SB89,4,1816 71.05 (25) (a) 1m. “Investment” means amounts paid to acquire stock or other
17ownership interest in a partnership, corporation, tax-option corporation, or limited
18liability company treated as a partnership or corporation.
SB89,3 19Section 3. 71.05 (25) (a) 2. of the statutes is amended to read:
SB89,5,8
171.05 (25) (a) 2. “Qualifying gain" means a long-term capital gain under the
2Internal Revenue Code realized from the sale of an investment made after December
331, 2010, and held for at least 5 uninterrupted years in a business that for the year
4of investment and at least 2 of the 4 subsequent years was a qualified Wisconsin
5business; except that a qualifying gain may not include any amount for which the
6claimant claimed a subtraction under sub. (24) (b) or any gain described under sub.
7(26) (b) and may not exceed the fair market value of the investment on the date sold,
8less the fair market value of the investment on the date acquired
.
SB89,4 9Section 4. 71.05 (26) (a) 2m. of the statutes is created to read:
SB89,5,1210 71.05 (26) (a) 2m. “Investment” means amounts paid to acquire stock or other
11ownership interest in a partnership, corporation, tax-option corporation, or limited
12liability company treated as a partnership or corporation.
SB89,5 13Section 5. 71.255 (2) (c) of the statutes is renumbered 71.255 (2) (c) 1. and
14amended to read:
SB89,5,2015 71.255 (2) (c) 1. Except as provided in par. (d), if 80 percent or more of a
16corporation's worldwide income is active foreign business income, as defined in
17section 861 (c) (1) (B) of the Internal Revenue Code,
the income and apportionment
18factor or factors of the corporation shall not be included in the combined report, but
19the corporation shall compute and allocate or apportion its income from the unitary
20business separately.
SB89,6 21Section 6. 71.255 (2) (c) 2. of the statutes is created to read:
SB89,6,222 71.255 (2) (c) 2. For purposes of subd. 1., “active foreign business income”
23means gross income derived from sources outside the United States, as determined
24in subchapter N of the Internal Revenue Code, including income of a subsidiary

1corporation, and attributable to the active conduct of a trade or business in a foreign
2country or in a U.S. possession.
SB89,7 3Section 7. 71.255 (2) (c) 3. of the statutes is created to read:
SB89,6,74 71.255 (2) (c) 3. For purposes of subd. 2., a corporation is considered a
5subsidiary if the parent corporation owns, directly or indirectly, stock with at least
650 percent of the total voting power of the corporation and the stock has a value equal
7to at least 50 percent of the total value of the stock of the corporation.
SB89,8 8Section 8. 71.255 (7) (b) 7. of the statutes is amended to read:
SB89,6,149 71.255 (7) (b) 7. Executing waivers, closing agreements, powers of attorney,
10and other documents as necessary or required regarding the combined report filed
11under sub. (2) (a). Any waiver, agreement, power of attorney, or document executed
12by the designated agent relating to a combined report shall be considered as executed
13by all members of the combined group, including any corporation not included in the
14combined report that the department asserts is a member of the combined group
.
SB89,9 15Section 9. 71.34 (1k) (h) of the statutes is renumbered 71.34 (1k) (h) (intro.)
16and amended to read:
SB89,6,1817 71.34 (1k) (h) (intro.) Section 162 of the internal revenue code Internal
18Revenue Code
(relating to trade or business expenses) is modified so as follows:
SB89,6,21 193. So that payments for wages, salaries, bonuses, interest or other expenses
20paid to an entertainer or entertainment corporation may be deducted only if the
21corporation complies with ss. 71.63 (3) (b), 71.64 (4) and (5), and 71.80 (15) (e).
SB89,10 22Section 10. 71.34 (1k) (h) 1. of the statutes is created to read:
SB89,7,223 71.34 (1k) (h) 1. So that payments for wages, salaries, commissions, and
24bonuses of employees and officers may be deducted only if the name, address, and
25amount paid to each resident of this state to whom compensation of $600 or more has

1been paid during the taxable year is reported or if the department of revenue is
2satisfied that failure to report has resulted in no revenue loss to this state.
SB89,11 3Section 11. 71.34 (1k) (h) 2. of the statutes is created to read:
SB89,7,64 71.34 (1k) (h) 2. So that payments for rent may be deducted only if the amount
5paid, together with the names and addresses of the parties to whom rent has been
6paid, is reported as provided under s. 71.70 (2).
SB89,12 7Section 12. 74.41 (2) (intro.) of the statutes is amended to read:
SB89,7,98 74.41 (2) Amount required for submission. (intro.) A tax may be included on
9a form submitted under sub. (1) only if one all of the following applies apply:
SB89,13 10Section 13. 74.41 (2) (a) of the statutes is repealed.
SB89,14 11Section 14. 74.41 (2) (b) of the statutes is amended to read:
SB89,7,1312 74.41 (2) (b) The tax under sub. (1) for any single description of property in the
13tax roll for any one year is $500 $250 or more.
SB89,15 14Section 15. 74.41 (2) (bm) of the statutes is created to read:
SB89,7,1915 74.41 (2) (bm) The tax under sub. (1) was refunded or rescinded for any of the
165 assessment years immediately preceding the year in which the form under sub. (1)
17is submitted or refunded or rescinded because of a court determination and
18submitted under sub. (1) no later than one year after the date of the court's
19determination.
SB89,16 20Section 16. 77.51 (5) of the statutes is amended to read:
SB89,8,721 77.51 (5) For purposes of subs. (13) (e) and (f) and (15a) and s. 77.52 (2m),
22“incidental" means depending upon or appertaining to something else as primary;
23something necessary, appertaining to, or depending upon another which is termed
24the principal; or something incidental to the main purpose of the service. Tangible
25personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d)

1transferred by a service provider in conjunction with the sale of a service is incidental
2to the service if the purchaser's main purpose or objective is to obtain the service
3rather than the property, items, or goods, even though the property, items, or goods
4may be necessary or essential to providing the service. Tangible personal property
5or items, property, or goods under s. 77.52 (1) (b), (c), or (d) transferred by a service
6provider in conjunction with the sale of a service is not incidental to the service if the
7service provider charges a separate and optional fee for the property, items, or goods.
SB89,17 8Section 17. 77.51 (11d) of the statutes is amended to read:
SB89,8,129 77.51 (11d) For purposes of subs. (1ag), (1f), (3pf), and (9p), and (17g) and ss.
1077.52 (4), (20), and (21), 77.522, and 77.54 (51), (52), and (60), “product" includes
11tangible personal property, and items, property, and goods under s. 77.52 (1) (b), (c),
12and (d), and services.
SB89,18 13Section 18. 77.51 (13) (fm) of the statutes is created to read:
SB89,8,1514 77.51 (13) (fm) A person selling, performing, or furnishing any service under
15s. 77.52 (2) (a) 5. or 12. to a service provider described in s. 77.52 (2m) (am).
SB89,19 16Section 19. 77.51 (17g) of the statutes is created to read:
SB89,8,1817 77.51 (17g) “Separate and optional fee” means a fee charged to receive a
18distinct and identifiable product, if any of the following applies:
SB89,8,2319 (a) The fee is in addition to fees that the seller charges for other distinct and
20identifiable products sold to the same buyer, the fee is separately set forth on the
21invoice given by the seller to the buyer, and the seller does not require the buyer to
22pay the fee if the buyer chooses not to receive the additional distinct and identifiable
23product for which the fee applies.
SB89,9,524 (b) The seller charges a single amount for multiple distinct and identifiable
25products and offers the buyer the option of paying a lower amount if the buyer

1chooses not to receive one or more of the distinct and identifiable products. For
2purposes of this paragraph, the separate and optional fee is the single amount the
3seller charges for the multiple distinct and identifiable products less the reduced
4amount the seller charges to the buyer because the buyer chooses not to receive one
5or more of the products.
SB89,20 6Section 20. 77.52 (2m) (am) of the statutes is created to read:
SB89,9,107 77.52 (2m) (am) A person selling, performing, or furnishing any service in sub.
8(2) (a) 1., regardless of whether the selling, performing, or furnishing of the service
9is a retail sale, is the consumer of any services under sub. (2) (a) 5. or 12. purchased
10by the person for the person's use or for the use of the person's customers.
SB89,21 11Section 21. 77.52 (4) of the statutes is created to read:
SB89,9,1412 77.52 (4) If a seller charges a separate and optional fee for a product, the fee
13is a separate sale and the tax treatment is determined independently from fees that
14the seller charges for other products.
SB89,22 15Section 22. 77.54 (30) (a) 6. of the statutes is amended to read:
SB89,9,1816 77.54 (30) (a) 6. Fuel and electricity consumed directly in manufacturing
17tangible personal property, or items or property under s. 77.52 (1) (b) or (c), in this
18state.
SB89,23 19Section 23. 77.54 (30) (g) of the statutes is created to read:
SB89,9,2520 77.54 (30) (g) For purposes of par. (a) 6., fuel and electricity “consumed directly
21in manufacturing” means only fuel and electricity used to operate machines and
22equipment used directly in the step-by-step manufacturing process. For purposes
23of par. (a) 6., fuel and electricity are not “consumed directly in manufacturing” if they
24are used in providing plant heating or cooling, air conditioning, communications,
25lighting, safety and fire prevention, research and product development, receiving,

1storage, sales, distribution, warehousing, shipping, advertising, or administrative
2activities. For purposes of par. (a) 6., fuel and electricity used directly in
3manufacturing steam that is used by the manufacturer in further manufacturing or
4to heat a facility, or both, is consumed directly in manufacturing.
SB89,24 5Section 24. 77.54 (64) of the statutes is created to read:
SB89,10,86 77.54 (64) The sales price from the sale of and the storage, use, or other
7consumption of patient health care records that are sold to the patient or to a person
8that the patient authorizes to receive the records.
SB89,25 9Section 25. 77.70 of the statutes is amended to read:
SB89,10,25 1077.70 Adoption by county ordinance. Any county desiring to impose county
11sales and use taxes under this subchapter may do so by the adoption of an ordinance,
12stating its purpose and referring to this subchapter. The rate of the tax imposed
13under this section is 0.5 percent of the sales price or purchase price. The county sales
14and use taxes may be imposed only for the purpose of directly reducing the property
15tax levy and only in their entirety as provided in this subchapter. That ordinance
16shall be effective on the first day of January, the first day of April, the first day of July
17or the first day of October. A certified copy of that ordinance shall be delivered to the
18secretary of revenue at least 120 days prior to its effective date. The repeal of any
19such ordinance shall be effective on December 31. A certified copy of a repeal
20ordinance shall be delivered to the secretary of revenue at least 120 days before the
21effective date of the repeal. Except as provided under s. 77.60 (9), the department
22of revenue may not issue any assessment nor act on any claim for a refund or any
23claim for an adjustment under s. 77.585 after the end of the calendar year that is 4
24years after the year in which the county has enacted a repeal ordinance under this
25section.
SB89,26
1Section 26. 77.76 (3) of the statutes is amended to read:
SB89,11,242 77.76 (3) From the appropriation under s. 20.835 (4) (g) the department of
3revenue
shall distribute 98.25 percent of the county taxes reported for each enacting
4county, minus the county portion of the retailers' discounts, to the county and shall
5indicate the taxes reported by each taxpayer, no later than 75 days following the last
6day of the calendar quarter in which such amounts were reported. In this subsection,
7the “county portion of the retailers' discount" is the amount determined by
8multiplying the total retailers' discount by a fraction the numerator of which is the
9gross county sales and use taxes payable and the denominator of which is the sum
10of the gross state and county sales and use taxes payable. The county taxes
11distributed shall be increased or decreased to reflect subsequent refunds, audit
12adjustments, and all other adjustments of the county taxes previously distributed.
13Interest paid on refunds of county sales and use taxes shall be paid from the
14appropriation under s. 20.835 (4) (g) at the rate paid by this state under s. 77.60 (1)
15(a). The county may retain the amount it receives or it may distribute all or a portion
16of the amount it receives to the towns, villages, cities, and school districts in the
17county. After receiving notice from the department of revenue, a county shall
18reimburse the department for the amount by which any refunds, including interest,
19of the county's sales and use taxes that the department pays or allows in a reporting
20period exceeds the amount of the county's sales and use taxes otherwise payable to
21the county under this subsection for the same or subsequent reporting period.
Any
22county receiving a report under this subsection is subject to the duties of
23confidentiality to which the department of revenue is subject under s. 77.61 (5) and
24(6).
SB89,27 25Section 27. 77.82 (8) of the statutes is amended to read:
SB89,12,8
177.82 (8) Order. If an application under sub. (2), (4m), or (12) is approved, the
2department shall issue an order designating the land as managed forest land for the
3time period specified in the application. If an application under sub. (4) is approved,
4the department shall amend the original order to include the additional parcel. The
5department shall provide the applicant with a copy of the order or amended order and
6shall also file a copy with the department of revenue, the supervisor of assessments,
7and the clerk of each municipality in which the land is located, and shall record the
8order with the register of deeds in each county in which the land is located.
SB89,28 9Section 28. 77.98 (3) of the statutes is amended to read:
SB89,12,1510 77.98 (3) Except as provided in sub. (4), for For purposes of sub. (1) (a),
11“premises" shall be broadly construed and shall include the lobby, aisles, and
12auditorium of a theater or the seating, aisles, and parking area of an arena, a rink,
13or a stadium, or the parking area of a drive-in or an outdoor theater. The premises
14of a caterer with respect to catered meals or beverages shall be the place where
15served.
SB89,29 16Section 29. 77.98 (4) (a) of the statutes is amended to read:
SB89,13,217 77.98 (4) (a) Except as provided in par. (b), the tax imposed under this section
18shall not be imposed on the sale of alcoholic beverages, candy, prepared food, or soft
19drinks sold by a person primarily engaged, as determined by the department, in the
20retail trade as a food and beverage store, as classified under sector 44-45, subsector
21445, of the North American Industry Classification System, 1997 2017 edition,
22published by the U.S. office of management and budget, beginning on the first day
23of the calendar quarter that is at least 120 days after the date on which the bonds
24issued by the district under subch. II of ch. 229 during the first 60 months after April
2526, 1994, and any debt issued to fund or refund those bonds, are retired. The district

1shall notify the department of revenue, in the manner prescribed by the department,
2when such bonds and debt are retired.
SB89,30 3Section 30. 125.02 (18) of the statutes is renumbered 125.02 (18) (intro.) and
4amended to read:
SB89,13,115 125.02 (18) (intro.) “Restaurant" means a restaurant, as defined in s. 97.01
6(14g).
any building, room, or place where meals are prepared or served or sold to
7transients or the general public, including all places used in connection with it and
8including any public or private school lunchroom for which food service is provided
9by contract. For purposes of this subsection, “meals" does not include soft drinks, ice
10cream, milk, milk drinks, ices, and confections. “Restaurant" does not include any
11of the following:
SB89,31 12Section 31. 125.02 (18) (a) to (h) of the statutes are created to read:
SB89,13,1413 125.02 (18) (a) Taverns that serve free lunches consisting of popcorn, cheese,
14crackers, pretzels, cold sausage, cured fish, or bread and butter.
SB89,13,1715 (b) Churches, religious, fraternal, youths' or patriotic organizations, service
16clubs and civic organizations which occasionally prepare, serve, or sell meals to
17transients or the general public.
SB89,13,2018 (c) Any public or private school lunchroom for which food service is directly
19provided by the school, or a private individual selling foods from a movable or
20temporary stand at public farm sales.
SB89,13,2221 (d) Any bed and breakfast establishment, as defined in s. 97.01 (1g), that serves
22breakfasts only to its lodgers.
SB89,13,2423 (e) The serving of food or beverage through a licensed vending machine, as
24defined in s. 97.01 (15p).
SB89,14,4
1(f) Any college campus, as defined in s. 36.05 (6m), institution as defined in s.
236.51 (1) (b), or technical college that serves meals only to the students enrolled in
3the college campus, institution, or technical college or to authorized elderly persons
4under s. 36.51 or 38.36.
SB89,14,65 (g) A concession stand at a locally sponsored sporting event, such as a little
6league game.
SB89,14,77 (h) A potluck event, as defined in s. 97.01 (13g).
SB89,32 8Section 32. 125.29 (6) of the statutes is amended to read:
SB89,14,169 125.29 (6) Restaurants. A brewer may operate a restaurant on the brewery
10premises and at an off-site retail outlet established by the brewer. A brewer may not
11hold a license under s. 97.30 for a restaurant for the operation of operate a restaurant
12at any other location except that a brewer may possess or hold an indirect interest
13in a Class “B" license for not more than 20 restaurants in each of which the sale of
14alcohol beverages accounts for less than 60 percent of the restaurant's gross receipts
15if no fermented malt beverages manufactured by the brewer are offered for sale in
16any of these restaurants.
SB89,33 17Section 33. 139.11 (4) (a) of the statutes is renumbered 139.11 (4) (a) (intro.)
18and amended to read:
SB89,14,2419 139.11 (4) (a) (intro.) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3.
20and 3m., relating to confidentiality of income and franchise tax returns, apply to any
21information obtained from any person on a fermented malt beverage tax return,
22report, schedule, exhibit, or other document or from an audit report relating to any
23of those documents, except that the department of revenue shall publish brewery the
24following:
SB89,14,25 251. Brewery production and sales statistics.
SB89,34
1Section 34. 139.11 (4) (a) 2. of the statutes is created to read:
SB89,15,72 139.11 (4) (a) 2. A current list, available on paper and on the department's
3Internet site, providing detailed information regarding every person issued a
4wholesalers permit under s. 125.28, brewers permit under s. 125.29, brewpub permit
5under s. 125.295, or out-of-state shippers permit under s. 125.30. The information
6provided under this subdivision shall include the name and address of the permit
7holder and the date on which the department issued the permit.
SB89,35 8Section 35. 139.38 (6) of the statutes is amended to read:
SB89,15,169 139.38 (6) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m.,
10relating to confidentiality of income and franchise tax returns, apply to any
11information obtained from any person on a cigarette tax return, report, schedule,
12exhibit, or other document or from an audit report pertaining to the same return,
13report, schedule, exhibit, or document, except that the department shall publish on
14its Internet site, at least quarterly, a current list of permits issued to distributors and
15jobbers under s. 139.34 and include on the list the name and address of the permit
16holder and the date on which the department issued the permit
.
SB89,36 17Section 36. 139.82 (6) of the statutes is amended to read:
SB89,16,218 139.82 (6) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m.,
19relating to confidentiality of income and franchise tax returns, apply to any
20information obtained from any person on a tobacco product tax return, report,
21schedule, exhibit, or other document or from an audit report pertaining to the same
22return, report, schedule, exhibit, or document, except that the department shall
23publish on its Internet site, at least quarterly, a current list of permits issued to
24distributors and subjobbers under s. 139.79 and include on the list the name and

1address of the permit holder and the date on which the department issued the
2permit
.
SB89,37 3Section 37. 177.24 (3) (a) of the statutes is amended to read:
SB89,16,144 177.24 (3) (a) Except as provided in par. pars. (b) and (c), if a claim is allowed,
5the administrator shall deliver the property to the claimant or pay the claimant the
6amount the administrator actually received or the net proceeds of the sale of the
7property, together with any additional amount required under s. 177.21. If the
8property claimed was interest bearing to the owner on the date of surrender by the
9holder, the administrator shall pay interest at a rate of 6 percent per year or any
10lesser rate the property earned while in the possession of the holder. Interest begins
11to accrue when the property is delivered to the administrator and ceases on the
12earlier of the expiration of 10 years after delivery or the date on which payment is
13made to the owner. No interest on interest-bearing property is payable for any
14period before December 31, 1984.
SB89,38 15Section 38. 177.24 (3) (c) of the statutes is created to read:
SB89,16,1716 177.24 (3) (c) The administrator shall not pay interest under par. (a) on claimed
17property that is a U.S. savings bond.
SB89,39 18Section 39. 196.025 (6) (b) 1. of the statutes is amended to read:
SB89,17,919 196.025 (6) (b) 1. Except as provided in subd. 2., a communications provider
20shall impose collect from each subscriber a monthly fee of $0.75 on each
21communications service connection with an assigned telephone number, including
22a communication service provided via a voice over Internet protocol connection. If
23a communications provider provides multiple communications service connections
24to a subscriber, the fee required to be collected by the communications provider under
25this subdivision
shall impose be a separate fee under this subdivision on each of the

1first 10 connections and one additional fee for each 10 additional connections per
2billed account. A communications provider may list the fee separately from other
3charges on a subscriber's bill, and if a communications provider does so, the
4communications provider shall identify the fee as “police and fire protection fee," or,
5if the communications provider combines the fee with a charge imposed under s.
6256.35 (3), the communications provider shall identify the combined fee and charge
7as “charge for funding countywide 911 systems plus police and fire protection fee."
8Any partial payment of a fee by a subscriber shall first be applied to any amount the
9subscriber owes the communications provider for communications service.
SB89,40 10Section 40. 196.025 (6) (b) 2. of the statutes is amended to read:
SB89,17,1811 196.025 (6) (b) 2. A communications provider that offers a prepaid wireless
12telecommunications plan, or a retailer that offers such a plan on behalf of a
13communications provider, shall impose collect from each subscriber or purchaser a
14fee equal to $0.38 on each retail transaction for such a plan that occurs in this state.
15A communications provider or retailer may state the amount of the fee separately on
16a bill for the retail transaction, and if a communications provider or retailer does so,
17the communications provider or retailer shall identify the fee as “police and fire
18protection fee."
SB89,41 19Section 41. 196.025 (6) (c) 2. of the statutes is amended to read:
SB89,17,2520 196.025 (6) (c) 2. The commission may contract with the department for the
21collection of fees imposed under par. (b) 2. If the commission and department enter
22into such a contract, no later than the first calendar month following the calendar
23month in which a communications provider or retailer receives from a subscriber a
24fee imposed under par. (b) 2., the communications provider or retailer shall remit
25the fee to the department.
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