AB133-ASA1-AA2,243,319
71.05
(6) (b) 9. On assets held more than one year and on all assets acquired
20from a decedent, 60% of the capital gain as computed under the internal revenue
21code, not including capital gains for which the federal tax treatment is determined
22under section 406 of P.L.
99-514 and; not including amounts treated as ordinary
23income for federal income tax purposes because of the recapture of depreciation or
24any other reason
; and not including amounts treated as capital gain for federal
1income tax purposes from the sale or exchange of a lottery prize. For purposes of this
2subdivision, the capital gains and capital losses for all assets shall be netted before
3application of the percentage.".
AB133-ASA1-AA2,243,86
71.05
(6) (b) 31. For taxable years beginning after December 31, 1998, an
7amount up to $500 that an individual contributes to an individual who is a candidate
8for elective public office in this state.".
AB133-ASA1-AA2,243,1811
71.07
(3m) (b) 1. a. Subject to the limitations provided in this subsection and
12s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income
13taxes otherwise due, the amount derived under par. (c). If the allowable amount of
14claim exceeds the income taxes otherwise due on the claimant's income or if there are
15no Wisconsin income taxes due on the claimant's income, the amount of the claim not
16used as an offset against income taxes shall be certified to the department of
17administration for payment to the claimant by check, share draft or other draft paid
18from the appropriation under s. 20.835 (2)
(q) (dn).
AB133-ASA1-AA2, s. 1710dc
19Section 1710dc. 71.07 (3m) (b) 1. a. of the statutes, as affected by 1999
20Wisconsin Act .... (this act), is repealed and recreated to read:
AB133-ASA1-AA2,244,421
71.07
(3m) (b) 1. a. Subject to the limitations provided in this subsection and
22s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income
23taxes otherwise due, the amount derived under par. (c). If the allowable amount of
24claim exceeds the income taxes otherwise due on the claimant's income or if there are
1no Wisconsin income taxes due on the claimant's income, the amount of the claim not
2used as an offset against income taxes shall be certified to the department of
3administration for payment to the claimant by check, share draft or other draft paid
4from the appropriation under s. 20.835 (2) (q).".
AB133-ASA1-AA2,244,137
71.07
(3m) (c) 1. Any claimant may claim against taxes otherwise due under
8this chapter
10% a percentage, as determined by the department under subd. 3., of
9the property taxes accrued in the taxable year to which the claim relates, up to a
10maximum claim of
$1,000 $2,000 for taxable years ending before January 1, 2001,
11and up to a maximum claim of $1,500 for taxable years beginning after December 31,
122000, except that the credit under this subsection plus the credit under subch. IX
13may not exceed 95% of the property taxes accrued on the farm.
AB133-ASA1-AA2,244,2015
71.07
(3m) (c) 3. The department shall annually adjust the percentage that is
16used to determine the amount of the claim under subd. 1. based on the estimated
17number of claims and the amount estimated to be expended from the appropriation
18under s. 20.835 (2) (q), as determined under s. 79.13. The department shall
19incorporate the annually adjusted percentage into the income tax forms and
20instructions.".
AB133-ASA1-AA2,245,1
171.07
(5r) E
ducation credit. (a) In this subsection:
AB133-ASA1-AA2,245,42
1. "Claimant" means a sole proprietor, a partner, a member of a limited liability
3company or a shareholder of a tax-option corporation who files a claim under this
4subsection.
AB133-ASA1-AA2,245,65
2. "Degree-granting program" means an educational program for which an
6associate, a bachelor's or a graduate degree is awarded upon successful completion.
AB133-ASA1-AA2,245,107
3. "Qualified postsecondary institution" means a University of Wisconsin
8System institution, a technical college system institution or a regionally accredited
94-year nonprofit college or university having its regional headquarters and principal
10place of business in this state, notwithstanding s. 16.973 (1) (b).
AB133-ASA1-AA2,245,1511
(b) A claimant may claim as a credit against the tax imposed under this
12subchapter an amount equal to 50% of the tuition that the claimant paid or incurred
13during the taxable year for an individual to participate in an education program of
14a qualified postsecondary institution, if the individual is enrolled in a
15degree-granting program.
AB133-ASA1-AA2,245,1816
(c) A claimant may not claim the credit under par. (b) for any tuition amounts
17that the claimant excluded under s. 71.05 (6) (b) 28. or under section
127 of the
18Internal Revenue Code.
AB133-ASA1-AA2,245,2019
(d) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit
20under s. 71.28 (4), apply to the credit under this subsection.
AB133-ASA1-AA2,246,321
(e) Partnerships, limited liability companies and tax-option corporations may
22not claim the credit under this subsection, but the eligibility for, and the amount of,
23the credit are based on their payment of tuition under par. (b). A partnership, limited
24liability company or tax-option corporation shall compute the amount of credit that
25each of its partners, members or shareholders may claim and shall provide that
1information to each of them. Partners, members of limited liability companies and
2shareholders of tax-option corporations may claim the credit in proportion to their
3ownership interest.
AB133-ASA1-AA2,246,54
(f) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4),
5applies to the credit under this subsection.".
AB133-ASA1-AA2,246,98
71.07
(6m) Armed forces member tax credit. (a)
Definitions. In this
9subsection:
AB133-ASA1-AA2,246,1110
1. "Claimant" means an active duty member of the U.S. armed forces, as
11defined in
26 USC 7701 (a) (15).
AB133-ASA1-AA2,246,1412
2. "Military income" means an amount of basic, special or incentive pay income,
13as those terms are used in
37 USC chapters 3 and
5, received by a claimant from the
14federal government.
AB133-ASA1-AA2,246,1815
(b)
Filing claims. Subject to the limitations and conditions provided in this
16subsection, a claimant may claim as a credit against the tax imposed under s. 71.02,
17up to the amount of those taxes, an amount up to $200 of military income for services
18performed by the claimant while he or she is stationed outside of the United States.
AB133-ASA1-AA2,246,2019
(c)
Limitations and conditions. 1. No credit may be allowed under this
20subsection unless it is claimed within the time period under s. 71.75 (2).
AB133-ASA1-AA2,246,2221
2. Part-year residents and nonresidents of this state are not eligible for the
22credit under this subsection.
AB133-ASA1-AA2,246,2423
3. If both spouses of a married couple meet the definition of claimant under par.
24(a) 1., each spouse may claim the credit under this subsection.
AB133-ASA1-AA2,247,2
1(d)
Administration. Subsection (9e) (d), to the extent that it applies to the credit
2under that subsection, applies to the credit under this subsection.".
AB133-ASA1-AA2,247,7
5602. Page 851, line 2: delete the material beginning with "(2m)" and ending
6with "(2m) and (3)" on line 3 and substitute "(2m)
and, (3)
and (5r) and 71.47 (1dd),
7(1de), (1di), (1dj), (1dL), (1ds), (1dx),
(1dy), (1fd), (2m)
and, (3)
and (5r)".
AB133-ASA1-AA2,247,1010
71.10
(4) (cm) The armed forces member tax credit under s. 71.07 (6m).".
AB133-ASA1-AA2,247,1313
71.10
(3) (a) (title)
Voluntary payments.
AB133-ASA1-AA2, s. 1719j
14Section 1719j. 71.10 (3) (a) of the statutes is renumbered 71.10 (3) (a) 1. and
15amended to read:
AB133-ASA1-AA2,247,2216
71.10
(3) (a) 1.
`Designation on return.' Every Any individual filing an income
17tax return
who has a tax liability or is entitled to a tax refund may designate
on the
18return an additional payment in the amount of $1 or a deduction from any refund due
19that individual in the amount of $1 for the Wisconsin election campaign fund for the
20use of eligible candidates under s. 11.50. If
the individuals filing a married couple
21files a joint return
have a tax liability or are entitled to a tax refund, each individual
22spouse may make a designation of $1 under this subsection.
AB133-ASA1-AA2,248,3
171.10
(3) (a) 2. `Designation added to tax owed.' If the individual owes any tax,
2the individual shall remit in full the tax due and an additional $1 for the Wisconsin
3election campaign fund when the individual files a tax return.
AB133-ASA1-AA2,248,74
3. `Designation deducted from refund.' Except as provided under par. (c) if the
5individual is owed a refund for that year after crediting under ss. 71.75 (9) and 71.80
6(3), the department of revenue shall deduct $1 for the Wisconsin election campaign
7fund from the amount of the refund.
AB133-ASA1-AA2,249,210
71.10
(3) (f)
Administration, certification of amounts confidentiality. The
11secretary of revenue shall provide a place for those designations on the face of the
12individual income tax return and shall provide next to that place a statement that
13a designation will
not increase tax liability
or reduce a refund. Annually on August
1415, the secretary of revenue shall certify to the elections board, the department of
15administration and the state treasurer under s. 11.50 the total amount
of received
16from all designations made during the preceding fiscal year.
If any individual
17attempts to place any condition or restriction upon a designation, that individual is
18deemed not to have made a designation on his or her tax return
Amounts designated
19for the Wisconsin election campaign fund under this subsection are not subject to
20refund to the taxpayer unless the taxpayer submits information to the satisfaction
21of the department of revenue within 18 months after the date taxes are due or the
22date the return is filed, whichever is later, that the amount designated is clearly in
23error. Any refund granted by the department of revenue under this subdivision shall
24be deducted from the moneys received under this subsection in the fiscal year that
1the refund is certified. The names of persons making designations under this
2subsection shall be strictly confidential.
AB133-ASA1-AA2,249,84
71.10
(3) (bm)
Errors; failure to remit correct amount. If an individual who
5owes a tax fails to remit an amount equal to or in excess of the total of the actual tax
6due, after error corrections, and the amount designated on the return for the
7Wisconsin election campaign fund, the designation for the Wisconsin election
8campaign fund is void.
AB133-ASA1-AA2,249,1210
71.10
(3) (c)
Errors; insufficient refund. If an individual is owed a refund that
11does not equal or exceed $1, after crediting under ss. 71.75 (9) and 71.80 (3) and after
12error corrections, the designation for the Wisconsin election campaign fund is void.
AB133-ASA1-AA2,249,1514
71.10
(3) (d)
Conditions. If an individual places any conditions on a designation
15for the Wisconsin election campaign fund, the designation is void.
AB133-ASA1-AA2,249,2017
71.10
(3) (e)
Void designation. If a designation for the Wisconsin election
18campaign fund is void, the department of revenue shall disregard the designation
19and determine amounts due, owed, refunded and received without regard to the void
20designation.".
AB133-ASA1-AA2,250,423
71.10
(4) (i) The total of claim of right credit under s. 71.07 (1), farmland
24preservation credit under subch. IX, homestead credit under subch. VIII, farmland
1tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s.
271.07 (2fd), earned income tax credit under s. 71.07 (9e),
education credit under s.
371.07 (5r), estimated tax payments under s. 71.09, and taxes withheld under subch.
4X.".
AB133-ASA1-AA2,251,711
71.23
(2) Franchise tax. For the privilege of exercising its franchise
, buying
12or selling lottery prizes is the winning tickets were originally bought in this state or
13doing business in this state in a corporate capacity, except as provided under sub. (3),
14every domestic or foreign corporation, except corporations specified in s. 71.26 (1),
15and every nuclear decommissioning trust or reserve fund shall annually pay a
16franchise tax according to or measured by its entire Wisconsin net income of the
17preceding taxable year at the rate set forth in s. 71.27 (2). In addition, except as
18provided in sub. (3) and s. 71.26 (1), a corporation that ceases doing business in this
19state and a nuclear decommissioning trust or reserve fund that is terminated shall
20pay a special franchise tax according to or measured by its entire Wisconsin net
21income for the taxable year during which the corporation ceases doing business in
22this state or the nuclear decommissioning trust or reserve fund is terminated at the
23rates under s. 71.27 (2). Every corporation organized under the laws of this state
or
24that derives income from sources within this state or from activities that are
1attributable to this state shall be deemed to be residing within this state for the
2purposes of this franchise tax. All provisions of this chapter and ch. 73 relating to
3income taxation of corporations shall apply to franchise taxes imposed under this
4subsection, unless the context requires otherwise. The tax imposed by this
5subsection on national banking associations shall be in lieu of all taxes imposed by
6this state on national banking associations to the extent it is not permissible to tax
7such associations under federal law.
AB133-ASA1-AA2,251,149
71.25
(5) (a)
Apportionable income. (intro.) Except as provided in sub. (6),
10corporations engaged in business both within and without this state are subject to
11apportionment.
Income, gain or loss from the sources listed in this paragraph is
12presumed apportionable. Apportionable income includes all income or loss of
13corporations, other than nonapportionable income as specified in par. (b), including,
14but not limited to, income, gain or loss from the following sources:
AB133-ASA1-AA2,251,2416
71.25
(5) (a) 9. Interest and dividends
if the operations of the payer are unitary
17with those of the payee, or if those operations are not unitary but the investment
18activity from which that income is derived is an integral part of a unitary business
19and the payer and payee are neither affiliates nor related as parent company and
20subsidiary. In this subdivision, "investment activity" includes decision making
21relating to the purchase and sale of stocks and other securities, investing surplus
22funds and the management and record keeping associated with corporate
23investments, not including activities of a broker or other agent in maintaining an
24investment portfolio.
AB133-ASA1-AA2,252,6
171.25
(5) (a) 10. Sale of intangible assets
if the operations of the company in
2which the investment was made were unitary with those of the investing company,
3or if those operations were not unitary but the investment activity from which that
4gain or loss was derived is an integral part of a unitary business and the companies
5were neither affiliates nor related as parent company and subsidiary. In this
6subdivision, "investment activity" has the meaning given under subd. 9.".
AB133-ASA1-AA2,252,158
71.25
(5) (b)
Nonapportionable income. 1. Income, gain or loss from the sale
9of nonbusiness real property or nonbusiness tangible personal property, rental of
10nonbusiness real property or nonbusiness tangible personal property and royalties
11from nonbusiness real property or nonbusiness tangible personal property are
12nonapportionable and shall be allocated to the situs of the property
, except that all
13income that is realized from the sale of or purchase and subsequent sale or
14redemption of lottery prizes if the winning tickets were originally bought in this state
15shall be allocated to this state.
AB133-ASA1-AA2,252,2116
2. All income, gain or loss from intangible property that is earned by a personal
17holding company, as defined in section
542 of the internal revenue code, as amended
18to December 31, 1974, shall be allocated to the residence of the taxpayer
, except that
19all income that is realized from the sale of or purchase and subsequent sale or
20redemption of lottery prizes if the winning tickets were originally bought in this state
21shall be allocated to this state.".
AB133-ASA1-AA2,252,24
22609. Page 874, line 9: delete that line and substitute "businesses except
23financial organizations, public utilities,
telecommunications companies, railroads,
24sleeping car".
AB133-ASA1-AA2,253,5
2"71.25
(6) (a) For taxable years beginning before January 1, 2001, an
3apportionment fraction composed of a sales factor under sub. (9) representing 50%
4of the fraction, a property factor under sub. (7) representing 25% of the fraction and
5a payroll factor under sub. (8) representing 25% of the fraction.
AB133-ASA1-AA2,253,107
71.25
(6) (am) For taxable years beginning after December 31, 2000, and before
8January 1, 2002, an apportionment fraction composed of a sales factor under sub. (9)
9representing 63% of the fraction, a property factor under sub. (7) representing 18.5%
10of the fraction and a payroll factor under sub. (8) representing 18.5% of the fraction.".
AB133-ASA1-AA2,253,19
14"4. If the benefit of a service is received in this state, as provided under this
15subsection, and the service is performed in a state that does not attribute the receipts
16from a service to the state in which the purchaser of the service receives the service,
17the taxpayer may elect, by a method prescribed by the department, to attribute the
18receipts from the service to this state in proportion to the direct cost of performing
19such service.".
