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.".
AB133-ASA1-AA2,254,822
71.25
(10) (b) In this section, "public utility" means any business entity which
23owns or operates any plant, equipment, property, franchise, or license for the
24transmission of communications or the production, transmission, sale, delivery, or
1furnishing of electricity, water or steam the rates of charges for goods or services of
2which have been established or approved by a federal, state or local government or
3governmental agency. "Public utility" also means any business entity providing
4service to the public and engaged in the transportation of goods and persons for hire,
5as defined in s. 194.01 (4), regardless of whether or not the entity's rates or charges
6for services have been established or approved by a federal, state or local government
7or governmental agency.
This paragraph does not apply to gas and electric
8companies for taxable years beginning after December 31, 1999.".
AB133-ASA1-AA2,255,1413
71.26
(1) (a)
Certain corporations. Income of corporations organized under ch.
14185, except income of a cooperative sickness care association organized under s.
15185.981, or of a service insurance corporation organized under ch. 613, that is derived
16from a health maintenance organization as defined in s. 609.01 (2) or a limited
17service health organization as defined in s. 609.01 (3), or operating under subch. I
18of ch. 616 which are bona fide cooperatives operated without pecuniary profit to any
19shareholder or member, or operated on a cooperative plan pursuant to which they
20determine and distribute their proceeds in substantial compliance with s. 185.45,
21and the income, except the unrelated business taxable income as defined in section
22512 of the internal revenue code and except income that is derived from a health
23maintenance organization as defined in s. 609.01 (2) or a limited service health
24organization as defined in s. 609.01 (3), of all religious, scientific, educational,
1benevolent or other corporations or associations of individuals not organized or
2conducted for pecuniary profit. This paragraph does not apply to the income of
3savings banks, mutual loan corporations or savings and loan associations.
This
4paragraph does not apply to income that is realized from the sale of or purchase and
5subsequent sale or redemption of lottery prizes if the winning tickets were originally
6bought in this state. This paragraph applies to the income of credit unions except to
7the income of any credit union that is derived from public deposits for any taxable
8year in which the credit union is approved as a public depository under ch. 34 and
9acts as a depository of state or local funds under s. 186.113 (20). For purposes of this
10paragraph, the income of a credit union that is derived from public deposits is the
11product of the credit union's gross annual income for the taxable year multiplied by
12a fraction, the numerator of which is the average monthly balance of public deposits
13in the credit union during the taxable year, and the denominator of which is the
14average monthly balance of all deposits in the credit union during the taxable year.".
AB133-ASA1-AA2,256,218
71.28
(2m) (b) 1. a. Subject to the limitations provided in this subsection and
19s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income or
20franchise taxes otherwise due, the amount derived under par. (c). If the allowable
21amount of claim exceeds the income or franchise taxes otherwise due on or measured
22by the claimant's income or if there are no Wisconsin income or franchise taxes due
23on or measured by the claimant's income, the amount of the claim not used as an
24offset against income or franchise taxes shall be certified to the department of
1administration for payment to the claimant by check, share draft or other draft paid
2from the appropriation under s. 20.835 (2)
(q) (dn).
AB133-ASA1-AA2, s. 1744be
3Section 1744be. 71.28 (2m) (b) 1. a. of the statutes, as affected by 1999
4Wisconsin Act .... (this act), is repealed and recreated to read:
AB133-ASA1-AA2,256,125
71.28
(2m) (b) 1. a. Subject to the limitations provided in this subsection and
6s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income
7taxes otherwise due, the amount derived under par. (c). If the allowable amount of
8claim exceeds the income taxes otherwise due on the claimant's income or if there are
9no Wisconsin income taxes due on the claimant's income, the amount of the claim not
10used as an offset against income taxes shall be certified to the department of
11administration for payment to the claimant by check, share draft or other draft paid
12from the appropriation under s. 20.835 (2) (q).".
AB133-ASA1-AA2,256,2115
71.28
(2m) (c) 1. Any claimant may claim against taxes otherwise due under
16this chapter
10% a percentage, as determined by the department under subd. 3., of
17the property taxes accrued in the taxable year to which the claim relates, up to a
18maximum claim of
$1,000 $2,000 for taxable years ending before January 1, 2001,
19and up to a maximum claim of $1,500 for taxable years beginning after December 31,
202000, except that the credit under this subsection plus the credit under subch. IX
21may not exceed 95% of the property taxes accrued on the farm.
AB133-ASA1-AA2,257,423
71.28
(2m) (c) 3. The department shall annually adjust the percentage that is
24used to determine the amount of the claim under subd. 1. based on the estimated
1number of claims and the amount estimated to be expended from the appropriation
2under s. 20.835 (2) (q), as determined under s. 79.13. The department shall
3incorporate the annually adjusted percentage into the income tax forms and
4instructions.".
AB133-ASA1-AA2,257,77
71.28
(5r) Education credit. (a) In this subsection:
AB133-ASA1-AA2,257,88
1. "Claimant" means a corporation that files a claim under this subsection.
AB133-ASA1-AA2,257,109
2. "Degree-granting program" means an education program for which an
10associate, a bachelor's or a graduate degree is awarded upon successful completion.
AB133-ASA1-AA2,257,1411
3. "Qualified postsecondary institution" means a University of Wisconsin
12System institution, a technical college system institution or a regionally accredited
134-year nonprofit college or university having its regional headquarters and principal
14place of business in this state, notwithstanding s. 16.973 (1) (b).
AB133-ASA1-AA2,257,1915
(b) A claimant may claim as a credit against the tax imposed under this
16subchapter an amount equal to 50% of the tuition that the claimant paid or incurred
17during the taxable year for an individual to participate in an education program of
18a qualified postsecondary institution, if the individual is enrolled in a
19degree-granting program.
AB133-ASA1-AA2,257,2220
(c) A claimant may not claim the credit under par. (b) for any tuition amounts
21that the claimant has excluded under s. 71.05 (6) (b) 28. or under section
127 of the
22Internal Revenue Code.
AB133-ASA1-AA2,257,2423
(d) The carry-over provisions of sub. (4) (e) and (f), as they apply to the credit
24under sub. (4), apply to the credit under this subsection.
AB133-ASA1-AA2,258,8
1(e) Partnerships, limited liability companies and tax-option corporations may
2not claim the credit under this subsection, but the eligibility for, and the amount of,
3the credit are based on their payment of tuition under par. (b). A partnership, limited
4liability company or tax-option corporation shall compute the amount of credit that
5each of its partners, members or shareholders may claim and shall provide that
6information to each of them. Partners, members of limited liability companies and
7shareholders of tax-option corporations may claim the credit in proportion to their
8ownership interest.
AB133-ASA1-AA2,258,109
(f) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies
10to the credit under this subsection.".
AB133-ASA1-AA2,258,1613
71.30
(3) (f) The total of farmers' drought property tax credit under s. 71.28
14(1fd), farmland preservation credit under subch. IX, farmland tax relief credit under
15s. 71.28 (2m)
, education credit under s. 71.28 (5r) and estimated tax payments under
16s. 71.29.".
AB133-ASA1-AA2,259,221
71.362
(1) All tax-option items of nonresident individuals, nonresident estates
22and nonresident trusts derived from a tax-option corporation not requiring
23apportionment under sub. (2) shall follow the situs of the business of the corporation
24from which they are derived
, except that all income that is realized from the sale of
1or purchase and subsequent sale or redemption of lottery prizes if the winning tickets
2were originally bought in this state shall be allocated to this state.
AB133-ASA1-AA2,259,164
71.362
(2) Nonresident individuals, nonresident estates and nonresident
5trusts deriving income from a tax-option corporation which is engaged in business
6within and without this state shall be taxed only on the income of the corporation
7derived from business transacted and property located in this state and losses and
8other items of the corporation deductible by such shareholders shall be limited to
9their proportionate share of the Wisconsin loss or other item
, except that all income
10that is realized from the sale of or purchase and subsequent sale or redemption of
11lottery prizes if the winning tickets were originally bought in this state shall be
12allocated to this state. For purposes of this subsection, all intangible income of
13tax-option corporations passed through to shareholders is business income that
14follows the situs of the business
, except that all income that is realized from the sale
15of or purchase and subsequent sale or redemption of lottery prizes if the winning
16tickets were originally bought in this state shall be allocated to this state.".
