LRB-4392/1
JK:jld:pg
2005 - 2006 LEGISLATURE
January 30, 2006 - Introduced by Representatives Van Roy, Kreibich, Hahn,
Kestell, Musser, Kerkman, Hines, Pettis, Gunderson, Owens, Petrowski,
Pridemore, LeMahieu, Gundrum, Towns, Strachota, Townsend, Lothian,
Albers, J. Fitzgerald and Krawczyk, cosponsored by Senators Grothman,
Olsen, Lazich, Roessler, Leibham, A. Lasee, Kedzie, Kanavas and Darling.
Referred to Committee on Small Business.
AB952,1,3
1An Act to amend 71.05 (6) (a) 15. and 71.08 (1) (intro.); and
to create 71.07 (5h)
2and 71.10 (4) (gxx) of the statutes;
relating to: an individual income tax credit
3for the sales and use taxes paid on self-service laundry services.
Analysis by the Legislative Reference Bureau
Under current law, laundry services performed by the consumer of the laundry
services are subject to the sales tax and the use tax, unless the services are performed
through the use of coin-operated, self-service machines. Under this bill, an
individual may claim an income tax credit in an amount equal to the amount of the
sales and use taxes that the individual paid in the taxable year on laundry services
performed by the individual through the use of self-service machines.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB952, s. 1
4Section
1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB952,2,35
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
6(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (5b),
and (5d)
, and (5h)
1and not passed through by a partnership, limited liability company, or tax-option
2corporation that has added that amount to the partnership's, company's, or
3tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
AB952, s. 2
4Section
2. 71.07 (5h) of the statutes is created to read:
AB952,2,65
71.07
(5h) Self-service laundry services credit. (a)
Definition. In this
6subsection, "claimant" means an individual who files a claim under this subsection.
AB952,2,127
(b)
Filing claims. Subject to the limitations provided in this subsection, a
8claimant may claim against the taxes imposed under s. 71.02, up to the amount of
9the taxes, an amount that is equal to the amount of the taxes imposed under ss. 77.52
10and 77.53 that the claimant paid in the taxable year on laundry, dry cleaning,
11pressing, and dyeing services performed by the claimant through the use of
12self-service machines.
AB952,2,2213
(c)
Limitations. For a claimant who is a nonresident or part-year resident of
14this state and who is a single person or a married person filing a separate return,
15multiply the credit for which the claimant is eligible under par. (b) by a fraction, the
16numerator of which is the individual's Wisconsin adjusted gross income and the
17denominator of which is the individual's federal adjusted gross income. If a claimant
18is a claimant is married and files a joint return, and if the claimant or the claimant's
19spouse, or both, are nonresidents or part-year residents of this state, multiply the
20credit for which the claimant is eligible under par. (b) by a fraction, the numerator
21of which is the couple's joint Wisconsin adjusted gross income and the denominator
22of which is the couple's joint federal adjusted gross income.
AB952,2,2423
(d)
Administration. 1. Section 71.28 (4) (e) to (h), as it applies to the credit
24under s. 71.28 (4), applies to the credit under this subsection.
AB952,3,2
12. Subsection (9e) (d), to the extent that it applies to the credit under sub. (9e),
2applies to the credit under this subsection.
AB952,3,135
71.08
(1) Imposition. (intro.) If the tax imposed on a natural person, married
6couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
7ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3n), (3s),
8(3t), (5b), (5d),
(5h), (6), (6e), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds),
9(1dx), (1fd), (2m), (3), (3n), and (3t) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds),
10(1dx), (1fd), (2m), (3), (3n), and (3t) and subchs. VIII and IX and payments to other
11states under s. 71.07 (7), is less than the tax under this section, there is imposed on
12that natural person, married couple filing jointly, trust, or estate, instead of the tax
13under s. 71.02, an alternative minimum tax computed as follows:
AB952, s. 4
14Section
4. 71.10 (4) (gxx) of the statutes is created to read:
AB952,3,1515
71.10
(4) (gxx) Self-service laundry services credit under s. 71.07 (5h).
AB952,3,1717
(1) This act first applies to taxable years beginning on January 1, 2006.
