Under this bill, the Department of Commerce may allocate the amount of
unallocated airport development zone tax credits to technology zones for which the
$5,000,000 maximum allocation is insufficient, except that the total amount
allocated from the airport development zone program to all technology zones may not
exceed $6,000,000.
Fiscal changes
Under current law, the biennial budget act (
2007 Wisconsin Act 20) requires the
secretary of administration to lapse or transfer $200,000,000 to the general fund
from certain appropriations to executive branch state agencies in the 2007-09 fiscal
biennium and another $200,000,000 in the 2009-11 fiscal biennium.
This bill decreases the amount of this required lapse or transfer under Act 20
to $175,000,000 in the 2007-09 fiscal biennium and $150,000,000 in the 2009-11
fiscal biennium. The bill also prohibits the secretary of administration from lapsing
or transferring more than a total of $25,000,000 in fiscal year 2007-08 from
Department of Transportation (DOT) appropriations; lapsing or transferring any
amount in fiscal year 2007-08 from any DOT appropriation except for the state funds
appropriation for the major highway projects program; and lapsing or transferring
any amount in fiscal year 2008-09, 2009-10, or 2010-11 from any DOT
appropriation. The bill also includes a mechanism for reversing any lapse or transfer
that occurs before the bill's effective date which would be prohibited if it had occurred
after the bill's effective date.
The bill requires the secretary of administration to transfer $75,000,000 from
the general fund to the transportation fund in fiscal year 2008-09 and $25,000,000
in each year thereafter. The bill also changes DOT's state funds appropriation for
the major highway projects program by decreasing the appropriation by $20,000,000
in fiscal year 2007-08 and increasing the appropriation by $55,000,000 in fiscal year
2008-09. The bill increases DOT's state funds appropriation for the state highway
rehabilitation program by $20,000,000 in each year of the 2007-09 fiscal biennium.
The bill also requires the secretary of administration and DOT to estimate additional
revenues of $50,000,000 in fiscal year 2007-08, and decreased revenues of
$50,000,000 in fiscal year 2008-09, for a DOT appropriation related to revenue bond
proceeds for the major highway projects program.
Under the bill, in submitting its 2009-11 biennial budget request, DOT may not
include in its appropriation base level $50,000,000 of the $55,000,000 increase to its
state funds appropriation for the major highway projects program or the modified
estimates related to its revenue bonding appropriation for the major highway
projects program.
Commuter rail transit system
Under current law, the counties of Kenosha, Milwaukee, and Racine must
create a Regional Transit Authority (RTA). The RTA is responsible for the
coordination of transit and commuter rail programs within these counties. The RTA
may receive funding by imposing a rental car transaction fee within these counties,
but the fee may presently be used only to hire staff, conduct studies, and prepare a
report to the legislature and the governor, due by November 15, 2008. The report
must include certain information, including a recommendation as to whether the
responsibilities of the RTA should be limited to collection and distribution of regional
transit funding or should also include operation of transit service and a
recommendation on whether the RTA should continue in existence after September
30, 2009.
This bill provides the RTA with the responsibility for constructing and
operating a commuter rail transit system connecting the cities of Kenosha, Racine,
and Milwaukee (KRM commuter link).
The bill increases the amount of the rental
car transaction fee that may be imposed if the governing body of the RTA approves
the increase. The bill reiterates the authority of the counties of Kenosha, Milwaukee,
and Racine, and of the most populous city in each of these three counties, to submit
to the electors in an advisory referendum the question of supporting this increase in
the rental car transaction fee. The bill also authorizes the RTA to issue bonds and
to use rental car transaction fees and bond proceeds for KRM commuter link
purposes. Under the bill, the interest income received from the bonds is exempt from
the state income tax. The bill also allows the RTA to participate in organizing
municipal insurance mutuals to provide insurance and risk management services to
the RTA. The bill requires the RTA's report due by November 15, 2008, to include a
study on the feasibility of adding certain commuter rail stops and of extending
commuter rail to a specified location.
WHEFA bonds for research institutions
Under current law, the Wisconsin Health and Educational Facilities Authority
(WHEFA) may issue bonds to finance certain projects of health or educational
institutions, to refinance outstanding debt of health or educational institutions, and
to finance a purchase of the state's right to receive any of the payments under the
Attorneys General Master Tobacco Settlement Agreement of November 23, 1998.
Projects of health or educational institutions that may be financed include, among
others, the acquisition of a hospital, the construction or operation of an ambulatory
surgery center or home health agency, and the construction, remodeling, furnishing,
or equipping of a health or educational facility or related structure.
This bill authorizes WHEFA to issue bonds to finance any project undertaken
by a research institution for a research facility, or to refinance outstanding debt of
a research institution. A research institution is defined in the bill as an entity that
provides or operates a research facility. A research facility is defined in the bill as
a building, institution, place, or agency of a nonprofit entity that is or will be used
in whole or in part for the advancement of scientific, medical, or technological
knowledge and that does not have a specific commercial objective. Project activities
for which WHEFA may issue bonds include construction, acquisition, remodeling,
furnishing, and equipping of research facilities, related structures, and structures
or items that are useful for the operation of research facilities.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB510, s. 1
1Section
1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
SB510, s. 2
3Section
2. 20.143 (1) (cr) of the statutes is created to read:
SB510,5,54
20.143
(1) (cr)
Renewable energy grant and loan program; general purpose
5revenue. The amounts in the schedule for grants and loans under s. 560.126.
SB510, s. 3
6Section
3. 20.143 (1) (cr) of the statutes, as created by 2007 Wisconsin Act ....
7(this act), is repealed.
SB510, s. 4
8Section
4. 25.40 (4) of the statutes is created to read:
SB510,6,3
125.40
(4) Beginning in fiscal year 2009-10, and in each fiscal year thereafter,
2the secretary of administration shall transfer $25,000,000 from the general fund to
3the transportation fund.
SB510, s. 5
4Section
5. 38.27 (2m) (g) of the statutes is created to read:
SB510,6,75
38.27
(2m) (g) Beginning in the 2008-09 school year, at least $5,000,000
6annually is awarded under sub. (1) (b) 1. for training in advanced manufacturing
7skills, with priority given to welding.
SB510, s. 6
8Section
6. 49.155 (1m) (c) 1. (intro.) of the statutes is amended to read:
SB510,6,179
49.155
(1m) (c) 1. (intro.) Except as provided in subds. 1g., 1h., 1m., 2., and 3.,
10the gross income of the individual's family is at or below 185% of the poverty line for
11a family the size of the individual's family or, for an individual who is
already 12receiving a child care subsidy under this section
on July 1, 2008, the gross income
13of the individual's family is at or below
200% 225 percent of the poverty line for a
14family the size of the individual's family. In calculating the gross income of the
15family, the Wisconsin
works Works agency shall include income described under s.
1649.145 (3) (b) 1. and 3., except that, in calculating farm and self-employment income,
17the Wisconsin
works Works agency shall include the sum of the following:
SB510, s. 7
18Section
7. 49.155 (1m) (c) 1c. of the statutes is created to read:
SB510,7,319
49.155
(1m) (c) 1c. Except as provided in subds. 1g., 1h., 1m., 2., and 3., for an
20individual who, on or after July 1, 2008, applies for a child care subsidy under this
21section or reapplies for a child care subsidy under this section after losing eligibility,
22the gross income of the individual's family when the individual applies or reapplies
23is at or below 210 percent of the poverty line for a family the size of the individual's
24family and, after the individual is already receiving a child care subsidy under this
25section, the gross income of the individual's family is at or below 225 percent of the
1poverty line for a family the size of the individual's family. The Wisconsin Works
2agency shall calculate the gross income of the family in the same manner as gross
3income is calculated under subd. 1.
SB510, s. 8
4Section
8. 49.155 (1m) (c) 1g. of the statutes is amended to read:
SB510,7,105
49.155
(1m) (c) 1g. If the individual is a foster parent of the child or a subsidized
6guardian or interim caretaker of the child under s. 48.62 (5), the child's biological or
7adoptive family has a gross income that is at or below
200% 225 percent of the poverty
8line. In calculating the gross income of the child's biological or adoptive family, the
9Wisconsin
works Works agency shall include income described under s. 49.145 (3) (b)
101. and 3.
SB510, s. 9
11Section
9. 49.155 (1m) (c) 1h. of the statutes is amended to read:
SB510,7,1712
49.155
(1m) (c) 1h. If the individual is a relative of the child, is providing care
13for the child under a court order, and is receiving payments under s. 48.57 (3m) or
14(3n) on behalf of the child, the child's biological or adoptive family has a gross income
15that is at or below
200% 225 percent of the poverty line. In calculating the gross
16income of the child's biological or adoptive family, the Wisconsin
works Works agency
17shall include income described under s. 49.145 (3) (b) 1. and 3.
SB510, s. 10
18Section
10. 49.155 (1m) (c) 1m. of the statutes is amended to read:
SB510,8,219
49.155
(1m) (c) 1m. If the individual was eligible under s. 49.132 (4) (a), 1995
20stats., for aid under s. 49.132, 1995 stats., and received aid under s. 49.132, 1995
21stats., on September 30, 1997, but lost aid solely because of the application of s.
2249.132 (6), 1995 stats., the gross income of the individual's family is at or below
200% 23225 percent of the poverty line for a family the size of the individual's family. This
24subdivision does not apply to an individual whose family's gross income at any time
1on or after September 30, 1997, is more than
200% 225 percent of the poverty line
2for a family the size of the individual's family.
SB510, s. 11
3Section
11. 49.155 (1m) (c) 2. of the statutes is amended to read:
SB510,8,104
49.155
(1m) (c) 2. If the individual was eligible under s. 49.132 (4) (am), 1995
5stats., for aid under s. 49.132, 1995 stats., and received aid under s. 49.132, 1995
6stats., on or after May 10, 1996, but lost eligibility solely because of increased
7income, the gross income of the individual's family is at or below
200% 225 percent 8of the poverty line for a family the size of the individual's family. This subdivision
9does not apply to an individual whose family's gross income increased to more than
10200% 225 percent of the poverty line for a family the size of the individual's family.
SB510, s. 12
11Section
12. 49.155 (1m) (c) 3. of the statutes is amended to read:
SB510,8,1812
49.155
(1m) (c) 3. If the individual was eligible for a child care subsidy under
13s. 49.191 (2), 1997 stats., on or after May 10, 1996, and received a child care subsidy
14on or after May 10, 1996, but lost the subsidy solely because of increased income, the
15gross income of the individual's family is at or below
200% 225 percent of the poverty
16line for a family the size of the individual's family. This subdivision does not apply
17to an individual whose family's gross income increased to more than
200% 225
18percent of the poverty line for a family the size of the individual's family.
SB510, s. 13
19Section
13. 59.58 (6) (cb) of the statutes is created to read:
SB510,8,2220
59.58
(6) (cb) The authority shall be responsible for sponsoring, developing,
21constructing, and operating a commuter rail transit system connecting the cities of
22Kenosha, Racine, and Milwaukee, to be known as the KRM commuter rail link.
SB510, s. 14
23Section
14. 59.58 (6) (cr) of the statutes is amended to read:
SB510,9,224
59.58
(6) (cr) The authority may hire staff, conduct studies, and expend funds
25essential to the preparation of the report specified in par. (e)
and in furtherance of
1its responsibility under par. (cb) to develop and construct the KRM commuter rail
2link.
SB510, s. 15
3Section
15. 59.58 (6) (e) 3g. of the statutes is created to read:
SB510,9,74
59.58
(6) (e) 3g. A study on the feasibility of adding a commuter rail stop and
5station at points where any proposed commuter rail route would intersect National
6Avenue in the city of Milwaukee or Greenfield Avenue in the city of Milwaukee or
7both.
SB510, s. 16
8Section
16. 59.58 (6) (e) 3m. of the statutes is created to read:
SB510,9,119
59.58
(6) (e) 3m. A study on the feasibility of extending any proposed commuter
10rail project through the 30th Street corridor in the city of Milwaukee to the northern
11county line of Milwaukee County.
SB510, s. 17
12Section
17. 59.58 (6) (e) 4r. and 6. of the statutes are repealed.
SB510, s. 18
13Section
18. 59.58 (6) (f) and (g) of the statutes are created to read:
SB510,9,1814
59.58
(6) (f) 1. The authority may issue bonds, the principal and interest on
15which are payable exclusively from all or a portion of any revenues received by the
16authority. The authority may secure its bonds by a pledge of any income or revenues
17from any operations, rent, aids, grants, subsidies, contributions, or other source of
18moneys whatsoever.
SB510,9,2219
2. The authority may issue bonds in an aggregate principal amount not to
20exceed $50,000,000, excluding bonds issued to refund outstanding bonds issued
21under this subdivision, for the purpose of providing funds for the anticipated local
22funding share required for initiating KRM commuter rail link service.
SB510,9,2423
3. Neither the governing body of the authority nor any person executing the
24bonds is personally liable on the bonds by reason of the issuance of the bonds.
SB510,10,5
14. The bonds of the authority are not a debt of the counties that created the
2authority. Neither these counties nor the state are liable for the payment of the
3bonds. The bonds of the authority shall be payable only out of funds or properties
4of the authority. The bonds of the authority shall state the restrictions contained in
5this subdivision on the face of the bonds.
SB510,10,196
5. Bonds of the authority shall be authorized by resolution of the authority's
7governing body. The bonds may be issued under such a resolution or under a trust
8indenture or other security instrument. The bonds may be issued in one or more
9series and may be in the form of coupon bonds or registered bonds under s. 67.09.
10The bonds shall bear the dates, mature at the times, bear interest at the rates, be in
11the denominations, have the rank or priority, be executed in the manner, be payable
12in the medium of payment and at the places, and be subject to the terms of
13redemption, with or without premium, as the resolution, trust indenture, or other
14security instrument provides. The authority may sell the bonds at public or private
15sales at the price or prices determined by the authority. If a member of the governing
16body of the authority whose signature appears on any bonds or coupons ceases to be
17a member of the governing body of the authority before the delivery of such
18obligations, the member's signature shall, nevertheless, be valid for all purposes as
19if the member had remained a member until delivery of the bonds.
SB510,11,620
6. The authority may issue refunding bonds for the purpose of paying any of
21its bonds at or prior to maturity or upon acceleration or redemption. The authority
22may issue refunding bonds at such time prior to the maturity or redemption of the
23refunded bonds as the authority deems to be in the public interest. The refunding
24bonds may be issued in sufficient amounts to pay or provide the principal of the bonds
25being refunded, together with any redemption premium on the bonds, any interest
1accrued or to accrue to the date of payment of the bonds, the expenses of issue of the
2refunding bonds, the expenses of redeeming the bonds being refunded, and such
3reserves for debt service or other capital or current expenses from the proceeds of
4such refunding bonds as may be required by the resolution, trust indenture, or other
5security instruments. To the extent applicable, refunding bonds are subject to subd.
65.
SB510,11,107
(g) The governing bodies of the counties of Kenosha, Milwaukee, and Racine,
8and of the most populous city in each of these 3 counties, may submit to the electors
9in an advisory referendum the question of supporting an increase in the fees that
10may be imposed by the authority under subch. XIII of ch. 77.
SB510, s. 19
11Section
19. 71.05 (1) (c) 9. of the statutes is created to read:
SB510,11,1212
71.05
(1) (c) 9. The regional transit authority under s. 59.58 (6) (f).
SB510, s. 20
13Section
20. 71.22 (9) of the statutes is amended to read:
SB510,11,1914
71.22
(9) "Person" includes corporations, unless the context requires
15otherwise.
"Person" may include, as determined by the department, any individual,
16partnership, general partner of a partnership, limited liability company, registered
17limited liability partnership, foreign limited liability partnership, syndicate, estate,
18trust, trustee in bankruptcy, receiver, executor, administrator, assignee, or
19organization.
SB510, s. 21
20Section
21. 71.255 of the statutes is created to read:
SB510,11,21
2171.255 Combined reporting. (1) Definitions. In this section:
SB510,11,2422
(a) "Combined group" means the group of all persons whose income and
23apportionment factors are considered under sub. (2) to determine the taxpayer's
24share of the net business income or loss that is apportionable to this state.
SB510,12,3
1(b) "Combined report" means a return under s. 71.24 that is filed on a form
2prescribed by the department that specifies the income, credits, and tax of each
3taxpayer member of a commonly controlled group operating as a unitary business.
SB510,12,54
(c) "Commonly controlled group" means any of the following, but does not
5include an insurer that is exempt from taxation under s. 71.45 (1):
SB510,12,126
1. A parent corporation and any corporation or chain of corporations that are
7connected to the parent corporation by direct or indirect ownership by the parent
8corporation if the parent corporation owns stock representing more than 50 percent
9of the voting power of at least one of the connected corporations or if the parent
10corporation or any of the connected corporations owns stock that cumulatively
11represents more than 50 percent of the voting power of each of the connected
12corporations.
SB510,12,1513
2. Any 2 or more corporations if a common owner, regardless of whether or not
14the owner is a corporation, directly or indirectly owns stock representing more than
1550 percent of the voting power of the corporations or the connected corporations.
SB510,12,1716
3. Any 2 or more corporations if stock representing more than 50 percent of the
17voting power in each corporation are interests that cannot be separately transferred.
SB510,12,2218
4. Any 2 or more corporations if stock representing more than 50 percent of the
19voting power in each corporation is directly owned by, or for the benefit of, family
20members. In this subdivision, "family member" means an individual related by
21blood, marriage, or adoption within the 2nd degree of kinship as computed under s.
22852.03 (2), 1995 stats., or the spouse of such an individual.
SB510,13,423
(d) "Corporation" means a corporation, as defined in s. 71.22 (1k), that,
24regardless of where the corporation is located, would be subject to the taxes imposed
25under this chapter, if the corporation were doing business in this state. For purposes
1of this section, the business conducted by a pass-through entity that is directly or
2indirectly held by a corporation is considered the corporation's business
3proportionate to the corporation's distributive share of the pass-through entity's
4income. "Corporation" does not include a tax-option corporation.
SB510,13,55
(e) "Department" means the department of revenue.
SB510,13,96
(f) "Internal Revenue Code" means the Internal Revenue Code as defined in s.
771.22 (4) and (4m), including any provision of a federal tax treaty that expressly
8applies to the states of the United States, but not including any other application of
9a federal tax treaty.
SB510,13,1410
(g) "Pass-through entity" means a general or limited partnership, any
11organization that is treated as a partnership for purposes of this chapter, a real
12estate investment trust, a regulated investment company, a real estate mortgage
13investment conduit, a financial asset securitization investment trust, a trust, or an
14estate.
SB510,13,1815
(h) "Tax haven" means a jurisdiction that, for any taxable year, is identified by
16the organization for economic cooperation and development as a tax haven or as
17having a harmful, preferential tax regime or has no, or a nominal, effective tax on
18income and all of the following apply:
SB510,13,2119
1. The jurisdiction has laws or practices that prevent the effective exchange of
20information, for tax purposes, with other governments on taxpayers benefiting from
21the tax regime.
SB510,14,222
2. The details of the legislative, legal, or administrative provisions of the
23jurisdiction's tax regime are not publicly available and apparent or are not
24consistently applied to similarly situated taxpayers or the information needed by tax
1authorities to determine a taxpayer's correct tax liability, including accounting
2records and underlying documentation, is not adequately available.
SB510,14,53
3. The jurisdiction facilitates the establishment of foreign-owned entities
4without requiring a local substantive presence or prohibits such entities from having
5any commercial impact on the local economy.
SB510,14,86
4. The tax regime explicitly or implicitly excludes the jurisdiction's resident
7taxpayers from taking advantage of the tax regime's benefits or prohibits enterprises
8that benefit from the regime from operating in the jurisdiction's domestic market.
SB510,14,129
5. The jurisdiction has created a tax regime that is favorable for tax avoidance,
10based upon an overall assessment of relevant factors, including whether the
11jurisdiction has a significant untaxed offshore financial or other services sector
12relative to its overall economy.
SB510,14,1413
(i) "Taxpayer member" means a corporation that is subject to tax under s. 71.23
14(1) or (2) and that is a member of a combined group.
SB510,15,1115
(j) "Unitary business" means a single economic enterprise that consists of
16separate parts of a single business entity or of a commonly controlled group of
17business entities that are sufficiently interdependent, integrated, and interrelated
18by their activities so as to provide a synergy and a mutual benefit that produces a
19sharing or exchange of value among them and a significant flow of value to the
20separate parts. For purposes of this section, 2 or more business entities are
21considered a unitary business if the entities have unity of ownership, operation, and
22use, as indicated by centralized management or a centralized executive force;
23centralized purchasing, advertising, or accounting; intercorporate sales or leases;
24intercorporate services; intercorporate debts; intercorporate use of proprietary
25materials; interlocking directorates; or interlocking corporate officers. Any business
1conducted by a pass-through entity that is owned directly or indirectly by a
2corporation is considered conducted by the corporation, to the extent of the
3corporation's distributive share of the pass-through entity's income, regardless of
4the percentage of the corporation's ownership interest. A business conducted
5directly or indirectly by one corporation is unitary with that portion of a business
6conducted by another corporation through its direct or indirect interest in a
7pass-through entity, if the corporations are sufficiently interdependent, integrated,
8and interrelated by their activities so as to provide a synergy and a mutual benefit
9that produces a sharing or exchange of value among them and a significant flow of
10value to the separate parts and the two corporations are members of the same
11commonly controlled group.
SB510,15,16
12(2) Corporations required to use combined reporting. (a) A corporation
13engaged in a unitary business with any other corporation shall file a combined report
14that includes the income, determined under sub. (3), and apportionment factor,
15determined under sub. (5) and s. 71.25, of the following members of the unitary
16business:
SB510,15,2017
1. Any member incorporated in the United States, including the District of
18Columbia and any territory or possession of the United States, or formed under the
19laws of any state, the District of Columbia, or any territory or possession of the
20United States.
SB510,15,2221
2. Any member, regardless of where the entity is incorporated or formed, if the
22average of the following ratios is 20 percent or more:
SB510,16,423
a. The value of the member's real property and tangible personal property
24located in the United States, including the District of Columbia and any territory or
25possession of the United States, not including property that is used to produce
1nonapportionable income, divided by the value of all of the member's real property
2and tangible personal property, not including property that is used to produce
3nonapportionable income. For purposes of this subd. 2. a., the value of property that
4the member rents is the net annual rental amount for the property, multiplied by 8.
SB510,16,125
b. The amount of the member's payroll that is paid in the United States,
6including the District of Columbia and any territory or possession of the United
7States, divided by the amount of the member's total payroll. For purposes of this
8subd. 2. b., payroll includes compensation paid to employees, but does not include
9payroll used to produce nonapportionable income. The payroll paid in the United
10States, including the District of Columbia and any territory or possession of the
11United States, shall be determined in the same manner as payroll is determined for
12this state under s. 71.25 (8) (b) 1. to 5.
SB510,16,1813
c. The member's sales in the United States, including the District of Columbia
14and any territory or possession of the United States, divided by the member's total
15sales. For purposes of this subd. 2. c., sales include items identified in s. 71.25 (9) (e),
16but not items identified in s. 71.25 (9) (f), and the situs of a sale shall be determined
17in the same manner as for state sales in s. 71.25 (9) (b), (d), (df), and (dh), not
18including s. 71.25 (9) (b) 2m. and 3., (c), (df) 3., and (dh) 4.
SB510,16,2219
3. Any member that is a domestic international sales corporation as described
20in sections
991 to
994 of the Internal Revenue Code, a foreign sales corporation as
21described in sections
921 to
927 of the Internal Revenue Code, or an export trade
22corporation as described in sections
970 to
971 of the Internal Revenue Code.
SB510,17,6234. Any member that is a controlled foreign corporation as defined in section
957 24of the Internal Revenue Code, to the extent of the member's income that is defined
25in section 952 of of the Internal Revenue Code, including any lower-tier subsidiary's
1distribution of such income that was previously taxed, determined without regard
2to federal treaties, and the apportionment factors related to that income. For
3purposes of this subdivision, any item of income received by a controlled foreign
4corporation is excluded if the income was subject to an income tax imposed by a
5foreign country at an effective tax rate greater than 90 percent of the maximum tax
6rate specified in section
11 of the Internal Revenue Code.
SB510,17,107
5. Any member that earns more than 20 percent of its income, directly or
8indirectly, from intangible property or service-related activities that are deductible
9against the business income of other members of the combined group, to the extent
10of that income and the apportionment factors related to that income.