Amendment ASA1-SB55

SB55-ASA1,826,12 2. For taxable years beginning after December 31, 2005, if the numerator used to determine the percentage under sub. (3) (a) related to a taxpayer's net income is a negative number and the denominator used to determine the percentage under sub. (3) (a) related to a taxpayer's net income is not zero, none of the taxpayer's net income is apportioned to this state.

SB55-ASA1,826,17 (c) 1. For taxable years beginning before January 1, 2006, if the numerator used to determine the percentage under sub. (3) (a) related to a taxpayer's net income is a positive number and the denominator used to determine the percentage under sub. (3) (a) related to a taxpayer's net income is zero or a negative number, the percentage under sub. (3) (a) is one.

SB55-ASA1,826,22 2. For taxable years beginning after December 31, 2005, if the numerator used to determine the percentage under sub. (3) (a) related to a taxpayer's net income is a positive number and the denominator used to determine the percentage under sub. (3) (a) related to a taxpayer's net income is zero or a negative number, all of the taxpayer's net income is apportioned to this state.

SB55-ASA1, s. 1202 Section 1202. 71.45 (3m) of the statutes is amended to read:

SB55-ASA1,827,6 71.45 (3m) Arithmetic average. The Except as provided in sub. (3d), the arithmetic average of the 2 percentages referred to in sub. (3) shall be applied to the net income figure arrived at by the successive application of sub. (2) (a) and (b) with respect to Wisconsin insurers to which sub. (2) (a) and (b) applies and which have collected received premiums, other than life insurance premiums, written upon for insurance, other than life insurance, where the subject of such insurance was on property or risks resident, located or to be performed outside this state, to arrive at Wisconsin income constituting the measure of the franchise tax.

SB55-ASA1, s. 1203 Section 1203. 71.45 (6) of the statutes is created to read:

SB55-ASA1,827,12 71.45 (6) Partnerships and limited liability companies. (a) A general or limited partner's share of the numerator and denominator of a partnership's apportionment factors under this section are included in the numerator and denominator of the general or limited partner's apportionment factors under this section.

SB55-ASA1,827,16 (b) If a limited liability company is treated as a partnership, for federal tax purposes, a member's share of the numerator and denominator of a limited liability company's apportionment factors under this section are included in the numerator and denominator of the member's apportionment factors under this section.

SB55-ASA1, s. 1204 Section 1204. 71.47 (1dm) of the statutes is created to read:

SB55-ASA1,827,19 71.47 (1dm) Development zone capital investment credit. (a) In this subsection:

SB55-ASA1,827,21 1. "Certified" means entitled under s. 560.795 (3) (a) 4. to claim tax benefits or certified under s. 560.795 (5).

SB55-ASA1,827,22 2. "Claimant" means a person who files a claim under this subsection.

SB55-ASA1,827,24 3. "Development zone" means a development opportunity zone under s. 560.795 (1) (e).

SB55-ASA1,828,9 4. "Previously owned property" means real property that the claimant or a related person owned during the 2 years prior to the department of commerce designating the place where the property is located as a development zone and for which the claimant may not deduct a loss from the sale of the property to, or an exchange of the property with, the related person under section 267 of the Internal Revenue Code, except that section 267 (b) of the Internal Revenue Code is modified so that if the claimant owns any part of the property, rather than 50% ownership, the claimant is subject to section 267 (a) (1) of the Internal Revenue Code for purposes of this subsection.

SB55-ASA1,828,13 (b) Subject to the limitations provided in this subsection and in s. 73.03 (35), for any taxable year for which the claimant is certified, a claimant may claim as a credit against the taxes imposed under s. 71.43 an amount that is equal to 3% of the following:

SB55-ASA1,828,14 1. The purchase price of depreciable, tangible personal property.

SB55-ASA1,828,16 2. The amount expended to acquire, construct, rehabilitate, remodel, or repair real property in a development zone.

SB55-ASA1,828,21 (c) A claimant may claim the credit under par. (b) 1., if the tangible personal property is purchased after the claimant is certified and the personal property is used for at least 50% of its use in the claimant's business at a location in a development zone or, if the property is mobile, the property's base of operations for at least 50% of its use is at a location in a development zone.

SB55-ASA1,829,5 (d) A claimant may claim the credit under par. (b) 2. for an amount expended to construct, rehabilitate, remodel, or repair real property, if the claimant began the physical work of construction, rehabilitation, remodeling, or repair, or any demolition or destruction in preparation for the physical work, after the place where the property is located was designated a development zone, or if the completed project is placed in service after the claimant is certified. In this paragraph, "physical work" does not include preliminary activities such as planning, designing, securing financing, researching, developing specifications, or stabilizing the property to prevent deterioration.

SB55-ASA1,829,10 (e) A claimant may claim the credit under par. (b) 2. for an amount expended to acquire real property, if the property is not previously owned property and if the claimant acquires the property after the place where the property is located was designated a development zone, or if the completed project is placed in service after the claimant is certified.

SB55-ASA1,829,12 (f) No credit may be allowed under this subsection unless the claimant includes with the claimant's return:

SB55-ASA1,829,14 1. A copy of a verification from the department of commerce that the claimant may claim tax benefits under s. 560.795 (3) (a) 4. or is certified under s. 560.795 (5).

SB55-ASA1,829,17 2. A statement from the department of commerce verifying the purchase price of the investment and verifying that the investment fulfills the requirements under par. (b).

SB55-ASA1,829,22 (g) In calculating the credit under par. (b) a claimant shall reduce the amount expended to acquire property by a percentage equal to the percentage of the area of the real property not used for the purposes for which the claimant is certified and shall reduce the amount expended for other purposes by the amount expended on the part of the property not used for the purposes for which the claimant is certified.

SB55-ASA1,829,24 (h) The carry-over provisions of s. 71.28 (4) (e) and (f) as they relate to the credit under s. 71.28 (4) relate to the credit under this subsection.

SB55-ASA1,830,13 (i) Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, that credit shall be determined on the basis of their economic activity, not that of their shareholders, partners, or members. The corporation, partnership, or limited liability company shall compute the amount of credit that may be claimed by each of its shareholders, partners, or members and provide that information to its shareholders, partners, or members. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit based on the partnership's, company's, or corporation's activities in proportion to their ownership interest and may offset it against the tax attributable to their income from the partnership's, company's, or corporation's business operations in the development zone and against the tax attributable to their income from the partnership's, company's, or corporation's directly related business operations.

SB55-ASA1,830,22 (j) If a person who is entitled under s. 560.795 (3) (a) 4. to claim tax benefits becomes ineligible for such tax benefits, or if a person's certification under s. 560.795 (5) is revoked, that person may claim no credits under this subsection for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years, and that person may carry over no unused credits from previous years to offset tax under this chapter for the taxable year that includes the day on which the person becomes ineligible for tax benefits, the taxable year that includes the day on which the certification is revoked, or succeeding taxable years.

SB55-ASA1,831,3 (k) If a person who is entitled under s. 560.795 (3) (a) 4. to claim tax benefits or certified under s. 560.795 (5) ceases business operations in the development zone during any of the taxable years that that zone exists, that person may not carry over to any taxable year following the year during which operations cease any unused credits from the taxable year during which operations cease or from previous taxable years.

SB55-ASA1,831,5 (L) 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.

SB55-ASA1, s. 1205 Section 1205. 71.47 (1dx) (a) 5. of the statutes is amended to read:

SB55-ASA1,831,19 71.47 (1dx) (a) 5. "Member of a targeted group" means a person under sub. (2dj) (am) 1., a person who resides in an empowerment zone, or an enterprise community, that the U.S. government designates, a person who is employed in an unsubsidized job but meets the eligibility requirements under s. 49.145 (2) and (3) for a Wisconsin works employment position, a person who is employed in a trial job, as defined in s. 49.141 (1) (n), or a person who is eligible for child care assistance under s. 49.155, a person who is a vocational rehabilitation referral, an economically disadvantaged youth, an economically disadvantaged veteran, a supplemental security income recipient, a general assistance recipient, an economically disadvantaged ex-convict, a qualified summer youth employee, as defined in 26 USC 51 (d) (7), a dislocated worker, as defined in 29 USC 2801 (9), or a food stamp recipient; if the person has been certified in the manner under sub. (1dj) (am) 3. by a designated local agency, as defined in sub. (1dj) (am) 2.

SB55-ASA1, s. 1206 Section 1206. 71.47 (3g) of the statutes is created to read:

SB55-ASA1,831,24 71.47 (3g) Technology zones credit. (a) Subject to the limitations under this subsection and ss. 73.03 (35m), and 560.96, a business that is certified under s. 560.96 (3) may claim as a credit against the taxes imposed under s. 71.43 an amount equal to the sum of the following, as established under s. 560.96 (3) (c):

SB55-ASA1,832,2 1. The amount of real and personal property taxes imposed under s. 70.01 that the business paid in the taxable year.

SB55-ASA1,832,4 2. The amount of income and franchise taxes imposed under s. 71.43 that the business paid in the taxable year.

SB55-ASA1,832,6 3. The amount of sales and use taxes imposed under ss. 77.52, 77.53, and 77.71 that the business paid in the taxable year.

SB55-ASA1,832,8 (b) The department of revenue shall notify the department of commerce of all claims under this subsection.

SB55-ASA1,832,10 (c) Section 71.28 (4) (e), (f), (g), and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under par. (a).

SB55-ASA1,832,18 (d) 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 amounts under par. (a). 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.

SB55-ASA1, s. 1207 Section 1207. 71.49 (1) (emb) of the statutes is created to read:

SB55-ASA1,832,21 71.49 (1) (emb) Development zone capital investment credit under s. 71.47 (1dm).

SB55-ASA1, s. 1208 Section 1208. 71.49 (1) (eon) of the statutes is created to read:

SB55-ASA1,832,23 71.49 (1) (eon) Technology zones credit under s. 71.47 (3g).

SB55-ASA1, s. 2200c Section 2200c. 71.93 (1) (a) 4. of the statutes is amended to read:

SB55-ASA1,833,3 71.93 (1) (a) 4. An amount that the department of workforce development may recover under s. 49.125 or 49.195 (3) or 49.793, if the department of workforce development has certified the amount under s. 49.85.

SB55-ASA1, s. 2200cm Section 2200cm. 71.93 (1) (a) 6. of the statutes is created to read:

SB55-ASA1,833,6 71.93 (1) (a) 6. An amount owed to the department of military affairs under s. 21.49 (3m) (b).

SB55-ASA1, s. 2200d Section 2200d. 72.01 (11m) of the statutes is created to read:

SB55-ASA1,833,11 72.01 (11m) "Federal credit" means, for deaths occurring before October 1, 2002, the federal estate tax credit in effect on December 31, 2000, and for deaths occurring after September 30, 2002, the federal estate tax credit in effect on the day of the decedent's death.

SB55-ASA1, s. 2200e Section 2200e. 72.01 (11n) of the statutes is created to read:

SB55-ASA1,833,16 72.01 (11n) "Federal estate tax" means, for deaths occurring before October 1, 2002, the federal estate tax in effect on December 31, 2000, and for deaths occurring after September 30, 2002, the federal estate tax in effect on the day of the decedent's death.

SB55-ASA1, s. 2200g Section 2200g. 72.02 of the statutes is amended to read:

SB55-ASA1,834,2 72.02 Estate tax imposed. An estate tax is imposed upon the transfer of all property that is subject to a federal estate tax and that has a taxable situs in this state. The tax imposed is equal to the federal credit allowed for state death taxes against the federal estate tax as finally determined. If only a portion of a decedent's property has a taxable situs in this state, the tax imposed is the amount obtained by multiplying the federal credit allowed for state death taxes by a fraction the numerator of which is the value of the decedent's estate that has a taxable situs in this state and the denominator of which is the total value of the property in the estate that qualifies for the federal credit allowed for state death taxes.

SB55-ASA1, s. 2200k Section 2200k. 72.30 (1) of the statutes is renumbered 72.30 (1) (a) and amended to read:

SB55-ASA1,834,11 72.30 (1) (a) If Except as provided in par. (b), if a federal estate tax return is required, the personal representative, special administrator, trustee, distributee or other person interested shall prepare the return for the tax under this chapter, compute the tax due under this chapter and on or before the due date, as extended, of the federal estate tax return file the return for the tax under this chapter, a copy of the federal estate tax return and a copy of all documents submitted with the federal estate tax return.

SB55-ASA1, s. 2200L Section 2200L. 72.30 (1) (b) of the statutes is created to read:

SB55-ASA1,834,16 72.30 (1) (b) For deaths occurring after December 31, 2001, and before October 1, 2002, the personal representative, special administrator, trustee, distributee, or other person interested shall prepare the return for the tax under this chapter in the manner prescribed by the department.

SB55-ASA1, s. 1209 Section 1209. 73.01 (4) (a) of the statutes is amended to read:

SB55-ASA1,835,10 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, 139.78, 341.405 , and 341.45, 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), or the department of transportation and the adverse party agreeing to an affirmance, modification, or reversal of the department of revenue's or department of transportation'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 of revenue or the department of transportation without the approval of the commission.

SB55-ASA1, s. 1210 Section 1210. 73.01 (5) (a) of the statutes is amended to read:

SB55-ASA1,836,21 73.01 (5) (a) Any person who is aggrieved by a determination of the state board of assessors under s. 70.995 (8) or by the department of revenue under s. 70.11 (21) or who has filed a petition for redetermination with the department of revenue and who is aggrieved by the redetermination of the department of revenue may, within 60 days of the determination of the state board of assessors or of the department of revenue or, in all other cases, within 60 days after the redetermination but not thereafter, file with the clerk of the commission a petition for review of the action of the department of revenue and the number of copies of the petition required by rule adopted by the commission. Any person who is aggrieved by a determination of the department of transportation under s. 341.405 or 341.45 may, within 30 days after the determination of the department of transportation, file with the clerk of the commission a petition for review of the action of the department of transportation and the number of copies of the petition required by rule adopted by the commission. If a municipality appeals, its appeal shall set forth that the appeal has been authorized by an order or resolution of its governing body and the appeal shall be verified by a member of that governing body as pleadings in courts of record are verified. The clerk of the commission shall transmit one copy to the department of revenue, or to the department of transportation, and to each party. In the case of appeals from manufacturing property assessments, the person assessed shall be a party to a proceeding initiated by a municipality. At the time of filing the petition, the petitioner shall pay to the commission a $25 filing fee. The commission shall deposit the fee in the general fund. Within 30 days after such transmission the department of revenue, except for petitions objecting to manufacturing property assessments, or the department of transportation, shall file with the clerk of the commission an original and the number of copies of an answer to the petition required by rule adopted by the commission and shall serve one copy on the petitioner or the petitioner's attorney or agent. Within 30 days after service of the answer, the petitioner may file and serve a reply in the same manner as the petition is filed. Any person entitled to be heard by the commission under s. 76.38 (12) (a), 1993 stats., or s. 76.39 (4) (c), 76.48, or 76.91 may file a petition with the commission within the time and in the manner provided for the filing of petitions in income or franchise tax cases. Such papers may be served as a circuit court summons is served or by certified mail. For the purposes of this subsection, a petition for review is considered timely filed if mailed by certified mail in a properly addressed envelope, with postage duly prepaid, which envelope is postmarked before midnight of the last day for filing.

SB55-ASA1, s. 1211 Section 1211. 73.03 (35) of the statutes is amended to read:

SB55-ASA1,837,4 73.03 (35) To deny a portion of a credit claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds) or (2dx), 71.28 (1dd), (1de), (1di), (1dj), (1dm), (1dL), (1ds), (1dx), or (4) (am) or 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), or (4) (am) if granting the full amount claimed would violate a requirement under s. 560.785 or would bring the total of the credits granted to that claimant under all of those subsections over the limit for that claimant under s. 560.768, 560.795 (2) (b), or 560.797 (5) (b).

SB55-ASA1, s. 1212 Section 1212. 73.03 (35m) of the statutes is created to read:

SB55-ASA1,837,9 73.03 (35m) To deny a portion of a credit claimed under s. 71.07 (3g), 71.28 (3g), or 71.47 (3g), if granting the full amount claimed would violate a requirement under s. 560.96 or would bring the total of the credits claimed under ss. 71.07 (3g), 71.28 (3g), and 71.47 (3g) over the limit for all claimants under s. 560.96 (2).

SB55-ASA1, s. 2204m Section 2204m. 73.03 (46) of the statutes is repealed.

SB55-ASA1, s. 1213 Section 1213. 73.03 (52m) of the statutes is created to read:

SB55-ASA1,837,15 73.03 (52m) To enter into agreements with other states that provide for offsetting state tax refunds against tax obligations of other states and offsetting tax refunds of other states against state tax obligations, if the agreements provide that setoffs under ss. 71.93 and 71.935 occur before the setoffs under those agreements.

SB55-ASA1, s. 2205m Section 2205m. 73.03 (56) of the statutes is created to read:

SB55-ASA1,837,18 73.03 (56) To work with the Internal Revenue Service and the University of Wisconsin-Extension to undertake a program that accomplishes all of the following:

SB55-ASA1,837,20 (a) Promotes volunteering among the state's financial and legal professionals in the volunteer income tax assistance program.

SB55-ASA1,837,21 (b) Provides training for the volunteers.

SB55-ASA1,837,24 (c) Assists in the creation of mobile sites that offer assistance to individuals who are eligible to participate in the volunteer income tax assistance program and who reside in rural and underserved areas.

SB55-ASA1, s. 1214 Section 1214. 73.0305 of the statutes is amended to read:

SB55-ASA1,838,7 73.0305 Revenue limits and intradistrict transfer aid calculations. The department of revenue shall annually determine and certify to the state superintendent of public instruction, no later than the 4th Monday in June, the allowable rate of increase under s. 121.85 (6) (ar) and subch. VII of ch. 121. The allowable rate of increase is the percentage change in the consumer price index for all urban consumers, U.S. city average, between the preceding March 31 and the 2nd preceding March 31, as computed by the federal department of labor.

SB55-ASA1, s. 1215 Section 1215. 74.23 (1) (a) 2. of the statutes is amended to read:

SB55-ASA1,838,12 74.23 (1) (a) 2. Pay to the proper treasurer all collections of special assessments, special charges and special taxes, except that occupational taxes under ss. 70.40 to 70.425 70.421 and forest cropland, woodland and managed forest land taxes under ch. 77 shall be settled for under s. 74.25 (1) (a) 1. to 8.

SB55-ASA1, s. 1216 Section 1216. 74.23 (1) (a) 5. of the statutes is created to read:

SB55-ASA1,838,15 74.23 (1) (a) 5. Pay to each taxing jurisdiction within the district its proportionate share of the taxes and interest under s. 70.995 (12) (a).

SB55-ASA1, s. 1217 Section 1217. 74.25 (1) (a) 2. of the statutes is amended to read:

SB55-ASA1,838,20 74.25 (1) (a) 2. Pay to the proper treasurer all collections of special assessments, special charges and special taxes, except that occupational taxes under ss. 70.40 to 70.425 70.421 and forest cropland, woodland and managed forest land taxes under ch. 77 shall be settled for under subds. 5. to 8.

SB55-ASA1, s. 1218 Section 1218. 74.25 (1) (a) 3. of the statutes is amended to read:

SB55-ASA1,838,25 74.25 (1) (a) 3. Retain all collections of special assessments, special charges and special taxes due to the taxation district, except that occupational taxes under ss. 70.40 to 70.425 70.421 and forest cropland, woodland and managed forest land taxes under ch. 77 shall be settled for under subds. 5. to 8.

SB55-ASA1, s. 1219 Section 1219. 74.25 (1) (a) 4m. of the statutes is created to read:

SB55-ASA1,839,3 74.25 (1) (a) 4m. Pay to each taxing jurisdiction within the district its proportionate share of the taxes and interest under s. 70.995 (12) (a).

SB55-ASA1, s. 1220 Section 1220. 74.30 (1) (b) of the statutes is amended to read:

SB55-ASA1,839,8 74.30 (1) (b) Pay to the proper treasurer all collections of special assessments, special charges and special taxes, except that occupational taxes under ss. 70.40 to 70.425 70.421 and forest cropland, woodland and managed forest land taxes under ch. 77 shall be settled for under pars. (e) to (h).

SB55-ASA1, s. 1221 Section 1221. 74.30 (1) (c) of the statutes is amended to read:

SB55-ASA1,839,13 74.30 (1) (c) Retain all collections of special assessments, special charges and special taxes due to the taxation district, except that occupational taxes under ss. 70.40 to 70.425 70.421 and forest cropland, woodland and managed forest land taxes under ch. 77 shall be settled for under pars. (e) to (h).