any product regulated by the federal
Food and Drug Administration as a drug or device is not a vapor product.
Little cigars
The bill taxes little cigars at the same rate as the excise tax imposed on
cigarettes. Under current law, all cigars are taxed at the rate of 71 percent of the
manufacturer's established list price, limited to 50 cents per cigar. Under the bill,
little cigars are taxed at the rate of 126 mills per little cigar, regardless of weight.
The bill defines “little cigar” to mean a cigar that has an integrated cellulose acetate
filter and is wrapped in any substance containing tobacco.
Definition of “manufacturer's list price”
Current law imposes a tax on tobacco products based on the “manufacturer's
established list price,” without defining the term. The bill removes the word
“established” and defines “manufacturer's list price” to mean the total price of
tobacco products charged by the manufacturer or other seller to an unrelated
distributor. The bill specifies that the total price must include all charges by the
manufacturer or other seller that are necessary to complete the sale, without
reduction for any cost or expense incurred by the manufacturer or other seller or for
the value or cost of discounts or free promotional or sample products. The bill
provides that a manufacturer or other seller is related to a distributor if they have
significant common purposes and either substantial common membership or
substantial common direction or control.
Sales tax exemption for diapers
The bill creates a sales and use tax exemption for the sale of diapers, not
including adult undergarments for incontinence.
Prairie and wetland counseling services
Under current law, the sale of landscaping and lawn maintenance services is
subject to the sales tax. The bill excludes from taxable landscaping services the
planning and counseling services for the restoration, reclamation, or revitalization
of prairie, savanna, or wetlands if such services are provided for a separate and
optional fee distinct from other services.
Repeal of sales tax exemption for farm-raised deer
The bill repeals the sales and use tax exemption that applies to the sale of
farm-raised deer to a person operating a hunting preserve or game farm in this state.
Repeal of sales tax exemption for game birds and clay pigeons
The bill repeals the sales and use tax exemption that applies to the sale of live
game birds and clay pigeons to qualifying bird hunting preserves and shooting
facilities.
Sales and use tax on candy
Current law imposes the sales and use tax on the sale of candy. For purposes
of the sales and use tax, “candy” is defined, generally, as a preparation of sugar, honey
or other sweetener combined with chocolate, fruit, nuts or other ingredients or
flavorings. “Candy” does not include a preparation that contains flour or that
requires refrigeration. Under the bill, for purposes of the sales and use tax, “candy”
also does not include a preparation that has as its predominant ingredient dried or
partially dried fruit, not including a preparation that has a confectionary coating or
glazing on the dried or partially dried fruit.
Providing notices for public utility taxes
Under current law, public utility companies, including railroads and air
carriers, are exempt from local property taxes and are instead subject to special state
taxes. Current law requires DOR to send certain notices regarding these taxes by
certified mail. Under the bill, DOR must still provide the notices but is no longer
required to send them by certified mail.
shared revenue
Increase in county and municipal aid
The bill increases the amount that each county and municipality annually
receives as a county and municipal aid payment. Currently, a county or municipality
receives a payment equal to the payment it received in 2012. The bill increases that
amount by 2 percent in 2021 and an additional 2 percent beginning in 2022.
Expenditure restraint program
Under current law, generally, a municipality is eligible to receive an
expenditure restraint payment if its property tax levy is greater than five mills and
if the annual increase in its municipal budget is less than the sum of factors based
on inflation and the increased value of property in the municipality as a result of new
construction. Current law excludes certain payments and expenditures from the
municipal budget for purposes of determining eligibility for an expenditure restraint
payment. For example, principal and interest on long-term debt, recycling fee
payments, and unreimbursed expenses related to a declared state of emergency are
excluded from the determination.
The bill excludes from the expenditure restraint program payment
determination additional revenues resulting from a referendum to increase the
municipality's property tax levy limit or the tax rate of the premier resort area tax.
Video service provider fee
Under current law, the state provides an aid payment to municipalities to
compensate the municipalities for a state-mandated reduction in the amount of
video service provider franchise fees that a municipality may impose and collect. The
aid amount is a percentage of the gross receipts reported to the municipality by the
video service provider. In 2020, the amount that a municipality received was equal
to 0.5 percent of the video service provider's gross receipts. In 2021, the municipality
will receive an amount equal to 1 percent of the gross receipts. Annually, beginning
in 2022, the municipality will receive an amount equal to the amount it received in
2021.
The bill changes the appropriation for the aid payment from an annual
appropriation to a sum sufficient appropriation.
transportation
Drivers and motor vehicles
Driver's cards
Under
2007 Wisconsin Act 20, certain provisions specified in the federal REAL
ID Act of 2005 (REAL ID) were incorporated into state law and these provisions
became effective on January 1, 2013. Among these provisions was the requirement
that DOT follow certain procedures in processing applications for driver's licenses
and identification cards. However, under
2011 Wisconsin Acts 23 and
32, DOT may
process applications for driver's licenses and identification cards in a manner other
than that required by REAL ID if the driver's licenses and identification cards are
marked to indicate that they are not REAL ID compliant and DOT processes the
applications in compliance with DOT practices and procedures applicable
immediately prior to implementation of REAL ID.
Under current law, an applicant for a driver's license or identification card,
regardless of whether it is REAL ID compliant or REAL ID noncompliant, must
provide to DOT 1) an identification document that includes either the applicant's
photograph or both the applicant's full legal name and date of birth; 2)
documentation, which may be the same as item 1, above, showing the applicant's
date of birth; 3) proof of the applicant's social security number or verification that the
applicant is not eligible for a social security number; 4) documentation showing the
applicant's name and address of principal residence; and 5) documentary proof that
the applicant is a U.S. citizen or is otherwise lawfully present in the United States.
However, in processing an application for a REAL ID noncompliant driver's license
or identification card, DOT is not required to meet the standards for document
retention and verification that are imposed for REAL ID compliant products.
Under the bill, an applicant for a REAL ID noncompliant driver's license or
identification card (noncompliant REAL ID) is not required to provide documentary
proof that the applicant is a U.S. citizen or is otherwise lawfully present in the United
States. Also, an applicant may, in lieu of item 1, above, provide an individual
taxpayer identification number, a foreign passport, or any other documentation
deemed acceptable to the department and, in lieu of items 2 and 4, above, provide
documentation deemed acceptable to the department. If the applicant does not have
a social security number, the applicant is required to provide verification only that
he or she does not have one, rather than verification that he or she is not eligible for
one. In processing an application for, and issuing or renewing, a noncompliant REAL
ID, DOT may not include any question or require any proof or documentation as to
whether the applicant is a U.S. citizen or is otherwise lawfully present in the United
States. The bill does not change any current law requirements related to driver
qualifications such as minimum age or successful completion of knowledge and
driving skills tests.
Under current law, most driver's licenses issued by DOT are issued for an initial
two-year period and must be renewed every eight years thereafter. In general, an
applicant for renewal of a driver's license must pass an eyesight test and have his
or her photograph taken with each renewal. Most identification cards issued by DOT
are issued for an initial period of eight years and are renewable for eight-year
periods thereafter, and applicants, generally, must have their photograph taken with
each renewal.
Under the bill, an applicant for a noncompliant REAL ID who does not provide
a social security number is issued a noncompliant REAL ID that displays, on its face,
the words “Not valid for voting purposes. Not evidence of citizenship or immigration
status." and that has a four-year renewal period rather than an eight-year renewal
period. With each renewal, DOT has discretion whether or not to take a new
photograph and, for a driver's license, give an eyesight test. However, DOT must
take a new photograph and, for a driver's license, give an eyesight test at least once
every eight years.
With limited exceptions, DOT may not disclose social security numbers
obtained from operator's license or identification card applicants. The bill prohibits
DOT from disclosing the fact that an applicant has verified to DOT that the applicant
does not have a social security number, except that DOT may disclose this
information to the Elections Commission.
The bill also prohibits discrimination on the basis of a person's status as a
holder or a nonholder of a noncompliant REAL ID, adding this license status as a
prohibited basis for discrimination in employment, housing, and the equal
enjoyment of a public place of accommodation or amusement.
Electronic renewal of operator's licenses
Under current law, most operator's licenses issued by DOT must be renewed
every eight years. In general, an applicant for renewal of an operator's license must
pass an eyesight test and have his or her photograph taken.
Under the bill, if an applicant for renewal of an operator's license, other than
a commercial driver license, meets certain requirements, the applicant may apply for
renewal, and DOT may renew the license, by electronic means. The renewal may
occur without an eyesight test and without a photograph. Licenses issued under this
procedure will be marked as REAL-ID noncompliant licenses that are not intended
to be accepted by federal agencies for federal identification or other official purposes.
Among the eligibility requirements for use of the electronic procedure are 1) that the
applicant's most recent previous license transaction was not made by electronic
means; 2) that the applicant's license is not subject to restrictions based on medical
conditions, other than a requirement that the applicant use corrective lenses; 3) that
the applicant is not more than 65 years of age; and 4) that the applicant meets any
additional criteria for eligibility established by DOT.
Driving skills test waiver
Under current law, with limited exceptions, an applicant for an operator's
license authorizing operation of “Class D" vehicles, which are automobiles and most
passenger vehicles, must successfully complete a knowledge test and a driving skills
(road) test. The bill allows DOT to waive the road test for a person if all of the
following are satisfied:
1. The person is under 18 years of age.
2. The person is applying for authorization to operate only “Class D" vehicles.
3. The person has satisfactorily completed a course in driver education.
4. The person has held an instruction permit for not less than six months.
5. The person has not committed a moving violation during the six-month
period immediately preceding application.
6. An adult sponsor of the person consents to a waiver of the driving skills test.
Operator license suspension and arrest for nonmoving violations
Under current law, if a person does not pay the forfeiture or appear in court in
response to a citation for a nonmoving violation (commonly known as a parking
ticket), the court may issue a summons for the person, order DOT to suspend the
person's vehicle registration, or issue a warrant for the person's arrest. If a person
fails to pay the forfeiture for a moving or nonmoving violation, the court may order
the person to be imprisoned until the judgment is paid, but for a time period not to
exceed 90 days. In lieu of imprisonment, the court may order that the person's
operating privilege be suspended.
The bill eliminates the option to arrest a person and suspend the person's motor
vehicle operator license for failure to pay the required forfeiture for a nonmoving
violation.
Replacement of motor vehicle registration plates
Under current law, DOT must establish new designs for plates at intervals
determined by DOT. Subsequently, DOT must issue plates with the new design at
a time determined by DOT. Plates may also be replaced upon application of a vehicle
owner in the case of lost, destroyed, or illegible plates.
Under the bill, beginning with registrations effective July 1, 2021, if the
registration for a vehicle is renewed and plates for that vehicle have not been issued
during the previous 10 years, DOT must issue two new registration plates for the
vehicle. The bill requires DOT to assess a $6.25 fee for the replacement plates.
Disclosure of records relating to identification card holders
Under current law, with certain exceptions, DOT is prohibited from disclosing
records or other information relating to applicants for, or holders of, identification
cards. The bill eliminates this prohibition.
Exemption from probationary license requirement for persons enlisted in
the U.S. armed forces
Under current law, probationary licenses are, with certain exceptions, issued
to all applicants who qualify for an original driver's license and remain in effect for
two years from the date of the licensee's next birthday. Currently, the following
persons are exempt from this requirement:
1. Certain persons who have been licensed by another jurisdiction.
2. Persons who are issued a commercial driver license.
3. Persons entitled to a regular license under a foreign license reciprocity
agreement.
Those who are exempt from the probationary license requirement are instead
issued a regular license that remains in effect for eight years after the date of
issuance.
Under the bill, a person who provides DOT with documentary proof that the
person is enlisted in the U.S. armed forces is also exempt from the probationary
license requirement.
Fee for paper registration renewal notice
Under current law, a person may not operate a vehicle on any highway unless
the vehicle is registered with DOT. At least 30 days prior to the expiration of a
vehicle's registration, DOT must mail to the registrant a notice of the date upon
which the vehicle's registration must be renewed. DOT is also authorized to test and
evaluate the effectiveness of alternative methods of processing and distributing
vehicle registration renewals. Under the bill, for a vehicle registration renewal
notice that DOT sends by mail, DOT must charge the recipient a fee of $0.33 and
deposit all such fees in the transportation fund.
Highways
Enumeration of the I 94 east-west corridor project
Under current law, DOT may not encumber or expend any moneys for
construction of a southeast Wisconsin freeway megaproject unless the project is
enumerated by the legislature. The bill enumerates as a southeast Wisconsin
freeway megaproject the “I 94 east-west corridor project,” which is defined to mean
“all freeways, including related interchange ramps, roadways, and shoulders,
encompassing I 94 in Milwaukee County from 70th Street to 16th Street, and all
adjacent frontage roads and collector road systems.” The bill authorizes DOT to
contract up to $40,000,000 in public debt for the project.
Establishment of bikeways and pedestrian ways in highway projects
Under current law, DOT must, with exceptions, give due consideration to
establishing bikeways and pedestrian ways in all new highway construction and
reconstruction projects funded from state or federal funds.
Under the bill, with several exceptions, DOT must ensure that bikeways and
pedestrian ways are established in all new highway construction and reconstruction
projects funded from state or federal funds and must promulgate rules identifying
certain exceptions to the requirement.
Transportation revenue bonds
Under current law, the Building Commission may issue revenue bonds for
major highway projects and transportation administrative facilities in a principal
amount that may not exceed $4,055,372,900. The bill increases the revenue bond
limit to $4,359,650,700, an increase of $304,277,800.
Also, under a separate authorization, the Building Commission may issue
revenue bonds for major highway projects and transportation administrative
facilities in a principal amount that may not exceed $142,254,600. The bill
eliminates this separate authorization.
State highway rehabilitation bonding
Under current law, state highway rehabilitation projects may be funded from
various sources, including bond proceeds. Various provisions of current law
authorize specific maximum levels of general obligation bonding for these projects
and the total authorized amount of general obligation bonding available for these
projects is the cumulative amount specified in all of these provisions. Under one of
these provisions of current law, the state may contract up to $141,000,000 in public
debt to fund state highway rehabilitation projects. The bill increases this authorized
general obligation bonding limit by $278,500,000 to $419,500,000.
Design-build project bonding
Under current law, the design and construction of highway projects are
generally two distinct phases. Under this method, often referred to as
“design-bid-build,” DOT has broad authority to accomplish the design of a project.
The construction of a project must be executed by contract based on bids, with DOT
awarding the contract to the lowest responsible bidder. Alternatively, DOT may use
the “design-build” method, under which design, engineering, construction, and
related services are procured through a single contract with a single entity capable
of providing the services.
Under current law, state highway rehabilitation projects, major highway
projects, and southeast Wisconsin freeway megaprojects may be funded from various
sources, including bond proceeds. The bill provides that the state may contract up
to $20,000,000 in public debt to fund state highway rehabilitation projects, major
highway projects, and southeast Wisconsin freeway megaprojects that are delivered
using the design-build method.
Transportation project requirements
Under current law, for certain highway projects for which DOT spends federal
money, federal money must make up at least 70 percent of the funding for those
projects. DOT is required to notify political subdivisions receiving aid for local
projects whether the aid includes federal moneys and how those moneys must be
spent. For certain projects that receive no federal money, DOT may not require
political subdivisions to comply with any portion of DOT's facilities development
manual other than design standards. Any local project funded with state funds
under the surface transportation program or the local bridge program must be let
through competitive bidding and by contract to the lowest responsible bidder. The
bill repeals all of these requirements.
Specific information signs
The bill makes numerous changes to the specific information sign program
administered by DOT, under which DOT erects and maintains signs to direct
motorists to services located near certain highways.
Under current law, DOT may not authorize the erection of specific information
signs along a highway unless the highway is enumerated by the legislature. The bill
makes numerous changes to existing enumerations to reflect highway construction
and designation changes. The bill also enumerates two new highway segments.
Under current law, the annual permit fee for inclusion on a specific information
sign is $40. The bill increases the fee to $80. Current law specifies the design of
specific information signs and provides that signs may be illuminated. The bill
eliminates the reference to sign illumination.
