PROPOSED
ORDER OF THE DEPARTMENT OF REVENUE
REPEALING
;
CONSOLIDATING, RENUMBERING, AND AMENDING
; AND AMENDING
RULES
The Wisconsin Department of Revenue
(DOR)
proposes
an order to:
repeal
Tax 12.50 (3) (a) and (a) (Note) and subch.
I
and subch.
II (title) of ch. Tax 20
;
consolidate, renumber, and amend
Tax 12.50 (3) (intro.) and (b);
and
amend
Tax 12.50 (title), (1), and (2) and ch.
Tax 20
(title);
relating to
property
tax administration
.
The scope
statement for this rule, SS
116
-13
, was approved by th
e Governor on
August 21
, 2013
, published in
Regi
ster No.
693
on
September 30
, 2013
, and approved by the Se
cretary of Revenue on
October
15
, 2013
.
Analysis by
DOR
Statute
s
interpreted:
s
ec
.
70.
111
(18
),
Stats.
Explanation of agency authority:
sec
.
227.11 (2) (a),
Wis.
Stats.:
Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute . . .
Sec. 73.03 (1), Wis. Stats.
:
[It shall be the duty of the department of revenue, and it shall have power and authority:] To have and exercise general supervision over the administration of the assessment and tax laws of the state, over assessors, boards of review, supervisors of equalization, and assessors of incomes, and over the county boards in the performance of their duties in making the taxation district assessment,
to the end that all assessments of property be made relatively just and equal at full value and that all assessments of income may be legally and accurately made in substantial compliance with law.
Sec. 73.03 (66), Wis. Stats.
:
[It shall be the duty of the department of revenue, and it shall have power and authority:] To promulgate rules to ensure that the payments under s.
79.10 (4)
made from the appropriation account under s.
20.835 (3) (qb)
are used exclusively for school levy tax credits granted to state residents.
2013 Wisconsin Act 20
repealed s
ec
. 73.03 (66),
Wis.
Stats. Therefore,
DOR
no longer has the statutory authority for ss. Tax 20.01 to 20.03.
Related statute or rule:
There are no other applicable statutes or rules.
Plain language analysis:
The proposed rule will amend s.
Tax 12.50
to reflect changes made to s
ec
. 70.111 (18),
Wis.
Stats., by
2013 Wisconsin Act 20
and
repeal ss. Tax 20.01 to 20.03 because
2013 Wisconsin Act 20
repealed
DOR's
rule-making authority under s
ec
. 73.03 (66),
Wis.
Stats.
Summary of, and comparison with, existing or pr
oposed federal regulation:
Sec
.
70.111 (18),
Wis.
Stats., as amended by
2013 Wisconsin Act 20
, relies on the federal definition of biomass found in section
45K
(c) (3) of the Internal Revenue Code, which reads:
The term "biomass" means any organic material other than—
(A) oil and natural gas (or any product thereof), and
(B) coal (including lignite) or any product thereof.
26 USC § 45K provides a federal income tax credit for producing fuel from a nonconventional source, including gas produced from biomass. Additionally, H.R. 860, Biogas Investment Tax Credit Act of 2013, was introduced by U.S. Rep. Kind this year. This bill would include biogas property for an energy credit towards federal taxes for any taxable year equal to ten percent of the amount of investment in each energy property placed in service during such taxable year.
Biogas and synthetic gas digesters are also regulated by federal air, solid waste, and water regulations, but these federal regulations have little impact on
DOR's
application of state tax laws.
There are no federal regulations addressing the school levy tax credit or the activities for which the credit is available.
Comparison with rules in adjacent states:
DOR
is not aware of a similar rule in an adjacent state.
Summary of factual data and analytical methodologies:
Changes
to Tax 12.50 will reflect the legislature's policy decision to include biogas and synthetic gas energy systems under the renewable energy system property tax exemption.
The alternative is to leave the rule out of sync with the statute.
2013 Wisconsin Act 20
repealed the appropriation found in s
ec
. 20.835 (3) (qb)
, Wis. Stats.,
and the associated rule-making authority in s
ec
. 73.03 (66),
Wis.
Stats. The legislature has clearly identified a policy that the department should no longer appropriate lottery funds to the school levy tax credit. Repealing the rule associated with this legislative change is the only alternative, particularly in light of the legislature's repeal of the department's rule-making authority in s
ec
. 73.03 (66),
Wis.
Stats.
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 a
n
effect on small business.
Anticipated c
osts incurred by private sector:
DOR does not anticipate any costs will be incurred by the private sector.
Effect on small business:
DOR does not anticipate any effect on small business.
Agency contact person:
Scott Shields
at (608) 266-82
2
3 or
scott
.
shields
@wi
sconsin
.
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 the date on which the public hearing on this proposed rule order is conducted. Information as to the place, date, and time of the public hearing will be published in the Wisconsin Administrative Register.
Scott Shields
Department of Revenue
Mail Stop 6-97
2135 Rimrock Road
P.O. Box 8971
Madison, WI 53708-89
71
SECTION 1.
Tax 12.50 (title
)
, (1
)
, and (2
)
are
amended
to read
:
Tax 12.50 (title)
Exempt
biogas, synthetic gas,
solar
,
and wind energy systems.
(1)
Applicability.
The general property tax exemption applies whether the
biogas, synthetic gas,
solar
,
and wind energy systems are deemed personal property or are so affixed to the realty as to be classified as real estate.
(2)
Claims for exemption, procedure.
Upon certification by the department of commerce the
The
owner of
the
a
biogas, synthetic gas,
solar
,
and
or
wind energy system shall submit a claim for exemption on forms prescribed by the department of revenue to the assessor for the taxation district in which the system is located.
SECTION 2.
Tax 12.50 (3) (intro.) and (b) are consolidated, renumbered Tax 12.50 (3)
and amended
to read:
Tax 12.50 (3)
When valid.
An exemption shall become effective when
both of the following conditions are met: (b) The
the
claim for exemption
shall be
is
submitted to the assessor no later than the March 1 immediately following the assessment date for which the exemption is claimed.
SECTION 3.
Tax 12.50 (3) (a) and (a) (Note) are repealed.
SECTION 4.
Chapter
Tax 20
(
title
)
is amended to read:
Chapter
Tax 20
(title
)
PROPERTY TAX CREDITS
LOTTERY AND GAMING CREDIT
SECTION 5.
Subchapter I and subch. II (title) of ch. Tax 20 are repealed.
SECTION 6.
Tax 20.04 and 20.04 (Note) are amended to read:
Tax 20.04
Purpose
. The purpose of this
subchapter
chapter
is to provide definitions related to the lottery and gaming
credit and establish procedures to assist in the management of the lottery and gaming credit program at the state, county, town, village, and city level.
(Note) Department of Revenue forms mentioned through this
subchapter
chapter
are located on the department's web site at
www.revenue.wi.gov
.
SECTION 7.
Tax 20.
05 (intro.) is amended to read:
Tax 20.05 (intro.) Definitions. In this
subchapter
chapter
:
SECTION
8
.
Effective date
. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s
ec
. 227.22 (2) (intro.),
Wis.
Stats.
