taxation
Income taxation
Under current law, the net business income of railroads, sleeping car companies, car line companies, pipeline companies, financial organizations, telecommunications companies, air carriers, and public utilities are apportioned to this state according to DOR rules. Under this bill, an air carrier is defined as a person who provides or offers to provide air transportation and who has control over the operational functions performed in providing that transportation.
For further information see the state 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:
SECTION 1. 71.01 (1ap) of the statutes is created to read:
71.01 (1ap) "Air carrier" means a person who provides or offers to provide air transportation and who has control over the operational functions performed in providing that transportation.
SECTION 2. 71.22 (1bd) of the statutes is created to read:
71.22 (1bd) "Air carrier" means a person who provides or offers to provide air transportation and who has control over the operational functions performed in providing that transportation.
(End)
LRB-1219LRB-1219/2
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2009 - 2010 LEGISLATURE
DOA:......Lillethun, BB0289 - Disregarded entities
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Other taxation
This bill provides that a single-owner entity that is disregarded as a separate entity for income and franchise tax purposes is disregarded as a separate entity for sales and use tax purposes.
For further information see the state 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:
SECTION 1. 77.51 (10) of the statutes is amended to read:
77.51 (10) "Person" includes any natural person, firm, partnership, limited liability company, joint venture, joint stock company, association, public or private corporation, the United States, the state, including any unit or division of the state, any county, city, village, town, municipal utility, municipal power district or other governmental unit, cooperative, unincorporated cooperative association, estate, trust, receiver, personal representative, any other fiduciary, and any representative appointed by order of any court or otherwise acting on behalf of others. "Person" also includes the owner of a single-owner entity that is disregarded as a separate entity under ch. 71.
SECTION 2. 77.61 (16m) of the statutes is created to read:
77.61 (16m) A single-owner entity that is disregarded as a separate entity under ch. 71 is disregarded as a separate entity for purposes of this subchapter.
(End)
LRB-1220LRB-1220/P1
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2009 - 2010 LEGISLATURE
DOA:......Lillethun, BB0290 - Separate sales tax returns for disregarded entities
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Other taxation
Under current law, for sales tax purposes, a seller is required to file a sales tax return. If a person's subsidiary makes sales in this state, but the subsidiary is not regarded as a separate entity for state income and franchise tax purposes, the person must include the information for that subsidiary on the person's sales tax return. If a person owns a single-owner entity that makes sales in this state, but the entity is disregarded as a separate entity for income and franchise tax purposes, the person must include the information from the entity on the person's sales tax return.
Under this bill, if a subsidiary is not regarded as a separate entity for state income and franchise tax purposes, the owner of the subsidiary must elect to either include the information for that subsidiary on the owner's sales tax return or file a separate electronic return for that entity. If a single-owner entity is disregarded as a separate entity for state income and franchise tax purposes, the owner must elect to either include the information from the entity on the owner's return or file a separate electronic return for that entity. If an owner that owns more than one entity that is disregarded as a separate entity elects to file a separate return for one of its disregarded entities, the owner shall file separate returns for all of its disregarded entities.
For further information see the state 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:
SECTION 1. 77.58 (3) (a) of the statutes is amended to read:
77.58 (3) (a) For purposes of the sales tax a return shall be filed by every seller. For purposes of the use tax a return shall be filed by every retailer engaged in business in this state and by every person purchasing tangible personal property or services, the storage, use or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. If a qualified subchapter S subsidiary is not regarded as a separate entity under ch. 71, the owner of that subsidiary shall elect to either include the information for that subsidiary on the owner's return. Returns shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath or file a separate electronic return for that entity. If a single-owner entity is disregarded as a separate entity under ch. 71, the owner shall elect to either include the information from the entity on the owner's return or file a separate electronic return for that entity. If an owner that owns more than one entity that is disregarded as a separate entity under ch. 71 elects to file a separate return for one of its disregarded entities, the owner shall file separate returns for all of its disregarded entities. Returns filed under this paragraph shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath.
SECTION 9443. Effective dates; Revenue.
(1) SALES AND USE TAX RETURNS. The treatment of section 77.58 (3) (a) of the statutes takes effect on the first day of the 3rd month beginning after publication.
(End)
LRB-1221LRB-1221/1
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2009 - 2010 LEGISLATURE
DOA:......Lillethun, BB0291 - Require direct use for manufacturing sales and use tax exemption
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
taxation
Other taxation
Under current law, generally, the sale of tangible personal property that becomes an ingredient or component part of an article of tangible personal property, or is consumed, destroyed, or loses its identity in manufacturing an article of tangible personal property is exempt from the sales and use tax. This bill provides that the sale of such tangible personal property is only exempt from the sales and use tax if it is also used exclusively and directly by a manufacturer in manufacturing an article of tangible personal property that is destined for sale.
Under current law, for sales and use tax purposes, "manufacturing" means the production by machinery of a new article of tangible personal property with a different form, use, and name from existing materials, by a process popularly regarded as manufacturing. The bill provides that the production begins with conveying raw materials and supplies from plant inventory to the place where work is performed in the same plant and ends with conveying finished units of tangible personal property to the point of first storage in the same plant.
Under current law, for sales and use tax purposes, "manufacturing" includes crushing, washing, grading, and blending sand, rock, gravel, and other minerals and ore dressing. Under the bill, "manufacturing" also includes conveying work in progress directly from one manufacturing process to another in the same plant; testing or inspecting the new article of tangible personal property that is being manufactured; storing work in progress in the same plant where the manufacturing occurs; assembling finished units of tangible personal property; and packaging a new article of tangible personal property, if the manufacturer, or another person on the manufacturer's behalf, performs the packaging and if the packaging becomes part of the new article of tangible personal property as it is customarily offered for sale by the manufacturer.
Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.
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:
SECTION 1. 71.07 (3s) (a) 1. of the statutes is amended to read:
71.07 (3s) (a) 1. "Manufacturing" has the meaning given in s. 77.54 (6m), 2007 stats.
SECTION 2. 71.28 (3) (a) 1. of the statutes is amended to read:
71.28 (3) (a) 1. "Manufacturing" has the meaning given in s. 77.54 (6m), 2007 stats.
SECTION 3. 71.47 (3) (a) 1. of the statutes is amended to read:
71.47 (3) (a) 1. "Manufacturing" has the meaning given in s. 77.54 (6m), 2007 stats.
SECTION 4. 77.51 (7m) (a) 3. of the statutes is created to read:
77.51 (7m) (a) 3. Conveying work in progress directly from one manufacturing process to another in the same plant; testing or inspecting, throughout the manufacturing process, the new article of tangible personal property that is being manufactured; storing work in progress in the same plant where the manufacturing occurs; assembling finished units of tangible personal property; and packaging a new article of tangible personal property, if the manufacturer, or another person on the manufacturer's behalf, performs the packaging and if the packaging becomes part of the new article as it is customarily offered for sale by the manufacturer.
SECTION 5. 77.51 (7m) (b) of the statutes is created to read:
77.51 (7m) (b) "Manufacturing" does not include storing raw materials or finished units of tangible personal property, research or development, delivery to or from the plant, or repairing or maintaining plant facilities.
SECTION 6. 77.51 (10m) of the statutes is created to read:
77.51 (10m) For purposes of sub. (7m), "plant" means a parcel of property or adjoining parcels of property, including parcels that are separated only by a public road, and the buildings, machinery, and equipment that are located on the parcel, that are owned by or leased to the manufacturer.
SECTION 7. 77.51 (10n) of the statutes is created to read:
77.51 (10n) For purposes of sub. (7m), "plant inventory" does not include unsevered mineral deposits.
SECTION 8. 77.54 (2) of the statutes is amended to read:
77.54 (2) The gross receipts from sales of and the storage, use or other consumption of tangible personal property becoming that is used exclusively and directly by a manufacturer in manufacturing an article of tangible personal property that is destined for sale and that becomes an ingredient or component part of an the article of tangible personal property destined for sale or which is consumed or destroyed or loses its identity in the manufacture manufacturing the article of tangible personal property in any form destined for sale, except as provided in sub. (30) (a) 6.
SECTION 9. 77.54 (2m) of the statutes is amended to read:
77.54 (2m) The gross receipts from the sales of and the storage, use or other consumption of tangible personal property or services that are used exclusively and directly by a manufacturer in manufacturing shoppers guides, newspapers, or periodicals and that become an ingredient or component of shoppers guides, newspapers, or periodicals or that are consumed or lose their identity in the manufacture of shoppers guides, newspapers, or periodicals, whether or not the shoppers guides, newspapers, or periodicals are transferred without charge to the recipient. In this subsection, "shoppers guides",," "newspapers," and "periodicals" have the meanings under sub. (15). The exemption under this subdivision does not apply to advertising supplements that are not newspapers.
SECTION 10. 77.54 (6m) (intro.) of the statutes is renumbered 77.51 (7m) (a) (intro.) and amended to read:
77.51 (7m) (a) (intro.) For purposes of sub. (6) (a) "manufacturing" is "Manufacturing" means the production by machinery of a new article of tangible personal property with a different form, use, and name from existing materials, by a process popularly regarded as manufacturing, and that begins with conveying raw materials and supplies from plant inventory to the place where work is performed in the same plant and ends with conveying finished units of tangible personal property to the point of first storage in the same plant. "Manufacturing" includes but is not limited to:
SECTION 11. 77.54 (6m) (a) of the statutes is renumbered 77.51 (7m) (a) 1.
SECTION 12. 77.54 (6m) (b) of the statutes is renumbered 77.51 (7m) (a) 2. and amended to read:
77.51 (7m) (a) 2. Ore dressing, including the mechanical preparation, by crushing and other processes, and the concentration, by flotation and other processes, of ore, and beneficiation, including but not limited to the preparation of ore for smelting.
SECTION 9443. Effective dates; Revenue.
(1) TANGIBLE PERSONAL PROPERTY CONSUMED IN MANUFACTURING. The treatment of sections 71.07 (3s) (a) 1., 71.28 (3) (a) 1., 71.47 (3) (a) 1., 77.51 (7m) (a) 3. and (b), (10m), and (10n) and 77.54 (2) and (2m) of the statutes, the renumbering of section 77.54 (6m) (a) of the statutes, and the renumbering and amendment of section 77.54 (6m) (intro.) and (b) of the statutes take effect on the first day of the 2nd month beginning after publication.
(End)
LRB-1222LRB-1222/P2
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2009 - 2010 LEGISLATURE
DOA:......Lillethun, BB0292 - Exempt youth sports league and entry fees from taxable admissions
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
