Wis. Admin. Code § Tax 6.40 — Waste treatment facilities - industrial/utility

Tax 6.40(1) (1) Statute. The exemption for a waste treatment facility otherwise taxable under s. 76.13 , Stats., is contained in s. 76.025 (1) , Stats.

Tax 6.40(2) (2) Approval.

Tax 6.40(2)(a) (a) Requests for approval by public utilities subject to taxation under s. 76.13 , Stats., for each waste treatment facility shall be made by completing the form entitled “Report of Exempted Waste Treatment Facility-Utility”. All actual costs of purchase or construction of the facility must be reflected on this form. The completed form is due January 15 of each year and is to be filed annually except in years subsequent to purchase or construction where no capital changes have occurred to the waste treatment facility, in which case a summary sheet may be submitted for these facilities. For good cause shown upon application by the applicant, the department may grant an extension of time not exceeding 120 days in which to file the application form.

Tax 6.40(2)(b) (b) The completed form “Report of Exempted Waste Treatment Facility-Utility” should be sent to the Division of State and Local Finance.

Tax 6.40(2)(c) (c) Tentative approval for sales tax purposes may be obtained from the department by applying to the department at any time prior to January 15. Qualifying for the exemption under s. 70.11 (21) (am) , Stats., will result in qualifying for the exemption under s. 77.54 (26) , Stats. The request for a tentative approval should include all of the following:

Tax 6.40(2)(c)1. 1. A complete description of the function and operation of the facility.

Tax 6.40(2)(c)2. 2. A statement as to why the facility meets the definition of a waste treatment facility under sub. (3) .

Tax 6.40(2)(c)3. 3. The estimated costs of all components of the facility.

Tax 6.40(2)(d) (d) The approval of a waste treatment facility pursuant to par. (a) or (c) , constitutes approval of the function of the facility only. The components and costs of the facility are subject to verification by the department and local units of government. Also, any approval is subject to the department verifying that the actual operation of the facility is consistent with the description provided in the request for exemption.

Tax 6.40(3) (3) Industrial waste treatment facility exemption.

Tax 6.40(3)(a) (a) The words “waste,” “treatment” and “facility” are deemed to have the following meanings:

Tax 6.40(3)(a)1. 1. “Facility” means tangible property that is built, constructed or installed as a unit so as to be readily identifiable as directly performing a waste treatment function.

Tax 6.40(3)(a)2. 2. “Treatment” means removing, altering or storing waste.

Tax 6.40(3)(a)3. 3. “Waste” means that which is left over as superfluous, discarded or fugitive material. In addition, “ industrial wastes ” is defined by reference to s. 281.01 (5) , Stats., as including liquid or other wastes resulting from any process of industry, manufacture, trade, business or the development of any natural resource. “ Air contaminant ” is defined by reference to s. 285.01 (1) , Stats., as dust, fumes, mist, liquid, smoke, other particulate matter, vapor, gas, odorous substances or any combination thereof but shall not include uncombined water vapor.

Tax 6.40(3)(a)4. 4. “Waste treatment facility” means tangible property that is built, constructed or installed as a unit so as to be readily identifiable as directly removing, altering or storing leftover, superfluous, discarded or fugitive material.

Tax 6.40(3)(b) (b) The exemption for industrial waste treatment facilities does not extend to “unnecessary siltation resulting from operations such as the washing of vegetables or raw food products, gravel washing, stripping of lands for development of subdivisions, highways, quarries and gravel pits, mine drainage, cleaning of vehicles or barges or gross neglect of land erosion” as provided in s. 281.01 (7) , Stats.

Tax 6.40(3)(c) (c) The exemption for industrial waste treatment facilities does not apply to conversion of an industrial furnace from one type of fuel to another type of fuel, or to the increased height of a smoke stack to diffuse emissions over a wide area or increments to property held for the production of income but which may be indirectly related to pollution abatement. However, the installation of a scrubber or electrostatic precipitator in a smoke stack could qualify for exemption.

Tax 6.40(3)(d) (d) The exemption for industrial waste treatment facilities does not apply to monitoring equipment that is not a component or integral part of a waste treatment facility.