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2023 - 2024 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 438
November 14, 2023 - Offered by Senator Feyen.
AB438-SSA1,2,4
1An Act to repeal 77.70 (2) (b) 2., 77.705, 77.707 (1), 77.76 (6), 229.64 (2), 229.65
2(7), 229.66 (2) (c), 229.68 (11), 229.68 (15) and 229.682 (3);
to renumber 77.707
3(2);
to renumber and amend 77.70 (2) (b) 1. and 229.64 (1);
to amend 16.58
4(3), 77.54 (41), 77.70 (2) (a), 77.707 (1), 77.71 (intro.), (1), (2), (3), (4) and (5),
579.037 (2) (intro.), 79.037 (3), 229.65 (1), 229.66 (2) (a), 229.66 (2) (b), 229.66 (2)
6(g), 229.66 (4), 229.67, 229.68 (intro.), 229.68 (4) (b), 229.68 (4) (d), 229.68 (7),
7229.68 (9), 229.68 (12), 229.68 (13), 229.68 (16) (intro.), 229.68 (16) (a), 229.682
8(1), 229.682 (4), 229.682 (7), 229.685 (1), 229.69 (4), 229.71, 229.75 (3), 229.76
9and 341.14 (6r) (b) 13. b.;
to repeal and recreate 229.66 (3); and
to create
1013.94 (1) (z), 13.94 (1s) (c) 10., 16.09, 25.17 (1) (es), 59.90 (7), 77.54 (9a) (gm),
1177.70 (2) (b) 1m. to 3m., 79.037 (4), 229.65 (6m), 229.66 (2) (bm), 229.66 (2) (cm),
12229.66 (2) (gm), 229.68 (8) (d), 229.68 (8m), 229.6802, 229.6805, 229.682 (9),
13229.682 (10), 229.682 (11), 229.682 (12), 229.685 (3), 229.687, 229.695, 229.80
1and 229.805 of the statutes;
relating to: baseball park district administration,
2funding for improvement of professional baseball park facilities, use of the
3Milwaukee County sales tax, expiration of the Milwaukee County sales tax, and
4Milwaukee County pension obligation bonds.
Analysis by the Legislative Reference Bureau
This substitute amendment incorporates Senate Amendment 1 and makes the
following additional changes:
1. For most tickets, the ticket surcharge is, from 2024 to 2032, $2; from 2033
to 2041, $3; and, from 2042 to 2050, $4.
2. For tickets that entitle the holder to access a stadium luxury box or suite,
the ticket surcharge is, from 2024 to 2032, $8; from 2033 to 2041, $9; and, from 2042
to 2050, $10.
3. As in SA1, surcharge moneys are deposited into the baseball park facilities
improvement segregated fund. Under this substitute amendment, however, once the
Department of Administration notifies the professional baseball park district that
all state grant annual payments have been made, the district must annually transfer
ticket surcharge moneys from the segregated fund to the state for deposit into the
state's general fund.
4. The district board is expanded by four additional members, one appointed
by the senate majority leader, one by the speaker of the assembly, and two appointed
by the governor. The governor's additional appointments must be selected from lists
provided by each of the City of Milwaukee and Milwaukee County.
5. The members appointed by the governor at the governor's sole discretion and
the member appointed by the governor from a list provided by the professional
baseball team are not subject to senate confirmation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB438-SSA1,1
5Section
1. 13.94 (1) (z) of the statutes is created to read:
AB438-SSA1,2,106
13.94
(1) (z) After the end of each fiscal biennium, concluding with the 2049-51
7fiscal biennium, conduct a financial audit of a local professional baseball park
8district created under subch. III of ch. 229. The legislative audit bureau shall file a
9copy of each audit report under this paragraph with the distributees specified in par.
10(b).
AB438-SSA1,2
1Section
2. 13.94 (1s) (c) 10. of the statutes is created to read:
AB438-SSA1,3,42
13.94
(1s) (c) 10. A local professional baseball park district created under
3subch. III of ch. 229 for the cost of the audit required to be performed under sub. (1)
4(z).
AB438-SSA1,3
5Section 3
. 16.09 of the statutes is created to read:
AB438-SSA1,3,15
616.09 Grant to a local professional baseball park district; short-term
7loans. (1) Public purpose. The legislature finds and determines that baseball park
8facilities encourage economic development and tourism in this state, reduce
9unemployment in this state, preserve business activities within this state, generate
10additional tax revenues that would not exist without the baseball park facilities, and
11bring needed capital into this state for the benefit and welfare of people throughout
12the state. It is therefore in the public interest and serves a statewide public purpose,
13and it is the public policy of this state, to assist a local professional baseball park
14district created under subch. III of ch. 229 in the development, construction,
15improvement, repair, and maintenance of baseball park facilities.
AB438-SSA1,3,16
16(2) Definitions. In this section:
AB438-SSA1,3,1717
(a) “Baseball park facilities” has the meaning given in s. 229.65 (1).
AB438-SSA1,3,1818
(b) “District” has the meaning given in s. 229.65 (5).
AB438-SSA1,3,2319
(c) “Gap payment” means payment of the amount specified in sub. (3) (a), which
20is intended to substantially equal the total estimated taxes imposed under ch. 71 in
21calendar years 2021, 2022, and 2023 on the payroll of the professional baseball team
22and of visiting professional baseball franchises using the professional baseball park
23facilities.
AB438-SSA1,3,2424
(d) “Professional baseball team” has the meaning given in s. 229.65 (6m).
AB438-SSA1,4,3
1(3) Grant. Subject to sub. (4), the department shall award a grant to a district
2to assist in the development, construction, improvement, repair, and maintenance
3of baseball park facilities. The grant shall consist of the following:
AB438-SSA1,4,54
(a) The gap payment of $35,800,000 upon execution of the lease and
5nonrelocation agreements satisfying s. 229.6802.
AB438-SSA1,4,106
(b) The payment of $25,000,000 upon execution of the lease and nonrelocation
7agreements satisfying s. 229.6802. The district shall maintain the moneys paid
8under this paragraph in a separate account in the baseball park facilities
9improvement segregated fund established under s. 229.687 and may expend the
10moneys only for the purpose of winterizing the baseball park facilities.
AB438-SSA1,4,1211
(c) Twenty consecutive annual payments beginning in 2024, subject to the
12following:
AB438-SSA1,4,1313
1. The initial payment in 2024 shall equal $13,400,000.
AB438-SSA1,4,1614
2. Except as provided in subd. 3., the amount of each subsequent annual
15payment shall increase from the initial payment at the rate of 4 percent per year
16compounded annually.
AB438-SSA1,4,1817
3. No annual payment may exceed $20,000,000, and beginning on July 1, 2041,
18no annual payment may exceed $10,000,000.
AB438-SSA1,4,2019
4. No annual payment may be made after expiration or termination of the lease
20specified in s. 229.6802 (1).
AB438-SSA1,4,2321
5. Beginning with the 20th annual payment and working backward, the annual
22payments scheduled to be made under this paragraph shall be reduced by an amount
23equal to the amount certified under s. 229.682 (12) (d).
AB438-SSA1,4,2524
6. The department shall notify the district when it determines that the current
25annual payment will be the final annual payment under this subsection.
AB438-SSA1,5,2
1(4) Contract requirements. The department may not award a grant under
2sub. (3) unless s. 229.6802 has been satisfied.
AB438-SSA1,5,8
3(5) Loans to a local professional baseball park district. (a) Upon a majority
4vote of all current members appointed to the board of a district and eligible to vote
5on the matter, the department shall issue loans to the district in the amount
6approved by the board no later than 10 days after receipt of the board's request for
7the loan. The department may not issue more than a total of $35,000,000 in loans
8under this paragraph.
AB438-SSA1,5,139
(am) The district shall maintain all proceeds from loans issued under this
10subsection in a separate account in the baseball park facilities improvement
11segregated fund established under s. 229.687 and may expend the loan proceeds only
12for major capital repairs, retractable roof maintenance and repairs, and necessary
13improvements to the baseball park facilities.
AB438-SSA1,5,1614
(b) Interest on each loan issued under par. (a) shall accrue monthly at a rate
15equal to the state investment fund earnings rate during the immediately preceding
16month, as certified by the secretary.
AB438-SSA1,5,2117
(c) The district shall pay all interest accruing on each loan issued under par.
18(a) on a quarterly basis to the secretary for deposit in the general fund. The
19outstanding balance of each loan issued under par. (a) shall be paid no later than 15
20years after the date of issuance or upon expiration or termination of the lease
21specified in s. 229.6802 (1), whichever is earlier.
AB438-SSA1,5,2422
(d) At least quarterly, the department shall submit a report to the joint
23committee on finance specifying the outstanding principal and interest owed by the
24district on each loan issued under par. (a).
AB438-SSA1,6,2
1(e) The department may not issue a loan under this subsection after December
231, 2045.
AB438-SSA1,4
3Section
4. 16.58 (3) of the statutes is amended to read:
AB438-SSA1,6,64
16.58
(3) The department may provide financial consulting services to a local
5exposition district created under subch. II of ch. 229
or a local professional baseball
6park district created under subch. III of ch. 229.
AB438-SSA1,5
7Section
5. 25.17 (1) (es) of the statutes is created to read:
AB438-SSA1,6,108
25.17
(1) (es) Funds of a local professional baseball park district created under
9subch. III of ch. 229 (s. 229.68 (9)), but subject to the terms of the contract under s.
10229.68 (9);
AB438-SSA1,6
11Section
6. 59.90 (7) of the statutes is created to read:
AB438-SSA1,6,1412
59.90
(7) Repayment of pension bonds. Not later than December 31, 2030, the
13county shall retire its pension bond obligations and any debt incurred to refund its
14pension bond obligations.
AB438-SSA1,7
15Section 7
. 77.54 (9a) (gm) of the statutes is created to read:
AB438-SSA1,6,1716
77.54
(9a) (gm) A local professional baseball park district under subch. III of
17ch. 229.
AB438-SSA1,8
18Section 8
. 77.54 (41) of the statutes is amended to read:
AB438-SSA1,6,2319
77.54
(41) The sales price from the sale of building materials, supplies and
20equipment to; and the storage, use or other consumption of those kinds of property
21by; owners, contractors, subcontractors or builders if that property is acquired solely
22for or used solely in, the construction,
improvement, renovation
, repair,
23maintenance, or development of property that would be exempt under s. 70.11 (36).
AB438-SSA1,8,2
177.70
(2) (a) In addition to the taxes imposed under sub. (1), a county in which
2a 1st class city is located may adopt an ordinance, by a two-thirds majority vote of
3all members elect of the county board, to impose sales and use taxes under this
4subchapter at the rate of 0.4 percent of the sales price or purchase price. An
5ordinance adopted under this subsection shall be effective on January 1, April 1, July
61, or October 1 and the taxes shall be imposed only in their entirety as provided in
7this subchapter. A certified copy of the ordinance shall be delivered to the secretary
8of revenue at least 120 days prior to its effective date. No county may impose a tax
9under this subsection unless the county makes an election to join the Wisconsin
10Retirement System for all new employees, pursuant to s. 40.21 (7) (a), and the county
11contributes the amount calculated under s. 59.875 (4) to its retirement system's
12unfunded actuarial accrued liability from the taxes imposed under this subsection
13in 2025 and in each year thereafter until the first year in which the retirement
14system is determined by the retirement system's actuary to be fully funded. After
15the retirement system is first fully funded, or
until 30 years have elapsed since the
16effective date of the tax December 31, 2050, whichever is earlier, the actuary shall
17determine all future required contributions from the county on the basis of standard
18actuarial practices, and the county shall repeal the ordinance imposing the tax. A
19certified copy of that ordinance shall be delivered to the secretary of revenue at least
20120 days prior to its effective date. The repeal of any such ordinance shall be effective
21on December 31. A certified copy of a repeal ordinance shall be delivered to the
22secretary of revenue at least 120 days before the effective date of the repeal. Except
23as provided under s. 77.60 (9), the department of revenue may not issue any
24assessment or act on any claim for a refund or any claim for an adjustment under s.
177.585 after the end of the calendar year that is 4 years after the year in which the
2county has enacted a repeal ordinance under this subsection.
AB438-SSA1,8,85
77.70
(2) (b) (intro.) Annually, after making the required payment to its
6retirement system's unfunded actuarial accrued liability under par. (a), the county
7shall
make the required payment for its pension bond obligations from use the
8remaining revenues received under this subsection
. for any of the following:
AB438-SSA1,11
9Section
11. 77.70 (2) (b) 1m. to 3m. of the statutes are created to read:
AB438-SSA1,8,1010
77.70
(2) (b) 1m. Payments for its pension bond obligations.
AB438-SSA1,8,1211
2m. Additional payments for its retirement system's unfunded actuarial
12accrued liability.
AB438-SSA1,8,1413
3m. Payments for its employer contribution to a retirement system established
14under
chapter 201, laws of 1937.
AB438-SSA1,14
19Section 14
. 77.707 (1) of the statutes is amended to read:
AB438-SSA1,9,1020
77.707
(1) Retailers and the department of revenue may not collect a tax under
21s. 77.705
, 2021 stats., for any local professional baseball park district created under
22subch. III of ch. 229 after the last day of the fiscal quarter in which the local
23professional baseball park district board makes a certification to the department of
24revenue under s. 229.685 (2)
, 2021 stats., or after August 31, 2020, whichever is
25earlier, except that the department of revenue may collect from retailers taxes that
1accrued before the termination date and fees, interest and penalties that relate to
2those taxes. Except as provided under s. 77.60 (9), the department of revenue may
3not issue any assessment nor act on any claim for a refund or any claim for an
4adjustment under s. 77.585 after the end of the calendar year that is 4 years after
5the year in which a local professional baseball park district tax has terminated. The
6department of revenue shall estimate the amount of the refunds, including interest,
7that the department may need to pay during that 4-year period and retain that
8amount from the taxes collected for the district after the termination date. Any
9amount that remains after the payment of refunds shall be distributed to the
10counties based on the population of each county that is part of the district.
AB438-SSA1,15
11Section 15
. 77.707 (1) of the statutes, as affected by 2023 Wisconsin Act ....
12(this act), is repealed.
AB438-SSA1,16
13Section 16
. 77.707 (2) of the statutes is renumbered 77.707.
AB438-SSA1,9,19
1677.71 Imposition of county, municipality, and special district sales and
17use taxes. (intro.) Whenever a sales and use tax ordinance is adopted under s. 77.70
18or 77.701 or a special district resolution is adopted under s.
77.705 or 77.706, the
19following taxes are imposed:
AB438-SSA1,9,25
20(1) For the privilege of selling, licensing, leasing, or renting tangible personal
21property and the items, property, and goods specified under s. 77.52 (1) (b), (c), and
22(d), and for the privilege of selling, licensing, performing, or furnishing services a
23sales tax is imposed upon retailers at the rates under s. 77.70 in the case of a county
24tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under
25s.
77.705 or 77.706 in the case of a special district tax of the sales price from the sale,
1license, lease, or rental of tangible personal property and the items, property, and
2goods specified under s. 77.52 (1) (b), (c), and (d), except property taxed under sub.
3(4), sold, licensed, leased, or rented at retail in the county, municipality, or special
4district, or from selling, licensing, performing, or furnishing services described under
5s. 77.52 (2) in the county, municipality, or special district.
AB438-SSA1,10,20
6(2) An excise tax is imposed at the rates under s. 77.70 in the case of a county
7tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under
8s.
77.705 or 77.706 in the case of a special district tax of the purchase price upon every
9person storing, using, or otherwise consuming in the county, municipality, or special
10district tangible personal property, or items, property, or goods specified under s.
1177.52 (1) (b), (c), or (d), or services if the tangible personal property, item, property,
12good, or service is subject to the state use tax under s. 77.53, except that a receipt
13indicating that the tax under sub. (1), (3), (4), or (5) has been paid relieves the buyer
14of liability for the tax under this subsection and except that if the buyer has paid a
15similar local tax in another state on a purchase of the same tangible personal
16property, item, property, good, or service that tax shall be credited against the tax
17under this subsection and except that for motor vehicles that are used for a purpose
18in addition to retention, demonstration, or display while held for sale in the regular
19course of business by a dealer the tax under this subsection is imposed not on the
20purchase price but on the amount under s. 77.53 (1m).
AB438-SSA1,11,7
21(3) An excise tax is imposed upon a contractor engaged in construction
22activities within the county or special district at the rates under s. 77.70 in the case
23of a county tax, at the rate under s. 77.701 in the case of a municipality tax, or at the
24rate under s.
77.705 or 77.706 in the case of a special district tax of the purchase price
25of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c),
1or (d) that are used in constructing, altering, repairing, or improving real property
2and that became a component part of real property in that county, municipality, or
3special district, except that if the contractor has paid the sales tax of a county,
4municipality, or special district in this state on that tangible personal property, item,
5property, or good, or has paid a similar local sales tax in another state on a purchase
6of the same tangible personal property, item, property, or good, that tax shall be
7credited against the tax under this subsection.
AB438-SSA1,11,20
8(4) An excise tax is imposed at the rates under s. 77.70 in the case of a county
9tax, at the rate under s. 77.701 in the case of a municipality tax, or at the rate under
10s.
77.705 or 77.706 in the case of a special district tax of the purchase price upon every
11person storing, using, or otherwise consuming a motor vehicle, boat, recreational
12vehicle, as defined in s. 340.01 (48r), or aircraft if that property must be registered
13or titled with this state and if that property is to be customarily kept in a county that
14has in effect an ordinance under s. 77.70, in a municipality that has in effect an
15ordinance under s. 77.701, or in a special district that has in effect a resolution under
16s.
77.705 or 77.706, except that if the buyer has paid a similar local sales tax in
17another state on a purchase of the same property, that tax shall be credited against
18the tax under this subsection. The lease or rental of a motor vehicle, boat,
19recreational vehicle, as defined in s. 340.01 (48r), or aircraft is not taxed under this
20subsection if the lease or rental does not require recurring periodic payments.