Tax 11.12 (4) (a) 7. c. is amended to delete feed carts and non-powered gravity flow feeders from the list of taxable items, as this position is incorrect, and to conform language to Clearinghouse standards.

Tax 11.12 (4) (b) 1. is amended to conform language to Clearinghouse standards.

Tax 11.12 (4) (b) 6. a. is amended to include feed carts and feeders as exempt containers for grain if used to hold hay, silage, or feed which contains grain, and to include plastic bags, plastic sleeves, and plastic sheeting as exempt containers for grain if used to contain hay or silage. This change is made to reflect the Department's position that, for purposes of the container exemption in s. 77.54 (3m), Stats., “grain” includes hay and silage.

SECTION 1. Tax 11.12 (1) is amended to read:

Tax 11.12 (1) STATUTES. Section 77.54 (3) and (3m), Stats., provides exemptions for certain sales to persons who are engaged in farming, agriculture, horticulture and or floriculture as a business enterprise.

SECTION 2. Tax 11.12 (2) (d), (e) and (f) are renumbered s. Tax 11.12 (2) (f), (d) and (e).

SECTION 3. Tax 11.12 (4) (a) (intro.), 5.b. and 7.c. and (b) 1. and 6.a. are amended to read:

Tax 11. 12 (4) (a) Section 77.54 (3) (a), Stats., exempts: “ The gross receipts from the sales of and the storage, use or other consumption of tractors and machines, including accessories, attachments and parts therefor, used exclusively and directly in the business of farming, including dairy farming, agriculture, horticulture, floriculture and custom farming services, but excluding automobiles, trucks, and other motor vehicles for highway use; excluding personal property that is attached to, fastened to, connected to or built into real property or that becomes an addition to, component of or capital improvement of real property and excluding tangible personal property used or consumed in the erection of buildings or in the alteration, repair or improvement of real property, regardless of any contribution that that personal property makes to the production process in that building or real property and regardless of the extent to which that personal property functions as a machine.” For purposes of this section:

  5. b. Certain machines in addition to those in subd. 4. qualify for the exemption if purchased by farmers directly from retailers without installation by the retailer, even though they are used to make realty improvements after being purchased by the farmer, the machine may be attached to, fastened to, connected to or built into real property or may become an addition to, component of or capital improvement of real property by a person other than the retailer. Machines included are automated livestock feeder bunks, but not ordinary building materials; automatic stock waterers powered by electricity or water pressure and built into a permanent plumbing system; automatic water softeners, such as for milk houses; barn fans and blowers and other ventilating units; unit heaters and other heating units; water heaters serving production areas; and water pumps serving production areas.

  7. c. Non-powered applicators for insecticides, cattle chutes, farrowing crates, feed carts, fire extinguishers, flood gates, non-powered gravity flow feeders, saddles and bridles, incinerators, lawn and garden tractors, portable calf stalls, rope and cable, scales, self-treating stations, or “oilers,” snowmobiles, and stationary salt and mineral feeders.

  (b) 1. `Seeds for planting.' “Seeds for planting” includes seeds for alfalfa, blue grass, canning peas, clover, field corn, field peas, rye grass, sweet corn, timothy and vegetable seeds vegetables; plant parts capable of propagation; and bulbs. “Seeds for planting” does not include sod.

  6. a. “Containers for fruits, vegetables, grain and animal wastes” includes any kind of personal property which is purchased exclusively for holding or storing fruit, vegetables, grains including hay and silage, or animal wastes. The phrase does not include includes feeders and feed carts designed if used to hold various green and dry feeds hay, silage or feed which contains grain and plastic bags, plastic sleeves and plastic sheeting used to contain hay or silage.

The proposed rule order does have a significant economic impact on a substantial number of small businesses. The provisions will require that sales or use tax be paid on certain supplies which are used in dairy farming outside the milk house.

The rule order updates the Wisconsin Administrative Code with respect to the sales and use tax treatment of certain purchases by farmers. The rule clarifies existing language regarding machines purchased with and without installation by retailers, amends the exemption of containers of grain to include hay and silage in the definition of “grain,” and makes changes in style and format to conform with Legislative Council Rules Clearinghouse standards.

These changes do not have a fiscal effect.

The hearing will be held as follows:

Parking for people with disabilities and an accessible entrance are available on the north and south sides of the Hill Farms State Transportation Building.

An interpreter for the hearing-impaired will be available on request for this hearing. Please make reservations for a hearing interpreter no later than 10 days prior to the hearing.

Statutory authority: s. 85.16

Statute interpreted: s. 86.303 (5) (f) (intro.) and (i) (intro.)

General Summary of Emergency Rule:

The General Transportation Aids (GTA) Program is a program provided to defray a portion of the costs incurred with constructing and maintaining roads under local jurisdiction. The GTA program is a reimbursement program based on each local government's spending patterns. GTA funds are distributed to all Wisconsin counties and municipalities in amounts determined using a formula which is based on local “eligible costs.” Generally, all road or street construction and maintenance expenditures within the right of way are considered eligible costs. A percentage of other expenditures are also considered eligible costs, including law enforcement, street lighting maintenance and construction, and storm sewer construction.

The share of cost rate is determined by the available funding and the six-year average costs reported by each county and municipality. Distribution of GTA payments to local governments are computed and paid on a calendar year basis. Quarterly payments are made on the first Monday of January, April, July and October. The Department obtains cost data from Financial Reports which all local units of government must file annually with the Department of Revenue. The reports are based upon calendar year expenditures and revenues and are submitted each spring and summer.

Late filing of Financial Report forms will result in a reduction of the local government's GTA. Failure to submit the Financial Report with the Department of Revenue by the deadline will result in a reduction in GTA payments the following year. The reduction will be equal to 1% for each day late, to a maximum of 10%, as provided in s. 86.303 (5) (f) and (i), Stats.

As provided in s. 86.303 (5) (f) (intro.) and (i) (intro.), Stats., the Department proposes this rule-making to administratively interpret the phrase “each day” to exclude Saturday, Sundays and legal holidays. The Department's long-standing and consistent interpretation of the phrases “within 30 days” and “each day” has been calendar days. The Department has concluded that it would be fairer and more reasonable to continue to interpret the phrase “within 30 days” as calendar days, but to exclude Saturdays, Sundays and legal holidays from the interpretation of the phrase “each day” for the purposes of the one percent reduction for each day that the report is late. The reason for this revised interpretation is that the 10% penalty cap can still be reached within 30 calendar days. Using this interpretation, timely reports and calculations will still be available for state and local budgeting and planning purposes.

Four local governments that filed late in 1996 will be affected for 1997 GTA payments. These four local governments will receive a total of $18,061.93 more based on less days of penalties. This does slightly affect the distribution of funds, but not the appropriation amounts.

This proposed rule will have no adverse impact on small businesses.

Copies of this emergency rule are available without cost upon request by writing to:

Alternate formats of the proposed rule will be provided to individuals at their request. Hearing-impaired individuals may contact the Department using TDD (608) 266-0396.

An interpreter for the hearing impaired will be available on request for this hearing. Please make reservations for a hearing interpreter at least 10 days prior to the hearing.

The public record on this proposed rule making will be held open until close of business May 7, 1997, to permit the submission of written comments from persons unable to attend the public hearing or who wish to supplement testimony offered at the hearing. Any such comments should be submitted to Susan Kavulich, Department of Transportation, Division of Motor Vehicles, Motor Carrier Services Section, 4802 Sheboygan Avenue, Room 151, P. O. Box 7981, Madison, WI 53707-7981.

Parking for persons with disabilities and an accessible entrance are available on the north and south sides of the Hill Farms State Transportation Building.

General Summary of Proposed Rule.

The International Fuel Tax Agreement (IFTA) is an agreement among states and Canadian provinces that simplifies the reporting and distribution of fuel use taxes paid by interstate motor carriers. Currently Wisconsin-based interstate trucking companies pay $3 annually for an IFTA license and $2 per vehicle annually for IFTA decals. Prior to January 1, 1997, Wisconsin received fuel tax license and decal fees from IFTA and non-IFTA motor carriers. As of January 1, 1997, there are no longer any non-IFTA motor carriers purchasing fuel tax licenses or decals. Therefore, revenue from fuel tax license and decal fees no longer covers the Department's costs to administer the fuel tax program. The Department proposes a rule change to increase the annual IFTA decal and license fees, and replacement license and decal fees in an equitable manner to support the administrative cost of the IFTA program. This proposal will amend ch. Trans 152 to increase the fees paid by Wisconsin-based interstate trucking companies for IFTA decals and licenses, and replacement decals and licenses.

Trans 152.05(2)(i) License fee of $3.00 $70.00.

(j) Decal fee of $2.00 $4.00.

(12) REPLACEMENT LICENSE OR DECAL. If a license or a fuel decal is lost prior to expiration, the department may issue a replacement license for $3.00 $10.00 or fuel decal for $2.00 $4.00.