• “amount the claimant paid in the taxable year,"

• “dairy farm modernization or expansion,"

• “milk production," and

• “used exclusively related to dairy animals."

Summary of, and comparison with, existing or proposed federal regulation: There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.

Comparison with rules in adjacent states: The department is not aware of a similar rule in an adjacent state.

Summary of factual data and analytical methodologies: 2003 Wisconsin Act 135 created the dairy investment credit, available to dairy producers who are modernizing or expanding their operations. Soon after its creation, questions began to arise concerning the credit and its qualifications. As a result of this, it was requested that the department publish guidelines for dairy producers and tax return preparers concerning the credit. The department determined that to effectively provide guidance on the credit, it would be necessary to clarify some of the terms used in the credit's statutory language. In consultation with legislative personnel, the department developed clarifying language and used it to create this proposed rule order.

Analysis and supporting documents used to determine effect on small business: The department has prepared a fiscal estimate regarding this proposed rule order. It was determined that there is not a significant fiscal effect on small business.

Anticipated costs incurred by private sector: This proposed rule order does not have a significant fiscal effect on the private sector.

Effect on small business: This proposed rule order does not have a significant fiscal effect on small business.

Agency contact person: Please contact Dale Kleven at (608) 266-8253 or dkleven@dor.state.wi.us, if you have any questions regarding this proposed rule order.

SECTION 1. Tax 2.99 is created to read:

Tax 2.99 Dairy investment credit. (1) PURPOSE. This section clarifies certain terms as they apply to the dairy investment credit under ss. 71.07 (3n), 71.28 (3n), and 71.47 (3n), Stats.

(2) DEFINITIONS. In this section and in ss. 71.07 (3n), 71.28 (3n), and 71.47 (3n), Stats.:

(a) “Amount the claimant paid in the taxable year" means the purchase price of facilities or equipment acquired and first placed in service in this state during taxable years that begin after December 31, 2003, and before January 1, 2010.

(b) “Dairy farm modernization or expansion" has the meaning as given in ss. 71.07 (3n), 71.28 (3n), and 71.47 (3n), Stats. "Dairy farm modernization or expansion" refers only to those facilities or equipment in this state used exclusively on the claimant's dairy farm related to the dairy animals located on the claimant's dairy farm. “Dairy farm modernization or expansion" does not include the purchase of:

1. Equipment used for raising crops for sale.

2. Vehicles licensed for highway use, snowmobiles, and all-terrain vehicles.

(c) “First placed in service" has the meaning as given under Treas. Reg. s. 1.167 (a)-11 (e) (1) (i) for purposes of computing depreciation.

Note: Treas. Reg. s. 1.167 (a)-11 (e) (1) (i) provides, in part, that property is first placed in service when first placed in a condition or state of readiness and availability for a specifically assigned function.

(d) “Milk production" means the activity of producing and handling milk on the claimant's dairy farm in this state for human consumption, but does not include activities such as transporting, pasteurizing, or homogenizing milk or making butter, cheese, ice cream or other dairy products.

(e) “Used exclusively related to dairy animals" means used in this state on the claimant's dairy farm to the exclusion of all other uses except for other uses not exceeding 5% of total use.

Note: Section Tax 2.99 interprets ss. 71.07 (3n), 71.28 (3n), and 71.47 (3n), Stats.

Note: Sections 71.07 (3n), 71.28 (3n), and 71.47 (3n), Stats., were created by 2003 Wis. Act 135, effective for taxable years that begin after December 31, 2003, and before January 1, 2010.

This proposed rule order does not have a significant economic impact on a substantial number of small businesses.

Notice is hereby given that, pursuant to s. 227.11 (2) (a), Stats., and interpreting s. 71.05 (6) (b) 34., Stats., the Department of Revenue will hold a public hearing at the time and place indicated below, to consider the creation of rules relating to the subtraction from income allowed for military pay received by members of a reserve component of the armed forces.

The hearing will be held at 1:00 P.M. on Tuesday, December 28, 2004, in the Events Room (1st floor) of the State Revenue Building, located at 2135 Rimrock Road, Madison, Wisconsin.

Handicap access is available at the hearing location.

Interested persons are invited to appear at the hearing and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the department at the hearing. Written comments may also be submitted to the contact person shown below no later than January 4, 2004, and will be given the same consideration as testimony presented at the hearing.

Dale Kleven

Department of Revenue

Mail Stop 6-40

2135 Rimrock Road

P.O. Box 8933

Madison, WI 53708-8933

Telephone (608) 266-8253

E-mail dkleven@dor.state.wi.us

Notice is hereby given that, pursuant to s. 227.11 (2) (a), Stats., and interpreting s. 71.05 (6) (b) 34., Stats., the Department of Revenue will hold a public hearing at the time and place indicated below, to consider the creation of rules relating to the subtraction from income allowed for military pay received by members of a reserve component of the armed forces.

Statute interpreted: s. 71.05 (6) (b) 34, Stats.

Statutory authority: s. 227.11 (2) (a), Stats.

Explanation of agency authority: Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by it, if the agency considers it necessary to effectuate the purpose of the statute.

Related statute or rule: s. 71.05 (6) (b) 34, Stats.

Plain language analysis: This proposed rule order clarifies that the subtraction from income for military pay received by members of a reserve component of the armed forces is not available to persons who are serving on active or full-time duty in the active guard reserve (AGR) program under 32 USC 502 (f).

Summary of, and comparison with, existing or proposed federal regulation: There is no existing or proposed federal regulation that is intended to address the activities to be regulated by the rule.

Comparison with rules in adjacent states: The department is not aware of a similar rule in an adjacent state.

Summary of factual data and analytical methodologies: 2003 Wisconsin Act 183 was enacted April 7, 2004. This Act created s. 71.05 (6) (b) 34, Stats., which provides for a subtraction from income for military pay received by members of a reserve component of the armed forces. The language of s. 71.05 (6) (b) 34 provides, in part, that the subtraction is available to a person who is “called…into special state service authorized by the federal department of defense under 32 USC 502 (f)…" Included under 32 USC 502 (f) are persons who are serving on active duty or full-time duty in the active guard reserve (AGR) program. Discussion between the departments of revenue and military affairs and legislative personnel revealed that it was not intended that these persons benefit from the subtraction provided for in s. 71.05 (6) (b) 34, Stats. In light of this, a rule is being promulgated to clarify the subtraction from income provided for in s. 71.05 (6) (b) 34, Stats.

SECTION 1. Tax 3.04 is created to read:

Tax 3.04 Subtraction for military pay received by members of a reserve component of the armed forces. (1) PURPOSE. This section limits the application of the phrase “called … into special state service authorized by the federal department of defense under 32 USC 502 (f), that is paid to the person for a period of time during which the person is on active duty" as used in s. 71.05 (6) (b) 34., Stats., as created by 2003 Wis. Act 183.

(2) LIMITATION ON SUBTRACTION. A person who is a member of a reserve component of the U.S. armed forces, who is serving on active duty or full-time duty in the active guard reserve program under 32 USC 502 (f), does not qualify for the subtraction.

Please contact Dale Kleven at (608) 266-8253 or dkleven@dor.state.wi.us, if you have any questions regarding this proposed rule order.

This proposed rule order does not have a significant economic impact on a substantial number of small businesses.

Analysis and supporting documents used to determine effect on small business: The department has prepared a fiscal estimate regarding this proposed rule order. It was determined that there is not a significant fiscal effect on small business.

Anticipated costs incurred by private sector: This proposed rule order does not have a significant fiscal effect on the private sector.

NOTICE IS HEREBY GIVEN that pursuant to the authority of ss. 85.16, 85.30 and 227.11, Stats., and according to the procedure set forth in s. 227.16 (2) (e), Stats., the Wisconsin Department of Transportation will adopt the following rule amending ch. Trans 129 without public hearing unless, within 30 days after publication of this notice [December 15, 2004], the Department of Transportation is petitioned for a public hearing by 25 natural persons who will be affected by the rule; a municipality which will be affected by the rule; or an association which is representative of a farm, labor, business or professional group which will be affected by the rule.

Statutory Authority: ss. 85.16, 85.30 and 227.11, Stats.

Statutes Interpreted: ss. 85.30, 343.06 (1) (c), 343.07 (4) (b) and 343.16 (1) (a), Stats.

Plain Language Analysis: Section Trans 129.09 (2) (a) requires that the Experienced Rider Course (ERC) shall consist of at least eight hours of instruction which includes both class discussion and range training. The new curriculum is five hours in length and uses discussion on the range rather than in a classroom setting. This allows the DOT Motorcycle Safety Program to implement the new Motorcycle Safety Foundation ERC curriculum and, by so doing, offer more courses with existing available funding. Any dollars saved from the shorter courses will be used to provide additional basic and experienced courses and reduce the student waiting lists at training sites.

Since curriculum change in time are more frequent lately, we are also removing the time restraints on the Basic Rider Course (BRC).

Summary of, and Preliminary Comparison with, Existing or Proposed Federal Regulation: There are no current or proposed federal regulations relating to the curriculum requirements except that the Department of Army at Fort Steward Georgia requires persons operating on base to attend and complete an approved Motor Cycle Defense Driving Course prior to operating a motorcycle or moped on base. 32 CFR 636.28(h).

Comparison with Rules in Adjacent States:

Michigan: R257.1706 states that there shall not be less than 7 clock hours of classroom instruction. R257.1707 states there shall not be less than 8 clock hours per student of range experience. This seems to relate to both basic and experienced courses as neither is specifically identified. They would also have too many hours required for the new ERC curriculum if implemented in Michigan.

Minnesota: MN rules set hours for the BRC and for a Skills Re-Test Course that we do. However, we don't have anything in rule for ERC times.

7411.0565 MOTORCYCLE LABORATORY SCHEDULE; HOURS; PROTECTIVE GEAR.

Subpart 1. Hours. A motorcycle endorsement program must provide a student who is less than 18 years old with at least ten hours of approved laboratory instruction.

Subp. 2. Hour limits. A program may offer a student no more than a total of eight hours of motorcycle instruction per day.

Illinois: Illinois' administrative rule is very outdated and is currently being updated. The current rule does state that “the curriculum for the Cycle Rider Safety Training Course for the novice rider shall be based upon the Motorcycle Safety Foundation's 20-hour Motorcycle Rider Course." There is no mention of the ERC at all.

Iowa: 761-635.2(5) states that scheduled time for instruction…shall not exceed 8 hours in any one calendar day. It does not discuss total course hours.

Summary of Factual Data and Analytical Methodologies Used and How the Related Findings Support the Regulatory Approach Chosen: The Highway Safety Performance Plan for 2004 - Motorcycle Safety finds that Wisconsin has a motorcycle crash problem. (See http://www.dot.wisconsin.gov/library/publications/topic/safety/hwysafetyplan-407mc.pdf.)

The National Agenda for Motorcycle Safety finds that rider education and training compromise the centerpiece of a comprehensive motorcycle safety program, p. 17. The State of Wisconsin Motorcycle Safety Program Assessment found that rider education is an essential component of a statewide motorcycle safety program, p. 24. The Wisconsin Department of Transportation 2004 Motorcycle Safety Action Plan found that there was a waiting list and overwhelming demand for motorcycle training programs, p. 10. One of the goals of the National Agenda for Motorcycle Safety Summit meeting was to provide various level of rider education that is accessible and affordable with assured quality through ongoing long-term program evaluation.

Effect on Small Business and, If Applicable, Any Analysis and Supporting Documentation Used to Determine Effect on Small Businesses: There will be no effect on small business. You may contact the Department's small business regulatory coordinator by phone at (608) 267-3703, or via e-mail at the following website:http://www.dot.wisconsin.gov/library/research/law/rulenotices.htm.

Fiscal Effect and Anticipated Costs Incurred by Private Sector: The Department estimates that there will be no fiscal impact on the liabilities or revenues of any county, city, village, town, school district, vocational, technical and adult education district, sewerage district, or federally-recognized tribes or bands. The Department estimates that there will be no fiscal impact on state or private sector revenues or liabilities.

Place Where Comments are to be Submitted and Deadline for Submission: Questions about this rule and any petition for public hearing may be addressed to Ron Thompson, Department of Transportation, Division of State Patrol/Transportation Safety, Room 951, P. O. Box 7936, Madison, WI 53707-7936. You may also contact Mr. Thompson by phone at (608) 266-7855.