LRB-4571/1
JK:ahe
2017 - 2018 LEGISLATURE
October 27, 2017 - Introduced by Senators Feyen,
Bewley, Carpenter, Erpenbach,
Johnson, Olsen, Risser, Wirch and Larson, cosponsored by Representatives
Neylon, C. Taylor, Anderson, Barca, Berceau, R. Brooks, Brostoff,
Considine, Duchow, Fields, Genrich, Hebl, Hesselbein, Horlacher, Jacque,
Kolste, Murphy, Mursau, Novak, Ohnstad, Petryk, Pope, Quinn, Riemer,
Sargent, Sinicki, Skowronski, Spiros, Spreitzer, Subeck, Thiesfeldt, Tittl,
Vruwink and Wachs. Referred to Committee on Revenue, Financial
Institutions and Rural Issues.
SB481,1,4
1An Act to create 71.01 (8j), 71.05 (6) (a) 29., 71.21 (6), 71.26 (3) (e) 4., 71.34 (1k)
2(o) and 71.45 (2) (a) 20. of the statutes;
relating to: eliminating deductions for
3moving expenses for businesses that move out of the state or out of the United
4States.
Analysis by the Legislative Reference Bureau
Under current law, a business may deduct from its income or franchise tax
liability all expenses that the business paid to move its operations from one location
to another, including expenses paid to relocate outside the state. Under this bill, a
business may not deduct expenses paid to move outside the state or outside the
United States.
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:
SB481,1
5Section
1. 71.01 (8j) of the statutes is created to read:
SB481,1,76
71.01
(8j) For purposes of ss. 71.05 (6) (a) 29., 71.21 (6), 71.26 (3) (e) 4., 71.34
7(1k) (o), and 71.45 (2) (a) 20., “moving expenses” means all of the following:
SB481,2,1
1(a) Van rentals.
SB481,2,22
(b) Storage rentals.
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(c) Moving company expenses for packing, unpacking, and transportation.
SB481,2,44
(d) Consulting fees and surveys.
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(e) Brokerage commissions or fees.
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(f) Architecture, design, and remodeling expenses.
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(g) Expenses paid or incurred to sell property in this state.
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(h) Loss on the sale of property in this state.
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(i) Lease cancellation fees.
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(j) Expenses paid or incurred for professional services, including legal services.
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(k) Utility fees.
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(L) Employee wages.
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(m) Reimbursement of an employee's expenses.
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(n) The cost of meals, lodging, and fuel.
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(o) Mileage deductions for vehicle use.
SB481,2
16Section
2. 71.05 (6) (a) 29. of the statutes is created to read:
SB481,2,2017
71.05
(6) (a) 29. The amount deducted under section
162 of the Internal
18Revenue Code as moving expenses, as defined in s. 71.01 (8j), paid or incurred during
19the taxable year to move the taxpayer's business operation, in whole or in part, to a
20location outside the state or outside the United States.
SB481,3
21Section
3. 71.21 (6) of the statutes is created to read:
SB481,2,2522
71.21
(6) A deduction under section
162 of the Internal Revenue Code for
23moving expenses, as defined in s. 71.01 (8j), paid or incurred during the taxable year
24to move the taxpayer's business operation, in whole or in part, to a location outside
25the state or outside the United States is not allowed.
SB481,4
1Section
4. 71.26 (3) (e) 4. of the statutes is created to read:
SB481,3,52
71.26
(3) (e) 4. So that moving expenses, as defined in s. 71.01 (8j), paid or
3incurred during the taxable year to move the taxpayer's business operation, in whole
4or in part, to a location outside the state or outside the United States may not be
5deducted as provided under section
162 of the Internal Revenue Code.
SB481,5
6Section
5. 71.34 (1k) (o) of the statutes is created to read:
SB481,3,107
71.34
(1k) (o) An addition shall be made for any amount deducted under section
8162 of the Internal Revenue Code as moving expenses, as defined in s. 71.01 (8j), paid
9or incurred during the taxable year to move the taxpayer's business operation, in
10whole or in part, to a location outside the state or outside the United States.
SB481,6
11Section
6. 71.45 (2) (a) 20. of the statutes is created to read:
SB481,3,1612
71.45
(2) (a) 20. By adding to federal taxable income any amount deducted
13under section
162 of the Internal Revenue Code as moving expenses, as defined in
14s. 71.01 (8j), paid or incurred during the taxable year to move the taxpayer's business
15operation, in whole or in part, to a location outside the state or outside the United
16States.
SB481,7
17Section
7.
Initial applicability.
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(1) This act first applies to taxable years beginning on January 1, 2018.
