AB872: Bill Text

AB872,13 Section 13. 71.06 (1p) (intro.) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,11,20 71.06 (1p) Fiduciaries, single individuals and heads of households; 2001 to 2012 after 2000. (intro.) 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, 2000, and before January 1, 2013:

AB872,14 Section 14. 71.06 (1p) (a) of the statutes is amended to read:

AB872,11,22 71.06 (1p) (a) On all taxable income from $0 to $7,500, 4.6% 4.40 percent.

AB872,15 Section 15. 71.06 (1p) (b) of the statutes is amended to read:

AB872,11,25 71.06 (1p) (b) On all taxable income exceeding $7,500 but not exceeding $15,000, 6.15% 5.84 percent.

AB872,16 Section 16. 71.06 (1p) (c) of the statutes is amended to read:

AB872,12,3 71.06 (1p) (c) On all taxable income exceeding $15,000 but not exceeding $112,500, 6.5% 6.27 percent.

AB872,17 Section 17. 71.06 (1q) of the statutes, as created by 2013 Wisconsin Act 20, is repealed.

AB872,18 Section 18. 71.06 (2) (g) (intro.) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,12,9 71.06 (2) (g) (intro.) For joint returns, for taxable years beginning after December 31, 2000, and before January 1, 2013:

AB872,19 Section 19. 71.06 (2) (g) 1. of the statutes is amended to read:

AB872,12,11 71.06 (2) (g) 1. On all taxable income from $0 to $10,000, 4.6% 4.0 percent.

AB872,20 Section 20. 71.06 (2) (g) 2. of the statutes is amended to read:

AB872,12,14 71.06 (2) (g) 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.15% 5.84 percent.

AB872,21 Section 21. 71.06 (2) (g) 3. of the statutes is amended to read:

AB872,12,17 71.06 (2) (g) 3. On all taxable income exceeding $20,000 but not exceeding $150,000, 6.5% 6.27 percent.

AB872,22 Section 22. 71.06 (2) (h) (intro.) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,12,21 71.06 (2) (h) (intro.) For married persons filing separately, for taxable years beginning after December 31, 2000, and before January 1, 2013:

AB872,23 Section 23. 71.06 (2) (h) 1. of the statutes is amended to read:

AB872,12,23 71.06 (2) (h) 1. On all taxable income from $0 to $5,000, 4.6% 4.0 percent.

AB872,24 Section 24. 71.06 (2) (h) 2. of the statutes is amended to read:

AB872,13,2 71.06 (2) (h) 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.15% 5.84 percent.

AB872,25 Section 25. 71.06 (2) (h) 3. of the statutes is amended to read:

AB872,13,5 71.06 (2) (h) 3. On all taxable income exceeding $10,000 but not exceeding $75,000, 6.5% 6.27 percent.

AB872,26 Section 26. 71.06 (2) (i) of the statutes, as created by 2013 Wisconsin Act 20, is repealed.

AB872,27 Section 27. 71.06 (2) (j) of the statutes, as created by 2013 Wisconsin Act 20, is repealed.

AB872,28 Section 28. 71.06 (2e) (a) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,14,7 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before January 1, 2000, 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), and for taxable years beginning after December 31, 1999, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a) to (c), (1q) (a) and (b), and (2) (e), (f), (g) 1. to 3., and (h) 1. to 3., (i) 1. and 2., and (j) 1. and 2., 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 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased 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 1999, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB872,29 Section 29. 71.06 (2e) (b) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,14,21 71.06 (2e) (b) For taxable years beginning after December 31, 2009, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1p) (d), (1q) (c), and (2) (g) 4., and (h) 4., (i) 3., and (j) 3., and the dollar amount in the top bracket under subs. (1p) (e), (1q) (d), and (2) (g) 5., and (h) 5., (i) 4., and (j) 4. , 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 2008, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB872,30 Section 30. 71.06 (2m) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,15,2 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), 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.

AB872,31 Section 31. 71.06 (2s) (d) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,15,17 71.06 (2s) (d) For taxable years beginning after December 31, 2000, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1p), (1q), and (2) (g), and (h), (i), and (j) 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. (1p), (1q), and (2) (g), and (h), (i), and (j) 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.

AB872,32 Section 32. 71.07 (5n) of the statutes, as affected by 2013 Wisconsin Act 54, is repealed.

AB872,33 Section 33. 71.07 (9e) (af) (intro.) of the statutes is amended to read:

AB872,15,25 71.07 (9e) (af) (intro.) For taxable years beginning after December 31, 1995, and before January 1, 2011, any natural person may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the Internal Revenue Code:

AB872,34 Section 34. 71.07 (9e) (aj) of the statutes is repealed.

AB872,35 Section 35. 71.10 (4) (cr) of the statutes is repealed.

AB872,36 Section 36. 71.125 (1) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,16,8 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), (1p), (1q), 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.

AB872,37 Section 37. 71.125 (2) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,16,15 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1) of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1), (1m), (1n), or (1p), or (1q), whichever taxable year is applicable, on its income as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12), (19) and (20).

AB872,38 Section 38. 71.17 (6) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,16,21 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under section 685 of the Internal Revenue Code for federal income tax purposes, that election applies for purposes of this chapter and each trust shall compute its own tax and shall apply the rates under s. 71.06 (1), (1m), (1n), or (1p), or (1q).

AB872,39 Section 39. 71.21 (4) (b) of the statutes is repealed.

AB872,40 Section 40. 71.255 (2m) (d) of the statutes is amended to read:

AB872,17,2 71.255 (2m) (d) The department may not shall disregard the tax effect of an election under this subsection, or disallow the election, with respect to any controlled group member or members for any year of the election period , if the department determines that the election has the effect of tax avoidance.

AB872,41 Section 41. 71.255 (6) (a) of the statutes is amended to read:

AB872,17,12 71.255 (6) (a) Except as provided in pars. (b), (bm), and (c) no tax credit, Wisconsin net business loss carry-forward, or other post-apportionment deduction earned by one member of the combined group, but not fully used by or allowed to that member, may be used in whole or in part by another member of the combined group or applied in whole or in part against the total income of the combined group. A member of a combined group may use a carry-forward of a credit, Wisconsin net business loss carry-forward, or other post-apportionment deduction otherwise allowable under s. 71.26 or 71.45, that was incurred by that same member in a taxable year beginning before January 1, 2009.

AB872,42 Section 42. 71.255 (6) (bm) of the statutes is repealed.

AB872,43 Section 43. 71.26 (2) (a) 11. of the statutes is repealed.

AB872,44 Section 44. 71.26 (4) (a) of the statutes is renumbered 71.26 (4) and amended to read:

AB872,18,8 71.26 (4) Except as provided in par. (b), a A corporation, except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss sustained in any of the next 15 preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was sustained, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.

AB872,45 Section 45. 71.26 (4) (b) of the statutes is repealed.

AB872,46 Section 46. 71.28 (5n) of the statutes, as affected by 2013 Wisconsin Act 54, is repealed.

AB872,47 Section 47. 71.30 (3) (dn) of the statutes is repealed.

AB872,48 Section 48. 71.34 (1k) (m) of the statutes is repealed.

AB872,49 Section 49. 71.36 (1m) (a) of the statutes is amended to read:

AB872,18,18 71.36 (1m) (a) A tax-option corporation may deduct from its net income all amounts included in the Wisconsin adjusted gross income of its shareholders, the capital gain deduction under s. 71.05 (6) (b) 9. and all amounts not taxable to nonresident shareholders under ss. 71.04 (1) and (4) to (9) and 71.362.

AB872,50 Section 50. 71.45 (4) (a) of the statutes is renumbered 71.45 (4) and amended to read:

AB872,19,5 71.45 (4) Except as provided in par. (b), insurers Insurers computing tax under this subchapter may subtract from Wisconsin net income any Wisconsin net business loss sustained in any of the next 15 preceding taxable years to the extent not offset by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed and computed without regard to sub. (2) (a) 8. and 9. and this subsection and limited to the amount of net income, but no loss incurred for a taxable year before taxable year 1987 by a nonprofit service plan of sickness care under ch. 148, or dental care under s. 447.13 may be treated as a net business loss of the successor service insurer under ch. 613 operating by virtue of s. 148.03 or 447.13.

AB872,51 Section 51. 71.45 (4) (b) of the statutes is repealed.

AB872,52 Section 52. 71.54 (1) (f) (intro.) of the statutes is amended to read:

AB872,19,11 71.54 (1) (f) 2001 to 2011 and thereafter. (intro.) Subject to sub. (2m), the amount of any claim filed in 2001 to 2011 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

AB872,53 Section 53. 71.54 (1) (g) of the statutes is repealed.

AB872,54 Section 54. 71.54 (2) (b) 3. of the statutes is amended to read:

AB872,19,15 71.54 (2) (b) 3. Subject to sub. (2m), in calendar years 1990 to 2010 year 1990 or any subsequent calendar year, $1,450.

AB872,55 Section 55. 71.54 (2) (b) 4. of the statutes is repealed.

AB872,56 Section 56. 71.54 (2m) of the statutes is amended to read:

AB872,20,9 71.54 (2m) Indexing for inflation; 2010 and thereafter. (a) For calendar years beginning after December 31, 2009, and before January 1, 2011, the dollar amounts of the threshold income under sub. (1) (f) 1. and 2., the maximum household income under sub. (1) (f) 3. and the maximum property taxes under sub. (2) (b) 3. 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 12-month average of the U.S. consumer price index for the month of August of the year before the previous year through the month of July of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the 12-month average of the U.S. consumer price index for August 2007 through July 2008, as determined by the federal department of labor, except that the adjustment may occur only if the percentage is a positive number. Each amount that is revised under this paragraph 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 paragraph and incorporate the changes into the income tax forms and instructions.

AB872,20,15 (b) The department of revenue shall annually adjust the slope under sub. (1) (f) 2. such that, as a claimant's income increases from the threshold income as calculated under par. (a), to an amount that exceeds the maximum household income as calculated under par. (a), the credit that may be claimed is reduced to $0 and the department of revenue shall incorporate the changes into the income tax forms and instructions.

AB872,57 Section 57. 71.64 (9) (b) (intro.) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,20,21 71.64 (9) (b) (intro.) 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), (1p), (1q), and (2) resulting from statutory changes, except as follows:

AB872,58 Section 58. 71.67 (5) (a) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,21,4 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), (1m), (1n), or (1p), or (1q) if the amount of the payment is more than $1,000.

AB872,59 Section 59. 71.67 (5m) of the statutes, as affected by 2013 Wisconsin Act 20, is amended to read:

AB872,21,13 71.67 (5m) Withholding from payments to purchase assignment of lottery prize. A person that purchases an assignment of a lottery prize shall withhold from the amount of any payment made to purchase the assignment the amount that is determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), or (1p), or (1q). Subsection (5) (b), (c) and (d), as it applies to the amounts withheld under sub. (5) (a), applies to the amount withheld under this subsection.

AB872,60 Section 60 . Initial applicability.

AB872,21,16 (1) The treatment of section 71.255 (2m) (d) of the statutes first applies retroactively to taxable years beginning on January 1, 2009.

AB872,21,20 (2) The treatment of sections 71.01 (14), 71.05 (6) (a) 25. and (b) 9m., 25., and 47. b. and c., (8) (b), and (25) (b) (intro.), 71.07 (5n), 71.10 (4) (cr), 71.21 (4) (b), 71.26 (2) (a) 11., 71.28 (5n), 71.30 (3) (dn), 71.34 (1k) (m), and 71.36 (1m) (a) of the statutes first applies to taxable years beginning on January 1, 2014.

AB872,21,23 (3) The treatment of section 71.06 (1p) (intro.), (a), (b), and (c), (1q), (2) (g) (intro.), 1., 2., and 3., (h) (intro.), 1., 2., and 3., (i), and (j), and (2e) (a) and (b) of the statutes first applies retroactively to taxable years beginning on January 1, 2013.

AB872,61 Section 61 . Effective dates. This act takes effect on the day after publication, except as follows:

AB872,22,2 (1) The treatment of section 71.255 (2m) (d) of the statutes and Section 60 (1) of this act take effect retroactively to January 1, 2009.

AB872,22,3 (End)