71.25 (9) (d) Sales Except as provided in pars. (df) and (dh), sales, other than sales of tangible personal property, are in this state if the income-producing activity is performed in this state. If the income-producing activity is performed both in and outside this state the sales shall be divided between those states having jurisdiction to tax such business in proportion to the direct costs of performance incurred in each such state in rendering this service. Services performed in states which do not have jurisdiction to tax the business shall be deemed to have been performed in the state to which compensation is allocated by s. 71.25 (8), 2001 stats.".
12.
Page 670, line 9: delete the material beginning with that line and ending with page 671, line 6.
13.
Page 672, line 4: delete lines 4 to 20.
14.
Page 706, line 2: delete that line and substitute ", (d), (df), and (dh). Section 41 (h) of the internal revenue code".
15.
Page 706, line 18: delete that line and substitute "Wisconsin under s. 71.25 (9) (b) 1. and 2. and, (d), (df), and (dh)".
16.
Page 739, line 20: delete that line and substitute ", (d), (df), and (dh). Section 41 (h) of the internal revenue code".
17.
Page 740, line 12: delete that line and substitute "2. and, (d), (df), and (dh) and research expenses used in".
18.
Page 1118, line 6: delete lines 6 to 12 and substitute:
"(14v) SINGLE SALES FACTOR APPORTIONMENT. The treatment of sections 71.01 (1b), (1n), (8g), (8m), and (10g), 71.03 (1), 71.04 (7) (d), (df), and (dh), 71.07 (2dr) (a), (3m) (a) 1. b., and (10), 71.195, 71.22 (1), (1g), (1t), (6m), (7m), and (9g), 71.25 (9) (d), (df), and (dh), 71.28 (2m) (a) 1. b. and (4) (a), (am) 1., and (i), 71.42 (3d) and (3h), 71.47 (2m) (a) 1. b. and (4) (a), (am), and (i), and 71.58 (1) (c) and (cm) of the statutes first applies to taxable years beginning on January 1, 2005.".
(End)
LRBb0352LRBb0352/1
MES&JK:wlj:pg
2005 - 2006 LEGISLATURE
LFB:......Reinhardt - Adopt federal law as it relates to health savings accounts (IRC update)
For 2005-07 Budget -- Not Ready For Introduction
ASSEMBLY AMENDMENT ,
TO 2005 ASSEMBLY BILL 100
At the locations indicated, amend the bill as follows:
1.
Page 745, line 12: after that line insert:
"SECTION 1432m. 71.83 (1) (ce) of the statutes is created to read:
71.83 (1) (ce) Health savings accounts. Any person who is liable for a penalty for federal income tax purposes under section 223 (f) (4) of the Internal Revenue Code is liable for a penalty equal to 33 percent of that penalty. The department of revenue shall assess, levy, and collect the penalty under this paragraph as it assesses, levies, and collects taxes under this chapter.".
2.
Page 751, line 15: after that line insert:
"SECTION 1450g. Subchapter XVI of chapter 71 [precedes 71.98] of the statutes is created to read:
CHAPTER 71
SUBCHAPTER XVI
INTERNAL REVENUE CODE UPDATE
71.98 Internal Revenue Code update. The following federal laws, to the extent that they apply to the Internal Revenue Code, apply to this chapter:
(1) HEALTH SAVINGS ACCOUNTS. Section 1201 of P.L. 108-173, relating to health savings accounts.".
3.
Page 1116, line 10: after that line insert:
"(5m) HEALTH SAVINGS ACCOUNTS. The treatment of sections 71.83 (1) (e) and 71.98 of the statutes first applies to taxable years beginning on January 1, 2005.".
(End)
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JK:lmk:pg
2005 - 2006 LEGISLATURE
LFB:......Reinhardt - Utility tax on car line companies
For 2005-07 Budget -- Not Ready For Introduction
ASSEMBLY AMENDMENT ,
TO 2005 ASSEMBLY BILL 100
At the locations indicated, amend the bill as follows:
1.
Page 760, line 22: after that line insert:
"SECTION 1474m. 76.39 (1) (am) of the statutes is created to read:
76.39 (1) (am) "Average net rate of taxation" means the average net rate of taxation determined under s. 76.126 as of June of the year prior to the assessment.
SECTION 1474n. 76.39 (2) of the statutes is amended to read:
76.39 (2) There is levied annually a gross earnings tax in lieu of all property taxes on the car line equipment of a car line company equal to 3% of the gross earnings in this state multiplied by the average net rate of taxation. Every railroad company operating in this state shall, upon making payment to each car line company for use of its cars, withhold 3% of the amount constituting the gross earnings in this state of such of the tax imposed under this subsection on the car line company.".
2.
Page 1119, line 3: after that line insert:
"(18x) CAR LINE COMPANIES. The treatment of section 76.39 (1) (am) and (2) of the statutes first applies to tax payments that are due on September 10, 2005.".
(End)
LRBb0354LRBb0354/1
MJL:cjs:pg
2005 - 2006 LEGISLATURE
LFB:......Kava - Carryover of unused revenue limit: modify initial app
For 2005-07 Budget -- Not Ready For Introduction
ASSEMBLY AMENDMENT ,
TO 2005 ASSEMBLY BILL 100
At the locations indicated, amend the bill as follows:
1.
Page 1115, line 10: delete "2005-06" and substitute "2004-05".
(End)
LRBb0355LRBb0355/1
MES:wlj:pg
2005 - 2006 LEGISLATURE
LFB:......Reinhardt - Individual income tax deduction for amounts spent on medical insurance premiums
For 2005-07 Budget -- Not Ready For Introduction
ASSEMBLY AMENDMENT ,
TO 2005 ASSEMBLY BILL 100
At the locations indicated, amend the bill as follows:
1.
Page 630, line 6: after that line insert:
"SECTION 1286e. 71.05 (6) (b) 20. (intro.) of the statutes is amended to read:
71.05 (6) (b) 20. (intro.) For taxable years beginning on or after January 1, 1995, and before January 1, 2006, an amount paid by a person who is the employee of another person if the person's employer pays no amount of money toward the person's medical care insurance, for medical care insurance for the person, his or her spouse and the person's dependents, calculated as follows:".
2.
Page 630, line 20: after that line insert:
"SECTION 1288e. 71.05 (6) (b) 35. of the statutes is created to read:
71.05 (6) (b) 35. For taxable years beginning after December 31, 2005, an amount paid by an individual who is the employee of another person if the individual's employer pays no amount of money toward the individual's medical care insurance, for medical care insurance for the individual, his or her spouse, and the individual's dependents, calculated as follows:
a. One hundred percent of the amount paid by the individual for medical care insurance. In this subdivision, "medical care insurance" means a medical care insurance policy that covers the individual, his or her spouse, and the individual's dependents and provides surgical, medical, hospital, major medical, or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but "medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness, or injury.
b. From the amount calculated under subd. 35. a., subtract the amounts deducted from gross income for medical care insurance in the calculation of federal adjusted gross income.
c. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 35. a. or b., by a fraction the numerator of which is the individual's wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 35. c., for married persons filing separately "wages, salary, tips, unearned income, and net earnings from a trade or business" means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly "wages, salary, tips, unearned income, and net earnings from a trade or business" means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.
d. Reduce the amount calculated under subd. 35. a., b., or c. to the individual's aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.
SECTION 1288f. 71.05 (6) (b) 36. of the statutes is created to read:
71.05 (6) (b) 36. For taxable years beginning after December 31, 2006, and before January 1, 2008, an amount paid by an individual, other than a person to whom subd. 19. applies, who has no employer and no self-employment income, for medical care insurance for the individual, his or her spouse, and the individual's dependents, calculated as follows:
a. Thirty-three and four-tenths percent of the amount paid by the individual for medical care insurance. In this subdivision, "medical care insurance" means a medical care insurance policy that covers the individual, his or her spouse, and the individual's dependents and provides surgical, medical, hospital, major medical, or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but "medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness, or injury.
b. From the amount calculated under subd. 36. a., subtract the amounts deducted from gross income for medical care insurance in the calculation of federal adjusted gross income.
c. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 36. a. or b., by a fraction the numerator of which is the individual's wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 36. c., for married persons filing separately "wages, salary, tips, unearned income, and net earnings from a trade or business" means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly "wages, salary, tips, unearned income, and net earnings from a trade or business" means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.
d. Reduce the amount calculated under subd. 36. a., b., or c. to the individual's aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.
SECTION 1288g. 71.05 (6) (b) 37. of the statutes is created to read:
71.05 (6) (b) 37. For taxable years beginning after December 31, 2007, and before January 1, 2009, an amount paid by an individual, other than a person to whom subd. 19. applies, who has no employer and no self-employment income, for medical care insurance for the individual, his or her spouse, and the individual's dependents, calculated as follows:
a. Sixty-six and seven-tenths percent of the amount paid by the individual for medical care insurance. In this subdivision, "medical care insurance" means a medical care insurance policy that covers the individual, his or her spouse, and the individual's dependents and provides surgical, medical, hospital, major medical, or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but "medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness, or injury.
b. From the amount calculated under subd. 37. a., subtract the amounts deducted from gross income for medical care insurance in the calculation of federal adjusted gross income.
c. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 37. a. or b., by a fraction the numerator of which is the individual's wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 37. c., for married persons filing separately "wages, salary, tips, unearned income, and net earnings from a trade or business" means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly "wages, salary, tips, unearned income, and net earnings from a trade or business" means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.
d. Reduce the amount calculated under subd. 37. a., b., or c. to the individual's aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.
SECTION 1288h. 71.05 (6) (b) 38. of the statutes is created to read:
71.05 (6) (b) 38. For taxable years beginning after December 31, 2008, an amount paid by an individual, other than a person to whom subd. 19. applies, who has no employer and no self-employment income, for medical care insurance for the individual, his or her spouse, and the individual's dependents, calculated as follows:
a. One hundred percent of the amount paid by the individual for medical care insurance. In this subdivision, "medical care insurance" means a medical care insurance policy that covers the individual, his or her spouse, and the individual's dependents and provides surgical, medical, hospital, major medical, or other health service coverage, and includes payments made for medical care benefits under a self-insured plan, but "medical care insurance" does not include hospital indemnity policies or policies with ancillary benefits such as accident benefits or benefits for loss of income resulting from a total or partial inability to work because of illness, sickness, or injury.
b. From the amount calculated under subd. 38. a., subtract the amounts deducted from gross income for medical care insurance in the calculation of federal adjusted gross income.
c. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 38. a. or b., by a fraction the numerator of which is the individual's wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 38. c., for married persons filing separately "wages, salary, tips, unearned income, and net earnings from a trade or business" means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly "wages, salary, tips, unearned income, and net earnings from a trade or business" means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.
d. Reduce the amount calculated under subd. 38. a., b., or c. to the individual's aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.".
3.
Page 636, line 20: after that line insert:
"SECTION 1311e. 71.07 (5) (a) 15. of the statutes is amended to read:
71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance under section 213 of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 17. to 20., 35., 36., 37., and 38. and the amount claimed as a deduction for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.".
4.
Page 1116, line 3: after that line insert:
"(2m) SUBTRACT MODIFICATION; MEDICAL INSURANCE PREMIUMS. The treatment of section 71.07 (5) (a) 15. of the statutes first applies to taxable years beginning on January 1, 2006.".
(End)
LRBb0356LRBb0356/P3
JK:lmk&wlj:jf
2005 - 2006 LEGISLATURE
LFB:......Reinhardt - Sales tax on transactions between affiliated businesses
For 2005-07 Budget -- Not Ready For Introduction
ASSEMBLY AMENDMENT ,
TO 2005 ASSEMBLY BILL 100
At the locations indicated, amend the bill as follows:
1.
Page 817, line 12: after that line insert:
"SECTION 1632m. 77.54 (49) of the statutes is created to read:
77.54 (49) The gross receipts from the sale of and the storage, use, or other consumption of taxable services and tangible personal property that is physically transferred to the purchaser as a necessary part of services that are subject to the taxes imposed under s. 77.52 (2) (a) 7., 10., 11., and 20., if the seller and the purchaser of such services and property are members of the same affiliated group under section 1504 of the Internal Revenue Code and are eligible to file a single consolidated return for federal income tax purposes. For purposes of this subsection, if a seller purchases a taxable service or tangible personal property, as described in the subsection, that is subsequently sold to a member of the seller's affiliated group and the sale is exempt under this subsection from the taxes imposed under this subchapter, the original purchase of the taxable service or tangible personal property by the seller is not considered a sale for resale or exempt under this subsection.".
2.
Page 1131, line 3: after that line insert:
"(7v) TRANSACTIONS BETWEEN AFFILIATED BUSINESSES. The treatment of section 77.54 (49) of the statutes takes effect on the first day of the 2nd month beginning after publication.".
(End)
LRBb0357LRBb0357/1
MES:wlj:pg
2005 - 2006 LEGISLATURE
LFB:......Reinhardt - Exempt from taxation all social security benefits; 5-year phase-in
For 2005-07 Budget -- Not Ready For Introduction
ASSEMBLY AMENDMENT ,
TO 2005 ASSEMBLY BILL 100
At the locations indicated, amend the bill as follows:
1.
Page 630, line 6: after that line insert:
