SB45: Bill Text

SB45, s. 1757 Section 1757. 71.47 (2) of the statutes is amended to read:

SB45,882,8 71.47 (2) Farmland preservation credit , farmland preservation acreage credit. The farmland preservation credit and the farmland preservation acreage credit under subch. IX may be claimed against taxes otherwise due.

SB45, s. 1758 Section 1758. 71.47 (4) (a) of the statutes is amended to read:

SB45,882,23 71.47 (4) (a) Credit. Any corporation may credit against taxes otherwise due under this chapter an amount equal to 5% of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section 41 of the internal revenue code, except that "qualified research expenses" includes only expenses incurred by the claimant, incurred for research conducted in this state for the taxable year, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation and except that "qualified research expenses" does not include compensation used in computing the credit under subs. (1dj) and (1dx), the corporation's base amount, as defined in section 41 (c) of the internal revenue code, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and, (d), (dc), (dg), (dn) and (dr). Section 41 (h) of the internal revenue code does not apply to the credit under this paragraph.

SB45, s. 1759 Section 1759. 71.47 (4) (am) of the statutes is amended to read:

SB45,884,3 71.47 (4) (am) Development zone additional research credit. In addition to the credit under par. (a), any corporation may credit against taxes otherwise due under this chapter an amount equal to 5% of the amount obtained by subtracting from the corporation's qualified research expenses, as defined in section 41 of the internal revenue code, except that "qualified research expenses" include only expenses incurred by the claimant in a development zone under subch. VI of ch. 560, except that a taxpayer may elect the alternative computation under section 41 (c) (4) of the Internal Revenue Code and that election applies until the department permits its revocation and except that "qualified research expenses" do not include compensation used in computing the credit under sub. (1dj) nor research expenses incurred before the claimant is certified for tax benefits under s. 560.765 (3), the corporation's base amount, as defined in section 41 (c) of the internal revenue code, in a development zone, except that gross receipts used in calculating the base amount means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2. and, (d), (dc), (dg), (dn) and (dr) and research expenses used in calculating the base amount include research expenses incurred before the claimant is certified for tax benefits under s. 560.765 (3), in a development zone, if the claimant submits with the claimant's return a copy of the claimant's certification for tax benefits under s. 560.765 (3) and a statement from the department of commerce verifying the claimant's qualified research expenses for research conducted exclusively in a development zone. The rules under s. 73.03 (35) apply to the credit under this paragraph. The rules under sub. (1di) (f) and (g) as they apply to the credit under that subsection apply to claims under this paragraph. Section 41 (h) of the internal revenue code does not apply to the credit under this paragraph. No credit may be claimed under this paragraph for taxable years that begin on January 1, 1998, or thereafter. Credits under this paragraph for taxable years that begin before January 1, 1998, may be carried forward to taxable years that begin on January 1, 1998, or thereafter.

SB45, s. 1760 Section 1760. 71.48 of the statutes is amended to read:

SB45,884,7 71.48 Payments of estimated taxes. Sections Except as provided in s. 71.255 (8), ss. 71.29 and 71.84 (2) shall apply to insurers subject to taxation under this chapter.

SB45, s. 1761 Section 1761. 71.49 (1) (f) of the statutes is amended to read:

SB45,884,12 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit and farmland preservation acreage credit under subch. IX, farmland tax relief credit under s. 71.47 (2m) and estimated tax payments under s. 71.48.

SB45, s. 1762 Section 1762. 71.54 (1) (d) (intro.) of the statutes is amended to read:

SB45,884,16 71.54 (1) (d) 1991 and thereafter to 1999. (intro.) The amount of any claim filed in 1991 and thereafter to 1999 and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

SB45, s. 1763 Section 1763. 71.54 (1) (e) of the statutes is created to read:

SB45,884,20 71.54 (1) (e) 2000 and thereafter. The amount of any claim filed in 2000 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

SB45,884,23 1. If the household income was $8,000 or less in the year to which the claim relates, the claim is limited to 80% of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's homestead.

SB45,885,2 2. If the household income was more than $8,000 in the year to which the claim relates, the claim is limited to 80% of the amount by which the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's homestead exceeds 11.8% of the household income exceeding $8,000.

SB45,885,4 3. No credit may be allowed if the household income of a claimant exceeds $20,290.

SB45, s. 1764 Section 1764. 71.54 (2) (a) (intro.) of the statutes is amended to read:

SB45,885,10 71.54 (2) (a) (intro.) Property taxes accrued or rent constituting property taxes accrued shall be reduced by one-twelfth for each month or portion of a month for which the claimant received relief from any county under s. 59.53 (21) equal to or in excess of $400, participated in Wisconsin works under s. 49.147 (4) or (5) or 49.148 (1m) or received assistance under s. 49.19, except assistance received:

SB45, s. 1765 Section 1765. 71.58 (8) of the statutes is amended to read:

SB45,886,10 71.58 (8) "Property taxes accrued" means property taxes, exclusive of special assessments, delinquent interest and charges for service, levied on the farmland and improvements owned by the claimant or any member of the claimant's household in any calendar year under ch. 70, less the tax credit, if any, afforded in respect of the property by s. 79.10. "Property taxes accrued" shall not exceed $6,000 the amount described as the maximum excessive property tax in s. 71.60 (1) (a). If farmland is owned by a tax-option corporation, a limited liability company or by 2 or more persons or entities as joint tenants, tenants in common or partners or is marital property or survivorship marital property and one or more such persons, entities or owners is not a member of the claimant's household, "property taxes accrued" is that part of property taxes levied on the farmland, reduced by the tax credit under s. 79.10, that reflects the ownership percentage of the claimant and the claimant's household. For purposes of this subsection, property taxes are "levied" when the tax roll is delivered to the local treasurer for collection. If farmland is sold during the calendar year of the levy the "property taxes accrued" for the seller is the amount of the tax levy, reduced by the tax credit under s. 79.10, prorated to each in the closing agreement pertaining to the sale of the farmland, except that if the seller does not reimburse the buyer for any part of those property taxes there are no "property taxes accrued" for the seller, and the "property taxes accrued" for the buyer is the property taxes levied on the farmland, reduced by the tax credit under s. 79.10, minus, if the seller reimburses the buyer for part of the property taxes, the amount prorated to the seller in the closing agreement. With the claim for credit under this subchapter, the seller shall submit a copy of the closing agreement and the buyer shall submit a copy of the closing agreement and a copy of the property tax bill.

SB45, s. 1766 Section 1766. 71.59 (1) (a) of the statutes is amended to read:

SB45,886,20 71.59 (1) (a) Subject to the limitations provided in this subchapter 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 s. 71.60 or the amount derived under s. 71.605, or both. 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 drawn on the general fund.

SB45, s. 1767 Section 1767. 71.59 (1) (b) (intro.) of the statutes is amended to read:

SB45,886,24 71.59 (1) (b) (intro.) Every claimant under this subchapter section and s. 71.60 shall supply, at the request of the department, in support of the claim, all of the following:

SB45, s. 1768 Section 1768. 71.59 (1) (b) 5. of the statutes is created to read:

SB45,887,4 71.59 (1) (b) 5. A copy of a certificate of compliance, issued by the land conservation committee of each of the counties that have jurisdiction over the farmland, that certifies that the soil and water standards that apply to the farmland under s. 92.105 (1), (2) and (3) are being met.

SB45, s. 1769 Section 1769. 71.59 (1) (c) of the statutes is amended to read:

SB45,887,11 71.59 (1) (c) A farmland preservation agreement submitted under par. (b) 3. shall contain provisions specified under s. 91.13 (8) including either a provision requiring farming operations to be conducted in substantial accordance with a soil and water conservation plan prepared under s. 92.104, 1997 stats., or a provision requiring farming operations to be conducted in compliance with reasonable soil and water conservation standards established under s. 92.105.

SB45, s. 1770 Section 1770. 71.59 (1) (d) (intro.) of the statutes is amended to read:

SB45,887,14 71.59 (1) (d) (intro.) The certificate of the zoning authority submitted under par. (b) 3. 5. shall certify:

SB45, s. 1771 Section 1771. 71.59 (1) (d) 1. of the statutes is amended to read:

SB45,887,18 71.59 (1) (d) 1. That the lands are within the boundaries of an agricultural zoning district which is part of an adopted ordinance meeting the standards of subch. V of ch. 91 and certified under s. 91.06, 1997 stats.

SB45, s. 1772 Section 1772. 71.59 (2) (intro.) of the statutes is amended to read:

SB45,887,21 71.59 (2) Ineligible claims. (intro.) No credit shall be allowed under this subchapter section and s. 71.60:

SB45, s. 1773 Section 1773. 71.59 (2) (b) of the statutes is amended to read:

SB45,887,25 71.59 (2) (b) If a notice of noncompliance with an applicable soil and water conservation plan under s. 92.104, 1997 stats., is in effect with respect to the claimant at the time the claim is filed.

SB45, s. 1774 Section 1774. 71.59 (2) (d) of the statutes is amended to read:

SB45,888,5 71.59 (2) (d) For property taxes accrued on farmland zoned for exclusive agricultural use under an ordinance certified under subch. V of ch. 91 s. 91.06, 1997 stats., which is granted a special exception or conditional use permit for a use which is not an agricultural use, as defined in s. 91.01 (1).

SB45, s. 1775 Section 1775. 71.60 (1) (a) of the statutes is amended to read:

SB45,888,14 71.60 (1) (a) The amount of excessive property taxes shall be computed by subtracting from property taxes accrued the amount of 7% of the 2nd $5,000 of household income plus 9% of the 3rd $5,000 of household income plus 11% of the 4th $5,000 of household income plus 17% of the 5th $5,000 of household income plus 27% of the 6th $5,000 of household income plus 37% of household income in excess of $30,000. The maximum excessive property tax which can be utilized is $6,000 for claims that are calculated under par. (b) and the maximum excessive property tax which can be utilized is $4,000 for claims that are calculated under par. (bm).

SB45, s. 1776 Section 1776. 71.60 (1) (b) of the statutes is amended to read:

SB45,888,25 71.60 (1) (b) The Except as provided in par. (bm), the credit allowed under s. 71.59 and this subchapter section shall be limited to 90% of the first $2,000 of excessive property taxes plus 70% of the 2nd $2,000 of excessive property taxes plus 50% of the 3rd $2,000 of excessive property taxes. The maximum credit shall not exceed $4,200 for any claimant. The credit for any claimant shall be the greater of either the credit as calculated under this subchapter as it exists at the end of the year for which the claim is filed or as it existed on the date on which the farmland became subject to a current agreement under subch. II or III of ch. 91 or under subch. III of ch. 91, 1997 stats., using for such calculations household income and property taxes accrued of the year for which the claim is filed.

SB45, s. 1777 Section 1777. 71.60 (1) (bm) of the statutes is created to read:

SB45,889,12 71.60 (1) (bm) For new claims that are filed under s. 71.59 and this section that relate to taxable years beginning after December 31, 2000, the credit allowed shall be limited to 40% of the first $2,000 of excessive property taxes plus 60% of the next $1,000 of excessive property taxes plus 70% of the next $1,000 of excessive property taxes. The maximum credit shall not exceed $2,100 for any claimant who files a claim to which this paragraph applies. The credit for any claimant shall be the greater of either the credit as calculated under this subchapter as it exists at the end of the year for which the claim is filed or as it existed on the date on which the farmland became subject to a current certificate that is described in s. 71.59 (1) (b) 5., using for such calculations household income and property taxes accrued of the year for which the claim is filed.

SB45, s. 1778 Section 1778. 71.60 (1) (c) 1. to 3. of the statutes are amended to read:

SB45,889,18 71.60 (1) (c) 1. If the farmland is located in a county which has a certified an agricultural preservation plan certified under subch. IV of ch. 91 s. 91.06, 1997 stats., at the close of the year for which credit is claimed and is in an area zoned by a county, city or village for exclusive agricultural use under ch. 91 at the close of such year, the amount of the claim shall be that as specified in par. (b).

SB45,890,3 2. If the farmland is subject to a transition area agreement under subch. II of ch. 91 on July 1 of the year for which credit is claimed, or the claimant had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, and the farmland is located in a city or village which has a certified an exclusive agricultural use zoning ordinance certified under subch. V of ch. 91 s. 91.06, 1997 stats., in effect at the close of the year for which credit is claimed, or in a town which is subject to a certified county exclusive agricultural use zoning ordinance certified under subch. V of ch. 91 s. 91.06, 1997 stats., in effect at the close of the year for which credit is claimed, the amount of the claim shall be that as specified in par. (b).

SB45,890,18 3. If the claimant or any member of the claimant's household owns farmland which is ineligible for credit under subd. 1. or 2. but was subject to a farmland preservation agreement under subch. III of ch. 91, 1997 stats., on July 1 of the year for which credit is claimed, or the owner had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, and if the owner has applied by the end of the year in which conversion under s. 91.41, 1997 stats., is first possible for conversion of the agreement to a transition area agreement under subch. II of ch. 91, and the transition area agreement has subsequently been executed, and the farmland is located in a city or village which has a certified an exclusive agricultural use zoning ordinance certified under subch. V of ch. 91 s. 91.06, 1997 stats., in effect at the close of the year for which credit is claimed, or in a town which is subject to a certified county exclusive agricultural use zoning ordinance certified under subch. V of ch. 91 s. 91.06, 1997 stats., in effect at the close of the year for which credit is claimed, the amount of the claim shall be that specified in par. (b).

SB45, s. 1779 Section 1779. 71.60 (1) (c) 5. to 8. of the statutes are amended to read:

SB45,891,4 71.60 (1) (c) 5. If the claimant or any member of the claimant's household owns farmland which is ineligible for credit under subds. 1. to 4. but was subject to a farmland preservation agreement under subch. III of ch. 91, 1997 stats., on July 1 of the year for which credit is claimed, or the owner had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, and if the owner has applied by the end of the year in which conversion under s. 91.41, 1997 stats., is first possible for conversion of the agreement to an agreement under subch. II of ch. 91, and the agreement under subch. II of ch. 91 has subsequently been executed, the amount of the claim shall be limited to 80% of that specified in par. (b).

SB45,891,10 6. If the farmland is located in an agricultural district under a certified county agricultural preservation plan certified under subch. IV of ch. 91 s. 91.06, 1997 stats., at the close of the year for which credit is claimed, and is located in an area zoned for exclusive agricultural use under a certified town ordinance certified under subch. V of ch. 91 s. 91.06, 1997 stats., at the close of such year, the amount of the claim shall be the amount specified in par. (b).

SB45,891,20 6m. If the farmland is located in an agricultural district under a certified county agricultural preservation plan certified under subch. IV of ch. 91 s. 91.06, 1997 stats., at the close of the year for which credit is claimed, and is located in an area zoned for exclusive agricultural use under a certified county or town ordinance certified under subch. V of ch. 91 s. 91.06, 1997 stats., for part of a year but not at the close of that year because the farmland became subject to a city or village extraterritorial zoning ordinance under s. 62.23 (7a), the amount of the claim shall be equal to the amount that the claim would have been under this section if the farmland were subject to a certified county or town exclusive agricultural use ordinance at the close of the year.

SB45,892,2 7. If the farmland is located in an area zoned for exclusive agricultural use under a certified county, city or village ordinance certified under subch. V of ch. 91 s. 91.06, 1997 stats., at the close of the year for which credit is claimed, but the county in which the farmland is located has not adopted an agricultural preservation plan under subch. IV of ch. 91, 1997 stats., by the close of such year, the amount of the claim shall be limited to 70% of that specified in par. (b).

SB45,892,7 8. If the farmland is subject to a farmland preservation agreement under subch. III of ch. 91, 1997 stats., on July 1 of the year for which credit is claimed or the claimant had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, the amount of the claim shall be limited to 50% of that specified in par. (b).

SB45, s. 1780 Section 1780. 71.60 (2) of the statutes is renumbered 71.60 (2) (a) and amended to read:

SB45,892,14 71.60 (2) (a) If For taxable years beginning before January 1, 2001, if the farmland is subject to a certified an ordinance certified under subch. V of ch. 91 s. 91.06, 1997 stats., or an agreement under subch. II of ch. 91, in effect at the close of the year for which the credit is claimed, the amount of the claim is 10% of the property taxes accrued or the amount determined under sub. (1), whichever is greater.

SB45, s. 1781 Section 1781. 71.60 (2) (b) of the statutes is created to read:

SB45,892,20 71.60 (2) (b) For taxable years beginning after December 31, 2000, if the farmland is subject to a certificate of compliance that is described under s. 71.59 (1) (b) 5. and that is in effect at the close of the year for which the credit is claimed, the amount of the claim is 10% of the property taxes accrued or the amount determined under sub. (1), whichever is greater.

SB45, s. 1782 Section 1782. 71.605 of the statutes is created to read:

SB45,892,23 71.605 Farmland preservation acreage credit. (1) Definitions. In this section:

SB45,893,3 (a) "Development rights" means a holder's nonpossessory interest in farmland that imposes a limitation or affirmative obligation the purpose of which is to retain or protect natural, scenic or open space values of farmland, assuring the availability of farmland for agricultural, forest, wildlife habitat or open space use, protecting natural resources or maintaining or enhancing air or water quality.

SB45,893,6 (b) "Nonprofit entity" means an entity that is described in section 501 (c) (3) of the Internal Revenue Code and is exempt from federal income tax under section 501 (a) of the Internal Revenue Code.

SB45,893,7 (c) "Political subdivision" means a city, village, town or county.

SB45,893,11 (2) Calculation. If the claimant sells, donates or otherwise transfers the development rights to farmland for which a credit is claimed under this section to the state or to a political subdivision, or to a nonprofit entity, the credit may be calculated as follows:

SB45,893,13 (a) If farming rights are retained on such farmland, the credit shall be 50 cents for each acre that the claimant sells, donates or otherwise transfers.

SB45,893,15 (b) If farming rights are not retained on such farmland, the credit shall be 30 cents for each acre that the claimant sells, donates or otherwise transfers.

SB45,893,20 (3) Limitations. (a) If a claimant sells, donates or otherwise transfers development rights under sub. (2) to a nonprofit entity, the credit under this section may not be claimed unless the entity enters into a signed agreement with the department of agriculture, trade and consumer protection that contains all of the following:

SB45,893,22 1. Standards for the management of the farmland, the development rights to which are to be acquired.

SB45,893,25 2. A prohibition against using the development rights to the farmland which are to be acquired as security for any debt unless the department of agriculture, trade and consumer protection approves the incurring of the debt.

SB45,894,3 3. A clause that any subsequent sale, donation or other transfer of the development rights to the farmland which are to be acquired is subject to pars. (b) and (e).

SB45,894,8 (b) The nonprofit entity may subsequently sell, donate or otherwise transfer the acquired development rights to the farmland to the state or to a city, village, town or county, or to a 3rd party other than a creditor if the 3rd party is also a nonprofit entity, except that a sale, donation or transfer to another nonprofit entity may occur only if all of the following apply:

SB45,894,10 1. The department of agriculture, trade and consumer protection approves the subsequent sale, donation or transfer.

SB45,894,13 2. The party to whom the development rights are sold, donated or transferred enters into a new contract with the department of agriculture, trade and consumer protection under par. (a).

SB45,894,16 (c) The nonprofit entity may subsequently sell, donate or transfer the acquired development rights to satisfy a debt or other obligation if the department of agriculture, trade and consumer protection approves the sale, donation or transfer.

SB45,894,22 (d) The nonprofit entity may subsequently develop the property, with the written consent of the owner of the property and with the written consent of the department of agriculture, trade and consumer protection, in a way that retains or protects natural, scenic or open space values of farmland, assuring the availability of farmland for agricultural, forest, wildlife habitat or open space use, protecting natural resources or maintaining or enhancing air or water quality.

SB45,894,24 (e) If the nonprofit entity violates any essential provision of the contract, the development rights that were acquired shall vest in the state.

SB45,895,4 (f) The instrument conveying the development rights to the nonprofit entity shall state the interest of the state under par. (e). The contract entered into under par. (a) and the instrument of conveyance shall be recorded in the office of the register of deeds of each county in which the farmland is located.

SB45,895,7 (fm) The credit under this section may be claimed only by the person who owns the farmland when the development rights are initially transferred as described in sub. (2).

SB45,895,11 (g) The credit under this section may not be claimed until the claimant files with the register of deeds of each county in which the farmland is located the certificate that verifies that the development rights to the farmland have been transferred as described in sub. (2).

SB45,895,13 (h) Section 71.59 (2) (a) and (e), to the extent that it applies to the credit under ss. 71.59 and 71.60, applies to the credit under this section.

SB45,895,16 (i) If a claimant sells, donates or otherwise transfers development rights under sub. (2) to a political subdivision, the political subdivision may develop the farmland only in a way that is consistent with a comprehensive plan under s. 66.0295.

SB45,895,18 (4) Sunset. No new claims may be filed under this section for taxable years that begin after December 31, 2002.

SB45, s. 1783 Section 1783. 71.61 (6) of the statutes is created to read:

SB45,895,23 71.61 (6) Sunset. (a) For claims that are filed under s. 71.59 and computed under s. 71.60 for taxable years that begin after December 31, 2000, based on property taxes that are accrued in the previous calendar year, ss. 71.59 (1) (b) 3. and (d) 1. to 4. and 71.60 (1) (c) do not apply.

SB45,895,25 (b) No new claims may be filed under s. 71.59 and computed under s. 71.60 for taxable years that begin after December 31, 2002.

SB45, s. 1784 Section 1784. 71.64 (9) (b) of the statutes is renumbered 71.64 (9) (b) (intro.) and amended to read:

SB45,896,6 71.64 (9) (b) (intro.) The department shall from time to time adjust the withholding tables to reflect any changes in income tax rates, any applicable surtax or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p) and (2) resulting from statutory changes, except that the as follows:

SB45,896,11 1. The department may not adjust the withholding tables to reflect the changes in rates in s. 71.06 (1m) and (2) (c) and (d) and any changes in dollar amounts with respect to bracket indexing under s. 71.06 (2e), with respect to changes in rates under s. 71.06 (1m) and (2) (c) and (d), and with respect to standard deduction indexing under s. 71.05 (22) (ds) for any taxable year that begins before January 1, 2000.