SB44-SSA1-SA15,36,3
171.29 (2) Who shall pay. Every Except as provided in s. 71.255 (11), every
2corporation subject to tax under s. 71.23 (1) or (2) and every virtually exempt entity
3subject to tax under s. 71.125 or 71.23 (1) or (2) shall pay an estimated tax.".
SB44-SSA1-SA15,36,4 44. Page 674, line 18: after that line insert:
SB44-SSA1-SA15,36,5 5" Section 1583dpb. 71.44 (1) (a) of the statutes is amended to read:
SB44-SSA1-SA15,36,236 71.44 (1) (a) Every Except as provided in par. (e), every corporation, except
7corporations all of whose income is exempt from taxation and except as provided in
8sub. (1m), shall furnish to the department a true and accurate statement, on or before
9March 15 of each year, except that returns for fiscal years ending on some other date
10than December 31 shall be furnished on or before the 15th day of the 3rd month
11following the close of such fiscal year and except that returns for less than a full
12taxable year shall be furnished on or before the date applicable for federal income
13taxes under the internal revenue code, in such manner and form and setting forth
14such facts as the department deems necessary to enforce this chapter. Every
15corporation that is required to furnish a statement under this paragraph and that
16has income that is not taxable under this subchapter shall include with its statement
17a report that identifies each item of its nontaxable income. The statement shall be
18subscribed by the president, vice president, treasurer, assistant treasurer, chief
19accounting officer or any other officer duly authorized so to act. In the case of a return
20made for a corporation by a fiduciary, the fiduciary shall subscribe the return. The
21fact that an individual's name is subscribed on the return shall be prima facie
22evidence that the individual is authorized to subscribe the return on behalf of the
23corporation.
SB44-SSA1-SA15, s. 1583dpc 24Section 1583dpc. 71.44 (1) (e) of the statutes is created to read:
SB44-SSA1-SA15,37,3
171.44 (1) (e) A corporation that is a member of a commonly controlled group,
2as defined in s. 71.255 (1) (d), and engaged in a unitary business, as defined in s.
371.255 (1) (m), shall file a tax return under s. 71.255.
SB44-SSA1-SA15, s. 1583dpd 4Section 1583dpd. 71.45 (3) (intro.) of the statutes is amended to read:
SB44-SSA1-SA15,37,135 71.45 (3) Apportionment. (intro.) With respect Except as provided in sub. (3d),
6to determine Wisconsin income for purposes of the franchise tax, domestic insurers
7not engaged in the sale of life insurance but which that, in the taxable year, have
8collected received premiums, other than life insurance premiums, written on
9subjects of
for insurance on property or risks resident, located or to be performed
10outside this state, there shall be subtracted from multiply the net income figure
11derived by application of sub. (2) (a) to arrive at Wisconsin income constituting the
12measure of the franchise tax an amount calculated by multiplying such adjusted
13federal taxable income
by the arithmetic average of the following 2 percentages:
SB44-SSA1-SA15, s. 1583dpe 14Section 1583dpe. 71.45 (3) (a) of the statutes is amended to read:
SB44-SSA1-SA15,38,515 71.45 (3) (a) The Subject to sub. (3d), the percentage of total determined by
16dividing the sum of direct
premiums written on all property and risks for insurance
17other than life insurance, with respect to all property and risks resident, located, or
18to be performed in this state, and assumed premiums written for reinsurance, other
19than life insurance, with respect to all property and risks resident, located, or to be
20performed in this state, by the sum of direct premiums written for insurance on all
21property and risks, other than life insurance,
wherever located during the taxable
22year, as reflects
, and assumed premiums written on insurance for reinsurance on all
23property and risks
, other than life insurance, where the subject of insurance was
24resident, located or to be performed outside this state
wherever located. In this
25paragraph, "direct premiums" means direct premiums as reported for the taxable

1year on an annual statement that is filed by the insurer with the commissioner of
2insurance under s. 601.42 (1g) (a). In this paragraph, "assumed premiums" means
3assumed reinsurance premiums from domestic insurance companies as reported for
4the taxable year on an annual statement that is filed with the commissioner of
5insurance under s. 601.42 (1g) (a)
.
SB44-SSA1-SA15, s. 1583dpf 6Section 1583dpf. 71.45 (3) (b) of the statutes is renumbered 71.45 (3) (b) 1.
7and amended to read:
SB44-SSA1-SA15,38,128 71.45 (3) (b) 1. The Subject to sub. (3d), the percentage of determined by
9dividing the payroll, exclusive of life insurance payroll, paid in this state in the
10taxable year by
total payroll, exclusive of life insurance payroll, paid everywhere in
11the taxable year as reflects such compensation paid outside this state.
12Compensation
.
SB44-SSA1-SA15,38,21 132. Under subd. 1., payroll is paid outside in this state if the individual's service
14is performed entirely outside in this state; or the individual's service is performed
15both within and without in and outside of this state, but the service performed within
16outside of this state is incidental to the individual's service without in this state; or
17some service is performed without in this state and the base of operations, or if there
18is no base of operations, the place from which the service is directed or controlled is
19without in this state, or the base of operations or the place from which the service is
20directed or controlled is not in any state in which some part of the service is
21performed, but the individual's residence is outside in this state.
SB44-SSA1-SA15, s. 1583dpg 22Section 1583dpg. 71.45 (3d) of the statutes is created to read:
SB44-SSA1-SA15,39,323 71.45 (3d) Phase in; domestic insurers. (a) For taxable years beginning after
24December 31, 2003, and before January 1, 2005, a domestic insurer that is subject
25to apportionment under sub. (3) and this subsection shall multiply the net income

1figure derived by the application of sub. (2) by an apportionment fraction composed
2of the percentage under sub. (3) (a) representing 60% of the fraction and the
3percentage under sub. (3) (b) 1. representing 40% of the fraction.
SB44-SSA1-SA15,39,94 (b) For taxable years beginning after December 31, 2004, and before January
51, 2008, a domestic insurer that is subject to apportionment under sub. (3) and this
6subsection shall multiply the net income figure derived by the application of sub. (2)
7by an apportionment fraction composed of the percentage under sub. (3) (a)
8representing 80% of the fraction and the percentage under sub. (3) (b) 1. representing
920% of the fraction.
SB44-SSA1-SA15,39,1310 (c) For taxable years beginning after December 31, 2005, a domestic insurer
11that is subject to apportionment under sub. (3) and this subsection shall multiply the
12net income figure derived by the application of sub. (2) by the percentage under sub.
13(3) (a).
SB44-SSA1-SA15, s. 1583dph 14Section 1583dph. 71.45 (3e) of the statutes is created to read:
SB44-SSA1-SA15,39,1915 71.45 (3e) Apportionment formula computation. (a) 1. For taxable years
16beginning before January 1, 2006, if both the numerator and the denominator used
17to determine the percentage under sub. (3) (a) related to a taxpayer's net income are
18zero, the percentage under sub. (3) (a) is eliminated from the apportionment formula
19to determine the taxpayer's income under sub. (3).
SB44-SSA1-SA15,39,2320 2. For taxable years beginning after December 31, 2005, if both the numerator
21and the denominator used to determine the percentage under sub. (3) (a) related to
22a taxpayer's net income are zero, none of the taxpayer's net income is apportioned
23to this state.
SB44-SSA1-SA15,40,324 (b) 1. For taxable years beginning before January 1, 2006, if the numerator
25used to determine the percentage under sub. (3) (a) related to a taxpayer's net income

1is a negative number and the denominator used to determine the percentage under
2sub. (3) (a) related to a taxpayer's net income is a positive number, a negative number,
3or zero, the percentage under sub. (3) (a) is zero.
SB44-SSA1-SA15,40,84 2. For taxable years beginning after December 31, 2005, if the numerator used
5to determine the percentage under sub. (3) (a) related to a taxpayer's net income is
6a negative number and the denominator used to determine the percentage under
7sub. (3) (a) related to a taxpayer's net income is a positive number, a negative number,
8or zero, none of the taxpayer's net income is apportioned to this state.
SB44-SSA1-SA15,40,139 (c) 1. For taxable years beginning before January 1, 2006, if the numerator used
10to determine the percentage under sub. (3) (a) related to a taxpayer's net income is
11a positive number and the denominator used to determine the percentage under sub.
12(3) (a) related to a taxpayer's net income is zero or a negative number, the percentage
13under sub. (3) (a) is one.
SB44-SSA1-SA15,40,1814 2. For taxable years beginning after December 31, 2005, if the numerator used
15to determine the percentage under sub. (3) (a) related to a taxpayer's net income is
16a positive number and the denominator used to determine the percentage under sub.
17(3) (a) related to a taxpayer's net income is zero or a negative number, all of the
18taxpayer's net income is apportioned to this state.
SB44-SSA1-SA15, s. 1583dpi 19Section 1583dpi. 71.45 (3m) of the statutes is amended to read:
SB44-SSA1-SA15,41,220 71.45 (3m) Arithmetic average. The Except as provided in sub. (3d), the
21arithmetic average of the 2 percentages referred to in sub. (3) shall be applied to the
22net income figure arrived at by the successive application of sub. (2) (a) and (b) with
23respect to Wisconsin insurers to which sub. (2) (a) and (b) applies and which have
24collected received premiums, other than life insurance premiums, written upon for
25insurance, other than life insurance, where the subject of such insurance was on

1property or risks
resident, located or to be performed outside this state, to arrive at
2Wisconsin income constituting the measure of the franchise tax.
SB44-SSA1-SA15, s. 1583dpj 3Section 1583dpj. 71.46 (3) of the statutes is repealed.
SB44-SSA1-SA15, s. 1583dpk 4Section 1583dpk. 71.48 of the statutes is amended to read:
SB44-SSA1-SA15,41,7 571.48 Payments of estimated taxes. Sections Except as provided in s.
671.255 (11), ss.
71.29 and 71.84 (2) shall apply to insurers subject to taxation under
7this chapter.".
SB44-SSA1-SA15,41,8 85. Page 677, line 25: after that line insert:
SB44-SSA1-SA15,41,9 9" Section 1590m. 71.84 (2) (a) of the statutes is amended to read:
SB44-SSA1-SA15,41,2010 71.84 (2) (a) Except as provided in s. 71.29 (7), in the case of any underpayment
11of estimated tax under s. 71.255, 71.29 or 71.48 there shall be added to the aggregate
12tax for the taxable year interest at the rate of 12% per year on the amount of the
13underpayment for the period of the underpayment. For corporations, except as
14provided in par. (b), "period of the underpayment" means the time period from the
15due date of the installment until either the 15th day of the 3rd month beginning after
16the end of the taxable year or the date of payment, whichever is earlier. If 90% of the
17tax shown on the return is not paid by the 15th day of the 3rd month following the
18close of the taxable year, the difference between that amount and the estimated taxes
19paid, along with any interest due, shall accrue delinquent interest under s. 71.91 (1)
20(a).".
SB44-SSA1-SA15,41,21 216. Page 1072, line 14: after that line insert:
SB44-SSA1-SA15,41,23 22"(10wx) Estimate of increased general purpose revenues; Senior Care
23Program.
SB44-SSA1-SA15,42,3
1(a) Upon receipt of the report specified under Section 9145 (1wx), the
2department of health and family services shall provide to the joint committee on
3finance all of the following:
SB44-SSA1-SA15,42,7 41. Any recommended decreases in copayments, deductibles, or enrollment fees
5or any recommended income level eligibility changes for participants in the program
6of prescription drug assistance for elderly persons under section 49.688 of the
7statutes, as affected by this act.
SB44-SSA1-SA15,42,9 82. Any recommended increases in the appropriation account under section
920.435 (4) (bv) of the statutes for fiscal years 2005-06 and 2006-07.
SB44-SSA1-SA15,42,10 103. Any statutory language changes necessary to effect subdivision 1.
SB44-SSA1-SA15,42,13 11(b) The joint committee on finance shall incorporate the recommendations
12under paragraph (a) into its concideration of the allocation of revenues and
13expenditures of the biennial budget bill for the 2005-07 biennium.".
SB44-SSA1-SA15,42,14 147. Page 1090, line 1: before that line insert:
SB44-SSA1-SA15,42,20 15"(1ww) Income apportionment for financial organizations; rules. The
16department of revenue shall submit in proposed form rules related to the
17apportionment of the income of financial organizations under sections 71.04 (4) (e)
18and 71.25 (6) (e) of the statutes, as created by this act, to the legislative council staff
19under section 227.15 (1) of the statutes no later than the first day of the 4th month
20beginning after the effective date of this subsection.
SB44-SSA1-SA15,43,4 21(1wx) Estimate of increased general purpose revenues; Senior Care
22Program.
By April 15, 2005, the department of revenue shall determine the amounts
23of any estimated increased general purpose revenues for fiscal years 2005-06 and
242006-07 resulting from application of the single sales factor apportionment under

1sections 71.04 (4) (d), 71.25 (6) (d), and 71.45 (3d) of the statutes, as created by this
2act, and the combined reporting required under section 71.255 of the statutes, as
3created by this act, and shall report these amounts to the department of health and
4family services.".
SB44-SSA1-SA15,43,5 58. Page 1139, line 6: after that line insert:
SB44-SSA1-SA15,43,8 6"(2ww) Single sales factor apportionment. The treatment of section 71.45 (3)
7(intro.), (a), and (b) and (3m) of the statutes first applies to taxable years beginning
8after December 31, 2003.
SB44-SSA1-SA15,43,11 9(2wx) Combined reporting. The treatment of sections 71.25 (9) (a), 71.255,
1071.26 (3) (x) and (4), 71.29 (2), 71.44 (1) (e), 71.46 (3), 71.48, and 71.84 (2) (a) of the
11statutes first applies to taxable years beginning on January 1, 2004.".
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