Amendment AA2-ASA1-AB133

AB133-ASA1-AA2,257,14 3. "Qualified postsecondary institution" means a University of Wisconsin System institution, a technical college system institution or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state, notwithstanding s. 16.973 (1) (b).

AB133-ASA1-AA2,257,19 (b) A claimant may claim as a credit against the tax imposed under this subchapter an amount equal to 50% of the tuition that the claimant paid or incurred during the taxable year for an individual to participate in an education program of a qualified postsecondary institution, if the individual is enrolled in a degree-granting program.

AB133-ASA1-AA2,257,22 (c) A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant has excluded under s. 71.05 (6) (b) 28. or under section 127 of the Internal Revenue Code.

AB133-ASA1-AA2,257,24 (d) The carry-over provisions of sub. (4) (e) and (f), as they apply to the credit under sub. (4), apply to the credit under this subsection.

AB133-ASA1-AA2,258,8 (e) Partnerships, limited liability companies and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of tuition under par. (b). A partnership, limited liability company or tax-option corporation shall compute the amount of credit that each of its partners, members or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

AB133-ASA1-AA2,258,10 (f) Subsection (4) (g) and (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.".

AB133-ASA1-AA2,258,11 620. Page 914, line 6: after that line insert:

AB133-ASA1-AA2,258,12 " Section 1747n. 71.30 (3) (f) of the statutes is amended to read:

AB133-ASA1-AA2,258,16 71.30 (3) (f) The total of farmers' drought property tax credit under s. 71.28 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.28 (2m), education credit under s. 71.28 (5r) and estimated tax payments under s. 71.29.".

AB133-ASA1-AA2,258,18 621. Page 917, line 5: delete ", (1dy) and (3)" and substitute "and, (1dy), (3) and (5r)".

AB133-ASA1-AA2,258,19 622. Page 927, line 8: after that line insert:

AB133-ASA1-AA2,258,20 " Section 1748Lm. 71.362 (1) of the statutes is amended to read:

AB133-ASA1-AA2,259,2 71.362 (1) All tax-option items of nonresident individuals, nonresident estates and nonresident trusts derived from a tax-option corporation not requiring apportionment under sub. (2) shall follow the situs of the business of the corporation from which they are derived, except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state.

AB133-ASA1-AA2, s. 1748Ln Section 1748Ln. 71.362 (2) of the statutes is amended to read:

AB133-ASA1-AA2,259,16 71.362 (2) Nonresident individuals, nonresident estates and nonresident trusts deriving income from a tax-option corporation which is engaged in business within and without this state shall be taxed only on the income of the corporation derived from business transacted and property located in this state and losses and other items of the corporation deductible by such shareholders shall be limited to their proportionate share of the Wisconsin loss or other item, except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state. For purposes of this subsection, all intangible income of tax-option corporations passed through to shareholders is business income that follows the situs of the business, except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state.".

AB133-ASA1-AA2,259,18 623. Page 937, line 24: after "both" insert ", or that buy or sell lottery prizes if the winning tickets were originally bought in this state".

AB133-ASA1-AA2,259,19 624. Page 938, line 2: after that line insert:

AB133-ASA1-AA2,259,20 " Section 1748yb. 71.43 (2) of the statutes is amended to read:

AB133-ASA1-AA2,260,17 71.43 (2) Franchise tax on corporations. For the privilege of exercising its franchise, buying or selling lottery prizes if the winning tickets were originally bought in this state or doing business in this state in a corporate capacity, except as provided under s. 71.23 (3), every domestic or foreign corporation, except corporations specified in ss. 71.26 (1) and 71.45 (1), shall annually pay a franchise tax according to or measured by its entire Wisconsin net income of the preceding taxable year at the rates set forth in s. 71.46 (2). In addition, except as provided in ss. 71.23 (3), 71.26 (1) and 71.45 (1), a corporation that ceases doing business in this state shall pay a special franchise tax according to or measured by its entire Wisconsin net income for the taxable year during which the corporation ceases doing business in this state at the rate under s. 71.46 (2). Every corporation organized under the laws of this state shall be deemed to be residing within this state for the purposes of this franchise tax. All provisions of this chapter and ch. 73 relating to income taxation of corporations shall apply to franchise taxes imposed under this subsection, unless the context requires otherwise. The tax imposed by this subsection on insurance companies subject to taxation under this chapter shall be based on Wisconsin net income computed under s. 71.45, and no other provision of this chapter relating to computation of taxable income for other corporations shall apply to such insurance companies. All other provisions of this chapter shall apply to insurance companies subject to taxation under this chapter unless the context clearly requires otherwise.

AB133-ASA1-AA2, s. 1748ym Section 1748ym. 71.45 (1) of the statutes is amended to read:

AB133-ASA1-AA2,261,12 71.45 (1) Exempt and excludable income. There shall be exempt from taxation under this subchapter income of insurers exempt from federal income taxation pursuant to section 501 (c) (15) of the internal revenue code, town mutuals organized under or subject to ch. 612, foreign insurers, and domestic insurers engaged exclusively in life insurance business, domestic insurers insuring against financial loss by reason of nonpayment of principal, interest and other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust or other instrument constituting a lien or charge on real estate and corporations organized under ch. 185, but not including income of cooperative sickness care associations organized under s. 185.981, or of a service insurance corporation organized under ch. 613, that is derived from a health maintenance organization as defined in s. 609.01 (2) or a limited service health organization as defined in s. 609.01 (3), or operating under subch. I of ch. 616 which are bona fide cooperatives operated without pecuniary profit to any shareholder or member, or operated on a cooperative plan pursuant to which they determine and distribute their proceeds in substantial compliance with s. 185.45. This subsection does not apply to income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state.".

AB133-ASA1-AA2,261,13 625. Page 938, line 5: after "(1dy)" insert "and (5r)".

AB133-ASA1-AA2,261,14 626. Page 938, line 23: after that line insert:

AB133-ASA1-AA2,261,15 " Section 1749p. 71.45 (2) (a) 15. of the statutes is created to read:

AB133-ASA1-AA2,261,18 71.45 (2) (a) 15. By subtracting from federal taxable income all income that is realized from the purchase and subsequent sale or redemption of lottery prizes that is treated as nonapportionable income under sub. (3r).".

AB133-ASA1-AA2,261,19 627. Page 941, line 10: after that line insert:

AB133-ASA1-AA2,261,20 " Section 1753d. 71.45 (3r) of the statutes is created to read:

AB133-ASA1-AA2,261,23 71.45 (3r) Allocation of certain proceeds. All income that is realized from the purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state.".

AB133-ASA1-AA2,261,24 628. Page 941, line 21: after that line insert:

AB133-ASA1-AA2,262,1 " Section 1753m. 71.46 (3) of the statutes is amended to read:

AB133-ASA1-AA2,262,9 71.46 (3) The tax imposed under this subchapter on each domestic insurer on or measured by its entire net income attributable to lines of insurance in this state may not exceed 2% of the gross premiums, as defined in s. 76.62, received during the taxable year by the insurer on all policies on those lines of insurance if the subject of that insurance was resident, located or to be performed in this state plus 7.9% of the income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state.".

AB133-ASA1-AA2,262,10 629. Page 943, line 22: after that line insert:

AB133-ASA1-AA2,262,11 " Section 1757bd. 71.47 (2m) (b) 1. a. of the statutes is amended to read:

AB133-ASA1-AA2,262,20 71.47 (2m) (b) 1. a. Subject to the limitations provided in this subsection and s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income or franchise taxes otherwise due, the amount derived under par. (c). If the allowable amount of claim exceeds the income or franchise taxes otherwise due on or measured by the claimant's income or if there are no Wisconsin income or franchise taxes due on or measured by the claimant's income, the amount of the claim not used as an offset against income or franchise taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft paid from the appropriation under s. 20.835 (2) (q) (dn).

AB133-ASA1-AA2, s. 1757be Section 1757be. 71.47 (2m) (b) 1. a. of the statutes, as affected by 1999 Wisconsin Act .... (this act), is repealed and recreated to read:

AB133-ASA1-AA2,263,6 71.47 (2m) (b) 1. a. Subject to the limitations provided in this subsection and s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income taxes otherwise due, the amount derived under par. (c). If the allowable amount of claim exceeds the income taxes otherwise due on the claimant's income or if there are no Wisconsin income taxes due on the claimant's income, the amount of the claim not used as an offset against income taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft paid from the appropriation under s. 20.835 (2) (q).".

AB133-ASA1-AA2,263,7 630. Page 943, line 22: after that line insert:

AB133-ASA1-AA2,263,8 " Section 1757bd. 71.47 (2m) (c) 1. of the statutes is amended to read:

AB133-ASA1-AA2,263,15 71.47 (2m) (c) 1. Any claimant may claim against taxes otherwise due under this chapter 10% a percentage, as determined by the department under subd. 3., of the property taxes accrued in the taxable year to which the claim relates, up to a maximum claim of $1,000 $2,000 for taxable years ending before January 1, 2001, and up to a maximum claim of $1,500 for taxable years beginning after December 31, 2000, except that the credit under this subsection plus the credit under subch. IX may not exceed 95% of the property taxes accrued on the farm.

AB133-ASA1-AA2, s. 1757bg Section 1757bg. 71.47 (2m) (c) 3. of the statutes is created to read:

AB133-ASA1-AA2,263,22 71.47 (2m) (c) 3. The department shall annually adjust the percentage that is used to determine the amount of the claim under subd. 1. based on the estimated number of claims and the amount estimated to be expended from the appropriation under s. 20.835 (2) (q), as determined under s. 79.13. The department shall incorporate the annually adjusted percentage into the income tax forms and instructions.".

AB133-ASA1-AA2,263,23 631. Page 944, line 19: after that line insert:

AB133-ASA1-AA2,263,24 " Section 1759g. 71.47 (5r) of the statutes is created to read:

AB133-ASA1-AA2,264,1 71.47 (5r) Education credit. (a) In this subsection:

AB133-ASA1-AA2,264,2 1. "Claimant" means a corporation that files a claim under this subsection.

AB133-ASA1-AA2,264,4 2. "Degree-granting program" means an educational program for which an associate, a bachelor's or a graduate degree is awarded upon successful completion.

AB133-ASA1-AA2,264,8 3. "Qualified postsecondary institution" means a University of Wisconsin System institution, a technical college system institution or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state, notwithstanding s. 16.973 (1) (b).

AB133-ASA1-AA2,264,13 (b) A claimant may claim as a credit against the tax imposed under this subchapter an amount equal to 50% of the tuition that the claimant paid or incurred during the taxable year for an individual to participate in an education program of a qualified postsecondary institution, if the individual is enrolled in a degree-granting program.

AB133-ASA1-AA2,264,16 (c) A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant excluded under s. 71.05 (6) (b) 28. or under section 127 of the Internal Revenue Code.

AB133-ASA1-AA2,264,18 (d) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit under s. 71.28 (4), apply to the credit under this subsection.

AB133-ASA1-AA2,265,2 (e) Partnerships, limited liability companies and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of tuition under par. (b). A partnership, limited liability company or tax-option corporation shall compute the amount of credit that each of its partners, members or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

AB133-ASA1-AA2,265,4 (f) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.".

AB133-ASA1-AA2,265,5 632. Page 944, line 21: after that line insert:

AB133-ASA1-AA2,265,6 " Section 1760s. 71.49 (1) (f) of the statutes is amended to read:

AB133-ASA1-AA2,265,10 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), education credit under s. 71.47 (5r) and estimated tax payments under s. 71.48.".

AB133-ASA1-AA2,265,14 633. Page 947, line 11: delete lines 11 and 12 and substitute "by multiplying the amount of the prize by the highest rate applicable to individuals under s. 71.06 (1) or (1m) to the person who claims the prize. The administrator shall deposit the amounts".

AB133-ASA1-AA2,265,15 634. Page 948, line 6: after that line insert:

AB133-ASA1-AA2,265,16 " Section 1788s. 73.01 (4) (a) of the statutes is amended to read:

AB133-ASA1-AA2,266,9 73.01 (4) (a) Subject to the provisions for judicial review contained in s. 73.015, the commission shall be the final authority for the hearing and determination of all questions of law and fact arising under sub. (5) and s. 72.86 (4), 1985 stats., and ss. 70.11 (21), 70.38 (4) (a), 70.397, 70.64 and 70.995 (8), s. 76.38 (12) (a), 1993 stats., ss. 76.39 (4) (c), 76.48 (6), 76.91, 77.26 (3), 77.59 (6) (b), 78.01, 78.22, 78.40, 78.555, 139.02, 139.03, 139.06, 139.31, 139.315, 139.33, 139.76 and , 139.78 and 139.97, subch. XIV of ch. 71 and subch. VII of ch. 77. Whenever with respect to a pending appeal there is filed with the commission a stipulation signed by the department of revenue and the adverse party, under s. 73.03 (25), agreeing to an affirmance, modification or reversal of the department's position with respect to some or all of the issues raised in the appeal, the commission shall enter an order affirming or modifying in whole or in part, or canceling the assessment appealed from, or allowing in whole or in part or denying the petitioner's refund claim, as the case may be, pursuant to and in accordance with the stipulation filed. No responsibility shall devolve upon the commission, respecting the signing of an order of dismissal as to any pending appeal settled by the department without the approval of the commission.".

AB133-ASA1-AA2,266,10 635. Page 950, line 21: after that line insert:

AB133-ASA1-AA2,266,11 " Section 1800d. 73.0301 (1) (d) 2. of the statutes is amended to read:

AB133-ASA1-AA2,266,14 73.0301 (1) (d) 2. A license issued by the department of health and family services under s. 48.66 (1) (a) to a child welfare agency, group home, shelter care facility or day care center, as required by s. 48.60, 48.625, 48.65 or 938.22 (7).".

AB133-ASA1-AA2,266,15 636. Page 951, line 5: after that line insert:

AB133-ASA1-AA2,266,16 " Section 1803q. 74.01 (5) of the statutes is amended to read:

AB133-ASA1-AA2,266,21 74.01 (5) "Special tax" means any amount entered in the tax roll which is not a general property tax, special assessment or special charge. "Special tax" includes any interest and penalties assessed for nonpayment of the tax before it is placed in the tax roll and any charge under s. 66.606 (1) (a) 2. that is placed on the tax roll under s. 66.606 (2).".

AB133-ASA1-AA2,266,22 637. Page 952, line 9: after that line insert:

AB133-ASA1-AA2,266,23 " Section 1806m. 76.02 (1) of the statutes is amended to read:

AB133-ASA1-AA2,267,6 76.02 (1) "Air carrier company" means any person engaged in the business of transportation in aircraft of persons or property for hire on regularly scheduled flights, except an air carrier company that operates a hub terminal facility, as defined in s. 70.11 (40). In this subsection, "aircraft" means a completely equipped operating unit, including spare flight equipment, used as a means of conveyance in air commerce.".

AB133-ASA1-AA2,267,7 638. Page 953, line 14: after that line insert:

AB133-ASA1-AA2,267,8 " Section 1810dm. 77.21 (1) of the statutes is amended to read:

AB133-ASA1-AA2,267,13 77.21 (1) "Conveyance" includes deeds and other instruments for the passage of ownership interests in real estate, including contracts and assignments of a vendee's interest therein, including instruments that are evidence of a sale of time-share property, as defined in s. 707.02 (32), and including leases for at least 99 years but excluding leases for less than 99 years, easements and wills.".

AB133-ASA1-AA2,267,14 639. Page 953, line 21: after that line insert:

AB133-ASA1-AA2,267,15 " Section 1812p. 77.54 (30) (a) 3. of the statutes is amended to read:

AB133-ASA1-AA2,267,18 77.54 (30) (a) 3. Electricity sold during the months of November, December, January, February, March and April for use in farming, including but not limited to agriculture, dairy farming, floriculture and horticulture.".

AB133-ASA1-AA2,267,19 640. Page 953, line 21: after that line insert:

AB133-ASA1-AA2,267,20 " Section 1812s. 77.51 (9) (e) of the statutes is amended to read:

AB133-ASA1-AA2,267,23 77.51 (9) (e) An auction which is the sale of personal farm property or household goods and not held at regular intervals more than 5 times at the same location during a year.".

AB133-ASA1-AA2,267,24 641. Page 953, line 21: after that line insert:

AB133-ASA1-AA2,268,1 " Section 1812Lb. 77.54 (20) (c) 4m. of the statutes is created to read:

AB133-ASA1-AA2,268,5 77.54 (20) (c) 4m. Taxable sales do not include food and beverage items under pars. (b) 4. and (c) 2., and disposable products that are transferred with such items, that are provided by a restaurant to the restaurant's employe during the employe's work hours.".

AB133-ASA1-AA2,268,6 642. Page 953, line 21: after that line insert:

AB133-ASA1-AA2,268,7 " Section 1812Lm. 77.51 (4) (c) 6. of the statutes is repealed.

AB133-ASA1-AA2, s. 1812Ln Section 1812Ln. 77.52 (2) (a) 1. of the statutes is amended to read:

AB133-ASA1-AA2,269,6 77.52 (2) (a) 1. The furnishing of rooms or lodging to transients by hotelkeepers, motel operators and other persons furnishing accommodations that are available to the public, irrespective of whether membership is required for use of the accommodations, including the furnishing of rooms or lodging through the sale of a time-share property, as defined in s. 707.02 (32), if the use of the rooms or lodging is not fixed at the time of sale as to the starting day or the lodging unit. In this subdivision, "transient" means any person residing for a continuous period of less than one month in a hotel, motel or other furnished accommodations available to the public. In this subdivision, "hotel" or "motel" means a building or group of buildings in which the public may obtain accommodations for a consideration, including, without limitation, such establishments as inns, motels, tourist homes, tourist houses or courts, lodging houses, rooming houses, summer camps, apartment hotels, resort lodges and cabins and any other building or group of buildings in which accommodations are available to the public, except accommodations, including mobile homes as defined in s. 66.058 (1) (d), rented for a continuous period of more than one month and accommodations furnished by any hospitals, sanatoriums, or nursing homes, or by corporations or associations organized and operated exclusively for religious, charitable or educational purposes provided that no part of the net earnings of such corporations and associations inures to the benefit of any private shareholder or individual. In this subdivision, "one month" means a calendar month or 30 days, whichever is less, counting the first day of the rental and not counting the last day of the rental.

AB133-ASA1-AA2, s. 1812Lp Section 1812Lp. 77.52 (2) (a) 2. of the statutes is amended to read:

AB133-ASA1-AA2,269,17 77.52 (2) (a) 2. The sale of admissions to amusement, athletic, entertainment or recreational events or places except county fairs, the sale, rental or use of regular bingo cards, extra regular cards, special bingo cards and the sale of bingo supplies to players and the furnishing, for dues, fees or other considerations, the privilege of access to clubs or the privilege of having access to or the use of amusement, entertainment, athletic or recreational devices or facilities, including , in connection with the sale or use of time-share property, as defined in s. 707.02 (32), the sale or furnishing of use of recreational facilities on a periodic basis or other recreational rights, including but not limited to membership rights, vacation services and club memberships.".

AB133-ASA1-AA2,269,18 643. Page 953, line 21: after that line insert:

AB133-ASA1-AA2,269,19 " Section 1812np. 77.54 (20) (c) 6. of the statutes is amended to read:

AB133-ASA1-AA2,270,2 77.54 (20) (c) 6. For purposes of subd. 1., "premises" shall be construed broadly, and, by way of illustration but not limitation, shall include the lobby, aisles and auditorium of a theater or the seating, aisles and parking area of an arena, rink or stadium or the parking area of a drive-in or outdoor theater. The premises of a caterer with respect to catered meals or beverages shall be the place where served. Vending machine premises shall include the room or area in which located Sales from a vending machine shall be considered sales for off-premises consumption.".