Section 13.06. Direct payments.

 

(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) . 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:

(a) Counties.

1. Each county in which the metalliferous minerals are extracted shall receive a first dollar payment.

2. Each county in which the metalliferous minerals are extracted shall also receive 20% of the tax collected from persons in that county or $250,000, whichever is less.

(b) Cities, villages, and towns. Each city, village, and town in which metalliferous minerals are extracted, or which contain at least 15% of that ore body, shall receive a first dollar payment.

(c) Native American communities. Each Native American community located within one or more cities, villages, or towns which receive a first dollar payment shall also receive a first dollar payment.

(d) Exceptions.

1. Where the tax collected is in respect to a mine located in more than one county each county's first dollar payment shall be equal to the ratio of the amount of crude ore extracted from the mine in that county to the total amount of crude ore extracted from the mines that year multiplied by the amount of the payment under par. (a) 1.

3. The dollar amounts in this subsection shall be indexed beginning in calendar year 1983 and corresponding fiscal years. The revised amounts shall be rounded to the nearest whole number divisible by 100. First dollar payments shall not be reduced below $100,000. When the $250,000 figure under par. (a) 2. is indexed, the amount shall not be reduced below $250,000.

(2)   Construction period payments.

(a) Each county, city, village, town, and Native American community that contains at least 15% of the minable ore body at a mining site for which a mining permit has been granted under s. 293.37 , Stats., and for which a construction fee has been paid, shall receive a one-time payment of $100,000.

(b) The board shall certify to the department of administration the specific construction period payments to be made under s. 70.395 (2) (d) 5. , Stats.

(c) The funds paid under this subsection shall be used for mining related purposes, as defined in s. Tax 13.08 (3) .

(d) The payment under this subsection shall be made within 30 days after construction at the mining site begins.

(3)   Notice of intent distributions.

(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:

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.

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) .

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.

(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.

(4)   Project reserve fund. The board shall establish and maintain a project reserve fund within the impact fund in relation to each mine which first begins operation after November 27, 1981. Each project reserve fund shall consist of 10% of the net proceeds tax paid by each mine plus all accrued interest on that amount. For municipalities that contain a mining site and for which a project reserve fund has been established, the board shall withdraw monies from that specific fund to be used for the following purposes:

(a) To ensure an annual payment to each city, village, and town in an amount equal to the average first dollar payment to that municipality for the 3 previous years.

(b) To reimburse municipalities for costs associated with the cessation of mining operations.

(c) To indemnify municipalities for reclamation expenses not covered under s. 293.83 (2) , Stats.

(5)   Payment priorities. If the appropriations under s. 20.566 (7) (e) and (v) , Stats., in any one year are not sufficient to pay the full amount under subs. (1) through (4) , full payments shall be made in the order listed in this subsection. If funds are not sufficient to pay the full amounts payable at a particular priority level, payments shall be prorated among the entities entitled to payments at that level. Payments shall be made in the following order pursuant to s. 70.395 (2) (e) , Stats.:

(a) Construction period payments to counties, cities, villages, towns, and Native American communities which contain a mining site and for which a mining company has paid a construction fee for that site.

(b) First dollar payments for counties, cities, villages, towns, and Native American communities.

(c) Payments to counties for an amount equal to 20% of the tax collected or $250,000, whichever is less.

(d) Payments to the project reserve fund.

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 .