AB438: Bill Text

The bill exempts the following from the sales and use tax: 1) tangible personal property and taxable services sold to a district and 2) building materials, supplies, and equipment sold to owners, contractors, subcontractors, or builders solely for the improvement, repair, or maintenance of a professional sports and entertainment home stadium. Under current law, building materials, supplies, and equipment sold to owners, contractors, subcontractors, or builders solely for the construction, renovation, or development of a professional sports and entertainment home stadium are exempt from the sales and use tax.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

AB438,,4 The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB438,1 Section 1. 16.09 of the statutes is created to read:

AB438,,6 16.09 Grant to a local professional baseball park district. (1) Public purpose. The legislature finds and determines that baseball park facilities encourage economic development and tourism in this state, reduce unemployment in this state, preserve business activities within this state, generate additional tax revenues that would not exist without the baseball park facilities, and bring needed capital into this state for the benefit and welfare of people throughout the state. It is therefore in the public interest and serves a statewide public purpose, and it is the public policy of this state, to assist a local professional baseball park district created under subch. III of ch. 229 in the development, construction, improvement, repair, and maintenance of baseball park facilities.

AB438,,7 (2) Definitions. In this section:

AB438,,8 (a) “Baseball park facilities” has the meaning given in s. 229.65 (1).

AB438,,9 (b) “District” has the meaning given in s. 229.65 (5).

AB438,,10 (c) “Gap payment” means payment of the amount specified in sub. (3) (a), which is intended to substantially equal the total estimated taxes imposed under ch. 71 in calendar years 2021, 2022, and 2023 on the payroll of the professional baseball team and of visiting professional baseball franchises using the professional baseball park facilities.

AB438,,11 (d) “Professional baseball team” has the meaning given in s. 229.65 (6m).

AB438,,12 (3) Grant. Subject to sub. (4), the department shall award a grant to a district to assist in the development, construction, improvement, repair, and maintenance of baseball park facilities. The grant shall consist of the following:

AB438,,13 (a) The gap payment of $35,800,000 upon execution of the lease and nonrelocation agreements satisfying s. 229.6802.

AB438,,14 (b) The payment of $25,000,000 upon execution of the lease and nonrelocation agreements satisfying s. 229.6802. The district shall maintain the moneys paid under this paragraph in a separate account in the baseball park facilities improvement segregated fund established under s. 229.687 and may expend the moneys only for the purpose of winterizing the baseball park facilities.

AB438,,15 (c) Twenty-two consecutive annual payments beginning in 2024, subject to the following:

AB438,,16 1. The initial payment in 2024 shall equal $13,400,000.

AB438,,17 2. Except as provided in subd. 3., the amount of each subsequent annual payment shall increase from the initial payment at the rate of 4 percent per year compounded annually.

AB438,,18 3. No annual payment may exceed $20,000,000, and beginning on July 1, 2041, no annual payment may exceed $10,000,000.

AB438,,19 4. No annual payment may be made after expiration or termination of the lease specified in s. 229.6802 (1).

AB438,,20 (4) Contract requirements. The department may not award a grant under sub. (3) unless s. 229.6802 has been satisfied.

AB438,,21 (5) Loans to a local professional baseball park district. (a) Upon a majority vote of all current members appointed to the board of a district and eligible to vote on the matter, the department shall issue loans to the district to assist in the development, construction, improvement, repair, and maintenance of baseball park facilities. The department shall issue each loan in the amount approved by the board no later than 10 days after receipt of the board’s request for the loan. The department may not issue more than a total of $50,000,000 in loans under this paragraph.

AB438,,22 (b) Interest on each loan issued under par. (a) shall accrue monthly at a rate equal to the state investment fund earnings rate during the immediately preceding month, as certified by the secretary.

AB438,,23 (c) The district shall pay all interest accruing on each loan issued under par. (a) on a quarterly basis to the secretary for deposit in the general fund. The outstanding balance of each loan issued under par. (a) shall be paid no later than 15 years after the date of issuance or upon expiration or termination of the lease specified in s. 229.6802 (1), whichever is earlier.

AB438,,24 (d) At least quarterly, the department shall submit a report to the joint committee on finance specifying the outstanding principal and interest owed by the district on each loan issued under par. (a).

AB438,,25 (e) The department may not issue a loan under this subsection after December 31, 2045.

AB438,2 Section 2. 16.58 (3) of the statutes is amended to read:

AB438,,27 16.58 (3) The department may provide financial consulting services to a local exposition district created under subch. II of ch. 229 or a local professional baseball park district created under subch. III of ch. 229.

AB438,3 Section 3. 25.17 (1) (es) of the statutes is created to read:

AB438,,29 25.17 (1) (es) Funds of a local professional baseball park district created under subch. III of ch. 229 (s. 229.68 (9)), but subject to the terms of the contract under s. 229.68 (9);

AB438,4 Section 4. 77.54 (9a) (gm) of the statutes is created to read:

AB438,,31 77.54 (9a) (gm) A local professional baseball park district under subch. III of ch. 229.

AB438,5 Section 5. 77.54 (41) of the statutes is amended to read:

AB438,,33 77.54 (41) The sales price from the sale of building materials, supplies and equipment to; and the storage, use or other consumption of those kinds of property by; owners, contractors, subcontractors or builders if that property is acquired solely for or used solely in, the construction, improvement, renovation, repair, maintenance, or development of property that would be exempt under s. 70.11 (36).

AB438,6 Section 6. 77.705 of the statutes, as affected by 2023 Wisconsin Act 19, is repealed.

AB438,7 Section 7. 77.707 (1) of the statutes is amended to read:

AB438,,36 77.707 (1) Retailers and the department of revenue may not collect a tax under s. 77.705, 2021 stats., for any local professional baseball park district created under subch. III of ch. 229 after the last day of the fiscal quarter in which the local professional baseball park district board makes a certification to the department of revenue under s. 229.685 (2), 2021 stats., or after August 31, 2020, whichever is earlier, except that the department of revenue may collect from retailers taxes that accrued before the termination date and fees, interest and penalties that relate to those taxes. Except as provided under s. 77.60 (9), the department of revenue may not issue any assessment nor act on any claim for a refund or any claim for an adjustment under s. 77.585 after the end of the calendar year that is 4 years after the year in which a local professional baseball park district tax has terminated. The department of revenue shall estimate the amount of the refunds, including interest, that the department may need to pay during that 4-year period and retain that amount from the taxes collected for the district after the termination date. Any amount that remains after the payment of refunds shall be distributed to the counties based on the population of each county that is part of the district.

AB438,8 Section 8. 77.707 (1) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is repealed.

AB438,9 Section 9. 77.707 (2) of the statutes is renumbered 77.707.

AB438,10 Section 10. 77.71 (intro.), (1), (2), (3), (4) and (5) of the statutes, as affected by 2023 Wisconsin Act 12, are amended to read:

AB438,,40 77.71 Imposition of county, municipality, and special district sales and use taxes. (intro.) Whenever a sales and use tax ordinance is adopted 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:

AB438,,41 (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.

AB438,,42 (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), (4), or (5) 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).

AB438,,43 (3) An excise tax is imposed upon a contractor engaged in construction activities within the county 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.

AB438,,44 (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. The lease or rental of a motor vehicle, boat, recreational vehicle, as defined in s. 340.01 (48r), or aircraft is not taxed under this subsection if the lease or rental does not require recurring periodic payments.

AB438,,45 (5) An excise tax is imposed on the purchase price for the lease or rental of a motor vehicle, boat, recreational vehicle, as defined in s. 340.01 (48r), or aircraft 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 upon every person storing, using, or otherwise consuming in the county, municipality, or special district the 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 the lease or rental does not require recurring periodic payments, except that a receipt indicating that the tax under sub. (1) had been paid relieves the purchaser of liability for the tax under this subsection and except that if the purchaser has paid a similar local tax in another state on the same lease or rental of such motor vehicle, boat, recreational vehicle, as defined in s. 340.01 (48r), or aircraft, that tax shall be credited against the tax under this subsection.

AB438,11 Section 11. 77.76 (4) of the statutes, as affected by 2023 Wisconsin Act 12, is amended to read:

AB438,,47 77.76 (4) There shall be retained by the state 1.5 percent of the taxes collected for taxes imposed by special districts under ss. 77.705 and s. 77.706 and 1.75 percent of the taxes collected for taxes imposed by counties under s. 77.70 and for taxes imposed by municipalities under s. 77.701 to cover costs incurred by the state in administering, enforcing, and collecting the tax. All interest and penalties collected shall be deposited and retained by this state in the general fund.

AB438,12 Section 12. 77.76 (6) of the statutes is repealed.

AB438,13 Section 13. 79.037 (2) (intro.) of the statutes, as created by 2023 Wisconsin Act 12, is amended to read:

AB438,,50 79.037 (2) (intro.) In Subject to any reduction required under sub. (4), in 2024, the department of revenue shall determine the amount of the payments under this section as follows:

AB438,14 Section 14. 79.037 (3) of the statutes, as created by 2023 Wisconsin Act 12, is amended to read:

AB438,,52 79.037 (3) For Subject to any reduction required under sub. (4), for the distribution in 2025 and subsequent years, each county and municipality shall receive a payment under this section equal to the proportion of the total payments from the supplemental county and municipal aid account under s. 25.491 (9) that the county or municipality received in 2024, or if the total of payments received in 2024 by a county or municipality is reduced under sub. (4), the proportion of the total payments from the supplemental county and municipal aid account under s. 25.491 (9) that the county or municipality would have received in 2024 without that reduction, multiplied by the amount for the year in the supplemental county and municipal aid account under s. 25.491 (9).

AB438,15 Section 15. 79.037 (4) of the statutes is created to read:

AB438,,54 79.037 (4) (a) For the distribution in 2024 and subsequent years until 2050, if a county fails to make the full amount of a deposit required under s. 229.695 by July 1, the department of revenue shall reduce the county’s total of payments under this section for that year by the difference between the amount of the deposit required under s. 229.695 and the amount of any deposit made by July 1 of that year and direct the department of administration to pay to the baseball park facilities improvement segregated fund under s. 229.687 the amount of the reduction.

AB438,,55 (b) For the distribution in 2024 and subsequent years until 2050, if a 1st class city fails to make the full amount of a deposit required under s. 229.695 by July 1, the department of revenue shall reduce the 1st class city’s total of payments under this section for that year by the difference between the amount of the deposit required under s. 229.695 and the amount of any deposit made by July 1 of that year and direct the department of administration to pay to the baseball park facilities improvement segregated fund under s. 229.687 the amount of the reduction.

AB438,16 Section 16. 229.64 (1) of the statutes is renumbered 229.64 and amended to read:

AB438,,57 229.64 Legislative declaration. The legislature determines that the provision of assistance by state agencies to a district under this subchapter, and any appropriation or grant of funds to a district under this subchapter and the moral obligation pledge under s. 229.74 (7) serve a statewide public purpose by assisting the development, construction, improvement, repair, and maintenance of a professional baseball park facilities in the state for providing recreation, by encouraging economic development and tourism, by preserving business activities within the state, by generating additional tax revenues that would not exist without the baseball park facilities, by reducing unemployment, and by bringing needed capital into the state for the benefit and welfare of people throughout the state. The legislature determines that the taxes that may be imposed by a district under subch. V of ch. 77 are special taxes that are generated apart from any direct annual tax on taxable property.

AB438,17 Section 17. 229.64 (2) of the statutes is repealed.

AB438,18 Section 18. 229.65 (1) of the statutes is amended to read:

AB438,,60 229.65 (1) “Baseball park facilities” means property, tangible or intangible, owned in whole or in substantial part, operated or leased by a district that is principally for the support or performance of professional baseball operations including parking lots, garages, restaurants, parks, concession facilities, entertainment facilities and transportation facilities, and other functionally related or auxiliary facilities or structures.

AB438,19 Section 19. 229.65 (6m) of the statutes is created to read:

AB438,,62 229.65 (6m) “Professional baseball team” means a baseball team that is a member of a league of professional baseball teams that have home stadiums approved by the league in at least 10 states and a collective average attendance for all league members of at least 10,000 persons per game over the 5 years immediately preceding the effective date of this subsection .... [LRB inserts date].

AB438,20 Section 20. 229.65 (7) of the statutes is repealed.

AB438,21 Section 21. 229.66 (2) (a) of the statutes is amended to read:

AB438,,65 229.66 (2) (a) A number of persons equal to the number of counties within the jurisdiction of the district plus one, chairperson and three others, all of whom must be state residents, appointed by the governor. At least one of the persons appointed by the governor shall reside within each county that is within the jurisdiction of the district. A person appointed under this paragraph may take his or her seat immediately upon appointment and qualification, subject to confirmation or rejection by the senate.

AB438,22 Section 22. 229.66 (2) (b) of the statutes is repealed.

AB438,23 Section 23. 229.66 (2) (bm) of the statutes is created to read:

AB438,,68 229.66 (2) (bm) Two persons appointed by the majority leader of the senate, both of whom must be state residents.

AB438,24 Section 24. 229.66 (2) (c) of the statutes is repealed.

AB438,25 Section 25. 229.66 (2) (cm) of the statutes is created to read:

AB438,,71 229.66 (2) (cm) Two persons appointed by the speaker of the assembly, both of whom must be state residents.

AB438,26 Section 26. 229.66 (2) (g) of the statutes is repealed.

AB438,27 Section 27. 229.66 (2) (gm) of the statutes is created to read:

AB438,,74 229.66 (2) (gm) One person, who must be a state resident and who may not be an employee of the state or of a professional baseball team that leases baseball park facilities constructed under this subchapter as its home facilities, appointed by the governor from a list provided by the professional baseball team. A person appointed under this paragraph may take his or her seat immediately upon appointment and qualification, subject to confirmation or rejection by the senate. With respect to any of the following, a person appointed under this paragraph may not participate in any nonpublic meeting of the board or vote:

AB438,,75 1. Approving or amending the lease specified in s. 229.6802 (1).

AB438,,76 2. Approving or amending the nonrelocation agreement specified in s. 229.6802 (2).

AB438,,77 3. Approving or amending a lease or sublease other than specified under subd. 1. or 2. between the district and the professional baseball team.

AB438,,78 4. Obtaining or accepting a loan under s. 16.09 (5).

AB438,,79 5. Retaining a 3rd-party negotiator under s. 229.6802 (3).

AB438,,80 6. A dispute between the district and the professional baseball team.

AB438,28 Section 28. 229.66 (3) of the statutes is repealed and recreated to read:

AB438,,82 229.66 (3) (a) Upon appointment under sub. (2), the appointing authorities shall certify the appointees to the secretary of administration.

AB438,,83 (b) The terms of office of the district board members are as follows:

AB438,,84 1. For the chairperson and other persons appointed under sub. (2) (a), 4 years, except that the initial term of office for the initial chairperson appointee and one of the 3 other initial appointees, as designated by the governor, is 2 years.

AB438,,85 2. For the persons appointed under sub. (2) (bm) and (cm), 4 years, except that the initial term of office of one of the 2 initial appointees under each of those paragraphs is 2 years, as designated by the appointing authority.

AB438,,86 3. For the person appointed under sub. (2) (gm), 4 years.

AB438,,87 (c) Notwithstanding s. 17.07 (3), persons appointed under sub. (2) may be removed from the district board by the appointing authority at pleasure.