LRBb1570/1
JK:jg:ch
1999 - 2000 LEGISLATURE
SENATE AMENDMENT 7,
TO SENATE AMENDMENT 1,
TO SENATE SUBSTITUTE AMENDMENT 1,
TO 1999 ASSEMBLY BILL 133
June 30, 1999 - Offered by Senators Welch and
Darling.
AB133-SSA1-SA1-SA7,1,8
5"71.04
(4) (a) For taxable years beginning before January 1, 2001, an
6apportionment fraction composed of a sales factor under sub. (7) representing 50%
7of the fraction, a property factor under sub. (5) representing 25% of the fraction and
8a payroll factor under sub. (6) representing 25% of the fraction.
AB133-SSA1-SA1-SA7,2,210
71.04
(4) (am) For taxable years beginning after December 31, 2000, and before
11January 1, 2002, an apportionment fraction composed of a sales factor under sub. (7)
1representing 63% of the fraction, a property factor under sub. (5) representing 18.5%
2of the fraction and a payroll factor under sub. (6) representing 18.5% of the fraction.".
AB133-SSA1-SA1-SA7,2,105
71.04
(8) (b)
1. "Public utility", as used in this section, means any business
6entity which owns or operates any plant, equipment, property, franchise, or license
7for the transmission of communications or the production, transmission, sale,
8delivery, or furnishing of electricity, water or steam, the rates of charges for goods or
9services of which have been established or approved by a federal, state or local
10government or governmental agency.
AB133-SSA1-SA1-SA7,2,15
112. "Public utility" also means
, in this section, any business entity providing
12service to the public and engaged in the transportation of goods and persons for hire,
13as defined in s. 194.01 (4), regardless of whether or not the entity's rates or charges
14for services have been established or approved by a federal, state or local government
15or governmental agency.".
AB133-SSA1-SA1-SA7,2,17
16733g. Page 832, line 21: after "
(9d)" insert "
and the net income of public utilities,
17as defined in par. (b) 1., shall be apportioned under sub. (4)".".
AB133-SSA1-SA1-SA7,2,23
22"758b. Page 854, line 11: after "gain" insert "and includes issuing credit, debit
23or travel and entertainment cards to customers in this state".".
AB133-SSA1-SA1-SA7,3,223
71.23
(2) Franchise tax. For the privilege of exercising its franchise or doing
4business in this state in a corporate capacity, except as provided under sub. (3), every
5domestic or foreign corporation, except corporations specified in s. 71.26 (1), and
6every nuclear decommissioning trust or reserve fund shall annually pay a franchise
7tax according to or measured by its entire Wisconsin net income of the preceding
8taxable year at the rate set forth in s. 71.27 (2). In addition, except as provided in
9sub. (3) and s. 71.26 (1), a corporation that ceases doing business in this state and
10a nuclear decommissioning trust or reserve fund that is terminated shall pay a
11special franchise tax according to or measured by its entire Wisconsin net income for
12the taxable year during which the corporation ceases doing business in this state or
13the nuclear decommissioning trust or reserve fund is terminated at the rates under
14s. 71.27 (2). Every corporation organized under the laws of this state
or that derives
15income from sources within this state or from activities that are attributable to this
16state shall be deemed to be residing within this state for the purposes of this
17franchise tax. All provisions of this chapter and ch. 73 relating to income taxation
18of corporations shall apply to franchise taxes imposed under this subsection, unless
19the context requires otherwise. The tax imposed by this subsection on national
20banking associations shall be in lieu of all taxes imposed by this state on national
21banking associations to the extent it is not permissible to tax such associations under
22federal law.
AB133-SSA1-SA1-SA7,4,424
71.25
(5) (a)
Apportionable income. (intro.) Except as provided in sub. (6),
25corporations engaged in business both within and without this state are subject to
1apportionment.
Income, gain or loss from the sources listed in this paragraph is
2presumed apportionable. Apportionable income includes all income or loss of
3corporations, other than nonapportionable income as specified in par. (b), including,
4but not limited to, income, gain or loss from the following sources:
AB133-SSA1-SA1-SA7,4,146
71.25
(5) (a) 9. Interest and dividends
if the operations of the payer are unitary
7with those of the payee, or if those operations are not unitary but the investment
8activity from which that income is derived is an integral part of a unitary business
9and the payer and payee are neither affiliates nor related as parent company and
10subsidiary. In this subdivision, "investment activity" includes decision making
11relating to the purchase and sale of stocks and other securities, investing surplus
12funds and the management and record keeping associated with corporate
13investments, not including activities of a broker or other agent in maintaining an
14investment portfolio.
AB133-SSA1-SA1-SA7,4,2116
71.25
(5) (a) 10. Sale of intangible assets
if the operations of the company in
17which the investment was made were unitary with those of the investing company,
18or if those operations were not unitary but the investment activity from which that
19gain or loss was derived is an integral part of a unitary business and the companies
20were neither affiliates nor related as parent company and subsidiary. In this
21subdivision, "investment activity" has the meaning given under subd. 9.".".
AB133-SSA1-SA1-SA7,5,3
1"760e. Page 874, line 9: delete that line and substitute "businesses except
2financial organizations, public utilities,
telecommunications companies, railroads,
3sleeping car".
AB133-SSA1-SA1-SA7,5,8
5"71.25
(6) (a) For taxable years beginning before January 1, 2001, an
6apportionment fraction composed of a sales factor under sub. (9) representing 50%
7of the fraction, a property factor under sub. (7) representing 25% of the fraction and
8a payroll factor under sub. (8) representing 25% of the fraction.
AB133-SSA1-SA1-SA7,5,1310
71.25
(6) (am) For taxable years beginning after December 31, 2000, and before
11January 1, 2002, an apportionment fraction composed of a sales factor under sub. (9)
12representing 63% of the fraction, a property factor under sub. (7) representing 18.5%
13of the fraction and a payroll factor under sub. (8) representing 18.5% of the fraction.".
AB133-SSA1-SA1-SA7,5,2116
71.25
(10) (b)
1. In this section, "public utility" means any business entity
17which owns or operates any plant, equipment, property, franchise, or license for the
18transmission of communications or the production, transmission, sale, delivery, or
19furnishing of electricity, water or steam the rates of charges for goods or services of
20which have been established or approved by a federal, state or local government or
21governmental agency.
"Public utility"
AB133-SSA1-SA1-SA7,6,2
222. In this section, "public utility" also means any business entity providing
23service to the public and engaged in the transportation of goods and persons for hire,
24as defined in s. 194.01 (4), regardless of whether or not the entity's rates or charges
1for services have been established or approved by a federal, state or local government
2or governmental agency.".
AB133-SSA1-SA1-SA7,6,4
3760h. Page 888, line 3: after "
(9d)" insert "
and the net income of public utilities,
4as defined in par. (b) 1., shall be apportioned under sub. (6)".".
AB133-SSA1-SA1-SA7,6,248
71.26
(3) (L) Section 265 is excluded and replaced by the rule that any amount
9otherwise deductible under this chapter that is directly or indirectly related to
10income wholly exempt from taxes imposed by this chapter or to losses from the sale
11or other disposition of assets the gain from which would be exempt under this
12paragraph if the assets were sold or otherwise disposed of at a gain is not deductible.
13In this paragraph, "wholly exempt income", for corporations subject to franchise or
14income taxes, includes
amounts received from affiliated or subsidiary corporations
15for interest, dividends or capital gains that
, because of the degree of common
16ownership, control or management between the payor and payee, are not subject to
17taxes under this chapter. In this paragraph, "wholly exempt income", for
18corporations subject to income taxation under this chapter, also includes interest on
19obligations of the United States. In this paragraph, "wholly exempt income" does not
20include income excludable, not recognized, exempt or deductible under specific
21provisions of this chapter. If any expense or amount otherwise deductible is
22indirectly related both to wholly exempt income or loss and to other income or loss,
23a reasonable proportion of the expense or amount shall be allocated to each type of
24income or loss, in light of all the facts and circumstances.".".
