SB55-SSA1-SA2,263,1
1909. Page 706, line 6: after that line insert:
SB55-SSA1-SA2,263,2 2" Section 2114p. 70.32 (2s) of the statutes is created to read:
SB55-SSA1-SA2,263,33 70.32 (2s) (a) In this subsection:
SB55-SSA1-SA2,263,44 1. "Department" means the department of revenue.
SB55-SSA1-SA2,263,115 2. "Farm" means a business engaged in activities included in the North
6American Industry Classification System, 1997 edition, published by the U.S. office
7of management and budget under any of the following classifications, if the business
8generated at least $6,000 in gross receipts from such activities in the year preceding
9the date that a form is filed under par. (b) or if the business is likely to generate at
10least $6,000 in gross receipts from such activities in the year following the date that
11a form is filed under par. (b):
SB55-SSA1-SA2,263,1412 a. Classification 111-Crop production including grow sod, Christmas trees, and
13ginseng under industry number 111421, but excluding growing nursery product and
14stock under industry number 111421.
SB55-SSA1-SA2,263,1515 b. Classification 112-Animal production.
SB55-SSA1-SA2,264,516 (b) Any person who owns or who is a lessee of land used as a farm shall file a
17form, as prescribed by the department, with the assessor of each taxation district in
18which land included in the farm is located no later than March 1 that certifies that
19the person is the owner or lessee of land used as a farm. The person shall certify on
20the form that the farm generated at least $6,000 in gross receipts from the activities
21described under par. (a) 2. in the preceding year, or is likely to generate at least
22$6,000 in gross receipts from such activities in the year following the date that a form
23is filed under this paragraph. On the form, the person shall specify each such activity
24and the gross receipts generated or likely to be generated from each activity. For

1purposes of this subsection, gross receipts from the activities described under par. (a)
22. shall be calculated on a per farm basis, regardless of whether the farm is located
3in more than one taxation district. A person who has filed a form under this
4paragraph shall only file such a form in a subsequent year, if in that subsequent year
5the person has acquired or leased additional land to be used as part of the farm.
SB55-SSA1-SA2,264,166 (c) If the use of the person's land has changed so that it may no longer be
7assessed as agricultural land under sub. (2r), the person who owns or who is the
8lessee of the land shall notify the clerk of the taxation district in which the person's
9land is located, on a form prescribed by the department. If the use of the person's land
10has changed so that it may no longer be assessed as agricultural land under sub. (2r)
11and the person who owns or who is the lessee of the land does not notify the clerk of
12the taxation district as provided under this paragraph, the taxation district shall
13treat the difference between the land's value as agricultural land under sub. (2r) and
14the land's value under the appropriate classification as provided under sub. (2) (a)
15as omitted property under s. 70.44 and collect from the owner of the land the penalty
16under s. 74.48.".
SB55-SSA1-SA2,264,18 17910. Page 706, line 15: delete the material beginning with that line and
18ending on page 708, line 5.
SB55-SSA1-SA2,264,20 19911. Page 723, line 19: delete the material beginning with that line and
20ending with page 728, line 17.
SB55-SSA1-SA2,264,22 21912. Page 728, line 20: delete "(2dx) and, (3g), and" and substitute "(2dx),
22and".
SB55-SSA1-SA2,264,23 23913. Page 730, line 18: after that line insert:
SB55-SSA1-SA2,264,24 24" Section 2145m. 71.07 (2di) (b) 1. of the statutes is amended to read:
SB55-SSA1-SA2,265,8
171.07 (2di) (b) 1. Except as provided in subd. 2., the credit, including any
2credits carried over, may be offset only against the amount of the tax otherwise due
3under this chapter attributable to income from the business operations of the
4claimant in the development zone; except that a claimant in a development zone
5under s. 560.795 (1) (e) may offset the credit, including any credits carried over,
6against the amount of the tax otherwise due under this chapter attributable to all
7of the claimant's income;
and against the tax attributable to income from directly
8related business operations of the claimant.
SB55-SSA1-SA2, s. 2145p 9Section 2145p. 71.07 (2di) (b) 3. of the statutes is amended to read:
SB55-SSA1-SA2,266,210 71.07 (2di) (b) 3. Partnerships, limited liability companies and tax-option
11corporations may not claim the credit under this subsection, but the eligibility for,
12and amount of, that credit shall be determined on the basis of their economic activity,
13not that of their shareholders, partners or members. The corporation, partnership
14or company shall compute the amount of the credit that may be claimed by each of
15its shareholders, partners or members and shall provide that information to each of
16its shareholders, partners or members. Partners, members of limited liability
17companies and shareholders of tax-option corporations may claim the credit based
18on the partnership's, company's or corporation's activities in proportion to their
19ownership interest and may offset it against the tax attributable to their income from
20the partnership's, company's or corporation's business operations in the
21development zone; except that partners, members, and shareholders in a
22development zone under s. 560.795 (1) (e) may offset the credit against the amount
23of the tax attributable to their income from all of the partnership's, company's, or
24corporation's business operations;
and against the tax attributable to their income

1from the partnership's, company's or corporation's directly related business
2operations.".
SB55-SSA1-SA2,266,3 3914. Page 731, line 2: after "(e)" insert "and (f)".
SB55-SSA1-SA2,266,4 4915. Page 733, line 2: after that line insert:
SB55-SSA1-SA2,266,12 5"(hm) Credits claimed under this subsection, including any credits carried over,
6may be offset only against the amount of the tax otherwise due under this subchapter
7attributable to income from the business operations of the claimant in the
8development zone; except that a claimant in a development zone under s. 560.795 (1)
9(e) may offset credits, including any credits carried over, against the amount of the
10tax otherwise due under this subchapter attributable to all of the claimant's income;
11and against the tax attributable to income from directly related business operations
12of the claimant.".
SB55-SSA1-SA2,266,16 13916. Page 733, line 14: after "zone" insert "; except that partners, members,
14and shareholders in a development zone under s. 560.795 (1) (e) may offset the credit
15against the amount of the tax attributable to their income from all of the
16partnership's, company's, or corporation's business operations;".
SB55-SSA1-SA2,266,17 17917. Page 734, line 22: after that line insert:
SB55-SSA1-SA2,266,18 18" Section 2147d. 71.07 (5) (a) 10. of the statutes is created to read:
SB55-SSA1-SA2,266,1919 71.07 (5) (a) 10. Any amount claimed as a credit under sub. (9t).".
SB55-SSA1-SA2,266,20 20918. Page 734, line 22: after that line insert:
SB55-SSA1-SA2,266,21 21" Section 2147k. 71.07 (2dx) (b) (intro.) of the statutes is amended to read:
SB55-SSA1-SA2,267,322 71.07 (2dx) (b) Credit. (intro.) Except as provided in pars. (be) and (bg) and
23in s. 73.03 (35), and subject to s. 560.785, for any taxable year for which the person
24is entitled under s. 560.795 (3) to claim tax benefits or certified under s. 560.765 (3)

1or 560.797 (4), any person may claim as a credit against taxes imposed on the person's
2income from the person's business activities in a development zone the following
3amounts:
SB55-SSA1-SA2, s. 2147m 4Section 2147m. 71.07 (2dx) (be) of the statutes is created to read:
SB55-SSA1-SA2,267,95 71.07 (2dx) (be) Offset. A claimant in a development zone under s. 560.795 (1)
6(e) may offset any credits claimed under this subsection, including any credits
7carried over, against the amount of the tax otherwise due under this subchapter
8attributable to all of the claimant's income and against the tax attributable to income
9from directly related business operations of the claimant.
SB55-SSA1-SA2, s. 2147p 10Section 2147p. 71.07 (2dx) (bg) of the statutes is created to read:
SB55-SSA1-SA2,267,2411 71.07 (2dx) (bg) Other entities. For claimants in a development zone under s.
12560.795 (1) (e), partnerships, limited liability companies, and tax-option
13corporations may not claim the credit under this subsection, but the eligibility for,
14and amount of, that credit shall be determined on the basis of their economic activity,
15not that of their shareholders, partners, or members. The corporation, partnership,
16or company shall compute the amount of the credit that may be claimed by each of
17its shareholders, partners, or members and shall provide that information to each
18of its shareholders, partners, or members. Partners, members of limited liability
19companies, and shareholders of tax-option corporations may claim the credit based
20on the partnership's, company's, or corporation's activities in proportion to their
21ownership interest and may offset it against the tax attributable to their income from
22all of the partnership's, company's, or corporation's business operations and against
23the tax attributable to their income from the partnership's, company's, or
24corporation's directly related business operations.".
SB55-SSA1-SA2,268,2
1919. Page 734, line 23: delete the material beginning with that line and
2ending with page 735, line 20.
SB55-SSA1-SA2,268,4 3920. Page 736, line 12: delete the material beginning with that line and
4ending with page 738, line 1.
SB55-SSA1-SA2,268,5 5921. Page 737, line 24: after that line insert:
SB55-SSA1-SA2,268,6 6" Section 2150d. 71.07 (9t) of the statutes is created to read:
SB55-SSA1-SA2,268,87 71.07 (9t) Artistic endowment credit. (a) Definition. In this subsection,
8"claimant" means a person who files a claim under this subsection.
SB55-SSA1-SA2,268,169 (b) Filing claims. For taxable years beginning after December 31, 2002, subject
10to the limitations provided in this subsection, a claimant may claim as a credit
11against the tax imposed under s. 71.02, up to the amount of those taxes, an amount
12equal to 25% of the amount contributed to the artistic endowment fund under s.
1325.78, up to a maximum $50 contribution in a taxable year for a claimant who claims
14the credit as an individual or claims the credit as a married person who files a
15separate income tax return, up to a maximum $100 contribution in a taxable year
16for a claimant and a claimant's spouse who file a joint return.
SB55-SSA1-SA2,268,1817 (c) Limitations and conditions. 1. Nonresidents of this state are not eligible
18for the credit under this subsection, except as provided under subd. 2.
SB55-SSA1-SA2,269,419 2. For a claimant who is a part-year resident of this state and who is a single
20person or a married person filing a separate return, multiply the credit for which the
21claimant is eligible under par. (b) by a fraction, the numerator of which is the
22individual's Wisconsin adjusted gross income and the denominator of which is the
23individual's federal adjusted gross income. If a claimant is married and files a joint
24return, and if the claimant's spouse is a nonresident or if the claimant or the

1claimant's spouse, or both, are part-year residents of this state, multiply the credit
2for which the claimant is eligible under par. (b) by a fraction, the numerator of which
3is the couple's joint Wisconsin adjusted gross income and the denominator of which
4is the couple's joint federal adjusted gross income.
SB55-SSA1-SA2,269,75 3. No new claim may be filed under this subsection for a taxable year that
6begins after December 31 of the year in which the department determines that the
7total amount of revenues received by the endowment fund equals $50,150,000.
SB55-SSA1-SA2,269,98 4. No credit may be allowed under this subsection unless it is claimed within
9the time period under s. 71.75 (2).
SB55-SSA1-SA2, s. 2150e 10Section 2150e. 71.10 (4) (dg) of the statutes is created to read:
SB55-SSA1-SA2,269,1111 71.10 (4) (dg) The artistic endowment credit under s. 71.07 (9t).".
SB55-SSA1-SA2,269,12 12922. Page 737, line 24: after that line insert:
SB55-SSA1-SA2,269,13 13" Section 2150e. 71.07 (9) (b) 1. of the statutes is amended to read:
SB55-SSA1-SA2,269,1814 71.07 (9) (b) 1. Subject to the limitations under this subsection and except as
15provided in subds. 2., 4. and, 5., and 6., a claimant may claim as a credit against, but
16not to exceed the amount of, taxes under s. 71.02, 10% of the first $2,000 of property
17taxes or rent constituting property taxes, or 10% of the first $1,000 of property taxes
18or rent constituting property taxes of a married person filing separately.
SB55-SSA1-SA2, s. 2150f 19Section 2150f. 71.07 (9) (b) 5. of the statutes is amended to read:
SB55-SSA1-SA2,270,220 71.07 (9) (b) 5. For taxable years beginning after December 31, 1999, and
21before January 1, 2001,
subject to the limitations under this subsection a claimant
22may claim as a credit against, but not to exceed the amount of, taxes under s. 71.02,
2312% of the first $2,500 of property taxes or rent constituting property taxes, or 12%

1of the first $1,250 of property taxes or rent constituting property taxes of a married
2person filing separately.
SB55-SSA1-SA2, s. 2150g 3Section 2150g. 71.07 (9) (b) 6. of the statutes is created to read:
SB55-SSA1-SA2,270,94 71.07 (9) (b) 6. For taxable years beginning after December 31, 2000, subject
5to the limitations under this subsection, a claimant may claim as a credit against,
6but not to exceed the amount of, taxes under s. 71.02, 13.3% of the first $2,000 of
7property taxes or rent constituting property taxes, or 13.3% of the first $1,000 of
8property taxes or rent constituting property taxes of a married person filing
9separately.".
SB55-SSA1-SA2,270,10 10923. Page 738, line 5: delete lines 5 and 6.
SB55-SSA1-SA2,270,12 11924. Page 741, line 22: delete "(2dx) and, (3g), and" and substitute "(2dx),
12and".
SB55-SSA1-SA2,270,13 13925. Page 763, line 5: after that line insert:
SB55-SSA1-SA2,270,14 14" Section 2160d. 71.25 (5) (a) 9. of the statutes is amended to read:
SB55-SSA1-SA2,270,2315 71.25 (5) (a) 9. Interest and dividends if the operations of the payer are unitary
16with those of the payee, or if those operations are not unitary but the investment
17activity from which that income is derived is an integral part of a unitary business
18and the payer and payee are neither affiliates nor related as parent company and
19subsidiary. In this subdivision, "investment activity" includes decision making
20relating to the purchase and sale of stocks and other securities, investing surplus
21funds and the management and record keeping associated with corporate
22investments, not including activities of a broker or other agent in maintaining an
23investment portfolio
.
SB55-SSA1-SA2, s. 2160e 24Section 2160e. 71.25 (5) (a) 10. of the statutes is amended to read:
SB55-SSA1-SA2,271,6
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
.
SB55-SSA1-SA2, s. 2160g 7Section 2160g. 71.25 (5) (b) 1. of the statutes is renumbered 71.25 (5) (b).
SB55-SSA1-SA2, s. 2160h 8Section 2160h. 71.25 (5) (b) 2. of the statutes is repealed.".
SB55-SSA1-SA2,271,10 9926. Page 763, line 6: delete the material beginning with that line and ending
10with page 768, line 6, and substitute:
SB55-SSA1-SA2,271,11 11" Section 2169d. 71.25 (9) (a) of the statutes is amended to read:
SB55-SSA1-SA2,271,2212 71.25 (9) (a) The sales factor is a fraction, the numerator of which is the total
13sales of the taxpayer in this state during the tax period, and the denominator of
14which is the total sales of the taxpayer everywhere during the tax period. For sales
15of tangible personal property, the numerator of the sales factor is the sales of the
16taxpayer during the tax period under par. (b) 1. and 2. plus 50% of the sales of the
17taxpayer during the tax period under pars. (b) 2m. and 3. and (c). For purposes of
18determining the numerator of the sales factor for a member of a combined reporting
19group under s. 71.255 (7), "taxpayer" means the member of a combined reporting
20group, as defined in s. 71.255 (1) (c), that transferred title to tangible personal
21property or, for sales other than sales of tangible personal property, that made the
22sale.
".
SB55-SSA1-SA2,271,23 23927. Page 768, line 16: after that line insert:
SB55-SSA1-SA2,271,24 24" Section 2173x. 71.26 (1) (b) of the statutes is amended to read:
SB55-SSA1-SA2,272,5
171.26 (1) (b) Political units. Income received by the United States, the state,
2the Milwaukee County child welfare district under s. 48.562,
and all counties, cities,
3villages, towns, school districts, technical college districts, joint local water
4authorities created under s. 66.0823, family care districts under s. 46.2895, or other
5political units of this state.".
SB55-SSA1-SA2,272,6 6928. Page 768, line 16: after that line insert:
SB55-SSA1-SA2,272,7 7" Section 2173d. 71.255 of the statutes is created to read:
SB55-SSA1-SA2,272,8 871.255 Combined reporting. (1) Definitions. In this section:
SB55-SSA1-SA2,272,129 (a) "Brother-sister parent corporation" means a parent corporation that is a
10member of a commonly controlled group, if any members of the commonly controlled
11group are not connected to the parent corporation by stock ownership as described
12in par. (d) 1. to 5.
SB55-SSA1-SA2,272,1513 (b) "Combined report" means a form prescribed by the department that
14specifies the income of each taxpayer member of a commonly controlled group
15operating as a unitary business.
SB55-SSA1-SA2,272,1716 (c) "Combined reporting group" means the members of a commonly controlled
17group that are included in a combined report under sub. (2).
SB55-SSA1-SA2,272,1918 (d) "Commonly controlled group" means any of the following, but does not
19include an insurer that is exempt from taxation under s. 71.45 (1):
SB55-SSA1-SA2,273,220 1. A parent corporation and any corporation or chain of corporations that are
21connected to the parent corporation by direct or indirect ownership by the parent
22corporation if the parent corporation owns stock representing more than 50% of the
23voting power of at least one of the connected corporations or if the parent corporation

1or any of the connected corporations owns stock that cumulatively represents more
2than 50% of the voting power of each of the connected corporations.
SB55-SSA1-SA2,273,53 2. Any 2 or more corporations if a common owner directly or indirectly owns
4stock representing more than 50% of the voting power of the corporations or the
5connected corporations.
SB55-SSA1-SA2,273,96 3. A partnership or limited liability company if a parent corporation or any
7corporation connected to the parent corporation by common ownership directly or
8indirectly owns shares representing more than 50% of the shares of the partnership
9or limited liability company.
SB55-SSA1-SA2,273,1110 4. Any 2 or more corporations if stock representing more than 50% of the voting
11power in each corporation are interests that cannot be separately transferred.
SB55-SSA1-SA2,273,1612 5. Any 2 or more corporations if stock representing more than 50% of the voting
13power is directly owned by, or for the benefit of, family members. In this subdivision,
14"family members" means an individual or a spouse related by blood, marriage or
15adoption within the 2nd degree of kinship as computed under s. 852.03 (2), 1995
16stats.
SB55-SSA1-SA2,273,1717 (e) "Corporation" has the meaning given in s. 71.22 (1) or 71.42 (1).
SB55-SSA1-SA2,273,1818 (f) "Department" means the department of revenue.
SB55-SSA1-SA2,273,2019 (g) "Designated agent" means the taxpayer member of a commonly controlled
20group who files a group return on behalf of the commonly controlled group.
SB55-SSA1-SA2,273,2221 (h) "Group return" means a tax return filed on behalf of the taxpayer members
22of a commonly controlled group.
SB55-SSA1-SA2,274,223 (i) "Intercompany transaction" means a transaction between corporations,
24partnerships, or limited liability companies that become members of the same

1commonly controlled group that is engaged in a unitary business immediately after
2the transaction.
SB55-SSA1-SA2,274,43 (im) "Partnership" means any entity considered a partnership under section
47701 of the Internal Revenue Code.
SB55-SSA1-SA2,274,65 (j) "Separate return" means a return filed by a corporation, regardless of
6whether the corporation is required to file a tax return under s. 71.24 or 71.44.
SB55-SSA1-SA2,274,97 (k) "Taxpayer member" means a corporation that is subject to tax under s. 71.23
8(1) or (2) or 71.43, that is a member of a combined reporting group, and that files a
9combined report under this section.
SB55-SSA1-SA2,274,1510 (L) "Top tier corporation" means a member of a commonly controlled group that
11is not connected with a parent corporation by stock ownership as described in par.
12(d) 1. to 5., is a parent corporation, or is a brother-sister parent corporation,
13regardless of whether it is doing business in this state or deriving income from
14sources in this state, and regardless of whether its income and apportionment factors
15are excluded from a combined report filed under this section.
SB55-SSA1-SA2,274,2416 (m) "Unitary business" means the business activities or operations of an entity
17that are of mutual benefit to, integrated with, or dependent upon or contribute to
18activities of at least one other entity, including transactions that serve an operational
19function, as determined by the department. Two or more businesses are presumed
20to be a unitary business if the businesses have unity of ownership, operation, and use
21as indicated by centralized management or a centralized executive force; centralized
22purchasing, advertising, or accounting; intercorporate sales or leases; intercorporate
23services; intercorporate debts; intercorporate use of proprietary materials;
24interlocking directorates; or interlocking corporate officers.
SB55-SSA1-SA2,275,8
1(2) Corporations required to use combined reporting. (a) Except as provided
2in par. (b), a corporation that is subject to the tax imposed under s. 71.23 (1) or (2)
3or 71.43, that is a member of a commonly controlled group, and that is engaged, in
4whole or in part, in a unitary business with one or more members of the commonly
5controlled group shall compute the corporation's income attributable to this state by
6using the income computation under s. 71.26 or 71.45, the apportionment formula
7under s. 71.25 (6) or 71.45 (3) and (3m), and the tax credits under s. 71.28 or 71.47
8of all of the following that are members of the commonly controlled group:
SB55-SSA1-SA2,275,139 1. Any corporation organized or incorporated under the laws of the United
10States, any state of the United States, the District of Columbia, the Commonwealth
11of Puerto Rico, any possession of the United States, or any subdivision of the United
12States, including corporations under sections 931 to 936 of the Internal Revenue
13Code.
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