AB1-SA1,32,24 20(5) Taxpayer's share of business income of a combined group. The taxpayer's
21share of the business income apportionable to this state of each combined group of
22which it is a member shall be the product of the business income of the combined
23group as determined under sub. (4) and the taxpayer member's sales factor
24percentage, determined under s. 71.25, modified as follows:
AB1-SA1,33,2
1(a) Include in the numerator the taxpayer member's sales associated with the
2combined group's unitary business in this state.
AB1-SA1,33,63 (b) Include in the numerator the taxpayer member's sales associated with the
4combined group's unitary business to another state in which the taxpayer member
5is not engaged in business, regardless of whether another member of the combined
6group is engaged in business in the other state.
AB1-SA1,33,97 (c) Include in the denominator the sales of all members of the combined group,
8including the taxpayer, that are associated with the combined group's unitary
9business regardless of where that business is located.
AB1-SA1,33,1410 (d) Include sales of a pass-through entity owned directly or indirectly by a
11corporation in proportion to a ratio the numerator of which is the amount of the
12corporation's distributive share of the pass-through entity's unitary income included
13in the income of the combined group in under sub. (4) and the denominator of which
14is the amount of the pass-through entity's total unitary income.
AB1-SA1,33,1515 (e) Exclude sales between members of the combined group.
AB1-SA1,33,1816 (f) If a member of a combined group is not subject to the taxes imposed under
17s. 71.23 because it is not engaged in business in this state, the numerator of the
18member's sales factor is zero.
AB1-SA1,33,23 19(6) Credits and post-apportionment deductions. No tax credit or
20post-apportionment deduction earned by one member of the combined group, but not
21completed, used by, or allowed to that member, may be used in whole or in part by
22another member of the combined group or applied in whole or in part against the total
23income of the combined group.
AB1-SA1,34,10 24(7) Designated agent. (a) For purposes of administering this section, each
25combined group shall appoint a sole designated agent. The designated agent is the

1parent corporation of the combined group, if the parent corporation is a taxpayer
2member of the combined group and the income of the parent corporation is included
3in the combined report. If there is no such parent corporation, the designated agent
4may be appointed by the taxpayer members. If there is no such parent corporation
5and no taxpayer member is appointed, the designated agent is the taxpayer member
6that has the most significant operations in this state on a recurring basis, as
7determined by the department. The designated agent may change only when the
8designated agent is no longer subject to the tax imposed under s. 71.23 (1) or (2), in
9which case the combined group shall notify the department of such a change in the
10manner prescribed by the department.
AB1-SA1,34,1211 (b) The designated agent is responsible for acting on behalf of the taxpayer
12members of the combined group and shall do all of the following:
AB1-SA1,34,1313 1. File with the department a combined report under sub. (1) (b).
AB1-SA1,34,1414 2. File any extensions under s. 71.24.
AB1-SA1,34,1515 3. File any amended combined reports and claims for refund or credit.
AB1-SA1,34,1716 4. Send and receive all correspondence with the department regarding the
17combined report.
AB1-SA1,34,2118 5. Remit all taxes, including estimated taxes, to the department. For purposes
19of computing interest on late payments, all payments remitted are considered to be
20made on a proportionate basis by all taxpayer members of the combined group,
21unless otherwise specified by the designated agent.
AB1-SA1,35,222 6. Participate on behalf of the combined group members in any investigation
23or hearing requested by the department regarding a combined report, produce all
24information requested by the department regarding the combined report, and file

1any appeal related to a combined report. Any appeal filed by the designated agent
2is considered filed by all members of the combined group.
AB1-SA1,35,63 7. Execute any waiver, closing agreement, power of attorney, or other document
4regarding the combined report filed under sub. (1) (b). Any waiver, agreement, or
5document executed by the designated agent is considered executed by all members
6of the combined group.
AB1-SA1,35,97 8. Receive notices regarding the combined report. Any such notice the
8department sends to the designated agent is considered sent to all taxpayer members
9of the combined group.
AB1-SA1,35,1210 9. Receive refunds regarding the combined report. Any such refund shall be
11paid to and in the name of the designated agent and shall discharge any liability of
12the state to any member of the combined group regarding the refund.
AB1-SA1,35,1713 (c) The department may relieve the designated agent from any of the duties
14described in par. (b) to the extent that the duties relate to income, expense, or loss
15that is not includable in the business income of the combined group under sub. (4).
16Unless the department provides for such relief by rule, a designated agent shall
17obtain written approval from the department to be relieved of any such duties.
AB1-SA1,36,3 18(8) Taxable year of the combined group. (a) Except as provided in par. (b), the
19combined group's taxable year is the designated agent's taxable year. If a member's
20taxable year is different from the combined group's taxable year, the designated
21agent may elect to determine the portion of each member's income to be included in
22the combined report either from a separate income statement from each member that
23is prepared by the member's books and records for the months that are included in
24the combined group's taxable year or by including in the combined report all of the
25income of each member for the year that ends during the combined group's taxable

1year. Any election made under this paragraph remains in effect for subsequent years
2unless the designated agent submits a request to the department to change the
3election and the department approves in writing.
AB1-SA1,36,64 (b) If 2 or more members of a combined group file a federal consolidated return,
5the combined group's taxable year is the taxable year that corresponds to the federal
6consolidated return.
AB1-SA1,36,13 7(9) Part-year members of a combined group. If a corporation becomes a
8member of a combined group, or ceases to be a member of a combined group, after
9the beginning of the combined group's taxable year, the corporation's income shall
10be determined as provided under subs. (3), (4), and (5) for that portion of the year in
11which the corporation was a member of the combined group, and the income shall be
12included in the combined report. The income for the remaining short period shall be
13reported on a separate return or separate combined report.
AB1-SA1,36,18 14(10) Presumptions and burden of proof. A commonly controlled group is
15presumed to be engaged in a unitary business and all of the income of the unitary
16business is presumed to be apportionable business income under this section. A
17corporation has the burden of proving that it is not a member of a combined group
18that is subject to this section.
AB1-SA1, s. 9de 19Section 9de. 71.26 (1m) (j) of the statutes is created to read:
AB1-SA1,36,2020 71.26 (1m) (j) Those issued under s. 59.58 (6) (f).
AB1-SA1, s. 9df 21Section 9df. 71.26 (3) (x) of the statutes is amended to read:
AB1-SA1,36,2522 71.26 (3) (x) Sections 1501 to 1505, 1551, 1552, 1563 and 1564 (relating to
23consolidated returns) are excluded, except as provided under section 1502 of the U.S.
24treasury regulations as it relates to deferred gain or loss from an intercompany
25transaction under s. 71.255 (4) (a) 6
.
AB1-SA1, s. 9dg
1Section 9dg. 71.27 (1) of the statutes is amended to read:
AB1-SA1,37,32 71.27 (1) The taxes to be assessed, levied and collected upon Wisconsin net
3incomes of corporations shall be computed at the rate of 7.9% 7.8 percent.
AB1-SA1, s. 9dh 4Section 9dh. 71.27 (2) of the statutes is amended to read:
AB1-SA1,37,65 71.27 (2) The corporation franchise tax imposed under s. 71.23 (2) and
6measured by Wisconsin net income shall be computed at the rate of 7.9% 7.8 percent.
AB1-SA1, s. 9di 7Section 9di. 71.28 (5e) (b) of the statutes is amended to read:
AB1-SA1,37,158 71.28 (5e) (b) Filing claims. Subject to the limitations provided in this
9subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first
10taxable year following the taxable year in which the claimant claims an exemption
11a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against
12the taxes imposed under s. 71.23, up to the amount of those taxes, in each taxable
13year for 2 years, the amount certified by the department of commerce that resulted
14from
the claimant claimed as an exemption claiming a deduction under s. 77.54 (48)
1577.585 (9).
AB1-SA1, s. 9dj 16Section 9dj. 71.28 (5e) (c) 1. of the statutes is amended to read:
AB1-SA1,37,1817 71.28 (5e) (c) 1. No credit may be allowed under this subsection unless the
18claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).
AB1-SA1, s. 9dk 19Section 9dk. 71.28 (5e) (c) 3. of the statutes is amended to read:
AB1-SA1,37,2320 71.28 (5e) (c) 3. The total amount of the credits and exemptions the sales and
21use tax resulting from the deductions claimed under s. 77.585 (9)
that may be claimed
22by all claimants under this subsection and ss. 71.07 (5e), 71.47 (5e), and 77.54 (48)
2377.585 (9) is $7,500,000, as determined by the department of commerce.
AB1-SA1, s. 9dL 24Section 9dL. 71.45 (1t) (j) of the statutes is created to read:
AB1-SA1,37,2525 71.45 (1t) (j) Those issued under s. 59.58 (6) (f).
AB1-SA1, s. 9dm
1Section 9dm. 71.46 (1) of the statutes is amended to read:
AB1-SA1,38,32 71.46 (1) The taxes to be assessed, levied and collected upon Wisconsin net
3incomes of corporations shall be computed at the rate of 7.9% 7.8 percent.
AB1-SA1, s. 9dn 4Section 9dn. 71.46 (2) of the statutes is amended to read:
AB1-SA1,38,65 71.46 (2) The corporation franchise tax imposed under s. 71.43 (2) and
6measured by Wisconsin net income shall be computed at the rate of 7.9% 7.8 percent.
AB1-SA1, s. 9do 7Section 9do. 71.46 (3) of the statutes is amended to read:
AB1-SA1,38,158 71.46 (3) The tax imposed under this subchapter on each domestic insurer on
9or measured by its entire net income attributable to lines of insurance in this state
10may not exceed 2% 2 percent of the gross premiums, as defined in s. 76.62, received
11during the taxable year by the insurer on all policies on those lines of insurance if
12the subject of that insurance was resident, located or to be performed in this state
13plus 7.9% 7.8 percent of the income that is realized from the sale of or purchase and
14subsequent sale or redemption of lottery prizes if the winning tickets were originally
15bought in this state.
AB1-SA1, s. 9dp 16Section 9dp. 71.47 (5e) (b) of the statutes is amended to read:
AB1-SA1,38,2417 71.47 (5e) (b) Filing claims. Subject to the limitations provided in this
18subsection and subject to 2005 Wisconsin Act 479, section 17, beginning in the first
19taxable year following the taxable year in which the claimant claims an exemption
20a deduction under s. 77.54 (48) 77.585 (9), a claimant may claim as a credit against
21the taxes imposed under s. 71.43, up to the amount of those taxes, in each taxable
22year for 2 years, the amount certified by the department of commerce that resulted
23from
the claimant claimed as an exemption claiming a deduction under s. 77.54 (48)
2477.585 (9).
AB1-SA1, s. 9dq 25Section 9dq. 71.47 (5e) (c) 1. of the statutes is amended to read:
AB1-SA1,39,2
171.47 (5e) (c) 1. No credit may be allowed under this subsection unless the
2claimant satisfies the requirements under s. 77.54 (48) 77.585 (9).
AB1-SA1, s. 9dr 3Section 9dr. 71.47 (5e) (c) 3. of the statutes is amended to read:
AB1-SA1,39,74 71.47 (5e) (c) 3. The total amount of the credits and exemptions the sales and
5use tax resulting from the deductions claimed under s. 77.585 (9)
that may be claimed
6by all claimants under this subsection and ss. 71.07 (5e), 71.28 (5e), and 77.54 (48)
777.585 (9) is $7,500,000, as determined by the department of commerce.
AB1-SA1, s. 9ds 8Section 9ds. 73.03 (28e) of the statutes is created to read:
AB1-SA1,39,169 73.03 (28e) To participate as a member state of the streamlined sales tax
10governing board which administers the agreement, as defined in s. 77.65 (2) (a), and
11includes having the governing board enter into contracts that are necessary to
12implement the agreement on behalf of the member states, and to allocate a portion
13of the amount collected under ch. 77 through the agreement to the appropriation
14under s. 20.566 (1) (ho) to pay the dues necessary to participate in the governing
15board. The department shall allocate the remainder of such collections to the general
16fund.
AB1-SA1, s. 9dt 17Section 9dt. 73.03 (50) (d) of the statutes is amended to read:
AB1-SA1,39,2518 73.03 (50) (d) In the case of a sole proprietor, signs the form or, in the case of
19other persons, has an individual who is authorized to act on behalf of the person sign
20the form, or, in the case of a single-owner entity that is disregarded as a separate
21entity under section 7701 of the Internal Revenue Code, the person is the owner. Any
22person who may register under this subsection may designate an agent, as defined
23in s. 77.524 (1) (ag), to register with the department under this subsection in the
24manner prescribed by the department. In this paragraph, "sign" has the meaning
25given in s. 77.51 (17r).
AB1-SA1, s. 9dv
1Section 9dv. 73.03 (50b) of the statutes is created to read:
AB1-SA1,40,52 73.03 (50b) To waive the fee established under sub. (50) for applying for and
3renewing the business tax registration certificate, if the person who is applying for
4or renewing the certificate is not required for purposes of ch. 77 to hold such a
5certificate.
AB1-SA1, s. 9eb 6Section 9eb. 73.03 (61) of the statutes is created to read:
AB1-SA1,40,87 73.03 (61) To do all of the following related to the Uniform Sales and Use Tax
8Administration Act:
AB1-SA1,40,99 (a) Certify compliance with the agreement, as defined in s. 77.65 (2) (a).
AB1-SA1,40,1210 (b) Pursuant to the agreement, as defined in s. 77.65 (2) (a), certify certified
11service providers, as defined in s. 77.51 (1g), and certified automated systems, as
12defined in s. 77.524 (1) (am).
AB1-SA1,40,2413 (c) Consistent with the agreement, as defined in s. 77.65 (2) (a), establish
14performance standards and eligibility criteria for a seller that sells tangible personal
15property, items or property under s. 77.52 (1) (b) or (c), or taxable services in at least
165 states that are signatories to the agreement, as defined in s. 77.65 (2) (a); that has
17total annual sales revenue of at least $500,000,000; that has a proprietary system
18that calculates the amount of tax owed to each taxing jurisdiction in which the seller
19sells tangible personal property or taxable services; and that has entered into a
20performance agreement with the states that are signatories to the agreement, as
21defined in s. 77.65 (2) (a). For purposes of this paragraph, "seller" includes an
22affiliated group of sellers using the same proprietary system to calculate the amount
23of tax owed in each taxing jurisdiction in which the sellers sell tangible personal
24property or taxable services.
AB1-SA1,41,4
1(d) Issue a tax identification number to a person who claims an exemption
2under subch. III or V of ch. 77 and who is not required to register with the department
3for the purposes of subch. III or V of ch. 77 and establish procedures for the
4registration of such a person.
AB1-SA1,41,85 (e) Maintain a database that is accessible to sellers and certified service
6providers, as defined in s. 77.51 (1g), that indicates whether items defined in
7accordance with the Uniform Sales and Use Tax Administration Act are taxable or
8nontaxable.
AB1-SA1,41,139 (f) Maintain a database that is accessible to sellers and certified service
10providers, as defined in s. 77.51 (1g), and available in a downloadable format, that
11indicates tax rates, taxing jurisdiction boundaries, and zip code or address
12assignments related to the administration of taxes imposed under subchs. III and V
13of ch. 77.
AB1-SA1,41,1614 (g) Set forth the information that the seller shall provide to the department for
15tax exemptions claimed by purchasers and establish the manner in which a seller
16shall provide such information to the department.
AB1-SA1,41,2017 (h) Provide monetary allowances, in addition to the retailer's discount provided
18under s. 77.61 (4) (c), to certified service providers, as defined in s. 77.51 (1g), and
19sellers that use certified automated systems, as defined in s. 77.524 (1) (am), or
20proprietary systems, pursuant to the agreement as defined in s. 77.65 (2) (a).
AB1-SA1, s. 9ec 21Section 9ec. 76.07 (4g) (b) 8. of the statutes is amended to read:
AB1-SA1,42,322 76.07 (4g) (b) 8. Determine transport-related revenue by adding public service
23revenue allocated to this state on the basis of routes for which the company is
24authorized to receive subsidy payments, mutual aid allocated to this state on the
25basis of the ratio of transport revenues allocated to this state to transport revenues

1everywhere in the previous year, in-flight sales allocated to this state as they are
2allocated under s. 77.51 (14r) 77.522 and all other transport-related revenues from
3sales made in this state.
AB1-SA1, s. 9ed 4Section 9ed. 77.51 (1) of the statutes is renumbered 77.51 (1fd) and amended
5to read:
AB1-SA1,42,116 77.51 (1fd) "Business" includes any activity engaged in by any person or caused
7to be engaged in by any person with the object of gain, benefit or advantage, either
8direct or indirect, and includes also the furnishing and distributing of tangible
9personal property, items or property under s. 77.52 (1) (b) or (c), or taxable services
10for a consideration by social clubs and fraternal organizations to their members or
11others.
AB1-SA1, s. 9ee 12Section 9ee. 77.51 (1b) of the statutes is created to read:
AB1-SA1,42,1413 77.51 (1b) "Alcoholic beverage" means a beverage that is suitable for human
14consumption and that contains 0.5 percent or more of alcohol by volume.
AB1-SA1, s. 9ef 15Section 9ef. 77.51 (1ba) of the statutes is created to read:
AB1-SA1,42,1916 77.51 (1ba) "Ancillary services" means services that are associated with or
17incidental to providing telecommunications services, including detailed
18telecommunications billing, directory assistance, vertical service, and voice mail
19services.
AB1-SA1, s. 9eg 20Section 9eg. 77.51 (1f) of the statutes is created to read:
AB1-SA1,42,2421 77.51 (1f) "Bundled transaction" means the retail sale of 2 or more products,
22not including real property and services to real property, if the products are distinct
23and identifiable products and sold for one nonitemized price. "Bundled transaction"
24does not include any of the following:
AB1-SA1,43,2
1(a) The sale of any products for which the sales price varies or is negotiable
2based on the purchaser's selection of the products included in the transaction.
AB1-SA1,43,53 (b) 1. The retail sale of tangible personal property and a service, if the tangible
4personal property is essential to the use of the service, and provided exclusively in
5connection with the service, and if the true object of the transaction is the service.
AB1-SA1,43,96 2. The retail sale of a service and items or property under s. 77.52 (1) (b) or (c),
7if such property or items are essential to the use of the service, and provided
8exclusively in connection with the service, and if the true object of the transaction
9is the service.
AB1-SA1,43,1210 (c) The retail sale of services, if one of the services is essential to the use or
11receipt of another service, and provided exclusively in connection with the other
12service, and if the true object of the transaction is the other service.
AB1-SA1,43,1813 (d) A transaction that includes taxable and nontaxable products, if the seller's
14purchase price or the sales price of the taxable products is no greater than 10 percent
15of the seller's total purchase price or sales price of all the bundled products, as
16determined by the seller using either the seller's purchase price or sales price, but
17not a combination of both, or, in the case of a service contract, the full term of the
18service contract.
AB1-SA1,44,419 (e) The retail sale of taxable tangible personal property or items or property
20under s. 77.52 (1) (b) or (c) and tangible personal property or items or property under
21s. 77.52 (1) (b) or (c) that is exempt from the taxes imposed under this subchapter,
22if the transaction includes food and food ingredients, drugs, durable medical
23equipment, mobility-enhancing equipment, prosthetic devices, or medical supplies
24and if the seller's purchase price or the sales price of the taxable tangible personal
25property or items or property under s. 77.52 (1) (b) or (c) is no greater than 50 percent

1of the seller's total purchase price or sales price of all the tangible personal property
2or items or property under s. 77.52 (1) (b) or (c) included in what would otherwise be
3a bundled transaction, as determined by the seller using either the seller's purchase
4price or the sales price, but not a combination of both.
AB1-SA1, s. 9eh 5Section 9eh. 77.51 (1fm) of the statutes is created to read:
AB1-SA1,44,96 77.51 (1fm) "Candy" means a preparation of sugar, honey, or other natural or
7artificial sweetener combined with chocolate, fruit, nuts, or other ingredients or
8flavorings in the form of bars, drops, or pieces. "Candy" does not include a
9preparation that contains flour or that requires refrigeration.
AB1-SA1, s. 9ei 10Section 9ei. 77.51 (1n) of the statutes is created to read:
AB1-SA1,44,1311 77.51 (1n) "Computer" means an electronic device that accepts information in
12digital or similar form and that manipulates such information to achieve a result
13based on a sequence of instructions.
AB1-SA1, s. 9ej 14Section 9ej. 77.51 (1p) of the statutes is created to read:
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