LRBb3172/1
MES:kmg:ijs
1997 - 1998 LEGISLATURE
ASSEMBLY AMENDMENT 21,
TO ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 1997 ASSEMBLY BILL 768
May 6, 1998 - Offered by Representative Wasserman.
AB768-ASA1-AA21,1,6
6"
Section 281t. 71.05 (6) (a) (intro.) of the statutes is amended to read:
AB768-ASA1-AA21,1,87
71.05
(6) (a)
Additions. (intro.) To federal adjusted gross income
, for taxable
8years beginning before January 1, 1998, add:".
AB768-ASA1-AA21,2,5
171.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
2(2di), (2dj), (2dL), (2dr), (2ds)
, and (2dx)
and (3s) and not passed through by a
3partnership, limited liability company or tax-option corporation that has added that
4amount to the partnership's, company's or tax-option corporation's income under s.
571.21 (4) or 71.34 (1) (g).
AB768-ASA1-AA21,2,127
71.05
(6) (b)
Subtractions. (intro.) From federal adjusted gross income
, for
8taxable years beginning before January 1, 1998, subtract to the extent included in
9federal taxable or adjusted gross income unless the modification is an item, other
10than a capital gain deduction under s. 71.36 or interest on U.S. obligations, that is
11passed through to an individual from a tax-option corporation and would be included
12in that corporation's income if it were not a tax-option corporation:".
AB768-ASA1-AA21,4,217
71.05
(22) (dm) (title)
Deduction limits; 1994 and thereafter to 1997
. Except
18as provided in par. (f), for taxable years beginning on or after January 1, 1994,
but
19before January 1, 1998, the Wisconsin standard deduction is whichever of the
20following amounts is appropriate. For a single individual who has a Wisconsin
21adjusted gross income of less than $7,500, the standard deduction is $5,200. For a
22single individual who has a Wisconsin adjusted gross income of at least $7,500 but
23not more than $50,830, the standard deduction is the amount obtained by
24subtracting from $5,200 12% of Wisconsin adjusted gross income in excess of $7,500
1but not less than $0. For a single individual who has a Wisconsin adjusted gross
2income of more than $50,830, the standard deduction is $0. For a head of household
3who has a Wisconsin adjusted gross income of less than $7,500, the standard
4deduction is $7,040. For a head of household who has a Wisconsin adjusted gross
5income of at least $7,500 but not more than $25,000, the standard deduction is the
6amount obtained by subtracting from $7,040 22.515% of Wisconsin adjusted gross
7income in excess of $7,500 but not less than $0. For a head of household who has a
8Wisconsin adjusted gross income of more than $25,000, the standard deduction shall
9be calculated as if the head of household were a single individual. For a married
10couple filing jointly that has an aggregate Wisconsin adjusted gross income of less
11than $10,000, the standard deduction is $8,900. For a married couple filing jointly
12that has an aggregate Wisconsin adjusted gross income of at least $10,000 but not
13more than $55,000, the standard deduction is the amount obtained by subtracting
14from $8,900 19.778% of aggregate Wisconsin adjusted gross income in excess of
15$10,000 but not less than $0. For a married couple filing jointly that has an aggregate
16Wisconsin adjusted gross income of more than $55,000, the standard deduction is $0.
17For a married individual filing separately who has a Wisconsin adjusted gross
18income of less than $4,750, the standard deduction is $4,230. For a married
19individual filing separately who has a Wisconsin adjusted gross income of at least
20$4,750 but not more than $26,140, the standard deduction is the amount obtained
21by subtracting from $4,230 19.778% of Wisconsin adjusted gross income in excess of
22$4,750 but not less than $0. For a married individual filing separately who has a
23Wisconsin adjusted gross income of more than $26,140, the standard deduction is $0.
24The secretary of revenue shall prepare a table under which deductions under this
1paragraph shall be determined. That table shall be published in the department's
2instructional booklets.
AB768-ASA1-AA21,4,86
71.05
(22) (i)
Standard deduction may not be claimed. No standard deduction
7may be claimed under this subsection for taxable years beginning after December 31,
81997.
AB768-ASA1-AA21,4,2010
71.07
(1) Claim of right credit.
Any For taxable years that begin before
11January 1, 1998, any natural person may credit against taxes otherwise due under
12this chapter the decrease in tax under this chapter for the prior taxable year that
13would be attributable to subtracting income taxed for that year under the claim of
14right doctrine but repaid, as calculated under section
1341 of the internal revenue
15code, if the income repaid is greater than $3,000 and the amount is not subtracted
16in computing Wisconsin adjusted gross income or used in computing the credit under
17sub. (5) (a). If the allowable amount of the claim exceeds the claimant's taxes due
18under this chapter the amount of the claim not used to offset those taxes shall be
19certified to the department of administration for payment to the claimant by check,
20share draft or other draft drawn on the general fund.
AB768-ASA1-AA21,4,2522
71.07
(3) Farmland preservation credit. The farmland preservation credit
23under subch. IX may be claimed against taxes otherwise due
except that, subject to
24s. 71.61 (6), no new claim may be filed under this subsection for a taxable year that
25begins after December 31, 1997.
AB768-ASA1-AA21,5,32
71.07
(3m) (e)
Prohibition on filing new claims. No new claim may be filed
3under this subsection for a taxable year that begins after December 31, 1997.
AB768-ASA1-AA21,5,97
71.07
(4) Homestead credit. The homestead credit under subch. VIII may be
8claimed by individuals against taxes otherwise due
, except that no new claim may
9be filed under this subsection for a taxable year that begins after December 31, 1997.
AB768-ASA1-AA21,5,1411
71.07
(5) Itemized deductions credit. (intro.)
Single For taxable years
12beginning before January 1, 1998, single persons, married persons filing separately
13and married persons filing jointly may claim as a credit against, but not to exceed
14the amount of, Wisconsin net income taxes due an amount calculated as follows:
AB768-ASA1-AA21,5,2120
71.07
(7) (c) No new claim may be filed under this subsection for a taxable year
21that begins after December 31, 1997.
AB768-ASA1-AA21,5,2423
71.07
(8) (d) No new claim may be filed under this subsection for a taxable year
24that begins after December 31, 1997.
AB768-ASA1-AA21,6,2
171.07
(9) (g) No new claim may be filed under this subsection for a taxable year
2that begins after December 31, 1997.
AB768-ASA1-AA21,6,54
71.07
(9e) (g) No new claim may be filed under this subsection for a taxable year
5that begins after December 31, 1997.
AB768-ASA1-AA21,6,87
71.07
(9m) (g) No new claim may be filed under this subsection for a taxable
8year that begins after December 31, 1997.
AB768-ASA1-AA21,6,1110
71.07
(9r) (L) No new claim may be filed under this subsection for a taxable
11year that begins after December 31, 1997.".
AB768-ASA1-AA21,6,2321
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
22(2dj), (2dL), (2ds)
, and (2dx)
and (3s) and passed through to partners shall be added
23to the partnership's income.".
AB768-ASA1-AA21,7,32
71.55
(11) Prohibition on filing new claims. No new claim may be filed under
3this subchapter for a taxable year that begins after December 31, 1997.
AB768-ASA1-AA21,7,115
71.61
(6) Prohibition on filing new claims. No new claim may be filed under
6this subchapter for a taxable year that begins after December 31, 1997, except that
7an otherwise eligible claimant who is a party to a farmland preservation agreement
8that is described under s. 71.59 (1) (c) or who is a party to a certificate of a zoning
9authority that is described under s. 71.59 (1) (d), either of which is in effect on the
10effective date of this subsection .... [revisor inserts date], may continue to claim the
11credit under this subchapter until the expiration of the agreement or certificate.
AB768-ASA1-AA21,8,614
71.64
(9) (b) The department shall from time to time adjust the withholding
15tables to reflect any changes in income tax rates, any applicable surtax or any
16changes in dollar amounts in s. 71.06 (1), (1m) and (2) resulting from statutory
17changes, except that the department may not adjust the withholding tables to reflect
18the changes in rates in s. 71.06 (1m) and (2) (c) and (d) and any changes in dollar
19amounts with respect to bracket indexing under s. 71.06 (2e)
and with respect to
20standard deduction indexing under s. 71.05 (22) (ds) for any taxable year that begins
21before January 1, 2000.
The tables shall account for the working families tax credit
22under s. 71.07 (5m). The tables shall be extended to cover from zero to 10 withholding
23exemptions, shall assume that the payment of wages in each pay period will, when
24multiplied by the number of pay periods in a year, reasonably reflect the annual wage
25of the employe from] the employer and shall be based on the further assumption that
1the annual wage will be reduced for allowable deductions from gross income. The
2department may determine the length of the tables and a reasonable span for each
3bracket. In preparing the tables the department shall adjust all withholding
4amounts not an exact multiple of 10 cents to the next highest figure that is a multiple
5of 10 cents. The department shall also provide instructions with the tables for
6withholding with respect to quarterly, semiannual and annual pay periods.".
AB768-ASA1-AA21,8,1910
77.92
(4) "Net business income", with respect to a partnership, means taxable
11income as calculated under section
703 of the internal revenue code; plus the items
12of income and gain under section
702 of the internal revenue code; minus the items
13of loss and deduction under section
702 of the internal revenue code; plus payments
14treated as not made to partners under section
707 (a) of the internal revenue code;
15plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds)
, and 16(2dx)
and (3s); but excluding income, gain, loss and deductions from farming. "Net
17business income", with respect to a natural person, estate or trust, means profit from
18a trade or business for federal income tax purposes and includes net income derived
19as an employe as defined in section
3121 (d) (3) of the internal revenue code.".
AB768-ASA1-AA21,8,22
21"
(2xz) Modification of the individual income tax system, department of
22revenue responsibilities.
AB768-ASA1-AA21,9,3
23(a) The department of revenue shall determine the net economic effect of the
24treatment in this act of sections 71.05 (6) (a) (intro.) and (b) (intro.) and (22) (dm), (ds)
1and (i), 71.07 (1), (3), (3m) (e), (3s), (4), (5) (intro.), (5m), (6) (am), (7) (c), (8) (d), (9)
2(g), (9e) (g), (9m) (g) and (9r) (L), 71.10 (4) (de) and (du), 71.55 (11), 71.61 (6) and 71.64
3(9) (b) of the statutes on the state's revenues.
AB768-ASA1-AA21,9,124
(b) If the department determines that the state will have more revenue because
5of the treatment of the sections listed in paragraph (a) than it would if these
6treatments had not occurred, the department shall calculate the extra amount of
7revenue that the state will have because of the treatment of the statutes listed in
8paragraph (a). The department shall then adjust downward the rates of taxation
9listed in section 71.06 (1m) and (2) (c) and (d) of the statutes, on a proportional basis,
10for taxable years beginning on January 1, 1998, in such a way that the extra amount
11of revenue that the state will have because of the treatment of the statutes listed in
12paragraph (a) is fully expended.".
