66.0721 (3) (a) If any eligible farmland or camp contains a structure that is connected to a sanitary sewer or public water system at the time, or after the time, that a town sanitary district or town first levies a special assessment for the construction of a sewerage or water system in the service area in which the eligible farmland or camp is located, the town sanitary district or town may levy a special assessment for the construction of a sewerage or water system on the eligible farmland or camp that includes that structure. If that connection is made after the first assessment, the town sanitary district or town may also charge interest, from the date that the connection is made, on the special assessment at an annual rate that does not exceed the average interest rate paid by the district or town on its obligations between the time the district or town first levies a special assessment for the construction of a sewerage or water system in the service area in which the eligible farmland or camp is located and the time it levies the special assessment on that eligible farmland or camp. That assessment may not exceed the equivalent of an assessment for that purpose on a square acre or, if the governing body of a town sanitary district or town so specifies by ordinance, the maximum size of any lot that is in that service area and that is not devoted exclusively to agricultural use or exclusively to use as a camp.
(b) If after an initial special assessment for the construction of a sewerage or water system is levied in a service area any eligible farmland or camp subject to par. (a) or exempted from a special assessment under sub. (2) is divided into 2 or more parcels at least one of which is not devoted exclusively to agricultural use or exclusively to use as a camp, the town sanitary district or town may levy on each parcel on which it has either levied a special assessment under par. (a) or has not levied a special assessment for the construction of a sewerage or water system a special assessment for that purpose that does not exceed the amount of the special assessment for that purpose that would have been levied on the parcel if the parcel had not been exempt under sub. (2) or that has already been levied under par. (a). The special assessment shall be apportioned among the parcels resulting from the division in proportion to their area. The town sanitary district or town may also charge interest, from the date the eligible farmland or camp is divided into 2 or more parcels at least one of which is not devoted exclusively to agricultural use or exclusively to use as a camp, on the special assessment at an annual rate that does not exceed the average interest rate paid by the district or town on its obligations between the time the district or town first levies a special assessment for the construction of a sewerage or water system in the service area in which the eligible farmland or camp is located and the time it levies the special assessment on that eligible farmland or camp under this paragraph. This paragraph does not apply to any eligible farmland or camp unless the town sanitary district or town records a lien on that eligible farmland or camp in the office of the register of deeds within 90 days after it first levies a special assessment for the construction of a sewerage or water system for the service area in which the eligible farmland or camp is located, describing either the applicability of par. (a) or the exemption under sub. (2) and the potential for a special assessment under this paragraph.
(c) If, after a town sanitary district or town first levies a special assessment for the construction of a sewerage or water system in a service area, the eligible farmland or camp in that service area exempted from the special assessment under sub. (2) is not devoted exclusively to agricultural use or exclusively to use as a camp for a period of one year or more, the town sanitary district or town may levy on that eligible farmland or camp the special assessment for the construction of a sewerage or water system that it would have levied if the eligible farmland or camp had not been exempt under sub. (2). The town sanitary district or town may also charge interest, from the date the eligible farmland or camp has not been devoted exclusively to agricultural use or exclusively to use as a camp for a period of at least one year, on the special assessment at an annual rate that does not exceed the average interest rate paid by the district or town on its obligations between the time the district or town first levies a special assessment for the construction of a sewerage or water system in the service area in which the eligible farmland or camp is located and the time it levies the special assessment on that eligible farmland or camp. This paragraph does not apply to any land unless the town or special purpose district records a lien on that eligible farmland or camp in the office of the register of deeds within 90 days after it first levies a special assessment for the construction of a sewerage or water system in the service area in which the eligible farmland or camp is located, describing the exemption under sub. (2) and the potential for a special assessment under this paragraph.
226,49
Section
49. 70.11 (intro.) of the statutes is amended to read:
70.11 Property exempted from taxation. (intro.) The property described in this section is exempted from general property taxes if the property is exempt under sub. (1), (2), (18), (21), (27) or (30); if it was exempt for the previous year and its use, occupancy or ownership did not change in a way that makes it taxable; if the property was taxable for the previous year, the use, occupancy or ownership of the property changed in a way that makes it exempt and its owner, on or before March 1, files with the assessor of the taxation district where the property is located a form that the department of revenue prescribes or if the property did not exist in the previous year and its owner, on or before March 1, files with the assessor of the taxation district where the property is located a form that the department of revenue prescribes. Leasing Except as provided in sub. (4a) (e), leasing a part of the property described in this section does not render it taxable if the lessor uses all of the leasehold income for maintenance of the leased property or construction debt retirement of the leased property, or both, and, except for residential housing, if the lessee would be exempt from taxation under this chapter if it owned the property. Any lessor who claims that leased property is exempt from taxation under this chapter shall, upon request by the tax assessor, provide records relating to the lessor's use of the income from the leased property. Property exempted from general property taxes is:
226,50
Section
50. 70.11 (4) of the statutes is amended to read:
70.11 (4) Educational, religious and benevolent institutions; women's clubs; historical societies; fraternities; libraries. Property owned and used exclusively by educational institutions offering regular courses 6 months in the year; or by churches or religious, educational or benevolent associations, including benevolent nursing homes and retirement homes for the aged but not including an organization that is organized under s. 185.981 or ch. 611, 613 or 614 and that offers a health maintenance organization as defined in s. 609.01 (2) or a limited service health organization as defined in s. 609.01 (3) or an organization that is issued a certificate of authority under ch. 618 and that offers a health maintenance organization or a limited service health organization and not including property owned by any nonstock, nonprofit corporation which services guaranteed student loans for others or on its own account, and also including property owned and used for housing for pastors and their ordained assistants, members of religious orders and communities, and ordained teachers, whether or not contiguous to and a part of other property owned and used by such associations or churches, and also including property that is low-income housing, as defined under sub. (4a) (a); or by women's clubs; or by domestic, incorporated historical societies; or by domestic, incorporated, free public library associations; or by fraternal societies operating under the lodge system (except university, college and high school fraternities and sororities), but not exceeding 10 acres of land necessary for location and convenience of buildings while such property is not used for profit. Property owned by churches or religious associations necessary for location and convenience of buildings, used for educational purposes and not for profit, shall not be subject to the 10-acre limitation but shall be subject to a 30-acre limitation. Property owned by churches or religious or benevolent associations necessary for location and convenience of buildings, used for a low-income housing project, as defined under sub. (4a) (b), including other low-income housing projects under common control with such project, shall not be subject to the 10-acre limitation but shall be subject to a limitation of 30 acres and a limitation of 10 contiguous acres in any one municipality. Property that is exempt from taxation under this subsection and is leased remains exempt from taxation only if, in addition to the requirements specified in the introductory phrase of this section, the lessee does not discriminate on the basis of race.
226,51
Section
51. 70.11 (4a) of the statutes is created to read:
70.11 (4a) Low-income housing. (a) For purposes of sub. (4), "low-income housing" means any housing project described in sub. (4b) or any residential unit within a low-income housing project that is occupied by a low-income or very low-income person or is vacant and is only available to such persons.
(b) For purposes of this subsection and sub. (4), "low-income housing project" means a residential housing project for which all of the following apply:
1. At least 75 percent of the occupied residential units are occupied by low-income or very low-income persons or are vacant and available only to low-income or very low-income persons.
2. At least one of the following applies:
a. At least 20 percent of the residential units are rented to persons who are very low-income persons or are vacant and are only available to such persons.
b. At least 40 percent of the residential units are rented to persons whose income does not exceed 120 percent of the very low-income limit or are vacant and only available to such persons.
(c) For purposes of this subsection, low-income persons and very low-income persons shall be determined in accordance with the income limits published by the federal department of housing and urban development for low-income and very low-income families under the National Housing Act of 1937.
(d) For purposes of this subsection and sub. (4), all properties included within the same federal department of housing and urban development contract or within the same federal department of agriculture, rural development, contract are considered to be one low-income housing project.
(e) Leasing property that is exempt from taxation under sub. (4) as low-income housing does not render it taxable if the lessor uses all of the leasehold income from the property for any of the following reasonable expenditures directly related to the low-income housing project to which the property belongs, except that the lessor may use up to 10 percent of the leasehold income for any of the following reasonable expenditures directly related to any other low-income housing project under common control with that project and located in this state, and except that the lessor may use any of the leasehold income for debt service for any other low-income housing project under common control with that project, under the same mortgage, and located in this state and such amount is not considered for purposes of the 10 percent maximum described in this paragraph:
1. Maintenance.
2. Capital replacements.
3. Insurance premiums.
4. Project management.
5. Debt retirement.
6. Moneys reserved for project-related purposes.
7. General and administrative expenses.
8. Social services and other resident services provided at the project.
9. Utilities.
10. Financing costs.
11. Any other expenditure related to preserving and managing the project.
12. Any other similar project-related expenditure.
(f) 1. Annually, no later than March 1, each person who owns a low-income housing project shall file with the assessor of the taxation district in which the project is located a statement that specifies which units were occupied on January 1 of that year by persons whose income satisfied the income limit requirements under par. (a), as certified by the property owner to the appropriate federal or state agency, and a copy of the federal department of housing and urban development contract or federal department of agriculture, rural development, contract, if applicable.
2. The format and distribution of statements under this paragraph shall be governed by s. 70.09 (3).
3. If the statement required under this paragraph is not received on or before March 1, the taxation district assessor shall send the property owner a notice, by certified mail to the owner's last known address of record, stating that failure to file a statement is subject to the penalties under subd. 5.
4. In addition to the statement under subd. 1., the taxation district assessor may require that a property owner submit other information to prove that the person's property qualifies as low-income housing that is exempt from taxation under sub. (4).
5. A person who fails to file a statement within 30 days after notification under subd. 3. shall forfeit $10 for each succeeding day on which the form is not received by the taxation district assessor, but not more than $500.
226,52
Section
52. 70.11 (4b) of the statutes is created to read:
70.11 (4b) Housing Projects Financed by Housing and Economic Development Authority. All property of a housing project that satisfies all of the following:
(a) It is owned by a corporation, organization, or association described in section
501 (c) (3) of the Internal Revenue Code that is exempt from taxation under section
501 (a) of the Internal Revenue Code.
(b) It is financed by the Housing and Economic Development Authority under s. 234.03 (13).
(c) The Housing and Economic Development Authority holds a first-lien mortgage security interest on it.
(d) It is in existence on January 1, 2008.
226,53
Section
53. 71.01 (1am) of the statutes is created to read:
71.01 (1am) "Aggregate effective tax rate" means the sum of the effective tax rates imposed by a state, U.S. possession, foreign country, or any combination thereof, on the person or entity.
226,54
Section
54. 71.01 (1t) of the statutes is created to read:
71.01 (1t) "Effective tax rate" means the maximum tax rate imposed by the state, U.S. possession, or foreign country, multiplied by the apportionment percentage, if any, applicable to the person or entity under the laws of that state, U.S. possession, or foreign country.
226,55
Section
55. 71.01 (5s) of the statutes is created to read:
71.01
(5s) For purposes of s. 71.05 (6) (a) 24. and (b) 46., "interest expenses" means interest that would otherwise be deductible under section
163 of the Internal Revenue Code and deductible in the computation of Wisconsin adjusted gross income.
226,56
Section
56. 71.01 (9ad) of the statutes is created to read:
71.01 (9ad) "Qualified real estate investment trust" has the meaning given in s. 71.22 (9ad).
226,57
Section
57. 71.01 (9am) of the statutes is created to read:
71.01
(9am) "Related entity" means any person related to a taxpayer as provided under section
267 or
1563 of the Internal Revenue Code during all or a portion of the taxpayer's taxable year and any real estate investment trust under section
856 of the Internal Revenue Code, except a qualified real estate investment trust, if more than 50 percent of any class of the beneficial interests or shares of the real estate investment trust are owned directly, indirectly, or constructively by the taxpayer, or any person related to the taxpayer, during all or a portion of the taxpayer's taxable year. For purposes of this subsection, the constructive ownership rules of section
318 (a) of the Internal Revenue Code, as modified by section
856 (d) (5) of the Internal Revenue Code, shall apply in determining the ownership of stock, assets, or net profits of any person.
226,58
Section
58. 71.01 (9an) of the statutes is created to read:
71.01 (9an) For purposes of s. 71.05 (6) (a) 24. and (b) 46., "rental expenses" means the gross amounts that would otherwise be deductible in the computation of Wisconsin adjusted gross income for the use of, or the right to use, real property and tangible personal property in connection with real property, including services furnished or rendered in connection with such property, regardless of how reported for financial accounting purposes and regardless of how computed.
71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3h), (3n), (3p), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), and (5k) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (1k) (g).
226,60
Section
60. 71.05 (6) (a) 24. of the statutes is created to read:
71.05 (6) (a) 24. The amount deducted or excluded under the Internal Revenue Code for interest expenses and rental expenses that are directly or indirectly paid, accrued, or incurred to, or in connection directly or indirectly with one or more direct or indirect transactions with, one or more related entities.
226,61
Section
61. 71.05 (6) (b) 45. of the statutes is created to read:
71.05 (6) (b) 45. An amount added to federal adjusted gross income under par. (a) 24., to the extent that the conditions under s. 71.80 (23) are satisfied.
226,62
Section
62. 71.05 (6) (b) 46. of the statutes is created to read:
71.05 (6) (b) 46. An amount added, pursuant to par. (a) 24. or s. 71.26 (2) (a) 7., 71.34 (1k) (j), or 71.45 (2) (a) 16., to the federal income of a related entity that paid interest expenses or rental expenses to the individual or fiduciary, to the extent that the related entity could not offset such amount with the deduction allowable under subd. 45. or s. 71.26 (2) (a) 8., 71.34 (1k) (k), or 71.45 (2) (a) 17.
226,63
Section
63. 71.22 (1b) of the statutes is created to read:
71.22 (1b) "Aggregate effective tax rate" means the sum of the effective tax rates imposed by a state, U.S. possession, foreign country, or any combination thereof, on the person or entity.
226,64
Section
64. 71.22 (1tm) of the statutes is created to read:
71.22 (1tm) "Effective tax rate" means the maximum tax rate imposed by the state, U.S. possession, or foreign country, multiplied by the apportionment percentage, if any, applicable to the person or entity under the laws of that state, U.S. possession, or foreign country.
226,65
Section
65. 71.22 (3m) of the statutes is created to read:
71.22
(3m) For purposes of s. 71.26 (2) (a) 7. and 9., "interest expenses" means interest that would otherwise be deductible under section
163 of the Internal Revenue Code, as modified under s. 71.26 (3).
226,66
Section
66. 71.22 (9ad) of the statutes is created to read:
71.22 (9ad) (a) "Qualified real estate investment trust" means a real estate investment trust, except a real estate investment trust the shares or beneficial interests of which are not regularly traded on an established securities market and more than 50 percent of the voting power or value of any class of the beneficial interests or shares of which are owned or controlled, directly, indirectly or constructively, by a single entity that is treated as an association taxable as a corporation under the Internal Revenue Code.
(b) For purposes of this subsection, the following entities are not considered an association taxable as a corporation:
1. An entity that is exempt from taxation under s. 71.26 (1) and exempt from federal income tax pursuant to the provisions of section
501 (a) of the Internal Revenue Code.
2. A real estate investment trust that is a qualified real estate investment trust.
3. A qualified real estate investment trust subsidiary under section
856 (i) of the Internal Revenue Code that is a subsidiary of a qualified real estate investment trust.
4. An Australian unit trust under the Australian Corporations Act in which the principal class of units is listed on a recognized stock exchange in Australia and is regularly traded on an established securities market, or an entity organized as a trust, if an Australian unit trust described in this subdivision owns or controls, directly or indirectly, 75 percent or more of the voting power or value of the beneficial interests or shares of such trust.
5. A corporation, trust, association, or partnership organized outside the laws of the United States that satisfies all of the following:
a. At least 75 percent of the entity's total asset value at the close of its taxable year consists of real estate assets, as defined in section
856 (c) (5) (B) of the Internal Revenue Code, cash and cash equivalents, and U.S. government securities.
b. The entity is not subject to tax on amounts distributed to its beneficial owners or is exempt from entity-level taxation.
c. The entity distributes at least 85 percent of its taxable income, as computed in the jurisdiction in which it is organized, to the holders of its shares or certificates of beneficial interest on an annual basis.
d. Either no more than 10 percent of the voting power or value in the entity is held directly, indirectly, or constructively by a single entity or individual or the shares or beneficial interests of the entity are regularly traded on an established securities market.
e. The entity is organized in a country that has a tax treaty with the United States.
(c) For purposes of this subsection, the constructive ownership rules of section
318 (a) of the Internal Revenue Code, as modified by section
856 (d) (5) of the Internal Revenue Code, shall apply in determining the ownership of stock, assets, or net profits of any person.
226,67
Section
67. 71.22 (9am) of the statutes is created to read:
71.22
(9am) "Related entity" means any person related to a taxpayer as provided under section
267 or
1563 of the Internal Revenue Code during all or a portion of the taxpayer's taxable year and any real estate investment trust under section
856 of the Internal Revenue Code, except a qualified real estate investment trust, if more than 50 percent of any class of the beneficial interests or shares of the real estate investment trust are owned directly, indirectly, or constructively by the taxpayer, or any person related to the taxpayer, during all or a portion of the taxpayer's taxable year. For purposes of this subsection, the constructive ownership rules of section
318 (a) of the Internal Revenue Code, as modified by section
856 (d) (5) of the Internal Revenue Code, shall apply in determining the ownership of stock, assets, or net profits of any person.
226,68
Section
68. 71.22 (9an) of the statutes is created to read:
71.22 (9an) For purposes of s. 71.26 (2) (a) 7. and 9., "rental expenses" means the gross amounts that would otherwise be deductible under the Internal Revenue Code, as modified under s. 71.26 (3), for the use of, or the right to use, real property and tangible personal property in connection with real property, including services furnished or rendered in connection with such property, regardless of how reported for financial accounting purposes and regardless of how computed.
226,69
Section
69. 71.26 (2) (a) of the statutes, as affected by
2007 Wisconsin Acts 20 and
96, is renumbered 71.26 (2) (a) (intro.) and amended to read:
71.26 (2) (a) Corporations in general. (intro.) The "net income" of a corporation means the gross income as computed under the Internal Revenue Code as modified under sub. (3) minus and modified as follows:
1. Minus the amount of recapture under s. 71.28 (1di) plus.
2. Plus the amount of credit computed under s. 71.28 (1), (3), (4), and (5) minus,.
3. Minus, as provided under s. 71.28 (3) (c) 7., the amount of the credit under s. 71.28 (3) that the taxpayer added to income under this paragraph at the time that the taxpayer first claimed the credit plus.
