AB632: Bill Text

AB632,3,3 71.06 (1n) Fiduciaries, single individuals and heads of households; after 1998.

AB632,3,7 The tax to be assessed, levied and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates for taxable years beginning after December 31, 1998:

AB632,3,8 (a) On all taxable income from $0 to $15,000, 4.85%.

AB632,3,9 (b) On all taxable income exceeding $15,000, 6.0%.

AB632, s. 3 Section 3. 71.06 (2) (c) (intro.) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB632,3,13 71.06 (2) (c) For joint returns, for taxable years beginning after December 31, 1997 and before January 1, 1999:

AB632, s. 4 Section 4. 71.06 (2) (d) (intro.) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB632,3,17 71.06 (2) (d) For married persons filing separately, for taxable years beginning after December 31, 1997 and before January 1, 1999:

AB632, s. 5 Section 5. 71.06 (2) (e) of the statutes is created to read:

AB632,3,20 71.06 (2) (e) For joint returns, for taxable years beginning after December 31, 1998:

AB632,3,21 1. On all taxable income from $0 to $20,000, 4.85%.

AB632,3,22 2. On all taxable income exceeding $20,000, 6.0%.

AB632, s. 6 Section 6. 71.06 (2) (f) of the statutes is created to read:

AB632,3,25 71.06 (2) (f) For married persons filing separately, for taxable years beginning after December 31, 1998:

AB632,4,1 1. On all taxable income from $0 to $10,000, 4.85%.

AB632,4,2 2. On all taxable income exceeding $10,000, 6.0%.

AB632, s. 7 Section 7. 71.06 (2e) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB632,4,17 71.06 (2e) Bracket indexing. For taxable years beginning after December 31, 1998 1999, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2) (c) and (d) shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the year before the previous year, as determined by the federal department of labor. Each amount that is revised under this subsection shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this subsection and incorporate the changes into the income tax forms and instructions.

AB632, s. 8 Section 8. 71.06 (2m) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB632,4,23 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n) or (2) changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section 15 of the internal revenue code.

AB632, s. 9 Section 9. 71.06 (2s) (a) of the statutes, as affected by 1997 Wisconsin Act 27, section 2261fm is amended to read:

AB632,5,13 71.06 (2s) (a) For taxable years beginning after December 31, 1996, and ending before January 1, 1998, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1) and (2) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1) and (2) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB632, s. 10 Section 10. 71.06 (2s) (b) of the statutes, as created by 1997 Wisconsin Act 27, is amended to read:

AB632,6,3 71.06 (2s) (b) For taxable years beginning after December 31, 1997, and before January 1, 1999, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1m) and (2) (c) and (d) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1m) and (2) (c) and (d) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB632, s. 11 Section 11. 71.06 (2s) (c) of the statutes is created to read:

AB632,6,17 71.06 (2s) (c) For taxable years beginning after December 31, 1998, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1n) and (2) (e) and (f) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1n) and (2) (e) and (f) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB632, s. 12 Section 12. 71.125 (1) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB632,6,23 71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n) and (2) shall apply to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.

AB632, s. 13 Section 13. 71.64 (9) (b) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB632,7,17 71.64 (9) (b) The department shall from time to time adjust the withholding tables to reflect any changes in income tax rates, any applicable surtax or any changes in dollar amounts in s. 71.06 (1), (1m), (1n) and (2) resulting from statutory changes, except that the department may not adjust the withholding tables to reflect the changes in rates in s. 71.06 (1m), (1n) and (2) (c) and, (d), (e) and (f) for any taxable year that begins before January 1, 2000. The tables shall account for the working families tax credit under s. 71.07 (5m). The tables shall be extended to cover from zero to 10 withholding exemptions, shall assume that the payment of wages in each pay period will, when multiplied by the number of pay periods in a year, reasonably reflect the annual wage of the employe from the employer and shall be based on the further assumption that the annual wage will be reduced for allowable deductions from gross income. The department may determine the length of the tables and a reasonable span for each bracket. In preparing the tables the department shall adjust all withholding amounts not an exact multiple of 10 cents to the next highest figure that is a multiple of 10 cents. The department shall also provide instructions with the tables for withholding with respect to quarterly, semiannual and annual pay periods.

AB632, s. 14 Section 14. 71.67 (4) (a) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB632,7,24 71.67 (4) (a) The administrator of the lottery division in the department under ch. 565 shall withhold from any lottery prize of $2,000 or more an amount determined by multiplying the amount of the prize by the highest rate applicable to individuals under s. 71.06 (1) or, (1m) or (1n). The administrator shall deposit the amounts withheld, on a monthly basis, as would an employer depositing under s. 71.65 (3) (a).

AB632, s. 15 Section 15. 71.67 (5) (a) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB632,8,8 71.67 (5) (a) Wager winnings. A person holding a license to sponsor and manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c) or, (1m) or (1n) if the amount of the payment is more than $1,000.

AB632, s. 16 Section 16. Nonstatutory provisions.

AB632,8,21 (1) Revenue shortfall task force. There is created a revenue shortfall task force, which shall consist of the senate majority leader or his or her designee, the senate minority leader or his or her designee, the speaker of the assembly or his or her designee, the minority leader of the assembly or his or her designee and 4 electors of this state appointed by the governor, 2 of whom are not adherents of the same political party as the governor. All appointments or designations shall be made before February 1, 1998. The task force shall develop and recommend legislation that will make up the revenue shortfall to the state caused by lowering the top individual income tax rate from 6.93% to 6.0% and that will have an initial applicability of taxable years beginning after December 31, 1998. The task force shall submit that proposed legislation to the legislature in the manner provided under section 13.172 (2) of the statutes on or before January 1, 1999.

AB632, s. 17 Section 17. Effective dates. This act takes effect on the day after publication, except as follows:

AB632,9,2 (1) The treatment of section 71.06 (2s) (a) and (b) of the statutes takes effect on January 1, 1998.

AB632,9,3 (End)