2001 - 2002 LEGISLATURE
April 25, 2001 - Introduced by Senators Panzer, Farrow, Darling, Rosenzweig,
Huelsman, Welch, A. Lasee, Roessler
and S. Fitzgerald, cosponsored by
Representative Stone. Referred to Joint survey committee on Tax
Exemptions.
SB158,1,6 1An Act to repeal 20.395 (2) (dq); to amend 20.395 (4) (aq), 20.395 (9) (rd), 20.395
2(9) (td), 76.02 (1) and 78.55 (1); and to create 20.395 (2) (dc), 20.395 (2) (dr),
320.395 (2) (dt), 25.40 (1) (cd), 70.11 (41) and 77.65 of the statutes; relating to:
4a property tax exemption for an air carrier that operates from a hub facility,
5creating an airport financing committee, granting rule-making authority, and
6making appropriations.
Analysis by the Legislative Reference Bureau
This bill creates a property tax exemption for a hub facility operated by an air
carrier. The bill defines "hub facility" as: a facility at an airport from which an air
carrier company operated at least 45 common carrier departing flights each weekday
in the prior year and from which it transported passengers to at least 15 nonstop
destinations; or an airport or any combination of airports in this state from which an
air carrier company cumulatively operated at least 20 common carrier departing
flights each weekday in the prior year, if the air carrier company's headquarters are
in this state. The bill defines "air carrier" as any person engaged in the business of
transportation in aircraft of persons or property for hire on regularly scheduled
flights.
Under current law, revenues derived from aeronautics activities in this state,
including moneys received from taxes on air carrier companies, from aircraft
registration fees, and from general aviation fuel taxes, are deposited in the

segregated transportation fund. Aeronautics activities are funded from a sum
certain appropriation in the segregated transportation fund.
Beginning on July 1, 2003, this bill directs all revenues derived from
aeronautics activities that are currently deposited in the transportation fund to a
new appropriation. Aeronautics activities are funded from these receipts, instead of
from a sum certain appropriation. However, if the amounts received for aeronautics
activities under the new appropriation are less than $11,800,000, the aeronautics
activities may be funded with equal amounts from the general fund and the
transportation fund not exceeding $650,000 from each fund.
Finally, the bill creates an airport financing committee consisting of members
appointed by the governor. The bill requires the committee to review and evaluate
this state's airport system needs and the current system of funding those needs and
to recommend changes, if any, to better meet those needs. The bill requires the
committee to submit a report not later than December 31, 2001, to the legislature and
to the governor containing the committee's evaluation, findings, and
recommendations. The committee's recommendations, if any, should, if enacted,
generate revenue in amounts equal to or greater than the sum of moneys
appropriated for aeronautical activities in fiscal year 2001.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB158, s. 1 1Section 1. 20.395 (2) (dc) of the statutes is created to read:
SB158,3,52 20.395 (2) (dc) Aeronautical activities matching supplement, state funds. From
3the general fund, a sum sufficient in each fiscal year equal to one-half of the
4difference between $11,800,000 and the amounts received under par. (dr) during the
5preceding fiscal year, or equal to $650,000, whichever is less, for the purposes of the
6state's share of airport projects under ss. 114.34 and 114.35; for developing air
7marking and other air navigational facilities; for administration of the powers and
8duties of the secretary of transportation under s. 114.31; for costs associated with
9aeronautical activities under s. 114.31, except for the program under s. 114.31 (3) (b);
10and for the administration of other aeronautical activities, except aircraft

1registration under s. 114.20, authorized by law. No moneys may be encumbered from
2this appropriation for any fiscal year in excess of the amounts encumbered from the
3appropriation under par. (dt) for that fiscal year. No moneys may be encumbered
4from this appropriation for any fiscal year if the amounts received under par. (dr)
5during the previous fiscal year are equal to or greater than $11,800,000.
SB158, s. 2 6Section 2. 20.395 (2) (dq) of the statutes is repealed.
SB158, s. 3 7Section 3. 20.395 (2) (dr) of the statutes is created to read:
SB158,3,208 20.395 (2) (dr) Aeronautical activities, state funds. All moneys received from
9taxes on air carrier companies under ch. 76, from aircraft registration fees under s.
10114.20, from general aviation fuel taxes under subch. III of ch. 78, from sales and use
11taxes on noncommercial aircraft as determined under s. 77.65 and from any other
12tax or fee received from an aeronautical activity and deposited in the transportation
13fund, except moneys appropriated under pars. (dv) and (dx) and sub. (4) (es), and all
14moneys transferred under 2001 Wisconsin Act .... (this act), section 14 (1), for the
15purposes of the state's share of airport projects under ss. 114.34 and 114.35; for
16developing air marking and other air navigational facilities; for administration of the
17powers and duties of the secretary of transportation under s. 114.31; for costs
18associated with aeronautical activities under s. 114.31, except for the program under
19s. 114.31 (3) (b); and for the administration of other aeronautical activities, except
20aircraft registration under s. 114.20, authorized by law.
SB158, s. 4 21Section 4. 20.395 (2) (dt) of the statutes is created to read:
SB158,4,1022 20.395 (2) (dt) Aeronautical activities supplement, state funds. A sum sufficient
23in each fiscal year equal to one-half of the difference between $11,800,000 and the
24amounts received under par. (dr) during the preceding fiscal year, or equal to
25$650,000, whichever is less, for the purposes of the state's share of airport projects

1under ss. 114.34 and 114.35; for developing air marking and other air navigational
2facilities; for administration of the powers and duties of the secretary of
3transportation under s. 114.31; for costs associated with aeronautical activities
4under s. 114.31, except for the program under s. 114.31 (3) (b); and for the
5administration of other aeronautical activities, except aircraft registration under s.
6114.20, authorized by law. No moneys may be encumbered from this appropriation
7for any fiscal year in excess of the amounts encumbered from the appropriation
8under par. (dc) for that fiscal year. No moneys may be encumbered from this
9appropriation for any fiscal year if the amounts received under par. (dr) during the
10previous fiscal year are equal to or greater than $11,800,000.
SB158, s. 5 11Section 5. 20.395 (4) (aq) of the statutes is amended to read:
SB158,4,2312 20.395 (4) (aq) Departmental management and operations, state funds. The
13amounts in the schedule for departmental planning and administrative activities
14and the administration and management of departmental programs except those
15programs under subs. (2) (bq), (cq) and (dq), (dc), (dr), and (dt) and (3) (iq), including
16those activities in s. 85.07 and including not less than $220,000 in each fiscal year
17to reimburse the department of justice for legal services provided the department
18under s. 165.25 (4) (a) and including activities related to the demand management
19and ride-sharing program under s. 85.24 that are not funded from the appropriation
20under sub. (1) (bs), (bv) or (bx), the minority civil engineer scholarship and loan
21repayment incentive grant program under s. 85.107, the Type 1 motorcycle, moped
22and motor bicycle safety program under s. 85.30 and to match federal funds for mass
23transit planning.
SB158, s. 6 24Section 6. 20.395 (9) (rd) of the statutes is amended to read:
SB158,5,5
120.395 (9) (rd) Airport construction major cost carry-over. When an airport
2development project is approved by the governor under s. 114.33 (3), the moneys
3allocated for the project from sub. (2) (dq) (dc), (dr), and (dt) shall be considered
4encumbered and carried-over to subsequent years to meet the state's share of the
5project.
SB158, s. 7 6Section 7. 20.395 (9) (td) of the statutes is amended to read:
SB158,5,117 20.395 (9) (td) Real estate major cost carry-over. Subject to s. 86.255, when a
8highway, airport or railroad land acquisition project is approved by the secretary
9under s. 84.09, 85.09 or 114.33, the moneys allocated for the project from subs. (2)
10(bq), (dq) (dc), (dr), (dt), and (eq) and (3) (bq), (cq) and (eq) may be considered
11encumbered.
SB158, s. 8 12Section 8. 25.40 (1) (cd) of the statutes is created to read:
SB158,5,1413 25.40 (1) (cd) Taxes on the sale and use of noncommercial aircraft under ch. 77
14as determined under s. 77.65.
SB158, s. 9 15Section 9. 70.11 (41) of the statutes is created to read:
SB158,5,1616 70.11 (41) Hub facility. (a) In this subsection:
SB158,5,1917 1. "Air carrier company" means any person engaged in the business of
18transportation in aircraft of persons or property for hire on regularly scheduled
19flights. In this subdivision, "aircraft" has the meaning given in s. 76.02 (1).
SB158,5,2020 2. "Hub facility" means any of the following:
SB158,5,2521 a. A facility at an airport from which an air carrier company operated at least
2245 common carrier departing flights each weekday in the prior year and from which
23it transported passengers to at least 15 nonstop destinations, as defined by rule by
24the department of revenue, or transported cargo to nonstop destinations, as defined
25by rule by the department of revenue.
SB158,6,4
1b. An airport or any combination of airports in this state from which an air
2carrier company cumulatively operated at least 20 common carrier departing flights
3each weekday in the prior year, if the air carrier company's headquarters, as defined
4by rule by the department of revenue, is in this state.
SB158,6,65 (b) Property owned by an air carrier company that operates a hub facility in this
6state, if the property is used in the operation of the air carrier company.
SB158, s. 10 7Section 10. 76.02 (1) of the statutes is amended to read:
SB158,6,138 76.02 (1) "Air carrier company" means any person engaged in the business of
9transportation in aircraft of persons or property for hire on regularly scheduled
10flights, except an air carrier company whose property is exempt from taxation under
11s. 70.11 (41) (b)
. In this subsection, "aircraft" means a completely equipped operating
12unit, including spare flight equipment, used as a means of conveyance in air
13commerce.
SB158, s. 11 14Section 11. 77.65 of the statutes is created to read:
SB158,6,19 1577.65 Determination of sales and use tax receipts for aeronautical
16activities.
By July 1, 2003, and every July 1 thereafter, the department shall
17determine, and deposit in the transportation fund, the total amount of the sales tax
18and use tax, as imposed under ss. 77.52 and 77.53, paid in the immediately preceding
19calendar year on the sale and use of noncommercial aircraft.
SB158, s. 12 20Section 12. 78.55 (1) of the statutes is amended to read:
SB158,6,2221 78.55 (1) "Air carrier company" has the meaning given in s. 76.02 (1) 70.11 (41)
22(a) 1
.
SB158, s. 13 23Section 13. Nonstatutory provisions.
SB158,7,1624 (1) Airport financing committee. There is created an airport financing
25committee consisting of members appointed by the governor. The governor shall

1appoint members representing the department of transportation, the department of
2commerce, airport managers, airlines serving this state, the general aviation
3community, the people of this state, and private businesses having an interest in
4transportation policy and financing. The committee shall review and evaluate this
5state's airport system needs and the current system of funding those needs and shall
6recommend changes, if any, to better meet those needs. The committee shall
7evaluate, among other things: aircraft registration fees; aviation fuel taxes and fees;
8allocation of sales tax receipts from the sale of aircraft, parts, and services to the
9appropriation account under section 20.395 (2) (dr) of the statutes, as created by this
10act, and allocation of other moneys to that appropriation account. The committee's
11recommendations, if any, should, if enacted, generate revenue in amounts equal to
12or greater than the sum of moneys appropriated for aeronautical activities in fiscal
13year 2001. Not later than December 31, 2001, the committee shall submit a report
14containing the committee's evaluation, findings, and recommendations to the
15governor, and to the legislature in the manner provided under section 13.172 (2) of
16the statutes.
SB158, s. 14 17Section 14 . Appropriation changes.
SB158,7,2118 (1) The unencumbered balance of the appropriation to the department of
19transportation under section 20.395 (2) (dq) of the statutes immediately before the
20effective date of this subsection is transferred to the appropriation account under
21section 20.395 (2) (dr) of the statutes, as created by this act.
SB158, s. 15 22Section 15. Initial applicability.
SB158,7,2423 (1) Hub facility. The treatment of sections 70.11 (41), 76.02 (1), and 78.55 (1)
24of the statutes first applies to the property tax assessments as of January 1, 2001.
SB158,8,3
1(2) Revenues received from ad valorem tax on air carriers. The treatment of
2section 20.395 (2) (dr) of the statutes first applies to moneys received from taxes and
3fees on July 1, 2003.
SB158, s. 16 4Section 16. Effective dates. This act takes effect on the day after publication,
5except as follows:
SB158,8,76 (1) The treatment of section 20.395 (2) (dc), (dq), (dr), and (dt), (4) (aq), and (9)
7(rd) and (td) of the statutes and Section 14 (1) of this act take effect on July 1, 2003.
SB158,8,88 (End)
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