SB510: Bill Text

SB510,24,9 (f) If a member of a combined group is not subject to the taxes imposed under s. 71.23 because it is not engaged in business in this state, the numerator of the member's sales factor is zero.

SB510,24,14 (6) Credits and post-apportionment deductions. No tax credit or post-apportionment deduction earned by one member of the combined group, but not completed, used by, or allowed to that member, may be used in whole or in part by another member of the combined group or applied in whole or in part against the total income of the combined group.

SB510,25,2 (7) Designated agent. (a) For purposes of administering this section, each combined group shall appoint a sole designated agent. The designated agent is the parent corporation of the combined group, if the parent corporation is a taxpayer member of the combined group and the income of the parent corporation is included in the combined report. If there is no such parent corporation, the designated agent may be appointed by the taxpayer members. If there is no such parent corporation and no taxpayer member is appointed, the designated agent is the taxpayer member that has the most significant operations in this state on a recurring basis, as determined by the department. The designated agent may change only when the designated agent is no longer subject to the tax imposed under s. 71.23 (1) or (2), in which case the combined group shall notify the department of such a change in the manner prescribed by the department.

SB510,25,4 (b) The designated agent is responsible for acting on behalf of the taxpayer members of the combined group and shall do all of the following:

SB510,25,5 1. File with the department a combined report under sub. (1) (b).

SB510,25,6 2. File any extensions under s. 71.24.

SB510,25,7 3. File any amended combined reports and claims for refund or credit.

SB510,25,9 4. Send and receive all correspondence with the department regarding the combined report.

SB510,25,13 5. Remit all taxes, including estimated taxes, to the department. For purposes of computing interest on late payments, all payments remitted are considered to be made on a proportionate basis by all taxpayer members of the combined group, unless otherwise specified by the designated agent.

SB510,25,18 6. Participate on behalf of the combined group members in any investigation or hearing requested by the department regarding a combined report, produce all information requested by the department regarding the combined report, and file any appeal related to a combined report. Any appeal filed by the designated agent is considered filed by all members of the combined group.

SB510,25,22 7. Execute any waiver, closing agreement, power of attorney, or other document regarding the combined report filed under sub. (1) (b). Any waiver, agreement, or document executed by the designated agent is considered executed by all members of the combined group.

SB510,25,25 8. Receive notices regarding the combined report. Any such notice the department sends to the designated agent is considered sent to all taxpayer members of the combined group.

SB510,26,3 9. Receive refunds regarding the combined report. Any such refund shall be paid to and in the name of the designated agent and shall discharge any liability of the state to any member of the combined group regarding the refund.

SB510,26,8 (c) The department may relieve the designated agent from any of the duties described in par. (b) to the extent that the duties relate to income, expense, or loss that is not includable in the business income of the combined group under sub. (4). Unless the department provides for such relief by rule, a designated agent shall obtain written approval from the department to be relieved of any such duties.

SB510,26,19 (8) Taxable year of the combined group. (a) Except as provided in par. (b), the combined group's taxable year is the designated agent's taxable year. If a member's taxable year is different from the combined group's taxable year, the designated agent may elect to determine the portion of each member's income to be included in the combined report either from a separate income statement from each member that is prepared by the member's books and records for the months that are included in the combined group's taxable year or by including in the combined report all of the income of each member for the year that ends during the combined group's taxable year. Any election made under this paragraph remains in effect for subsequent years unless the designated agent submits a request to the department to change the election and the department approves in writing.

SB510,26,22 (b) If 2 or more members of a combined group file a federal consolidated return, the combined group's taxable year is the taxable year that corresponds to the federal consolidated return.

SB510,27,4 (9) Part-year members of a combined group. If a corporation becomes a member of a combined group, or ceases to be a member of a combined group, after the beginning of the combined group's taxable year, the corporation's income shall be determined as provided under subs. (3), (4), and (5) for that portion of the year in which the corporation was a member of the combined group, and the income shall be included in the combined report. The income for the remaining short period shall be reported on a separate return or separate combined report.

SB510,27,9 (10) Presumptions and burden of proof. A commonly controlled group is presumed to be engaged in a unitary business and all of the income of the unitary business is presumed to be apportionable business income under this section. A corporation has the burden of proving that it is not a member of a combined group that is subject to this section.

SB510, s. 22 Section 22. 71.26 (1m) (j) of the statutes is created to read:

SB510,27,11 71.26 (1m) (j) Those issued under s. 59.58 (6) (f).

SB510, s. 23 Section 23. 71.26 (3) (x) of the statutes is amended to read:

SB510,27,16 71.26 (3) (x) Sections 1501 to 1505, 1551, 1552, 1563 and 1564 (relating to consolidated returns) are excluded, except as provided under section 1502 of the U.S. treasury regulations as it relates to deferred gain or loss from an intercompany transaction under s. 71.255 (4) (a) 6.

SB510, s. 24 Section 24. 71.45 (1t) (j) of the statutes is created to read:

SB510,27,18 71.45 (1t) (j) Those issued under s. 59.58 (6) (f).

SB510, s. 25 Section 25. 77.9971 of the statutes is amended to read:

SB510,28,7 77.9971 Imposition. A regional transit authority under s. 59.58 (6) may impose a fee at a rate not to exceed $2, or not to exceed $15 if the governing body of the regional transit authority approves a fee under this section at such a rate, for each transaction in the region, as defined in s. 59.58 (6) (a) 2., on the rental, but not for rerental and not for rental as a service or repair replacement vehicle, of Type 1 automobiles, as defined in s. 340.01 (4) (a), by establishments primarily engaged in short-term rental of passenger cars without drivers, for a period of 30 days or less, unless the sale is exempt from the sales tax under s. 77.54 (1), (4), (7) (a), (7m), (9), or (9a). The fee imposed under this subchapter shall be effective on the first day of the first month that begins at least 90 days after the governing body of the regional transit authority approves the imposition of the fee and notifies the department of revenue. The governing body shall notify the department of a repeal of the fee imposed under this subchapter at least 60 days before the effective date of the repeal.

SB510, s. 26 Section 26. 231.01 (4) (a) of the statutes is amended to read:

SB510,28,15 231.01 (4) (a) "Cost" means the sum of all costs incurred by a participating health institution, participating educational institution, participating research institution, or participating child care provider, as approved by the authority, as are reasonable and necessary to accomplish the project, exclusive of any private or federal, state, or local financial assistance received by the participating health institution, participating educational institution, participating research institution, or participating child care provider for the payment of the project cost.

SB510, s. 27 Section 27. 231.01 (4) (b) 1. of the statutes is amended to read:

SB510,28,24 231.01 (4) (b) 1. The cost incurred by or on behalf of the participating health institution, participating educational institution, participating research institution, or participating child care provider of all necessary developmental, planning, and feasibility studies, surveys, plans, and specifications, architectural, engineering, legal, or other special services, the cost of acquisition of land and any buildings and improvements on the land, site preparation, and development including demolition or removal of existing structures, construction, reconstruction, and equipment, including machinery, fixed equipment, and personal property.

SB510, s. 28 Section 28. 231.01 (4) (b) 2. of the statutes is amended to read:

SB510,29,4 231.01 (4) (b) 2. The reasonable cost of financing incurred by a participating health institution, participating educational institution, participating research institution, or participating child care provider in the course of the development of the project to the occupancy date.

SB510, s. 29 Section 29. 231.01 (4) (c) of the statutes is amended to read:

SB510,29,13 231.01 (4) (c) All rents and other net revenues from the operation of the real property, improvements, or personal property on the project site by a participating health institution, participating educational institution, participating research institution, or participating child care provider on and after the date on which the contract between a participating health institution, participating educational institution, participating research institution, or participating child care provider and the authority was entered into, but prior to the occupancy date, shall reduce the sum of all costs in this subsection.

SB510, s. 30 Section 30. 231.01 (6t) of the statutes is created to read:

SB510,29,18 231.01 (6t) "Participating research institution" means an entity that provides or operates a research facility and that undertakes the financing and construction or acquisition of a project or undertakes the refunding or refinancing of obligations or of a mortgage or of advances as provided in this chapter.

SB510, s. 31 Section 31. 231.01 (7) (a) 1. of the statutes is amended to read:

SB510,29,23 231.01 (7) (a) 1. A specific health facility, educational facility, research facility, or child care center work or improvement to be refinanced, acquired, constructed, enlarged, remodeled, renovated, improved, furnished, or equipped by the authority with funds provided in whole or in part under this chapter.

SB510, s. 32 Section 32. 231.01 (7) (a) 2. of the statutes is amended to read:

SB510,30,5 231.01 (7) (a) 2. One or more structures suitable for use as a child care center, research facility, health facility, laboratory, laundry, nurses' or interns' residence or other multi-unit housing facility for staff, employees, patients or relatives of patients admitted for treatment or care in a health facility, physician's facility, administration building, research facility, maintenance, storage, or utility facility.

SB510, s. 33 Section 33. 231.01 (7) (a) 4. of the statutes is amended to read:

SB510,30,10 231.01 (7) (a) 4. Any structure useful for the operation of a health facility, educational facility, research facility, or child care center, including facilities or supporting service structures essential or convenient for the orderly conduct of the health facility, educational facility, research facility, or child care center.

SB510, s. 34 Section 34. 231.01 (7) (c) of the statutes is amended to read:

SB510,30,16 231.01 (7) (c) "Project" may include any combination of projects undertaken jointly by any participating health institution, participating educational institution, participating research institution, or participating child care provider with one or more other participating health institutions, participating educational institutions, participating research institutions, or participating child care providers.

SB510, s. 35 Section 35. 231.01 (8c) of the statutes is created to read:

SB510,30,19 231.01 (8c) "Research facility" means an institution, place, building, or agency that satisfies all of the following:

SB510,30,22 (a) Is owned by an entity that is described in section 501 (c) (3) of the Internal Revenue Code and that is exempt from federal income tax under section 501 (a) of the Internal Revenue Code.

SB510,30,25 (b) Is or will be used in whole or in part for basic research for the advancement of scientific, medical, or technological knowledge and that does not have a specific commercial objective.

SB510, s. 36 Section 36. 231.02 (6) (b) of the statutes is amended to read:

SB510,32,2 231.02 (6) (b) Notwithstanding any other provision of law, it is not a conflict of interest or violation of this section or of any other law for a trustee, director, officer, or employee of a participating health institution, participating educational institution, participating research institution, or participating child care provider or for a person having the required favorable reputation for skill, knowledge, and experience in state and municipal finance or for a person having the required favorable reputation for skill, knowledge, and experience in the field of health facility, educational facility, research facility, or child care center architecture to serve as a member of the authority; if in each case to which par. (a) is applicable, the trustee, director, officer, or employee of the participating health institution, participating educational institution, participating research institution, or participating child care provider abstains from discussion, deliberation, action, and vote by the authority in specific respect to any undertaking pursuant to this chapter in which his or her participating health institution, participating educational institution, participating research institution, or participating child care provider has an interest, or the person having the required favorable reputation for skill, knowledge, and experience in state and municipal finance abstains from discussion, deliberation, action, and vote by the authority in specific respect to any sale, purchase, or ownership of bonds of the authority in which any business of which such person is a participant, owner, officer, or employee has a past, current, or future interest, or such person having the required favorable reputation for skill, knowledge, and experience in the field of health facility, educational facility, research facility, or child care center architecture abstains from discussion, deliberation, action, and vote by the authority in specific respect to construction or acquisition of any project of the authority in which any business of which such person is a participant, owner, officer, or employee has a past, current, or future interest.

SB510, s. 37 Section 37. 231.03 (5) of the statutes is amended to read:

SB510,32,19 231.03 (5) Determine the location and character of any project to be financed under this chapter, and construct, reconstruct, remodel, maintain, enlarge, alter, add to, repair, lease as lessee or lessor and regulate the same, enter into contracts for any such purpose, enter into contracts for the management and operation of a project or other health facilities, educational facilities, research facilities, or child care centers owned by the authority, and designate a participating health institution, participating educational institution, participating research institution, or participating child care provider as its agent to determine the location and character of a project undertaken by the participating health institution, participating educational institution, participating research institution, or participating child care provider under this chapter and as the agent of the authority, to construct, reconstruct, remodel, maintain, manage, enlarge, alter, add to, repair, operate, lease as lessee or lessor and regulate the same, and as the agent of the authority, to enter into contracts for any such purpose, including contracts for the management and operation of such project or other health facilities, educational facilities, research facilities, or child care centers owned by the authority.

SB510, s. 38 Section 38. 231.03 (6) (h) of the statutes is created to read:

SB510,32,22 231.03 (6) (h) Finance any project undertaken for a research facility by a participating research institution.

SB510, s. 39 Section 39. 231.03 (6) (i) of the statutes is created to read:

SB510,32,25 231.03 (6) (i) Refinance outstanding debt of any participating research institution.

SB510, s. 40 Section 40. 231.03 (7) of the statutes is amended to read:

SB510,33,8 231.03 (7) Fix and revise from time to time and charge and collect rates, rents, fees, and charges for the use of and for the services furnished or to be furnished by a project or other health facilities, educational facilities, research facilities, or child care centers owned by the authority or any portion thereof, contract with any person in respect thereto and coordinate its policies and procedures, and cooperate with recognized health facility, educational facility, research facility, or child care center rate setting mechanisms.

SB510, s. 41 Section 41. 231.03 (8) of the statutes is amended to read:

SB510,33,23 231.03 (8) Adopt rules for the use of a project or other health facility, educational facility, research facility, or child care center or any portion of the project or facility owned, financed, or refinanced in whole or in part by the authority, including any property used as security for a loan secured through, from, or with the assistance of the authority. The authority may designate a participating health institution, participating educational institution, participating research institution, or participating child care provider as its agent to establish rules for the use of a project or other health facilities, educational facilities, research facilities, or child care centers undertaken for that participating health institution, participating educational institution, participating research institution, or participating child care provider. The rules shall ensure that a project, health facility, educational facility, research facility, child care center, or property may not be used primarily for sectarian instruction or study or as a place for devotional activities or religious worship.

SB510, s. 42 Section 42. 231.03 (11) of the statutes is amended to read:

SB510,34,12 231.03 (11) Establish or contract with others to carry out on its behalf a health facility, educational facility, research facility, or child care center project cost estimating service, and make this service available on all projects to provide expert cost estimates and guidance to the participating health institution, participating educational institution, participating research institution, or participating child care provider and to the authority. To implement this service and, through it, to contribute to cost containment, the authority may require such reasonable reports and documents from health facility, educational facility, research facility, or child care center projects as are required for this service and for the development of cost reports and guidelines. The authority shall appoint a technical committee on health facility, educational facility, research facility, or child care center project costs and cost containment.

SB510, s. 43 Section 43. 231.03 (13) of the statutes is amended to read:

SB510,35,2 231.03 (13) Make loans to any participating health institution, participating educational institution, participating research institution, or, before May 1, 2000, participating child care provider for the cost of a project in accordance with an agreement between the authority and the participating health institution, participating educational institution, participating research institution, or participating child care provider. The authority may secure the loan by a mortgage or other security arrangement on the health facility, educational facility, research facility, or child care center granted by the participating health institution, participating educational institution, participating research institution, or participating child care provider to the authority. The loan may not exceed the total cost of the project as determined by the participating health institution, participating educational institution, participating research institution, or participating child care provider and approved by the authority.

SB510, s. 44 Section 44. 231.03 (14) of the statutes is amended to read:

SB510,35,12 231.03 (14) Make loans to a health facility, educational facility, research facility, or, before May 1, 2000, child care center for which bonds may be issued under sub. (6) (b) or (d) or under s. 231.03 (6) (f), 1999 stats., to refinance the health facility's, educational facility's, research facility's, or child care center's outstanding debt. The authority may secure the loan or bond by a mortgage or other security arrangement on the health facility, educational facility, research facility, or child care center granted by the participating health institution, participating educational institution, participating research institution, or participating child care provider to the authority.

SB510, s. 45 Section 45. 231.03 (15) of the statutes is amended to read:

SB510,35,21 231.03 (15) Mortgage all or any portion of a project and other health facilities, educational facilities, research facilities, or child care centers and the site thereof, whether owned or thereafter acquired, for the benefit of the holders of bonds issued to finance the project, health facilities, educational facilities, research facilities, or child care centers or any portion thereof or issued to refund or refinance outstanding indebtedness of participating health institutions, educational institutions, participating research institutions, or child care providers as permitted by this chapter.

SB510, s. 46 Section 46. 231.03 (16) of the statutes is amended to read:

SB510,36,15 231.03 (16) Lease to a participating health institution, participating educational institution, participating research institution, or participating child care provider the project being financed or other health facilities, educational facilities, research facilities, or child care centers conveyed to the authority in connection with such financing, upon such terms and conditions as the authority deems proper, and charge and collect rents therefor, and terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof; and include in any such lease, if desired, provisions that the lessee thereof shall have options to renew the term of the lease for such periods and at such rent as the authority determines or to purchase all or any part of the health facilities, educational facilities, research facilities, or child care centers or that, upon payment of all of the indebtedness incurred by the authority for the financing of such project or health facilities, educational facilities, research facilities, or child care centers or for refunding outstanding indebtedness of a participating health institution, participating educational institution, participating research institution, or participating child care provider, the authority may convey all or any part of the project or such other health facilities, educational facilities, research facilities, or child care centers to the lessees thereof with or without consideration.

SB510, s. 47 Section 47. 231.03 (17) of the statutes is amended to read:

SB510,36,20 231.03 (17) Charge to and apportion among participating health institutions, participating educational institutions, participating research institutions, and participating child care providers its administrative costs and expenses incurred in the exercise of the powers and duties conferred by this chapter.

SB510, s. 48 Section 48. 231.03 (18) of the statutes is amended to read:

SB510,37,2 231.03 (18) Make studies of needed health facilities, educational facilities, research facilities, and child care centers that could not sustain a loan were it made under this chapter and recommend remedial action to the legislature; and do the same with regard to any laws or rules that prevent health facilities, educational facilities, research facilities, and child care centers from benefiting from this chapter.

SB510, s. 49 Section 49. 231.03 (19) of the statutes is amended to read:

SB510,37,14 231.03 (19) Obtain, or aid in obtaining, from any department or agency of the United States or of this state or any private company, any insurance or guaranty concerning the payment or repayment of, interest or principal, or both, or any part thereof, on any loan, lease, or obligation or any instrument evidencing or securing the same, made or entered into under the provisions of this chapter; and notwithstanding any other provisions of this chapter, to enter into any agreement, contract, or any other instrument with respect to that insurance or guaranty, to accept payment in the manner and form provided therein in the event of default by a participating health institution, participating educational institution, participating research institution, or participating child care provider, and to assign the insurance or guaranty as security for the authority's bonds.

SB510, s. 50 Section 50. 231.04 of the statutes is amended to read:

SB510,38,3 231.04 Expenses. All expenses of the authority incurred in carrying out this chapter shall be payable solely from funds provided under the authority of this chapter, and no liability may be incurred by the authority beyond the extent to which moneys have been provided under this chapter except that, for the purposes of meeting the necessary expenses of initial organization and operation of the authority for the period commencing on June 19, 1974 and continuing until such date as the authority derives moneys from funds provided to it under the authority of this chapter, the authority may borrow such moneys as it requires to supplement the funds provided under s. 20.440. Such moneys borrowed by the authority shall subsequently be charged to and apportioned among participating health institutions, participating educational institutions, participating research institutions, and participating child care providers in an equitable manner, and repaid with appropriate interest over a reasonable period of time.

SB510, s. 51 Section 51. 231.05 (1) of the statutes is amended to read:

SB510,38,11 231.05 (1) By means of this chapter, it is the intent of the legislature to provide assistance and alternative methods of financing to nonprofit health institutions to aid them in providing needed health services consistent with the state's health plan, to nonprofit educational institutions to aid them in providing needed educational services, to nonprofit research institutions to aid them in providing needed research facilities, and to nonprofit child care providers to aid them in providing needed child care services.

SB510, s. 52 Section 52. 231.06 of the statutes is amended to read:

SB510,38,23 231.06 Property acquisition. The authority may acquire, directly or by and through a participating health institution, participating educational institution, participating research institution, or participating child care provider as its agent, by purchase or by gift or devise, such lands, structures, property, rights, rights-of-way, franchises, easements, and other interests in lands, including lands lying under water and riparian rights, which are located within this state as it deems necessary or convenient for the construction or operation of a project, upon such terms and at such prices as it considers reasonable and can be agreed upon between it and the owner thereof, and take title thereto in the name of the authority or in the name of a health facility, educational facility, research facility, or child care center as its agent.

SB510, s. 53 Section 53. 231.07 (1) (b) of the statutes is amended to read:

SB510,39,6 231.07 (1) (b) Convey to the participating health institution, participating educational institution, participating research institution, or participating child care provider the authority's interest in the project and in any other health facility, educational facility, research facility, or child care center leased, mortgaged, or subject to a deed of trust or any other form of security arrangement to secure the bond.

SB510, s. 54 Section 54. 231.07 (2) (a) of the statutes is amended to read:

SB510,39,14 231.07 (2) (a) The principal of and interest on any bond issued by the authority to finance a project or to refinance or refund outstanding indebtedness of one or more participating health institutions, participating educational institutions, participating research institutions, or participating child care providers, including any refunding bonds issued to refund and refinance the bond, have been fully paid and the bonds retired or if the adequate provision has been made to pay fully and retire the bond; and

SB510, s. 55 Section 55. 231.08 (5) of the statutes is amended to read:

SB510,39,22 231.08 (5) In addition to the other authorizations under this section, bonds of the authority may be secured by a pooling of leases whereby the authority may assign its rights, as lessor, and pledge rents under 2 or more leases of health facilities, educational facilities, research facilities, or child care centers with 2 or more health institutions, educational institutions, research institutions, or child care providers, as lessees respectively, upon such terms as may be provided for in bond resolutions of the authority.

SB510, s. 56 Section 56. 231.10 (1) of the statutes is amended to read: