AB75-SSA1,965,3
1(3m) Administration. The income tax provisions in this chapter relating to
2assessments, refunds, appeals and collection apply to the credit under this
3subchapter
ss. 71.57 to 71.61.
AB75-SSA1,965,6 4(4) Penalties. Unless specifically provided in this subchapter ss. 71.57 to
571.61
, the penalties under subch. XIII apply for failure to comply with this
6subchapter
ss. 71.57 to 71.61 unless the context requires otherwise.
AB75-SSA1,965,8 7(5) Table prepared by department. The department shall prepare a table under
8which claims under this subchapter ss. 71.57 to 71.61 shall be determined.
AB75-SSA1, s. 1776 9Section 1776. 71.61 (6) of the statutes is created to read:
AB75-SSA1,965,1610 71.61 (6) Prohibition of new claims. For taxable years beginning after
11December 31, 2009, no new claims for a credit may be filed under ss. 71.57 to 71.61,
12but if an otherwise eligible claimant is subject to a farmland preservation agreement,
13as defined in s. 91.01 (7), 2007 stats., that is in effect on July 1, 2010, the claimant
14may continue to file a claim for the credit under ss. 71.57 to 71.61 until the farmland
15preservation agreement expires, except that no claimant who files a claim under ss.
1671.57 to 71.61 may file a claim under s. 71.613.
AB75-SSA1, s. 1777 17Section 1777. 71.613 of the statutes is created to read:
AB75-SSA1,965,19 1871.613 Farmland preservation credit, 2010 and beyond. (1) Definitions.
19In this section:
AB75-SSA1,965,2020 (a) "Agricultural use" has the meaning given in s. 91.01 (2).
AB75-SSA1,965,2321 (b) "Claimant" means an owner, as defined in s. 91.01 (9), 2007 stats., of
22farmland, domiciled in this state during the entire taxable year to which the claim
23under this section relates, who files a claim under this section, except as follows:
AB75-SSA1,966,224 1. When 2 or more individuals of a household are able to qualify individually
25as a claimant, they may determine between them who the claimant shall be. If they

1are unable to agree, the matter shall be referred to the secretary of revenue, whose
2decision is final.
AB75-SSA1,966,53 2. If any person in a household has claimed or will claim credit under subch.
4VIII, all persons from that household are ineligible to claim any credit under this
5section for the year to which the credit under subch. VIII pertains.
AB75-SSA1,966,76 3. For partnerships except publicly traded partnerships treated as
7corporations under s. 71.22 (1k), "claimant" means each individual partner.
AB75-SSA1,966,98 4. For limited liability companies, except limited liability companies treated as
9corporations under s. 71.22 (1k), "claimant" means each individual member.
AB75-SSA1,966,1510 5. For purposes of filing a claim under this section, the personal representative
11of an estate and the trustee of a trust shall be considered owners of farmland.
12"Claimant" does not include the estate of a person who is a nonresident of this state
13on the person's date of death, a trust created by a nonresident person, a trust which
14receives Wisconsin real property from a nonresident person or a trust in which a
15nonresident settlor retains a beneficial interest.
AB75-SSA1,966,1716 6. For purposes of filing a claim under this section, when land is subject to a
17land contract, the claimant shall be the vendee under the contract.
AB75-SSA1,966,2018 7. For purposes of filing a claim under this section, when a guardian has been
19appointed in this state for a ward who owns the farmland, the claimant shall be the
20guardian on behalf of the ward.
AB75-SSA1,966,2121 8. For a tax-option corporation, "claimant" means each individual shareholder.
AB75-SSA1,966,2222 (c) "Department" means the department of revenue.
AB75-SSA1,967,223 (d) "Farm" means a farm, as defined in s. 91.01 (13), that has produced at least
24$6,000 in gross farm revenues during the taxable year to which the claim relates or,

1in the taxable year to which the claim relates and the 2 immediately preceding
2taxable years, at least $18,000 in gross farm revenues.
AB75-SSA1,967,33 (e) "Farmland preservation agreement" has the meaning given in s. 91.01 (15).
AB75-SSA1,967,54 (f) "Farmland preservation zoning district" has the meaning given in s. 91.01
5(18).
AB75-SSA1,967,96 (g) "Gross farm revenues" means gross receipts from agricultural use of a farm,
7excluding rent receipts, less the cost or other basis of livestock or other agricultural
8items purchased for resale which are sold or otherwise disposed of during the taxable
9year.
AB75-SSA1,967,1110 (ge) "Household" means an individual and his or her spouse and all minor
11dependents.
AB75-SSA1,967,1412 (h) "Qualifying acres" means the number of acres of a farm that correlate to a
13claimant's percentage of ownership interest in a farm to which one of the following
14applies:
AB75-SSA1,967,1815 1. The farm is wholly or partially covered by a farmland preservation
16agreement, except that if the farm is only partially covered, the qualifying acres
17calculation includes only those acres which are covered by a farmland preservation
18agreement.
AB75-SSA1,967,2019 2. The farm is located in a farmland preservation zoning district at the end of
20the taxable year to which the claim relates.
AB75-SSA1,968,221 3. If the claimant transferred the claimant's ownership interest in the farm
22during the taxable year to which the claim relates, the farm was wholly or partially
23covered by a farmland preservation agreement, or the farm was located in a farmland
24preservation zoning district, on the date on which the claimant transferred the

1ownership interest. For the purposes of this subdivision, a land contract is a transfer
2of ownership interest.
AB75-SSA1,968,11 3(2) Filing claims. Subject to the limitations and conditions provided in sub. (3),
4a claimant may claim as a credit against the tax imposed under s. 71.02, 71.08, 71.23,
5or 71.43, an amount calculated by multiplying the claimant's qualifying acres by one
6of the following amounts, and if the allowable amount of the claim exceeds the income
7taxes otherwise due on the claimant's income or if there are no Wisconsin income
8taxes due on the claimant's income, the amount of the claim not used as an offset
9against income taxes shall be certified by the department of revenue to the
10department of administration for payment to the claimant by check, share draft, or
11other draft from the appropriation under s. 20.835 (2) (do):
AB75-SSA1,968,1412 (a) Ten dollars, if the qualifying acres are located in a farmland preservation
13zoning district and are also subject to a farmland preservation agreement that is
14entered into after the effective date of this paragraph .... [LRB inserts date].
AB75-SSA1,968,1815 (b) Seven dollars and 50 cents, if the qualifying acres are located in a farmland
16preservation zoning district but are not subject to a farmland preservation
17agreement that is entered into after the effective date of this paragraph .... [LRB
18inserts date].
AB75-SSA1,968,2119 (c) Five dollars, if the qualifying acres are subject to a farmland preservation
20agreement that is entered into after the effective date of this paragraph .... [LRB
21inserts date], but are not located in a farmland preservation zoning district.
AB75-SSA1,968,23 22(3) Limitations and conditions. (a) No credit may be allowed under this section
23unless all of the following apply:
AB75-SSA1,969,3
11. The claimant certifies to the department that the claimant has paid, or is
2legally responsible for paying, the property taxes levied against the qualifying acres
3to which the claim relates.
AB75-SSA1,969,84 2. The claimant certifies to the department that at the end of the taxable year
5to which the claim relates or, on the date on which the person transferred the person's
6ownership interest in the farm if the transfer occurs during the taxable year to which
7the claim relates, there was no outstanding notice of noncompliance issued against
8the farm under s. 91.82 (2).
AB75-SSA1,969,129 3. The claimant submits to the department a certification of compliance with
10soil and water conservation standards, as required by s. 91.80, issued by the county
11land conservation committee unless, in the last preceding year, the claimant received
12a tax credit under ss. 71.57 to 71.61 or this section for the same farm.
AB75-SSA1,969,1513 (b) If a farm is jointly owned by 2 or more persons who file separate income or
14franchise tax returns, each person may claim a credit under this section based on the
15person's ownership interest in the farm.
AB75-SSA1,969,1916 (c) If a person acquires or transfers ownership of a farm during a taxable year
17for which a claim may be filed under this section, the person may file a claim under
18this section based on the person's liability for the property taxes levied on the
19person's qualifying acres for the taxable year to which the claim relates.
AB75-SSA1,969,2220 (d) A claimant shall claim the credit under this section on a form prepared by
21the department and shall submit any documentation required by the department.
22On the claim form, the claimant shall certify all of the following:
AB75-SSA1,969,2323 1. The number of qualifying acres for which the credit is claimed.
AB75-SSA1,969,2524 2. The location and tax parcel number for each parcel on which the qualifying
25acres are located.
AB75-SSA1,970,2
14. That the qualifying acres are covered by a farmland preservation agreement
2or located in a farmland preservation zoning district, or both.
AB75-SSA1,970,43 5. That the qualifying acres are part of a farm that complies with applicable
4state soil and water conservation standards, as required by s. 91.80.
AB75-SSA1,970,65 (e) No credit may be allowed under this section unless it is claimed within the
6time period under s. 71.75 (2).
AB75-SSA1,970,107 (f) The maximum amount of the credits that may be claimed under this section
8in any fiscal year is $27,007,200. If the total amount of eligible claims exceed this
9amount, the excess claims shall be paid in the next succeeding fiscal year to ensure
10that the limit specified in this paragraph is not exceeded.
AB75-SSA1,970,1511 (g) For the 2011-2012 fiscal year, and for every succeeding fiscal year, the
12department shall prorate the per acre amounts specified in sub. (2) based on the
13department's estimated amount of eligible claims that will be filed for that fiscal
14year, and to account for any excess claims from the preceding fiscal year that are
15required to be paid under par. (f).
AB75-SSA1,970,2116 (h) If the payment to which an eligible claimant is entitled under sub. (2) is
17delayed because the claim was an excess claim, as described in par. (f), the claimant
18is not entitled to any interest payment under s. 71.82 with regard to the delayed
19claim or with regard to any other refund to which the claimant is entitled if that other
20refund claim is claimed on the same income tax return as the credit under this
21section.
AB75-SSA1,971,2 22(4) Administration. The department may enforce the credit under this section
23and may take any action, conduct any proceeding, and proceed as it is authorized in
24respect to taxes under this chapter. The income and franchise tax provisions in this

1chapter relating to assessments, refunds, appeals, collection, interest, and penalties
2apply to the credit under this section.
AB75-SSA1, s. 1777m 3Section 1777m. 71.63 (3) (d) of the statutes is created to read:
AB75-SSA1,971,54 71.63 (3) (d) With regard to ss. 71.64 (6m) and 71.65 (6), "employer" means a
5person described in s. 108.18 (2) (c).
AB75-SSA1, s. 1777o 6Section 1777o. 71.64 (6m) of the statutes is created to read:
AB75-SSA1,971,117 71.64 (6m) Withholding by certain contractors. If an employer files federal
8tax form 1099-MISC, Miscellaneous Income, on behalf of any independent
9contractor or single-member limited liability company providing construction
10services to the employer, the employer shall deduct and withhold 1 percent from the
11wages paid to the person on whose behalf the form is filed.
AB75-SSA1, s. 1777s 12Section 1777s. 71.64 (9) (a) of the statutes is amended to read:
AB75-SSA1,971,1813 71.64 (9) (a) The department shall prepare, promulgate and publish in the
14official state paper
on the department's Web site for a reasonable period of time,
15without regard to the requirements of ch. 227, rules establishing withholding tables
16prepared on a weekly, biweekly, semimonthly, monthly, and daily or miscellaneous
17pay period basis. Those rules shall also provide instructions for withholding with
18respect to quarterly, semiannual and annual pay periods.
AB75-SSA1, s. 1778 19Section 1778. 71.65 (5) (b) of the statutes is amended to read:
AB75-SSA1,972,220 71.65 (5) (b) No extension under par. (a) extends the time to deposit with the
21public depository or pay to the department amounts that are required to be deducted
22and withheld under this subchapter. The department for good cause may extend for
23a period, not to exceed one month, the time for making any return or paying any
24amount required to be paid under this subchapter. The extension may be granted

1at any time if the extension request is filed with the department within or before the
2period for which the extension is requested.
AB75-SSA1, s. 1778q 3Section 1778q. 71.65 (6) of the statutes is created to read:
AB75-SSA1,972,84 71.65 (6) Construction contractors. Any employer who willfully provides
5false information to the department, or who willfully and with intent to evade any
6requirement of this subchapter, misclassifies or attempts to misclassify an
7individual who is an employee of the employer as a nonemployee shall be fined
8$25,000 for each violation.
AB75-SSA1, s. 1779 9Section 1779. 71.74 (6) of the statutes is amended to read:
AB75-SSA1,972,1710 71.74 (6) Consolidated statements. For the purpose of this chapter, whenever
11a corporation which is required to file an income or franchise tax return is affiliated
12with or related to any other corporation through stock ownership by the same
13interests or as parent or subsidiary corporations, or whose income is regulated
14through contract or other arrangement, the department may require such
15consolidated statements as in its opinion are necessary in order to determine the
16taxable income received by any one of the affiliated or related corporations or to
17determine whether the corporations are a unitary business
.
AB75-SSA1, s. 1779g 18Section 1779g. 71.74 (11) of the statutes is amended to read:
AB75-SSA1,973,1019 71.74 (11) Notice of additional assessment. The department shall notify the
20taxpayer in writing of any additional assessment by office audit or field
21investigation. That notice shall be served as are circuit court summonses, or by
22registered mail, or by regular mail if the person assessed admits receipt or there is
23satisfactory evidence of receipt. In the case of joint returns, notice of additional
24assessment may be a joint notice and service on one spouse is proper notice to both
25spouses. If the spouses have different addresses at the time the notice of additional

1assessment is served and if either spouse notifies the department of revenue in
2writing of those addresses, the department shall serve a duplicate of the original
3notice on the spouse who has the address other than the address to which the original
4notice was sent, if no request for a redetermination or a petition for review has been
5commenced or finalized. For the spouse who did not receive the original notice,
6redetermination and appeal rights begin upon the service of a duplicate notice. If the
7taxpayer is a corporation and the department is unable to serve that taxpayer
8personally or by mail, the department may serve the notice by publishing a class 3
9notice, under ch. 985, in the official state newspaper
publication on the department's
10Web site for a reasonable period of time
.
AB75-SSA1, s. 1780 11Section 1780. 71.775 (4) (a) (intro.) of the statutes is amended to read:
AB75-SSA1,973,1612 71.775 (4) (a) (intro.) Each pass-through entity that is subject to the
13withholding under sub. (2) shall pay the amount of the tax withheld to file an annual
14return that indicates the withholding amount paid to the state during the
15pass-through entity's taxable year. The entity shall file the return with
the
16department no later than:
AB75-SSA1, s. 1781 17Section 1781. 71.775 (4) (b) of the statutes is repealed.
AB75-SSA1, s. 1782 18Section 1782. 71.775 (4) (bm) 1. of the statutes is created to read:
AB75-SSA1,973,2519 71.775 (4) (bm) 1. For the return under par. (a), the department shall allow an
20automatic extension of 7 months or until the corresponding due date of the
21pass-through entity's federal income tax return or return of partnership income,
22whichever is later. Except for payments of estimated taxes, and except as provided
23in subd. 2., withholding taxes payable upon filing the return are not delinquent
24during the extension period but shall be subject to interest at the rate of 12 percent
25per year during that period.
AB75-SSA1, s. 1783
1Section 1783. 71.775 (4) (bm) 2. of the statutes is created to read:
AB75-SSA1,974,72 71.775 (4) (bm) 2. For taxable years beginning after December 31, 2008, for
3persons who qualify for a federal extension of time to file under 26 USC 7508A due
4to a presidentially declared disaster or terroristic or military action, withholding
5taxes that are otherwise due from a pass-through entity under sub. (2) are not
6subject to 12 percent interest as otherwise provided under subd. 1. during the
7extension period and for 30 days after the end of the federal extension period.
AB75-SSA1, s. 1784 8Section 1784. 71.775 (4) (bn) of the statutes is created to read:
AB75-SSA1,974,149 71.775 (4) (bn) If a pass-through entity subject to withholding tax under sub.
10(2) does not file the return under par. (a) on or before the extension date provided in
11par. (bm), the pass-through entity is liable for the penalty provided in s. 71.83 (1),
12in addition to any unpaid tax, interest, and penalty otherwise assessable to a
13nonresident partner, member, shareholder, or beneficiary on income from the
14pass-through entity.
AB75-SSA1, s. 1785 15Section 1785. 71.775 (4) (c) of the statutes is renumbered 71.775 (4) (i).
AB75-SSA1, s. 1786 16Section 1786. 71.775 (4) (cm) of the statutes is created to read:
AB75-SSA1,974,1917 71.775 (4) (cm) Except as provided in par. (L), pass-through entities shall make
18estimated payments of the withholding tax under sub. (2) in 4 installments, on or
19before the 15th day of each of the following months:
AB75-SSA1,974,2020 1. The 3rd month of the taxable year.
AB75-SSA1,974,2121 2. The 6th month of the taxable year.
AB75-SSA1,974,2222 3. The 9th month of the taxable year.
AB75-SSA1,974,2323 4. The 12th month of the taxable year.
AB75-SSA1, s. 1787 24Section 1787. 71.775 (4) (d) of the statutes is renumbered 71.775 (4) (j) and
25amended to read:
AB75-SSA1,975,7
171.775 (4) (j) A nonresident partner, member, shareholder, or beneficiary of a
2pass-through entity may claim a credit, as prescribed by the department, on his or
3her Wisconsin income or franchise tax return for the amount withheld under sub. (2)
4on his or her behalf for the tax period for which the income of the pass-through entity
5is reported. For purposes of determining whether interest under s. 71.84 applies to
6a nonresident partner, member, shareholder, or beneficiary, the amount withheld
7under sub. (2) is considered to be paid in 4 equal quarterly installments.
AB75-SSA1, s. 1788 8Section 1788. 71.775 (4) (dm) of the statutes is created to read:
AB75-SSA1,975,129 71.775 (4) (dm) Section 71.29 (3), (3m), (4), (5), (6), and (11), as it applies to
10estimated payments of income and franchise taxes for corporations, also applies to
11estimated payments of the withholding tax imposed under sub. (2) for pass-through
12entities.
AB75-SSA1, s. 1789 13Section 1789. 71.775 (4) (e) of the statutes is renumbered 71.775 (4) (k).
AB75-SSA1, s. 1790 14Section 1790. 71.775 (4) (em) of the statutes is created to read:
AB75-SSA1,975,2515 71.775 (4) (em) Except as provided in par. (fm), in the case of any underpayment
16of estimated withholding taxes under par. (cm), interest shall be added to the
17aggregate withholding tax for the taxable year at the rate of 12 percent per year on
18the amount of the underpayment for the period of the underpayment. In this
19paragraph, "period of the underpayment" means the time period beginning with the
20due date of the installment and ending on either the unextended due date of the
21return under par. (a) or the date of payment, whichever is earlier. If 90 percent of
22the tax due under sub. (2) for the taxable year is not paid by the unextended due date
23of the return under par. (a), the difference between that amount and the estimated
24taxes paid, along with any interest due, shall accrue delinquent interest in the same
25manner as income and franchise taxes under s. 71.82 (2) (a).
AB75-SSA1, s. 1791
1Section 1791. 71.775 (4) (f) of the statutes is repealed.
AB75-SSA1, s. 1792 2Section 1792. 71.775 (4) (fm) of the statutes is created to read:
AB75-SSA1,976,43 71.775 (4) (fm) No interest is required under par. (em) for a pass-through entity
4if any of the following conditions apply:
AB75-SSA1,976,55 1. The amount of withholding tax due under sub. (2) is less than $500.
AB75-SSA1,976,86 2. The amount of withholding tax due under sub. (2) is less than $5,000, the
7pass-through entity had no withholding tax liability under sub. (2) for the preceding
8taxable year, and the preceding taxable year was 12 months.
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