76.28 License fee for light, heat and power companies.

1,222 words·~6 min read·/wi/chapter-76/76-28-5

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Definitions. In this section:

(a)“Apportionment factor” means a fraction the numerator of which is the sum of the property factor, the payroll factor and the sales factor and the denominator of which is the number 3.

(b)“Book cost of utility plant” has the meaning set forth in the uniform system of accounts established by the public service commission.

(c)“Department” means the department of revenue.

(d)“Gross revenues” for a light, heat and power company other than a qualified wholesale electric company or a transmission company means total environmental control charges paid to the company under a financing order issued under s. 196.027

(2)and total operating revenues as reported to the public service commission except revenues for interdepartmental sales and for interdepartmental rents as reported to the public service commission and deductions from the sales and use tax under s. 77.61

(4), except that the company may subtract from revenues either the actual cost of power purchased for resale, as reported to the public service commission, by a light, heat and power company, except a municipal light, heat and power company, that purchases under federal or state approved wholesale rates more than 50 percent of its electric power from a person other than an affiliated interest, as defined in s. 196.52

(1), if the revenue from that purchased electric power is included in the seller’s gross revenues or the following percentages of the actual cost of power purchased for resale, as reported to the public service commission, by a light, heat and power company, except a municipal light, heat and power company that purchases more than 90 percent of its power and that has less than $50,000,000 of gross revenues: 10 percent for the fee assessed on May 1, 1988, 30 percent for the fee assessed on May 1, 1989, and 50 percent for the fee assessed on May 1, 1990, and thereafter. For a qualified wholesale electric company, “gross revenues” means total business revenues from those businesses included under par.

(e)1. to 4. For a transmission company, “gross revenues” means total operating revenues as reported to the public service commission, except revenues for transmission service that is provided to a public utility that is subject to the license fee under sub.

(d), to a public utility, as defined in s. 196.01

(5), or to a cooperative association organized under ch. 185 for the purpose of providing electricity to its members only. For an electric utility, as defined in s. 16.957

(g), “gross revenues” does not include low-income assistance fees collected by the electric utility under s. 16.957

(a)or

(a). For a generator public utility, “gross revenues” does not include any grants awarded to the generator public utility under s. 16.958

(b). For a wholesale supplier, as defined in s. 16.957

(w), “gross revenues” does not include any low-income assistance fees that are received from a municipal utility or retail electric cooperative or under a joint program established under s. 16.957

(f). For a municipal utility, “gross revenues” does not include low-income assistance fees received by the municipal utility from a municipal utility or retail electric cooperative under a joint program established under s. 16.957

(f).

(e)“Light, heat and power companies” means any person, association, company or corporation, including corporations described in s. 66.0813 , qualified wholesale electric companies and transmission companies and except only business enterprises carried on exclusively either for the private use of the person, association, company or corporation engaged in them, or for the private use of a person, association, company or corporation owning a majority of all outstanding capital stock or who control the operation of business enterprises and except electric cooperatives taxed under s. 76.48 that engage in any of the following businesses:

1. Generating and furnishing gas for lighting or fuel or both.

2. Supplying water for domestic or public use or for power or manufacturing purposes.

3. Generating, transforming, transmitting or furnishing electric current for light, heat or power.

4. Generating and furnishing steam or supplying hot water for heat, power or manufacturing purposes.

5. Transmitting electric current for light, heat or power.

(eg)“Municipal utility” has the meaning given in s. 16.957

(q).

(em)“Net production of electricity” means the total of electricity generated minus the power used to operate the generating plant.

(f)“Payroll factor” means a fraction the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation and the denominator of which is the total compensation paid everywhere during the tax period, except that compensation solely related to the production of nonoperating revenues shall be excluded from the numerator and denominator of the payroll factor and except that compensation related to the production of both operating and nonoperating revenue shall be partially excluded from the numerator and denominator of the payroll factor so as to exclude as near as possible the portion of compensation related to the production of nonoperating revenue. Compensation is paid in this state if the individual’s service is performed entirely within this state, or if the individual’s service is performed both within and outside this state but the service performed outside this state is incidental to the individual’s service within this state, or if some of the service is performed in this state and the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in this state or the base of operations or the place from which the service is directed or controlled is not in any state in which part of the service is performed and the individual’s residence is in this state. In this paragraph, “compensation” includes management and service fees paid to an affiliated service corporation pursuant to 15 USC 79 .

(g)“Property factor” means a fraction the numerator of which is the average book cost of utility plant located in this state for the tax period and the denominator of which is the average book cost of utility plant located everywhere for the tax period. The average book cost of utility plant shall be determined by averaging the beginning and year end balances at original cost, including construction work in progress, but the secretary of revenue may require the averaging of monthly book costs during the tax period if that is reasonably required to reflect properly the average value of the taxpayer’s property.

(gm)“Qualified wholesale electric company” means all of the following:

1. Any person that owns or operates facilities for the generation and sale of electricity to a public utility, as defined in s. 196.01

(5), or to any other entity that sells electricity directly to the public, except that “qualified wholesale electric company” does not include any person that sells less than 95 percent of its net production of electricity or that does not own, operate, or control electric generating facilities that have a total power production capacity of at least 50 megawatts.

2. A wholesale merchant plant, as defined in s. 196.491

(w), that has a total power production capacity of at least 50 megawatts.