The board shall, by rule, establish procedures to recoup payments made, and to withhold payments to be made, under pars. . (d), (f), (fm) and (g), sub (3) and ss. 293.65 (5) and 295.61 (9) for noncompliance with this section or rules adopted under this section. Tax 13.12 implements the board's policies regarding recoupment and withholding of payments clearly authorized by s. 70.395 (2) (hr), Stats. The board may require financial audits of all recipients of payments made under pars. (d) to (g). The board shall require that all funds received under pars. (d) to (g) be placed in a segregated account.
Section 70.395 (2) (i) authorizes the board to promulgate Tax 13.09 relating to audits of fund recipients. Related statute or rule: The net proceeds occupation tax on mining of metallic minerals is created by s. 70.375. There are no other applicable rules. Plain language analysis: The proposed rule makes the following changes:
• Repeals s. Tax 13.05 (1) to repeal rule language that is repetitive of 70.395(1e) and eliminate references to the Badger Fund which was repealed in 1997. • Repeals s. Tax 13.13 to eliminate rule language that lacks statutory authority to the extent that it may be more restrictive than s. 70.395 (3), Stats. Summary of, and comparison with, existing or proposed federal regulation: The investment and local impact board is not regulated by federal statutes or regulations.
Comparison with rules in adjacent states: The department has not found a similar rule in an adjacent state.
Summary of factual data and analytical methodologies: The proposed rule will repeal unnecessary and confusing provisions and amend complex procedures related to the investment and local impact board's distribution of funds to local communities affected by metalliferous mining in this state. The provisions are repetitive of statutes, which were amended in 2013 Act 1. Tax 13 no longer accurately reflects the statute, and it is unnecessarily complex. The objective of the proposed rule is to clarify the procedures used by the board, reduce confusion and remove inaccuracies by repealing language that is found in the statute, and return the rule's contents to the subjects over which the board and the department of revenue were granted rule-making authority. Analysis and supporting documents used to determine effect on small business: This rule order makes changes to reflect current law and current department policy. It makes no policy or other changes having an effect on small business.
Anticipated costs incurred by private sector: This rule order does not have a fiscal effect on the private sector.
Effect on small business: This rule order does not affect small business.
Agency contact person: Please contact Jen Chadwick at (608) 266-8253 or jennifer.chadwick@wisconsin.gov, if you have any questions regarding this rule order. Place where comments are to be submitted and deadline for submission: Comments may be submitted to the contact person shown below no later than December 22, 2016. Information as to the place, date, and time of the public hearing will be published in the Wisconsin Administrative Register.
Jen Chadwick
Department of Revenue
Mail Stop 6-40
2135 Rimrock Road
P.O. Box 8933
Madison, WI 53708-8933
SECTION 1. Tax 13.03 (7) is repealed.
SECTION 2. Tax 13.03 (9) is amended to read:
Tax 13.03 (9) "Mining" or "mined" has the meaning under s. 70.375 (1) (b), Stats. SECTION 3. Tax 13.03 (14) is repealed.
SECTION 4. Tax 13.03 (14g) is amended to read:
Tax 13.03 (14g) "Notice of intent distribution" means an amount equal to $150,000 $225,000 maximum disbursed by the board to eligible municipalities, Native American communities, and local impact committees, on an as-needed basis pursuant to s. 70.395 (2) (fm), Stats. SECTION 5. Tax 13.03 (14r) is amended to read:
Tax 13.03 (14r) "Notice of intent payment" means an amount equal to $150,000 $225,000 maximum to be paid in 3 increments of $50,000 $75,000 each until a refund is made or negotiations for a local agreement lapse, deposited into the impact fund pursuant to s. 70.395 (2) (dc), Stats. SECTION 6. Tax 13.05 (1) is repealed.
SECTION 7. Tax 13.05 (3) (a) is amended to read:
Tax 13.05 (3) (a) A person who engages in construction shall pay a construction fee to the department of revenue equal to an amount sufficient to make all the construction period payments that year under s. Tax 13.06 (2) 70.395 (2) (d), Stats. This fee shall be used exclusively by the board to make construction period payments. SECTION 8. Tax 13.05 (4) (a) (intro.) is renumbered 13.05 (4) (a) and amended to read:
Tax 13.05 (4) (a) Procedure. Each person filing a notice of intent to collect data with the department of natural resources under s. 293.31 (1), Stats., shall make a notice of intent payment to the department of revenue for deposit in the impact fund, equal to an amount sufficient to make all of the notice of intent distributions under s. Tax 13.06 (3) up to a maximum amount of $150,000. This payment shall be used by the board exclusively to make notice of intent distributions until a refund is made or negotiations for a local agreement lapse. The notice of intent payment shall be made in increments of $50,000 each until a refund is made or negotiations for a local agreement lapse 70.395 (2) (dc), Stats. SECTION 9. Tax 13.05 (4) (a) 1., 2., and 3. are repealed.
SECTION 10. Tax 13.06 (1) (intro.) is renumbered 13.06 (1) and amended to read:
Tax 13.06 (1) First dollar payments. Certain counties, cities, villages, towns, and Native American communities shall receive a first dollar payment under s. 70.395 (2) (d), Stats. Only county expenditures of first dollar payments are restricted under s. Tax 13.08 (7) 70.396, Stats. Cities, villages, towns, and Native American communities are not restricted to mining-related expenditures of first dollar payments. Each December, the board shall certify to the department of administration the specific payments to be made on the first Monday in January of the next year, as follows:. SECTION 11. Tax 13.06 (1) (a) 1. and 2., (b), (c), (d) 1. and 3. are repealed.
SECTION 12. Tax 13.06 (2), (4), and (5) are repealed.
SECTION 13. Tax 13.07 (intro.) is amended to read:
