(e) The department may promulgate rules to implement this subsection.
368,12
Section
12. 71.775 (3) (a) 4. of the statutes is created to read:
71.775 (3) (a) 4. The pass-through entity has elected under s. 71.21 (6) (a) or 71.365 (4m) (a) to be taxed at the entity level.
368,13
Section
13. 73.03 (71) of the statutes is amended to read:
73.03 (71) (a) To determine the amount of additional revenue that reported to the department collected from the taxes imposed under subch. III of ch. 77 as a result of any federal law to expand the United States Supreme Court decision that expands the state's authority to require out-of-state retailers to collect and remit the taxes imposed under subch. III of ch. 77 on purchases by Wisconsin residents during the first 12 months following the date on which the department begins collecting the additional revenue as a result of a change in federal law period beginning on October 1, 2018, and ending on September 30, 2019.
(b) After the department makes the determination under par. (a), the department shall determine how much the individual income tax rates under s. 71.06 may be reduced in the following for the taxable year ending on December 31, 2019, in order to decrease individual income tax revenue by the amount determined under par. (a). For purposes of this paragraph, the department shall calculate the tax rate reductions shall be calculated in proportion to the share of gross tax attributable to each of the tax brackets under s. 71.06 in effect during the most recently completed taxable year.
(c) The department No later than October 20, 2019, the secretary of revenue shall certify and report the determinations made under pars. (a) and (b) to the secretary of the department of administration, to the governor,
and to the legislature the joint committee on finance, and the legislative audit bureau and specify with that certification and report that the new tax rates take effect
in for the taxable year following the taxable year in which the department makes the certification under this paragraph ending on December 31, 2019, subject to par. (d).
368,14
Section
14. 73.03 (71) (d) of the statutes is created to read:
73.03 (71) (d) The legislative audit bureau shall review the determinations reported under par. (c) and report its findings to the joint legislative audit committee and the joint committee on finance no later than November 1, 2019. If the legislative audit bureau's review of the determinations reported under par. (c) results in a different calculation of the tax rates than that made under par. (b), the joint committee on finance shall determine which tax rates to apply to the taxable year ending on December 31, 2019, and report its determination to the governor, the secretary of administration, and the secretary of revenue no later than November 10, 2019.
368,15
Section 15
. 77.51 (13g) (intro.) of the statutes is amended to read:
77.51 (13g) (intro.) Except as provided in sub. subs. (13gm) and (13h), “retailer engaged in business in this state", for purposes of the use tax, includes any of the following:
368,16
Section 16
. 77.51 (13gm) of the statutes is created to read:
77.51 (13gm) (a) “Retailer engaged in business in this state” does not include a retailer who has no activities as described in sub. (13g), except for activities described in sub. (13g) (c), unless the retailer meets either of the following criteria in the previous year or current year:
1. The retailer's annual gross sales into this state exceed $100,000.
2. The retailer's annual number of separate sales transactions into this state is 200 or more.
(b) If an out-of-state retailer's annual gross sales into this state exceed $100,000 in the previous year or the retailer's annual number of separate sales transactions into this state is 200 or more in the previous year, the retailer shall register with the department and collect the taxes administered under s. 77.52 or 77.53 on sales sourced to this state under s. 77.522 for the entire current year.
(c) If an out-of-state retailer's annual gross sales into this state are $100,000 or less in the previous year and the retailer's annual number of separate sales transactions into this state is less than 200 in the previous year, the retailer is not required to register with the department and collect the taxes administered under s. 77.52 or 77.53 on sales sourced to this state under s. 77.522 until the retailer's sales or transactions meet the criteria in par. (a) 1. or 2. for the current year, at which time the retailer shall register with the department and collect the tax for the remainder of the current year.
(d) All of the following apply for purposes of this subsection:
1. “Year” means the retailer's taxable year for federal income tax purposes.
2. The annual amounts described in this subsection include both taxable and nontaxable sales.
3. Each required periodic payment of a lease or license is a separate sales transaction.
4. Deposits made in advance of a sale are not sales transactions.
5. An out-of-state retailer's annual amounts include all sales into this state by the retailer on behalf of other persons and all sales into this state by another person on the retailer's behalf.
368,17
Section 17
. 84.54 of the statutes is created to read:
84.54 Minimum federal expenditures for projects receiving federal funding. (1) Except as provided in sub. (2), for all of the following projects on which the department expends federal moneys, the department shall expend federal moneys on not less than 70 percent of the aggregate project components eligible for federal funding each fiscal year:
(a) Southeast Wisconsin freeway megaprojects.
(b) Major highway development projects.
(c) State highway rehabilitation projects with a total cost of less than $10 million.
(2) If the department determines that it cannot meet the requirements under sub. (1) or that it can make more effective and efficient use of federal moneys than the use required under sub. (1), the department may submit a proposed alternate funding plan to the joint committee on finance. If the cochairpersons of the committee do not notify the department within 14 working days after the date of the department's submittal that the committee has scheduled a meeting for the purpose of reviewing the proposed plan, the department may expend moneys as proposed in the plan. If, within 14 working days after the date of the submittal, the cochairpersons of the committee notify the department that the committee has scheduled a meeting for the purpose of reviewing the proposed plan, the department may expend moneys as proposed in the plan only upon approval of the committee. The department may continue with any projects subject to the funding requirement under sub. (1) while the committee conducts its review, including any hearings conducted by the committee.
368,18
Section 18
. 86.51 of the statutes is created to read:
86.51 Requirements for local projects. (1) In this section:
(a) “Local bridge" means a bridge that is not on the state trunk highway system or on marked routes of the state trunk highway system designated as connecting highways.
(b) “Local roads" means streets under the authority of cities or villages, county trunk highways, or town roads.
(c) “Political subdivision” means a county, city, village, or town.
(d) “Project" means the development, construction, repair, or improvement of a local road or a local bridge.
(2) If the department disburses aid to a political subdivision for a project, the department shall notify the political subdivision whether the aid includes federal moneys and which project components must be paid for with federal moneys, if any.
(3) For any project meeting all of the following criteria, the department may not require a political subdivision to comply with any portion of the department's facilities development manual other than design standards:
(a) The project proposal is reviewed and approved by a professional engineer or by the highway commissioner for the county in which the project will be located.
(b) The project is conducted by a political subdivision with no expenditure of federal money.
(4) Any local project funded in whole or in part with state funds under the surface transportation urban program, the surface transportation rural program, or the local bridge program shall be let through competitive bidding and by contract to the lowest responsible bidder as provided in s. 84.06 (2).
368,20
Section
20.
Nonstatutory provisions.
(1) Individual income tax rates. The secretary of administration shall exclude from the calculation under s. 16.518 (2) all additional revenue deposited in the general fund in the 2018-19 fiscal year that is attributable to an increase in the sales and use taxes reported under s. 73.03 (71), as determined by the department of revenue.
368,21
Section
21
.
Initial applicability.
(1) Pass-through entities. The treatment of ss. 71.05 (6) (a) 14. and (10) (dm), 71.07 (7) (c), 71.21 (6), 71.36 (1), 71.365 (4m), and 71.775 (3) (a) 4., the renumbering and amendment of ss. 71.07 (7) (b) and 71.365 (1), and the creation of ss. 71.07 (7) (b) 3. and 71.365 (1) (b) first apply to taxable years beginning on January 1, 2019, except that the treatment of ss. 71.05 (6) (a) 14. and (10) (dm), 71.07 (7) (c), 71.21 (6), 71.36 (1), 71.365 (4m), and 71.775 (3) (a) 4., the renumbering and amendment of ss. 71.07 (7) (b) and 71.365 (1), and the creation of ss. 71.07 (7) (b) 3. and 71.365 (1) (b) first apply to taxable years beginning on January 1, 2018, for tax-option corporations.
(2) Requirements for highway projects. The treatment of ss. 84.54 and 86.51 first applies to projects let and aid disbursed on the effective date of this subsection.
368,22
Section
22.
Effective dates. This act takes effect on the day after publication, except as follows:
(1) Highway funding transfers. The treatment of s. 20.395 (2) (fq) and Section 19 of this act take effect on July 1, 2019.
(2) Requirements for highway projects. The treatment of ss. 84.54 and 86.51 and Section 21 (2
) of this act take effect on July 1, 2019.
