SB164: Bill Text

SB164, s. 9 Section 9. 71.07 (9t) of the statutes is created to read:

SB164,6,5 71.07 (9t) Artistic endowment credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection.

SB164,6,15 (b) Filing claims. For taxable years beginning after December 31, 2002, subject to the limitations provided in this subsection and s. 73.03 (35m), a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to the amount contributed to the artistic endowment fund under s. 25.77, not to exceed $50 in a taxable year for a claimant who claims the credit as an individual or claims the credit as a married person who files a separate income tax return, not to exceed $100 in a taxable year for a claimant and a claimant's spouse who file a joint return, and not to exceed $500 in a taxable year for a claimant who claims the credit as a sole proprietor, a partner, a member of a limited liability company, or a shareholder in a tax-option corporation.

SB164,6,17 (c) Limitations and conditions. 1. Nonresidents of this state are not eligible for the credit under this subsection.

SB164,7,2 2. For a claimant who is a part-year resident of this state and who is a single person or a married person filing a separate return, multiply the credit for which the claimant is eligible under par. (b) by a fraction, the numerator of which is the individual's Wisconsin adjusted gross income and the denominator of which is the individual's federal adjusted gross income. If a claimant is married and files a joint return, and if the claimant or the claimant's spouse, or both, are nonresidents or part-year residents of this state, multiply the credit for which the claimant is eligible under par. (b) by a fraction, the numerator of which is the couple's joint Wisconsin adjusted gross income and the denominator of which is the couple's joint federal adjusted gross income.

SB164,7,5 3. No new claim may be filed under this subsection for a taxable year that begins after December 31 of the year in which the department determines that the total amount of revenues received by the endowment fund equals $50,150,000.

SB164,7,7 4. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB164,7,15 5. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their economic activity. A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

SB164,7,17 (d) Administration. Section 71.28 (4) (e) and (g), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB164, s. 10 Section 10. 71.10 (4) (dg) of the statutes is created to read:

SB164,7,19 71.10 (4) (dg) The artistic endowment credit under s. 71.07 (9t).

SB164, s. 11 Section 11. 71.21 (4) of the statutes is amended to read:

SB164,7,23 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2ds), (2dx) and, (3s) , and (9t) and passed through to partners shall be added to the partnership's income.

SB164, s. 12 Section 12. 71.26 (1) (bo) of the statutes is created to read:

SB164,8,2 71.26 (1) (bo) Wisconsin Artistic Endowment Foundation. Income of the Wisconsin Artistic Endowment Foundation under ch. 247.

SB164, s. 13 Section 13. 71.26 (2) (a) of the statutes is amended to read:

SB164,8,18 71.26 (2) (a) Corporations in general. The "net income" of a corporation means the gross income as computed under the internal revenue code as modified under sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit computed under s. 71.28 (1) and, (3) to (5), and (9t) plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds) and (1dx) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, limited liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or other disposition of assets the gain from which would be wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and minus deductions, as computed under the internal revenue code as modified under sub. (3), plus or minus, as appropriate, an amount equal to the difference between the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned or otherwise disposed of in a taxable transaction during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).

SB164, s. 14 Section 14. 71.28 (9t) of the statutes is created to read:

SB164,8,21 71.28 (9t) Artistic endowment credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection.

SB164,9,2 (b) Filing claims. For taxable years beginning after December 31, 2002, subject to the limitations provided in this subsection and s. 73.03 (35m), a claimant may claim as a credit against the tax imposed under s. 71.23, up to the amount of those taxes, an amount equal to the amount contributed to the artistic endowment fund under s. 25.77, not to exceed $500 in a taxable year.

SB164,9,6 (c) Limitations and conditions. 1. No new claim may be filed under this subsection for a taxable year that begins after December 31 of the year in which the department determines that the total amount of revenues received by the endowment fund equals $50,150,000.

SB164,9,14 2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their economic activity. A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

SB164,9,16 3. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB164,9,18 (d) Administration. Subsection (4) (e) and (g), as it applies to the credit under sub. (4), applies to the credit under this subsection.

SB164, s. 15 Section 15. 71.30 (3) (bm) of the statutes is created to read:

SB164,9,20 71.30 (3) (bm) Artistic endowment credit under s. 71.28 (9t).

SB164, s. 16 Section 16. 71.34 (1) (g) of the statutes is amended to read:

SB164,9,24 71.34 (1) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx) and, (3), and (9t) and passed through to shareholders.

SB164, s. 17 Section 17. 71.47 (9t) of the statutes is created to read:

SB164,10,2 71.47 (9t) Artistic endowment credit. (a) Definition. In this subsection, "claimant" means a person who files a claim under this subsection.

SB164,10,7 (b) Filing claims. For taxable years beginning after December 31, 2002, subject to the limitations provided in this subsection and s. 73.03 (35m), a claimant may claim as a credit against the tax imposed under s. 71.43, up to the amount of those taxes, an amount equal to the amount contributed to the artistic endowment fund under s. 25.77, not to exceed $500 in a taxable year.

SB164,10,11 (c) Limitations and conditions. 1. No new claim may be filed under this subsection for a taxable year that begins after December 31 of the year in which the department determines that the total amount of revenues received by the endowment fund equals $50,150,000.

SB164,10,19 2. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their economic activity. A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

SB164,10,21 3. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB164,10,23 (d) Administration. Section 71.28 (4) (e) and (g), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

SB164, s. 18 Section 18. 71.49 (1) (bm) of the statutes is created to read:

SB164,10,25 71.49 (1) (bm) Artistic endowment credit under s. 71.47 (9t).

SB164, s. 19 Section 19. 73.03 (35m) of the statutes is created to read:

SB164,11,5 73.03 (35m) For taxable years beginning after December 31, 2003, to deny a portion of a credit claimed under s. 71.07 (9t), 71.28 (9t), or 71.47 (9t) if granting the full amount of the credit would result in the total credits claimed by all claimants under ss. 71.07 (9t), 71.28 (9t), and 71.47 (9t) exceeding $7,000,000 in a taxable year.

SB164, s. 20 Section 20. 73.03 (56) of the statutes is created to read:

SB164,11,12 73.03 (56) To include on the forms on which the artistic endowment credits are claimed, under ss. 71.07 (9t), 71.28 (9t), and 71.47 (9t), a statement that a taxpayer may contribute amounts to the artistic endowment fund under s. 25.77 that exceed the amount for which a credit may be claimed by reducing the taxpayer's refund or by increasing the taxpayer's payment for tax liability, with the proceeds to be deposited into the fund.

SB164, s. 21 Section 21. 77.54 (7r) of the statutes is created to read:

SB164,11,17 77.54 (7r) Sales of admissions or tickets after December 31, 2001, to an artistic event sponsored by an association or organization that is described in section 501 (c) (3) of the Internal Revenue Code and is exempt from taxation under section 501 (1) of the Internal Revenue Code.

SB164, s. 22 Section 22. 77.92 (4) of the statutes is amended to read:

SB164,12,8 77.92 (4) "Net business income", with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx) and, (3s), and (9t); and plus or minus, as appropriate, transitional adjustments, depreciation differences and basis differences under s. 71.05 (13), (15), (16), (17) and (19); but excluding income, gain, loss and deductions from farming. "Net business income", with respect to a natural person, estate or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

SB164, s. 23 Section 23. Chapter 247 of the statutes is created to read:

SB164,12,12 chapter 247 Wisconsin Artistic Endowment Foundation

SB164,12,14 247.02 Definition. In this chapter, "foundation" means the Wisconsin Artistic Endowment Foundation.

SB164,12,19 247.03 Creation and organization. (1) There is created a public body corporate and politic, to be known as the "Wisconsin Artistic Endowment Foundation." The foundation shall be a nonprofit corporation organized under ch. 181 so that contributions to it are deductible from adjusted gross income under section 170 of the Internal Revenue Code.

SB164,12,21 (2) The board of directors of the foundation shall consist of the following persons:

SB164,13,2 (a) Eight nominees of the governor, who are residents of this state, represent the diverse artistic interests of the people of this state, and represent each of the geographic regions of the state, appointed for 7-year terms with the advice and consent of the senate. At least one of the nominees shall be knowledgeable in marketing and fund raising. Each member appointed under this paragraph may hold office until a successor is appointed.

SB164,13,3 (b) The chairperson of the arts board or the chairperson's designee.

SB164,13,4 (c) The executive secretary of the arts board as a nonvoting member.

SB164,13,6 (d) Two representatives to the assembly, one appointed by the speaker of the assembly and one appointed by the minority leader of the assembly.

SB164,13,8 (e) Two senators, one appointed by the majority leader of the senate and one appointed by the minority leader of the senate.

SB164,13,15 (3) The board of directors holds the powers of the foundation. The members of the board of directors shall annually elect a chairperson and may elect other officers as they consider appropriate. Seven voting members of the board of directors constitute a quorum for the purpose of conducting the business and exercising the powers of the foundation, notwithstanding the existence of any vacancy. The board of directors may take action upon a vote of a majority of the voting members present, unless the bylaws of the foundation require a larger number.

SB164,13,18 (4) No member of the board of directors may receive compensation for performing his or her duties. Each member shall be reimbursed for actual and necessary expenses, including travel expenses, incurred in performing those duties.

SB164,13,21 247.05 General powers and duties. (1) Except as otherwise provided in this chapter, the foundation has all of the powers necessary and convenient to carry out its duties under sub. (2) and s. 247.06, including the power to do all of the following:

SB164,13,22 (a) Make, amend, and repeal bylaws for the conduct of its affairs.

SB164,13,23 (b) Adopt a seal and alter that seal.

SB164,13,24 (c) Sue and be sued.

SB164,13,25 (d) Maintain an office.

SB164,14,1 (e) Solicit and accept donations of money, property, and art objects.

SB164,14,2 (f) Execute contracts and other instruments.

SB164,14,4 (g) Employ legal, financial, technical, or other experts and any other necessary employees, and fix their qualifications, duties, and compensation.

SB164,14,6 (h) Establish arts programs with the advice of the arts board and statewide arts organizations.

SB164,14,8 (i) Convert any noncash gift, grant, bequest, or other contribution to the foundation to cash.

SB164,14,9 (2) The foundation shall do all of the following:

SB164,14,12 (a) In carrying out its responsibilities under this chapter, ensure to the greatest extent possible the equitable distribution of funds and other support among all of the following:

SB164,14,13 1. The various geographic regions of the state.

SB164,14,14 2. Urban, suburban, and rural areas of the state.

SB164,14,15 3. The various ethnic, racial, and cultural groups of the state.

SB164,14,18 (b) Appoint a licensed appraiser to evaluate each donated art object to establish the current value of, potential appreciation of, degree of risk in holding, and recommended timing for sale of, the art object.

SB164,14,19 (c) Adopt bylaws for accepting restricted donations.

SB164,14,22 (d) Annually submit to the governor and to the presiding officer of each house of the legislature an audited financial statement of the operations of the foundation, prepared in accordance with generally accepted accounting principles.

SB164,14,23 (e) Contract for all education and marketing activities.

SB164,15,2 (f) Deposit in the state treasury all cash, gifts, grants, bequests, or other contributions made to the foundation, and all noncash gifts, grants, bequests, or other contributions made to the foundation that have been converted to cash under sub. (1) (i).

SB164,15,5 (g) Biennially review the foundation's priorities for expenditures under s. 247.06 (1) (b) and report those priorities to the presiding officer of each house of the legislature.

SB164,15,9 247.06 Support of arts programs. (1) (a) The foundation may distribute moneys appropriated under s. 20.220 (1) (r) to the arts board for programs that provide operating support to arts organizations and for the Wisconsin regranting program under s. 44.62.

SB164,15,15 (b) The foundation may distribute moneys appropriated under s. 20.220 (1) (r) to an arts program established under s. 247.05 (1) (h) if the program is reviewed biennially by the foundation with the advice of the arts board and statewide arts organizations. To the extent possible, the programs funded under this paragraph shall use existing arts board mechanisms and staff for administering and distributing the moneys.

SB164,15,18 (2) (a) Of the total amount distributed by the foundation under sub. (1) in any fiscal year that constitutes earnings on unrestricted donations, the foundation shall distribute at least 50% to the arts board under sub. (1) (a).

SB164,15,22 (b) The foundation may not distribute moneys to the arts board under sub. (1) (a) in any fiscal year in which the foundation determines that the amount of general purpose revenue appropriated to the arts board under s. 20.215 is less than the amount appropriated in the previous fiscal year.

SB164,15,24 247.07 Dissolution. The foundation may not dissolve and wind up its affairs unless the legislature enacts a law ordering dissolution.

SB164, s. 24 Section 24. Nonstatutory provisions.

SB164,16,5 (1) Notwithstanding section 247.03 (2) (a) of the statutes, as created by this act, 2 of the initial members of the board of directors of the Wisconsin Artistic Endowment Foundation shall be appointed for 2-year terms; 2 of the initial members shall be appointed for 4-year terms; and 2 of the initial members shall be appointed for 6-year terms.

SB164, s. 25 Section 25. Initial applicability.

SB164,16,8 (1) The treatment of section 71.26 (1) (bo) of the statutes first applies to taxable years beginning on January 1 of the year in which this subsection takes effect.

SB164,16,9 (End)