Chapter Tax 13

INVESTMENT AND LOCAL IMPACT FUND

Tax 13.01   Purpose.

Tax 13.02   Scope.

Tax 13.03   Definitions.

Tax 13.05   Transfer of taxes, funds, and fees.

Tax 13.06   Direct payments.

Tax 13.07   Discretionary payments.

Tax 13.08   Expenditures.

Tax 13.09   Audits.

Tax 13.10   Fiscal guidelines.

Tax 13.11   Accounting procedures.

Tax 13.12   Recoupment and withholding of payments.

Ch. Tax 13 Note Note: Chapter Tax 13 as it existed on November 30, 1982, was repealed and a new chapter Tax 13 was created effective December 1, 1982.

Tax 13.01 Tax 13.01 Purpose. The purpose of this chapter is to establish standards and procedures for the issuance of funds generated by a net proceeds occupation tax to municipalities for costs associated with social, educational, environmental, and economic impacts of metalliferous mineral mining incurred prior to, during, and after extraction of metalliferous minerals.

Tax 13.01 History History: Cr. Register, November, 1982, No. 323, eff. 12-1-82.

Tax 13.02 Tax 13.02 Scope. Pursuant to s. 70.395 (2) (c), Stats., the provisions of this chapter shall govern the distribution and use of net proceeds occupation tax monies.

Tax 13.02 History History: Cr. Register, November, 1982, No. 323, eff. 12-1-82.

Tax 13.03 Tax 13.03 Definitions.

Tax 13.03(1) (1) “Board” means investment and local impact fund board.

Tax 13.03(2) (2) “Certify” or “certification” means filing with the department of administration a written confirmation of specific transfers, payments, or investments to be made by the department of administration.

Tax 13.03(3) (3) “Construction” means the activities described in the approved mining plan which can only occur at the mining site with the issuance of a mining permit and written authorization to commence mining under ss. 293.37, 293.49, and 293.51, Stats.

Tax 13.03(4) (4) “Construction period payment” means an amount equal to $100,000 for each county, city, village, town, and Native American community containing at least 15% of a minable ore body eligible to receive a payment under s. 70.395 (2) (d) 5., Stats., during the construction period.

Tax 13.03(4m) (4m) “Eligible recipient” means a county, city, village, town, tribal government, or local impact committee authorized under s. 293.43 (3), Stats., actively involved or eligible to be involved in the good faith negotiation of a local agreement under s. 293.43, Stats., with the person filing the notice of intent under s. 293.31 (1), Stats.

Tax 13.03(5) (5) “First dollar payment” means an amount equal to $100,000 for each county, city, village, town, or Native American community eligible to receive a payment under s. 70.395 (2) (d) 1., 2. or 2m., Stats. If the tax collected under ss. 70.38 to 70.39, Stats., in any year is less than the first dollar payment as defined in this subsection, the first dollar payment for that year means the total amount of taxes collected under ss. 70.38 to 70.39, Stats.

Tax 13.03(6) (6) “Impact fund” means investment and local impact fund.

Tax 13.03(8) (8) “Mine” means an excavation in or at the earth’s surface made to extract metalliferous minerals for which a permit has been issued under s. 293.49, Stats.

Tax 13.03(9) (9) “Mining” has the meaning under s. 70.375 (1) (b), Stats.

Tax 13.03(10) (10) “Mining permit application” means the mining permit application form filed with the department of natural resources pursuant to s. NR 132.06, Wis. Adm. Code.

Tax 13.03 Note Note: The mine permit application is Form 2700-4, Rev. 4-82.

Tax 13.03(10m) (10m) “Mining related purposes” has the meaning designated in s. 70.375 (1) (bm), Stats.

Tax 13.03(11) (11) “Mining site” means the location:

Tax 13.03(11)(a) (a) Of a metalliferous ore deposit for which a mining permit application has been filed pursuant to s. 293.37, Stats.

Tax 13.03(11)(b) (b) Designated by s. 70.375 (1) (av), Stats., limited to the proposed location of the defined areas, structures, and equipment as shown in a mining plan:

Tax 13.03(11)(b)1. 1. Filed as part of a mining permit application under s. 293.37, Stats., or

Tax 13.03(11)(b)2. 2. Filed with the board as part of the written notice by a person intending to begin construction under s. Tax 13.05.

Tax 13.03(12) (12) “Municipality” means any county, city, village, town, or school district. Pursuant to s. 20.002 (13), Stats., this definition also includes any federally recognized tribal governing body.

Tax 13.03(13) (13) “Native American community” means a federally recognized tribal governing body.

Tax 13.03(14g) (14g) “Notice of intent distribution” means an amount equal to $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.

Tax 13.03(14r) (14r) “Notice of intent payment” means an amount equal to $225,000 maximum to be paid in 3 increments of $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.

Tax 13.03(16) (16) “Person” means a sole proprietorship, partnership, association, or corporation and includes a lessee engaged in mining metalliferous minerals.

Tax 13.03(18) (18) “Project reserve fund” means an amount equal to 10% of the net proceeds tax paid by each mine plus all accrued interest.

Tax 13.03(19) (19) “Tax” means the net proceeds occupation tax imposed on persons engaged in mining metalliferous minerals in this state.

Tax 13.03 History History: Cr. Register, November, 1982, No. 323, eff. 12-1-82; emerg. cr. (10m), eff. 1-1-86. am. (4), cr. (10m), r. and recr. (11), Register, September, 1986, No. 369, eff. 10-1-86; emerg. cr. (20) and (21), eff. 12-14-92; emerg. cr. (4m), (14g) and (14r), eff. 5-17-93; am. (3), (10), (11) (a) and (b) 1., r. and recr. (4), cr. (4m), (14g) and (14r), r. (15) and (17), Register, August, 1993, No. 452, eff. 9-1-93; corrections in (3), (4m), (5), (8), (11) (a) and (b) 1. made under s. 13.93 (2m) (b) 7., Stats., Register September 2006 No. 609; CR 16-076: r. (7), am. (9), r. (14), am. (14g), (14r) Register January 2018 No. 745, eff. 2-1-18.

Tax 13.05 Tax 13.05 Transfer of taxes, funds, and fees.

Tax 13.05(3) (3) Construction fee.

Tax 13.05(3)(a) (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. 70.395 (2) (d), Stats. This fee shall be used exclusively by the board to make construction period payments.

Tax 13.05(3)(b) (b) Any person intending to begin construction shall notify the board by registered mail 90 days prior to the time construction begins. This written notice of intent shall include:

Tax 13.05(3)(b)1. 1. The name and address of the person intending to begin construction.

Tax 13.05(3)(b)2. 2. A mining plan showing the location of the mining site.

Tax 13.05(3)(b)3. 3. The names of all municipalities containing at least 15% of the minable ore body.

Tax 13.05(3)(c) (c) Within 45 days after the receipt of the written notice of intent to begin construction, the board shall notify the department of revenue and give written public notice listing the counties, cities, villages, towns, and Native American communities to receive construction period payments.

Tax 13.05(3)(d) (d) In determining the construction fee, construction is considered to begin in all cities, villages, and towns that are part of the mining site when it begins in any part of the mining site.

Tax 13.05(3)(e) (e) Within 7 days after the beginning of construction, a person shall pay the construction fee to the department of revenue for deposit in the impact fund.

Tax 13.05(4) (4) Notice of intent payment.

Tax 13.05(4)(a) (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. 70.395 (2) (dc), Stats.

Tax 13.05(4)(b) (b) Information provided to the board. Any person filing a notice of intent to collect data with the department of natural resources shall within 7 days after that filing submit to the board the following:

Tax 13.05(4)(b)1. 1. A copy of the notice of intent to collect data.

Tax 13.05(4)(b)2. 2. A map showing the location of the ore body and proposed mining site.

Tax 13.05(4)(b)3. 3. A list of counties, cities, villages, towns, Native American communities, and local impact committees that may be eligible to be actively involved in the negotiation of a local agreement with that person, pursuant to s. 293.43, Stats. Those listed may be eligible to receive a notice of intent distribution.

Tax 13.05(4)(c) (c) Information provided to eligible recipients. Within 7 days after the receipt of the notice of intent payment, the board shall give written notice to the counties, cities, villages, towns, Native American communities, and local impact committees that may be eligible to receive notice of intent distributions and shall distribute guidelines for uses of the distributions to each.

Tax 13.05(4)(d) (d) Refunds of undistributed monies. Six months after the date of the signing of the local agreement under s. 293.43, Stats., the board shall refund to the person making the notice of intent payment any money paid under this subsection but undistributed by the board to eligible recipients.

Tax 13.05 History History: Cr. Register, November, 1982, No. 323, eff. 12-1-82; am. (3) (a), (b) and (c), Register, September, 1986, No. 369, eff. 10-1-86; emerg. cr. (4), eff. 12-14-92; emerg. cr. (4), eff. 5-17-93; r. (1) (a), (2) and (3) (e), renum. (3) (intro.) to (d) to be (3) (a) to (e) and am. (3) (a) and (d), cr. (3) (b) 3. and (4), Register, August, 1993, No. 452, eff. 9-1-93; corrections in (4) (a), (b) 3., and (d) made under s. 13.93 (2m) (b) 7., Stats., Register September 2006 No. 609; CR 16-076: r. (1), am. (3) (a), renum. (4) (a) (intro.) to (4) (a) and am., r. (4) (a) 1. to 3. Register January 2018 No. 745, eff. 2-1-18.

Tax 13.06 Tax 13.06 Direct payments.

Tax 13.06(1) (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. 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.

Tax 13.06(3) (3) Notice of intent distributions.

Tax 13.06(3)(a) (a) Procedure. Eligible recipients may receive a notice of intent distribution from the board for reasonable local agreement negotiation-related expenses according to the following procedure:

Tax 13.06(3)(a)1. 1. An eligible recipient shall notify the board and the person making payment under s. Tax 13.05 (4) in writing that it is intending to begin negotiations or is preparing to negotiate a local agreement.

Tax 13.06(3)(a)2. 2. On an as-needed basis, an eligible recipient shall provide documentation to the board of the costs that have been incurred or expenses to be incurred. To document the expenses, the eligible recipient shall submit a copy of each bill received, contracts negotiated, or proposals and budgets for future expenses to the board and to the person making payment under s. Tax 13.05 (4).

Tax 13.06(3)(a)3. 3. The board shall make payment from monies received under s. Tax 13.05 (4) to the eligible notice of intent distribution recipient within 3 weeks for the amount of the reasonable expenditures that have occurred or to be incurred.

Tax 13.06(3)(b) (b) Prior costs. Unless agreed to in writing between an eligible recipient and the person making payment under s. Tax 13.05 (4), the person shall be liable for costs relating to the negotiation of a local agreement incurred prior to the making of the deposit under s. 70.395 (2) (dc), Stats., and for costs incurred prior to the written notice given by the eligible recipient under par. (a) 1. if such notice and deposit are made or required to be made.

Tax 13.06 History History: Cr. Register, November, 1982, No. 323, eff. 12-1-82; emerg. cr. (2) (c), eff. 1-1-86; r. and rec. (2) (intro.), (a) and (b), am. (5) (a), Register, September, 1986, No. 369, eff. 10-1-86; emerg. r. and recr. (3), eff. 12-14-92; emerg. r. and recr. (3), eff. 5-17-93; am. (1) (intro.), r. (1) (d) 2. and (5) (e), r. and recr. (2) and (3), Register, August, 1993, No. 452, eff. 9-1-93; corrections in (2) (a), (3) (b) and (4) (c) made under s. 13.93 (2m) (b) 7., Stats., Register September 2006 No. 609; CR 16-076: renum. (1) (intro.) to (1) and am., r. (1) (a) to (d), (2), (4), (5) Register Jnuary 2018 No. 745, eff. 2-1-18.

Tax 13.07 Tax 13.07 Discretionary payments. In accordance with s. 70.395 (2) (f), (fm), and (g), Stats., any municipality may apply to the board for a discretionary payment from the impact fund.

Tax 13.07(2) (2) Discretionary payment program. The annual discretionary payment program includes the following procedures:

Tax 13.07(2)(a) (a) Application process. The application process shall include the following steps:

Tax 13.07(2)(a)1. 1. Before June 1, the board may adopt an overall funding ceiling for the discretionary payment program outlined in this subsection. The level of the ceiling shall be based on the financial status of the impact fund, the board’s expectation of what municipalities will need from the impact fund in the next year, and a review of the status of mineral development projects in the state. The overall funding ceiling shall be viewed throughout the application review process as a fiscal control upon the board. The board may modify the ceiling, as it deems necessary, once it has fully determined the merits of each application.

Tax 13.07(2)(a)2. 2. Before June 1, the board shall give written public notice announcing its intent to distribute discretionary grants and the total funds available for distribution. The board shall give written notice of the grant program and grant guidelines to local governments reasonably expected to be affected by metallic mineral development.

Tax 13.07(2)(a)3. 3. All discretionary grant applications submitted to the board shall be postmarked on or before July 31 in order to receive funding consideration.

Tax 13.07(2)(a)4. 4. Each application shall include a supporting resolution from the appropriate local governing body or bodies. The supporting resolutions submitted to the board shall be postmarked on or before August 31.

Tax 13.07(2)(a)4.a. a. Each local or joint impact committee application shall be accompanied by a supporting resolution from the committee.

Tax 13.07(2)(a)4.b. b. Each joint impact committee application shall be accompanied by a supporting resolution from each local committee within the area served by the joint committee and from each municipality which appoints the joint committee.

Tax 13.07(2)(a)4.c. c. Each local impact committee application shall be accompanied by a supporting resolution from its appointing authority.

Tax 13.07(2)(a)5. 5. A municipality may submit more than one application. Two or more municipalities may submit a joint application.

Tax 13.07(2)(a)6. 6. The board may provide partial funding to a municipality for a mining-related project. The board may also require municipalities to provide matching funds toward project costs as a condition for receiving a discretionary grant.

Tax 13.07(2)(b) (b) Application contents. An application may take one of 2 forms:

Tax 13.07(2)(b)1. 1. ‘Project proposal.’ Municipalities seeking funds for a particular public service or facility, including the design, construction, or maintenance of a public facility, the hiring of consultants to provide specific legal, planning, local development, or technical assistance shall develop a project proposal for consideration by the board. The appropriate form shall be furnished by the board upon request. Information on the following shall be provided for a project proposal:

Tax 13.07(2)(b)1.a. a. A detailed description of the project and its component parts.

Tax 13.07(2)(b)1.b. b. The facts which verify the mining impact the proposal will address.

Tax 13.07(2)(b)1.c. c. A detailed budget for the proposal including the local funding contribution the municipality plans to make or any outside funding that would be used for the project.