Amendment MR8 SA1-AB1

AB1-SA1,16,8 (b) The total amount of assessments collected from each hospital under this section.

AB1-SA1,16,10 (c) The total amounts that the department determines were paid to health maintenance organizations for increased Medical Assistance payments to hospitals.

AB1-SA1,16,12 (d) The total amount of payments made to each hospital by health maintenance organizations under s. 49.45 (58) (b) 1.

AB1-SA1,16,16 (e) The total amount of Medical Assistance payments made to each hospital and the portion of the Medical Assistance capitated payments made to health maintenance organizations for inpatient and outpatient hospital services from appropriation accounts of general purpose revenues.

AB1-SA1,16,19 (f) The total amounts, including the amounts specified under par. (c), that the department determines were paid to health maintenance organizations for Medical Assistance payments to hospitals.

AB1-SA1,16,22 (g) The results of any audits conducted by the department under s. 49.45 (58) concerning Medical Assistance payments and any actions taken by the department as a result of such an audit.

AB1-SA1, s. 9cf Section 9cf. 59.58 (6) (cb) of the statutes is created to read:

AB1-SA1,17,3 59.58 (6) (cb) The authority shall be responsible for sponsoring, developing, constructing, and operating a commuter rail transit system connecting the cities of Kenosha, Racine, and Milwaukee, to be known as the KRM commuter rail link.

AB1-SA1, s. 9cg Section 9cg. 59.58 (6) (cr) of the statutes is amended to read:

AB1-SA1,17,8 59.58 (6) (cr) The authority may hire staff, conduct studies, and expend funds essential to the preparation of the report specified in par. (e) and in furtherance of its responsibility under par. (cb) to develop and construct the KRM commuter rail link.

AB1-SA1, s. 9ch Section 9ch. 59.58 (6) (e) 3g. of the statutes is created to read:

AB1-SA1,17,13 59.58 (6) (e) 3g. A study on the feasibility of adding a commuter rail stop and station at points where any proposed commuter rail route would intersect National Avenue in the city of Milwaukee or Greenfield Avenue in the city of Milwaukee or both.

AB1-SA1, s. 9ci Section 9ci. 59.58 (6) (e) 3m. of the statutes is created to read:

AB1-SA1,17,17 59.58 (6) (e) 3m. A study on the feasibility of extending any proposed commuter rail project through the 30th Street corridor in the city of Milwaukee to the northern county line of Milwaukee County.

AB1-SA1, s. 9cj Section 9cj. 59.58 (6) (e) 4r. and 6. of the statutes are repealed.

AB1-SA1, s. 9ck Section 9ck. 59.58 (6) (f) of the statutes is created to read:

AB1-SA1,17,24 59.58 (6) (f) 1. The authority may issue bonds, the principal and interest on which are payable exclusively from all or a portion of any revenues received by the authority. The authority may secure its bonds by a pledge of any income or revenues from any operations, rent, aids, grants, subsidies, contributions, or other source of moneys whatsoever.

AB1-SA1,18,4 2. The authority may issue bonds in an aggregate principal amount not to exceed $50,000,000, excluding bonds issued to refund outstanding bonds issued under this subdivision, for the purpose of providing funds for the anticipated local funding share required for initiating KRM commuter rail link service.

AB1-SA1,18,6 3. Neither the governing body of the authority nor any person executing the bonds is personally liable on the bonds by reason of the issuance of the bonds.

AB1-SA1,18,11 4. The bonds of the authority are not a debt of the counties that created the authority. Neither these counties nor the state are liable for the payment of the bonds. The bonds of the authority shall be payable only out of funds or properties of the authority. The bonds of the authority shall state the restrictions contained in this subdivision on the face of the bonds.

AB1-SA1,18,25 5. Bonds of the authority shall be authorized by resolution of the authority's governing body. The bonds may be issued under such a resolution or under a trust indenture or other security instrument. The bonds may be issued in one or more series and may be in the form of coupon bonds or registered bonds under s. 67.09. The bonds shall bear the dates, mature at the times, bear interest at the rates, be in the denominations, have the rank or priority, be executed in the manner, be payable in the medium of payment and at the places, and be subject to the terms of redemption, with or without premium, as the resolution, trust indenture, or other security instrument provides. The authority may sell the bonds at public or private sales at the price or prices determined by the authority. If a member of the governing body of the authority whose signature appears on any bonds or coupons ceases to be a member of the governing body of the authority before the delivery of such obligations, the member's signature shall, nevertheless, be valid for all purposes as if the member had remained a member until delivery of the bonds.

AB1-SA1,19,12 6. The authority may issue refunding bonds for the purpose of paying any of its bonds at or prior to maturity or upon acceleration or redemption. The authority may issue refunding bonds at such time prior to the maturity or redemption of the refunded bonds as the authority deems to be in the public interest. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium on the bonds, any interest accrued or to accrue to the date of payment of the bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other capital or current expenses from the proceeds of such refunding bonds as may be required by the resolution, trust indenture, or other security instruments. To the extent applicable, refunding bonds are subject to subd. 5.

AB1-SA1, s. 9cL Section 9cL. 66.0615 (1m) (f) 2. of the statutes is amended to read:

AB1-SA1,19,18 66.0615 (1m) (f) 2. Sections 77.51 (12m), (14) (c), (f) and (j) and, (14g), (15a), and (15b), 77.52 (3), (4), (6) and (13), (14), (18), and (19), 77.522, 77.58 (1) to (5) , (6m), and (7), 77.585, 77.59, 77.60, 77.61 (2), (3m), (5), (8), (9), and (12) to (14) (15), and 77.62, as they apply to the taxes under subch. III of ch. 77, apply to the tax described under subd. 1.

AB1-SA1, s. 9cm Section 9cm. 70.111 (23) of the statutes is amended to read:

AB1-SA1,19,25 70.111 (23) Vending machines. All machines that automatically dispense soda water beverages, as defined in s. 97.29 (1) (i), and items included as a food or beverage under s. 77.54 (20) (a) and (b) food and food ingredient, as defined in s. 77.51 (3t), upon the deposit in the machines of specified coins or currency, or insertion of a credit card, in payment for the soda water beverages, food or beverages food and food ingredient, as defined in s. 77.51 (3t).

AB1-SA1, s. 9cn Section 9cn. 71.05 (1) (c) 9. of the statutes is created to read:

AB1-SA1,20,2 71.05 (1) (c) 9. The regional transit authority under s. 59.58 (6) (f).

AB1-SA1, s. 9co Section 9co. 71.07 (5e) (b) of the statutes is amended to read:

AB1-SA1,20,11 71.07 (5e) (b) Filing claims. Subject to the limitations provided in this subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first taxable year following the taxable year in which the claimant claims an exemption a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against the taxes imposed under ss. 71.02 and 71.08, up to the amount of those taxes, in each taxable year for 2 years, the amount certified by the department of commerce that resulted from the claimant claimed as an exemption claiming a deduction under s. 77.54 (48) 77.585 (9).

AB1-SA1, s. 9cp Section 9cp. 71.07 (5e) (c) 1. of the statutes is amended to read:

AB1-SA1,20,14 71.07 (5e) (c) 1. No credit may be allowed under this subsection unless the claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).

AB1-SA1, s. 9cr Section 9cr. 71.07 (5e) (c) 3. of the statutes is amended to read:

AB1-SA1,20,19 71.07 (5e) (c) 3. The total amount of the credits and exemptions the sales and use tax resulting from the deductions claimed under s. 77.585 (9) that may be claimed by all claimants under this subsection and ss. 71.28 (5e), 71.47 (5e), and 77.54 (48) 77.585 (9) is $7,500,000, as determined by the department of commerce.

AB1-SA1, s. 9dc Section 9dc. 71.22 (9) of the statutes is amended to read:

AB1-SA1,21,2 71.22 (9) "Person" includes corporations, unless the context requires otherwise. "Person" may include, as determined by the department, any individual, partnership, general partner of a partnership, limited liability company, registered limited liability partnership, foreign limited liability partnership, syndicate, estate, trust, trustee in bankruptcy, receiver, executor, administrator, assignee, or organization.

AB1-SA1, s. 9dd Section 9dd. 71.255 of the statutes is created to read:

AB1-SA1,21,4 71.255 Combined reporting. (1) Definitions. In this section:

AB1-SA1,21,7 (a) "Combined group" means the group of all persons whose income and apportionment factors are considered under sub. (2) to determine the taxpayer's share of the net business income or loss that is apportionable to this state.

AB1-SA1,21,10 (b) "Combined report" means a return under s. 71.24 that is filed on a form prescribed by the department that specifies the income, credits, and tax of each taxpayer member of a commonly controlled group operating as a unitary business.

AB1-SA1,21,12 (c) "Commonly controlled group" means any of the following, but does not include an insurer that is exempt from taxation under s. 71.45 (1):

AB1-SA1,21,19 1. A parent corporation and any corporation or chain of corporations that are connected to the parent corporation by direct or indirect ownership by the parent corporation if the parent corporation owns stock representing more than 50 percent of the voting power of at least one of the connected corporations or if the parent corporation or any of the connected corporations owns stock that cumulatively represents more than 50 percent of the voting power of each of the connected corporations.

AB1-SA1,21,22 2. Any 2 or more corporations if a common owner, regardless of whether or not the owner is a corporation, directly or indirectly owns stock representing more than 50 percent of the voting power of the corporations or the connected corporations.

AB1-SA1,21,24 3. Any 2 or more corporations if stock representing more than 50 percent of the voting power in each corporation are interests that cannot be separately transferred.

AB1-SA1,22,5 4. Any 2 or more corporations if stock representing more than 50 percent of the voting power in each corporation is directly owned by, or for the benefit of, family members. In this subdivision, "family member" means an individual related by blood, marriage, or adoption within the 2nd degree of kinship as computed under s. 852.03 (2), 1995 stats., or the spouse of such an individual.

AB1-SA1,22,12 (d) "Corporation" means a corporation, as defined in s. 71.22 (1k), that, regardless of where the corporation is located, would be subject to the taxes imposed under this chapter, if the corporation were doing business in this state. For purposes of this section, the business conducted by a pass-through entity that is directly or indirectly held by a corporation is considered the corporation's business proportionate to the corporation's distributive share of the pass-through entity's income. "Corporation" does not include a tax-option corporation.

AB1-SA1,22,13 (e) "Department" means the department of revenue.

AB1-SA1,22,17 (f) "Internal Revenue Code" means the Internal Revenue Code as defined in s. 71.22 (4) and (4m), including any provision of a federal tax treaty that expressly applies to the states of the United States, but not including any other application of a federal tax treaty.

AB1-SA1,22,22 (g) "Pass-through entity" means a general or limited partnership, any organization that is treated as a partnership for purposes of this chapter, a real estate investment trust, a regulated investment company, a real estate mortgage investment conduit, a financial asset securitization investment trust, a trust, or an estate.

AB1-SA1,23,2 (h) "Tax haven" means a jurisdiction that, for any taxable year, is identified by the organization for economic cooperation and development as a tax haven or as having a harmful, preferential tax regime or has no, or a nominal, effective tax on income and all of the following apply:

AB1-SA1,23,5 1. The jurisdiction has laws or practices that prevent the effective exchange of information, for tax purposes, with other governments on taxpayers benefiting from the tax regime.

AB1-SA1,23,10 2. The details of the legislative, legal, or administrative provisions of the jurisdiction's tax regime are not publicly available and apparent or are not consistently applied to similarly situated taxpayers or the information needed by tax authorities to determine a taxpayer's correct tax liability, including accounting records and underlying documentation, is not adequately available.

AB1-SA1,23,13 3. The jurisdiction facilitates the establishment of foreign-owned entities without requiring a local substantive presence or prohibits such entities from having any commercial impact on the local economy.

AB1-SA1,23,16 4. The tax regime explicitly or implicitly excludes the jurisdiction's resident taxpayers from taking advantage of the tax regime's benefits or prohibits enterprises that benefit from the regime from operating in the jurisdiction's domestic market.

AB1-SA1,23,20 5. The jurisdiction has created a tax regime that is favorable for tax avoidance, based upon an overall assessment of relevant factors, including whether the jurisdiction has a significant untaxed offshore financial or other services sector relative to its overall economy.

AB1-SA1,23,22 (i) "Taxpayer member" means a corporation that is subject to tax under s. 71.23 (1) or (2) and that is a member of a combined group.

AB1-SA1,24,19 (j) "Unitary business" means a single economic enterprise that consists of separate parts of a single business entity or of a commonly controlled group of business entities that are sufficiently interdependent, integrated, and interrelated by their activities so as to provide a synergy and a mutual benefit that produces a sharing or exchange of value among them and a significant flow of value to the separate parts. For purposes of this section, 2 or more business entities are considered a unitary business if the entities have unity of ownership, operation, and use, as indicated by centralized management or a centralized executive force; centralized purchasing, advertising, or accounting; intercorporate sales or leases; intercorporate services; intercorporate debts; intercorporate use of proprietary materials; interlocking directorates; or interlocking corporate officers. Any business conducted by a pass-through entity that is owned directly or indirectly by a corporation is considered conducted by the corporation, to the extent of the corporation's distributive share of the pass-through entity's income, regardless of the percentage of the corporation's ownership interest. A business conducted directly or indirectly by one corporation is unitary with that portion of a business conducted by another corporation through its direct or indirect interest in a pass-through entity, if the corporations are sufficiently interdependent, integrated, and interrelated by their activities so as to provide a synergy and a mutual benefit that produces a sharing or exchange of value among them and a significant flow of value to the separate parts and the two corporations are members of the same commonly controlled group.

AB1-SA1,24,24 (2) Corporations required to use combined reporting. (a) A corporation engaged in a unitary business with any other corporation shall file a combined report that includes the income, determined under sub. (3), and apportionment factor, determined under sub. (5) and s. 71.25, of the following members of the unitary business:

AB1-SA1,25,4 1. Any member incorporated in the United States, including the District of Columbia and any territory or possession of the United States, or formed under the laws of any state, the District of Columbia, or any territory or possession of the United States.

AB1-SA1,25,6 2. Any member, regardless of where the entity is incorporated or formed, if the average of the following ratios is 20 percent or more:

AB1-SA1,25,13 a. The value of the member's real property and tangible personal property located in the United States, including the District of Columbia and any territory or possession of the United States, not including property that is used to produce nonapportionable income, divided by the value of all of the member's real property and tangible personal property, not including property that is used to produce nonapportionable income. For purposes of this subd. 2. a., the value of property that the member rents is the net annual rental amount for the property, multiplied by 8.

AB1-SA1,25,21 b. The amount of the member's payroll that is paid in the United States, including the District of Columbia and any territory or possession of the United States, divided by the amount of the member's total payroll. For purposes of this subd. 2. b., payroll includes compensation paid to employees, but does not include payroll used to produce nonapportionable income. The payroll paid in the United States, including the District of Columbia and any territory or possession of the United States, shall be determined in the same manner as payroll is determined for this state under s. 71.25 (8) (b) 1. to 5.

AB1-SA1,26,2 c. The member's sales in the United States, including the District of Columbia and any territory or possession of the United States, divided by the member's total sales. For purposes of this subd. 2. c., sales include items identified in s. 71.25 (9) (e), but not items identified in s. 71.25 (9) (f), and the situs of a sale shall be determined in the same manner as for state sales in s. 71.25 (9) (b), (d), (df), and (dh), not including s. 71.25 (9) (b) 2m. and 3., (c), (df) 3., and (dh) 4.

AB1-SA1,26,6 3. Any member that is a domestic international sales corporation as described in sections 991 to 994 of the Internal Revenue Code, a foreign sales corporation as described in sections 921 to 927 of the Internal Revenue Code, or an export trade corporation as described in sections 970 to 971 of the Internal Revenue Code.

AB1-SA1,26,15 4. Any member that is a controlled foreign corporation as defined in section 957 of the Internal Revenue Code, to the extent of the member's income that is defined in section 952 of of the Internal Revenue Code, including any lower-tier subsidiary's distribution of such income that was previously taxed, determined without regard to federal treaties, and the apportionment factors related to that income. For purposes of this subdivision, any item of income received by a controlled foreign corporation is excluded if the income was subject to an income tax imposed by a foreign country at an effective tax rate greater than 90 percent of the maximum tax rate specified in section 11 of the Internal Revenue Code.

AB1-SA1,26,19 5. Any member that earns more than 20 percent of its income, directly or indirectly, from intangible property or service-related activities that are deductible against the business income of other members of the combined group, to the extent of that income and the apportionment factors related to that income.

AB1-SA1,26,25 6. Any member that is doing business in a tax haven, if the member is engaged in an activity that is sufficient for that tax haven jurisdiction to impose a tax under federal law. If the member's business activity in a tax haven is entirely outside the scope of the laws and practices that cause the jurisdiction to be a tax haven, the member's business activity is not considered to be conducted in a tax haven for purposes of this section.

AB1-SA1,27,5 7. Any member not described in subds. 1. to 6., to the extent that its income is derived from or attributable to sources within the United States, including the District of Columbia and any territory or possession of the United States, as determined under the Internal Revenue Code and by its apportionment factors related to that income.

AB1-SA1,27,11 (b) The department may require that a combined report filed under this section include the income and associated apportionment factors of any persons not described under par. (a) that are members of a unitary business to reflect the proper apportionment of income of the entire unitary business, including persons that are not, or would not be, subject to the taxes imposed under this chapter if doing business in this state.

AB1-SA1,27,14 (3) Components of income subject to tax. Each taxpayer member is responsible for the tax imposed under this chapter based on its taxable income or loss apportioned or allocated to this state, including:

AB1-SA1,27,16 (a) Its share of any business income apportionable to this state of each of the combined groups of which it is a member, as determined under subs. (4) and (5).

AB1-SA1,27,19 (b) Its share of any business income apportionable to this state of a distinct business activity conducted in and outside this state wholly by the taxpayer member, as determined under s. 71.25.

AB1-SA1,27,21 (c) Its income from a business conducted wholly by the taxpayer member entirely in this state.

AB1-SA1,27,23 (d) Its income sourced to this state from the sale or exchange of capital or assets and from involuntary conversions, as determined under sub. (4) (a) 8.

AB1-SA1,27,24 (e) Its nonbusiness income or loss allocable to this state.

AB1-SA1,28,2 (f) Its income or loss allocated or apportioned in an earlier year that is state source income during the income year, other than a net business loss carry-forward.

AB1-SA1,28,9 (g) Its net business loss carry-forward. If the taxable income computed under this subsection and subs. (4) and (5) results in a loss for a taxpayer member of the combined group, the taxpayer member has a net business loss, subject to the net business loss limitations and carry-forward provisions in s. 71.26 (4). The business loss is applied as a deduction in a subsequent year only if the taxpayer member has net income sourced to this state, regardless of whether the taxpayer is a member of a combined group in the subsequent year.

AB1-SA1,28,11 (4) Business income of the combined group. The business income of a combined group is determined as follows:

AB1-SA1,28,15 (a) Compute the sum of the income of each member of the combined group as determined for federal income tax purposes, as if the members were not consolidated for federal purposes, and modified as provided under s. 71.26. Each member of the combined group shall determine its income as follows:

AB1-SA1,28,20 1. For any member incorporated in the United States, including the District of Columbia and any territory or possession of the United States, or included in a consolidated federal corporate income tax return, the income included in the total income of the combined group is the corporation's taxable income as determined under s. 71.26.

AB1-SA1,28,23 2. Except as provided in subd. 3, for any member not included in subd. 1., the income included in the total income of the combined group shall be determined as follows:

AB1-SA1,29,3 a. Each foreign branch or foreign corporation shall prepare a profit and loss statement in the currency in which the branch's or corporation's books of account are regularly maintained.

AB1-SA1,29,6 b. The member shall adjust any statement prepared under subd. 2. a. to conform to the accounting principles generally accepted in the United States for the preparation of profit and loss statements.

AB1-SA1,29,9 c. The member shall adjust any statement prepared under subd. 2. a. to conform to the tax accounting standards required by the department for the administration of this chapter.

AB1-SA1,29,12 d. Each member of the combined group shall translate its profit and loss statements, and the related apportionment factors, into the currency in which the parent corporation maintains its books and records.

AB1-SA1,29,14 e. Each member shall express in U.S. dollars the income apportioned to this state.

AB1-SA1,30,2 3. If the department determines that the income determination under this subsection reasonably approximates income as determined under s. 71.26, any member not included in subd. 1. may determine its income based on a consolidated profit and loss statement that includes the member and that is prepared for the purpose of filing, by related corporations, with the securities and exchange commission. If the member is not required to file with the securities and exchange commission, the department may allow, for purposes of this subdivision, the use of the consolidated profit and loss statement prepared for reporting to shareholders and subject to review by an independent auditor. If a statement described in this subdivision does not reasonably approximate income as determined under s. 71.26, the department may accept the statement if the member makes appropriate adjustments to the statement, as determined by the department, to approximate the income determined under s. 71.26.

AB1-SA1,30,5 4. If a unitary business includes income from a pass-through entity, the total income of the combined group includes the member's direct and indirect distributive share of the pass-through entity's unitary business income.

AB1-SA1,30,10 5. All dividends paid by one member to another are not included in the recipients income, if the dividends are paid out of the earnings and profits of the unitary business in the current taxable year or in an earlier taxable year. This subdivision does not apply to dividends received from members of a unitary business that are not a part of the combined group.