This bill creates a refundable individual income tax credit for amounts spent
by a claimant for the claimant's dependent child on eligible educational expenses at
public schools, certain private schools and home-based educational programs,
grades kindergarten through 12. Under the bill, "educational expenses" include
amounts that are spent for tutoring, summer courses, transportation costs paid to
others, nonreligious instructional materials and up to $500 per year for computers
and related educational materials to be used in the claimant's home and not used in
a trade or business.
The maximum credit that may be claimed under the bill by a state resident is
$1,000 per child per year, up to a maximum credit of $2,000 per family per year. A
nonresident or part-year resident of this state is eligible to claim a lesser credit. The
credit may not be claimed by a claimant if, for a married couple filing jointly, his or
her federal adjusted gross income (AGI) exceeds $30,000 to $60,000, depending on
the number of children the claimant has. For a married couple filing separately, the
maximum federal AGI is $15,000 to $30,000, depending on the number of children
the claimant has, and, for a single person or married person filing as head of
household, the maximum federal AGI is $25,000 to $55,000, depending on the
number of children the claimant has.
This individual income tax credit is refundable. If the amount of the credit
exceeds the taxpayer's income tax liability, the difference will be refunded to the
taxpayer by check.
The bill also allows individuals to subtract from their income for tax purposes
amounts paid for "educational expenses", as defined in the credit, for dependent
children who attend kindergarten through grade 12 at the same types of schools and
programs as authorized under the tax credit.
The maximum amount of the deduction is $1,500 per child per year, and may
not be claimed for any amount for which a claim is made under the education tax
credit that is created in the bill. Also under the bill, the amount of the deduction
which a claimant may claim phases down to zero as a claimant's income rises. For
a married claimant who files a joint return, the credit phases out as federal AGI
increases from more than $80,000 to not more than $100,000; for a married claimant
who files a separate return, the credit phases out as federal AGI increases from more
than $40,000 to not more than $50,000; and for a single filer or married person filing
as head of household, the credit phases out as federal AGI increases from more than
$50,000 to not more than $60,000.
The bill also creates a higher education individual income tax deduction for
amounts paid for tuition to attend any university, college, technical college or
proprietary school, all of which must be located in Wisconsin, or for tuition to attend
a public vocational school or public institution of higher education in Minnesota
under the state tuition reciprocity program. The maximum amount of the deduction
is $3,000 per student per year, and may be claimed for tuition expenses of the
claimant or of the claimant's child. The maximum amount of the deduction phases

down to zero as the claimant's income rises in the same manner as the "K-12"
deduction.
Under current law, federal income tax laws that were enacted during 1997 and
that took effect before January 1, 1998, apply for Wisconsin income tax purposes at
the same time that they apply for federal purposes. This bill adopts for Wisconsin
purposes the parts of those acts that take effect on or after January 1, 1998. The bill
makes one exception; the deduction for interest on qualified education loans is
limited to interest paid while the taxpayer is a Wisconsin resident.
The bill also allows taxpayers, for taxable years that begin on or after January
1, 1998, to compute their deductions for depreciation under either the Internal
Revenue Code in effect for the year that the return is filed or the Internal Revenue
Code as amended to December 31, 1997. Under current law, for property placed in
service in 1997, taxpayers do not have an option to use federal changes made late in
1997.
Property Taxation
This bill exempts computers and related property from the property tax,
beginning with the assessment as of January 1, 1999. The bill also creates a payment
to municipalities, counties, school districts and technical college districts that is
based in part of the value of the exempt computers and related property in each
jurisdiction and that is first paid in the year 2000. On or before June 30, 1999,
$64,000,000 is transferred to the computer escrow fund, which is created by the bill,
to be used for the payments in the year 2000.
Other taxation
This bill creates a tax amnesty program that runs from June 15, 1998, to August
14, 1998. Under the program, persons who fulfill certain requirements are relieved
of some of their financial obligations to this state. The bill also increases the
department of revenue's (DOR's) capacity to collect delinquent taxes. Among the
means to do so are establishing a collection fee for persons who fail to take advantage
of the amnesty programs, expanding the state's authority to subtract delinquent
taxes owed from its payments to vendors, allowing DOR to require instalment
payments to be made by electronic funds transfer and imposing penalties on late
payments of withheld taxes.
Currently, a recipient of public assistance has a right to confidentiality of
records and files on the recipient, although the existence of that right does not
prohibit the use of those records and files for auditing or accounting purposes. This
bill allows the department of workforce development (DWD) to use information
obtained from public assistance recipients for purposes related to the collection of
delinquent state taxes.
The bill also allows DWD and county child support agencies to release to DOR
information obtained under child and spousal support and establishment of
paternity and medical liability support programs for purposes related to the

collection of delinquent state taxes. Under current law, information obtained under
DWD's program may only be disclosed in the administration of that program, as well
as other specified support-related programs.
Under current law, certain records relating to worker's compensation
maintained by DWD are confidential and may not be disclosed under the open
records law. Those records include records that reveal the identity of an employe who
claims worker's compensation benefits and records that contain any financial
information provided to DWD by a self-insured employer. Those records may,
however, be disclosed to the employe or self-insured employer that is the subject of
the record or to an insurance carrier or employer that is a party to the employe's
worker's compensation claim and may be disclosed on the order of a court of
competent jurisdiction in this state. This bill permits worker's compensation records
that are otherwise confidential and not subject to disclosure under the open records
law to be disclosed to DOR for purposes related to the collection of delinquent taxes.
Finally, the department of corrections (DOC) currently maintains information
concerning persons who are in the custody of DOC because they have been either
sentenced to imprisonment in the state prisons or placed on probation. DOC also
maintains a registry of persons required to register as sex offenders. The sex
offender registry contains identifying information about the offender as well as such
information as where the offender lives, works or attends school. The records
containing information concerning persons in DOC custody are generally open to
public inspection unless there is a clear statutory exception to public inspection, a
common law limitation on inspection or an overriding public interest in keeping the
record confidential. Current law provides a limit to public inspection of the
information in the sex offender registry by specifying that the information is
generally confidential, although DOC or other state agencies that have custody or
control of a sex offender may release certain information from the registry to certain
persons, including local law enforcement agencies, certain community organizations
and the general public.
This bill allows DOC to release to DOR any information that DOC has
concerning a person who is in the custody of DOC and any information in the sex
offender registry concerning a person who is required to register as a sex offender.
Under current law, when a person applies to the department of regulation and
licensing (DORL) to renew a credential to practice a profession or occupation that
was initially issued by DORL or an attached examining board or affiliated
credentialing board, the person must provide his or her social security number or, if
the person is an entity such as a corporation, its federal employer identification
number. DORL must deny an application if a person fails to do so. In addition, before
renewing the credential, DORL must request DOR to certify whether the person is
liable for delinquent taxes. If DOR certifies that the person is liable for delinquent
taxes, DORL must deny the application for credential renewal and notify the person
that the person has 30 days to request a hearing before DOR to review the
certification. A hearing is limited to questions of mistaken identity and payment of
the delinquent taxes. If DOR affirms its certification after a hearing, DOR must

notify DORL, which must affirm its denial of the application. A person may seek
judicial review of DORL's affirmation of its denial in the circuit court for Dane
County.
This bill expands these provisions to cover certain licenses, credentials,
permits, approvals, registrations and certifications (licenses) that are issued by the
following licensing boards and agencies: DORL; a board in DORL; the department
of agriculture, trade and consumer protection; the department of commerce; the
ethics board; the department of financial institutions; the department of health and
family services; the department of natural resources; the department of public
instruction; the office of the commissioner of insurance; and the department of
transportation. The bill also expands these provisions to cover property assessor
certifications and recertifications made by DOR. For a license granted by a board in
DORL, DORL, rather than the board, carries out the duties of a licensing agency that
are described below.
Under the bill, a person who applies for a license, for renewal or continuation
of a license or for certification or recertification as a property assessor must provide
his or her social security number or, if applicable, its federal employer identification
number to the applicable licensing agency or, for a property assessor, to DOR. If a
person does not do so, the licensing agency or DOR must deny the application. A
licensing agency's denial or revocation is subject to administrative review by the
licensing agency and to judicial review in the same way as are other decisions by the
agency. The bill also requires a licensing agency to request DOR to certify whether
an applicant for a license is liable for delinquent taxes. In addition, each licensing
agency (except a board that is attached to DORL) must enter into a memorandum
of understanding with DOR that requires the licensing agency to request that DOR
certify whether a person who holds a license is liable for delinquent taxes. (DORL
is required to make such a request on behalf of a board that is attached to DORL.)
If DOR certifies a liability for delinquent taxes, the licensing agency must either
deny the application for issuance, renewal or continuation of the license or revoke the
license. In addition, under the bill, DOR may deny an application for property
assessor certification or recertification or revoke such a certification if DOR
determines that the applicant or holder of the certification is liable for delinquent
taxes.
The bill also provides that a person whose application is denied or whose license
or property assessor certification is revoked for tax delinquency has 30 days to
request a hearing before DOR to review the certification or, for a property assessor,
determination of liability for delinquent taxes. A hearing is limited to questions of
mistaken identity and payment of the delinquent taxes. After a hearing, if DOR
determines that a person is not liable for delinquent taxes, the licensing agency or,
for a property assessor, DOR must grant the application or reinstate the license or
property assessor certification, unless there are other grounds for denying the
application or revoking the license or property assessor certification. If DOR affirms
its certification of liability after a hearing, DOR must provide notice of its affirmation
to the licensing agency, which, upon receiving the notice, must affirm its denial or
revocation. For a property assessor, DOR must notify the applicant or certification

holder that it has affirmed its determination of liability. A person may seek judicial
review of a licensing agency's affirmation of its denial or revocation or, for a property
assessor, DOR's affirmation of its determination in Dane County Circuit Court.
In addition, the bill prohibits a licensing agency from issuing a license to a
person whose application was previously denied or whose license was previously
revoked for tax delinquency unless the person submits a certificate issued by DOR
that states that the person is not liable for delinquent taxes.
Finally, if the supreme court agrees, the bill's requirements and procedures also
apply to licenses to practice law.
Transportation
Under current law, the department of transportation (DOT) may issue annual
and consecutive month permits for overweight vehicles and combinations of vehicles
that are transporting bulk potatoes from storage facilities to food processing
facilities. A permit authorizes the operation of a vehicle or vehicle combination at
a maximum gross weight of not more than 90,000 pounds. A permit is valid on
designated portions of USH 51 and I 39 that are part of the national system of
interstate and defense highways.
This bill provides that any permit DOT issues for an overweight vehicle or
vehicle combination that is transporting bulk potatoes from storage facilities to food
processing facilities is not valid on any part of the national system of interstate and
defense highways, except to the extent permitted by federal law without any loss or
reduction of federal aid or other sanction.
Under current law, DOT administers a transportation infrastructure loan
program, under which DOT makes loans to local governments and other specified
entities for highway projects or transit capital improvement projects. The loans are
made from the segregated transportation infrastructure loan fund. That segregated
fund is capitalized with federal moneys and state moneys in matching amounts
required by the federal government as a condition of receiving these federal moneys.
Current law generally prohibits DOT from encumbering or expending any moneys
on a project for which a loan is made under the transportation infrastructure loan
program. This bill eliminates this prohibition.
Veterans and military affairs
This bill authorizes the department of military affairs (DMA) to provide
services to disadvantaged youth under a program established by the federal
government. Under the federal program, DMA is required to provide persons aged
16 to 18 who have not completed high school with a 22-week residential program
that includes training to enhance the participants' life skills, employment potential
and ability to obtain a declaration of equivalency of high school education.
Under current law, an eligible veteran may not receive a veteran's home loan
to purchase a home if the price of the home exceeds 2.5 times the median price of a
home in the state. This bill prohibits an eligible veteran from receiving a veteran's

home loan for any eligible purpose, which includes the purchase of a home,
improvements to a home or refinancing of a home loan, if the amount of the loan
exceeds 2.5 times the median price of a home in the state.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
This bill will be referred to the joint survey committee on retirement systems
for a detailed analysis, which will be printed as an appendix to this bill.
For further information see the state and local 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:
SB436, s. 1 1Section 1. 6.875 (1) (a) of the statutes is amended to read:
SB436,40,42 6.875 (1) (a) "Community-based residential facility" has the meaning given in
3s. 50.01 (1g), except that the term does not include a place where fewer than 10
4unrelated adults who are not related to the operator or administrator reside.
SB436, s. 2 5Section 2. 13.63 (1) of the statutes is amended to read:
SB436,41,76 13.63 (1) Licenses. An application for a license to act as a lobbyist may be
7obtained from and filed with the board. An applicant shall include his or her social
8security number on the application.
The application shall be signed, under the
9penalty for making false statements under s. 13.69 (6m), by the lobbyist. Upon
10approval of the application and payment of the applicable license fee under s. 13.75
11(1) or (1m) to the board, the board shall issue a license which entitles the licensee to
12practice lobbying on behalf of each registered principal who or which has filed an
13authorization under s. 13.65 for that lobbyist and paid the authorization fee under
14s. 13.75 (4). The license shall expire on December 31 of each even-numbered year.
15The board shall not issue a license to an applicant who does not provide his or her
16social security number. The board shall not issue a license to an applicant or shall
17revoke any license issued to a lobbyist if the department of revenue certifies to the

1board that the applicant or lobbyist is liable for delinquent taxes under s. 73.0301.

2No application may be disapproved by the board except an application for a license
3by a person who is ineligible for licensure under this subsection or s. 13.69 (4) or an
4application by a
lobbyist whose license has been revoked under this subsection or s.
513.69 (7) and only for the period of such ineligibility or revocation. Denial of a license
6on the basis of a certification by the department of revenue may be reviewed under
7s. 73.0301. Denial of any other license
may be reviewed under ch. 227.
SB436, s. 3 8Section 3. 13.64 (1) (a) of the statutes is amended to read:
SB436,41,129 13.64 (1) (a) If the principal is an individual, the name and address of the
10individual's employer, if any, or the individual's principal place of business if
11self-employed, and a description of the business activity in which the individual or
12the individual's employer is engaged and the individual's social security number.
SB436, s. 4 13Section 4. 13.64 (2) of the statutes is amended to read:
SB436,41,2314 13.64 (2) The registration shall expire on December 31 of each even-numbered
15year. The board shall not accept a registration statement filed by an individual who
16does not provide his or her social security number. The board shall not accept a
17registration statement filed by any person or shall terminate the registration of any
18principal if the department of revenue certifies to the board that the person or
19principal is liable for delinquent taxes under s. 73.0301.
If all lobbying by or on behalf
20of the principal which is not exempt under s. 13.621 ceases, the board shall terminate
21the principal's registration and any authorizations under s. 13.65 as of the day after
22the principal files a statement of cessation and expense statements under s. 13.68
23for the period covering all dates on which the principal was registered.
SB436, s. 5 24Section 5. 16.24 (3) (a) (intro.), 1. and 2. of the statutes are amended to read:
SB436,42,3
116.24 (3) (a) (intro.) Except as provided under par. (c), the The department shall
2contract with an individual, a trust or a legal guardian for the sale of tuition units
3to that individual, trust or legal guardian if all of the following apply:
SB436,42,44 1. The individual purchaser pays a $50 nonrefundable enrollment fee.
SB436,42,65 2. The individual purchaser is purchasing the tuition units on behalf of a
6beneficiary named in the contract.
SB436, s. 6 7Section 6. 16.24 (3) (a) 3. and 4. of the statutes are repealed and recreated to
8read:
SB436,42,109 16.24 (3) (a) 3. When the contract is executed, at least one of the following
10applies:
SB436,42,1111 a. The beneficiary is a resident of this state.
SB436,42,1212 b. If the purchaser is an individual, he or she is a resident of this state.
SB436,42,1413 c. If the purchaser is a legal guardian that is not an individual, the legal
14guardian is organized under the laws of this state.
SB436,42,1515 d. If the purchaser is a trust, the trust is created under the laws of this state.
SB436,42,1616 4. At least one of the following applies:
SB436,42,1717 a. The beneficiary is the purchaser.
SB436,42,2018 b. If the purchaser is an individual, the beneficiary is the child, grandchild,
19nephew or niece of the individual or is a child who is under the legal guardianship
20of the individual.
SB436,42,2221 c. If the purchaser is a legal guardian that is not an individual, the beneficiary
22is a child who is under the legal guardianship of the legal guardian.
SB436,42,2323 d. If the purchaser is a trust, the beneficiary is the beneficiary of the trust.
SB436, s. 7 24Section 7. 16.24 (3) (c) of the statutes is repealed.
SB436, s. 8 25Section 8. 16.24 (3) (d) of the statutes is amended to read:
SB436,43,3
116.24 (3) (d) The department shall promulgate rules authorizing an individual
2a person who has entered into a contract under this subsection to change the
3beneficiary named in the contract.
SB436, s. 9 4Section 9. 16.24 (4) of the statutes is amended to read:
SB436,43,125 16.24 (4) Number of tuition units purchased. An individual A person who
6enters into a contract under sub. (3) may purchase tuition units at any time and in
7any number, except that the total number of tuition units purchased on behalf of a
8single beneficiary may not exceed the number necessary to pay for 4 years of
9full-time attendance, including mandatory student fees, as a resident
10undergraduate at the institution within the University of Wisconsin System that has
11the highest resident undergraduate tuition, as determined by the department, in the
12anticipated academic years of their use.
SB436, s. 10 13Section 10. 16.24 (5) (a) of the statutes is amended to read:
SB436,43,2014 16.24 (5) (a) If Except as provided in sub. (7m), if an individual named as
15beneficiary in a contract under sub. (3) attends an institution of higher education in
16the United States, each tuition unit purchased on his or her behalf entitles that
17beneficiary to apply toward the payment of tuition at the institution an amount equal
18to 1% of the anticipated weighted average tuition of bachelor's degree-granting
19institutions within the University of Wisconsin System for the year of attendance,
20as estimated under sub. (2) in the year in which the tuition unit was purchased.
SB436, s. 11 21Section 11. 16.24 (6) (a) (intro.) of the statutes is amended to read:
SB436,43,2322 16.24 (6) (a) (intro.) A contract under sub. (3) may be terminated by the
23individual person entering into the contract if any of the following occurs:
SB436, s. 12 24Section 12. 16.24 (7) (a) to (e) of the statutes are renumbered 16.24 (7) (a) 1.
25to 5. and amended to read:
SB436,44,8
116.24 (7) (a) 1. When a beneficiary completes the program in which he or she
2is enrolled, if the beneficiary has not used all of the tuition units purchased on his
3or her behalf, the department shall refund to the individual person who entered into
4the contract an amount equal to 1% of the anticipated weighted average tuition in
5the academic year in which the beneficiary completed the program, as estimated
6under sub. (2) in the year in which the tuition units were purchased, multiplied by
7the number of tuition units purchased by the individual person and not used by the
8beneficiary.
SB436,44,149 2. If a contract is terminated under sub. (6) (a) 1., 2. or 3., the department shall
10refund to the individual person who entered into the contract an amount equal to 1%
11of the anticipated weighted average tuition in the academic year in which the
12contract is terminated, as estimated under sub. (2) in the year in which the tuition
13units were purchased, multiplied by the number of tuition units purchased by the
14individual person and not used by the beneficiary.
SB436,44,2015 3. If a contract is terminated under sub. (6) (a) 4. or (b), the department shall
16refund to the individual person who entered into the contract an amount equal to
1799% of the amount determined under par. (b) subd. 2. If a contract is terminated
18under sub. (6) (a) 4., the department may not issue a refund for one year following
19receipt of the notice of termination and may not issue a refund of more than 100
20tuition units in any year.
SB436,44,2321 4. If a contract is terminated under sub. (6) (a) 5., the department shall refund
22to the individual person who entered into the contract the amount under par. (b)
23subd. 2. or under par. (c) subd. 3., as determined by the department.
SB436,45,524 5. If the beneficiary is awarded a scholarship, tuition waiver or similar subsidy
25that cannot be converted into cash by the beneficiary, the department shall refund

1to the individual person who entered into the contract, upon his or her the person's
2request, an amount equal to the value of the tuition units that are not needed because
3of the scholarship, waiver or similar subsidy and that would otherwise have been
4paid by the department on behalf of the beneficiary during the semester in which the
5beneficiary is enrolled.
SB436, s. 13 6Section 13. 16.24 (7) (a) (intro.) of the statutes is created to read:
SB436,45,87 16.24 (7) (a) (intro.) Except as provided in sub. (7m), the department shall do
8all of the following:
SB436, s. 14 9Section 14. 16.24 (7) (f) of the statutes is renumbered 16.24 (7) (b) and
10amended to read:
SB436,45,1311 16.24 (7) (b) Except as provided under par. (c) (a) 3., the department shall
12determine the method and schedule for the payment of refunds under this
13subsection.
SB436, s. 15 14Section 15. 16.24 (7m) of the statutes is created to read:
SB436,45,1815 16.24 (7m) Tuition unit value adjustment; refund adjustment. (a) The
16department may adjust the value of a tuition unit based on the actual earnings
17attributable to the tuition unit less the costs of administering the program under this
18section that are attributable to the tuition unit if any of the following applies:
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