SB 883

1.

This bill provides that for Southeast Wisconsin freeway megaprojects, major

highway development projects, and certain state highway rehabilitation projects for

which the Department of Transportation spends federal money, federal money must

make up at least 70 percent of the aggregate funding for those projects. The bill

provides that if DOT determines that it cannot meet this requirement or that it can

make more effective and efficient use of federal money, DOT may submit a proposed

alternate funding plan to the Joint Committee on Finance for review under its

passive review procedure.

The bill requires DOT to notify political subdivisions receiving aid for local

projects whether the aid includes federal moneys and how those moneys must be

spent.

The bill provides that, for projects that receive no federal money and that are

reviewed and approved by a professional engineer or the county highway

commissioner, DOT may not require political subdivisions to comply with any

portion of DOT's facilities development manual other than design standards.

2.

Under current law, DOT may make transfers of state and federal funding

between highway programs. This bill eliminates this authority.

This bill eliminates the special approval process for the second category of

major highway projects. Under this bill, these projects must be approved using the

process provided for the first category of major highway projects.

3.

Under current law, the Department of Revenue must determine the amount of

additional revenue collected from the state sales and use tax as a result of any federal

law that expands the state's authority to collect sales and use taxes from out-of-state

retailers. After DOR makes that determination, it must then determine how much

the individual income tax rates may be reduced in the following taxable year in order

to decrease individual income tax revenue by the amount of additional sales and use

tax revenue. Finally, DOR must certify its determinations to the secretary of

administration, to the governor, and to the legislature and specify that the new

individual income tax rates will take effect in the following year. No further

legislation is required to make this change.

The U.S. Supreme Court recently upheld a South Dakota law that required the

collection of state sales and use taxes from any out-of-state seller that either

conducts 200 or more transactions annually with consumers in the state or has

annual sales in the state exceeding $100,000. See,

South Dakota v. Wayfair, Inc.

, 585

U.S. ___ (2018). The