(b) The department of revenue shall annually adjust the slope under sub. (1) (f) 2. such that, as a claimant's income increases from the threshold income under sub. (1) (f) 1. and 2., to an amount that exceeds the maximum household income as calculated under par. (a), the credit that may be claimed is reduced to $0 and the department of revenue shall incorporate the changes into the income tax forms and instructions.
(End)
LRB-1239LRB-1239/2
MES&JK:bjk:ph
2009 - 2010 LEGISLATURE
DOA:......Lillethun, BB0295 - Interest on unpaid income and franchise tax doesn't apply during an extention period due to federally-declared disaster
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: interest waivers for disasters and allowing certain casualty losses under the itemized deductions credit.
Analysis by the Legislative Reference Bureau
taxation
Income taxation
Under current law, any extension of time to file a federal individual income or corporate income or franchise tax return granted under federal law or by the Internal Revenue Service automatically extends the time to file the corresponding Wisconsin individual income or corporate income or franchise tax return. If the federal extension is granted due to a presidentially declared disaster or terroristic or military action, however, Wisconsin taxpayers are charged interest at the rate of 12 percent per year during extension period.
Under this bill, interest on unpaid individual income or corporate income or franchise tax, or interest that would otherwise be due for an underpayment of estimated taxes, does not apply if the taxpayer is allowed an extension due to a presidentially declared disaster or terroristic or military action. The bill also allows, for good cause, an extension of time to deposit withholding tax. In addition, the bill exempts from interest a late payment of withholding tax from a pass-through entity if the taxpayer is allowed an extension due to a presidentially declared disaster or terroristic or military action.
Under current law, the itemized deductions credit is calculated as 5 percent of the difference between the sum of certain amounts that are allowed as itemized deductions under the Internal Revenue Code and the standard deduction. Some amounts that are allowed as itemized deductions under the Internal Revenue Code, such as casualty and theft deductions and miscellaneous deductions, are not allowed in the calculation of the itemized deductions credit. Under this bill, a casualty loss that is directly related to a presidentially declared disaster may be used in the computation of the itemized deductions credit.
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. 71.03 (7) (f) of the statutes is created to read:
71.03 (7) (f) For taxable years beginning after December 31, 2008, for persons who qualify for a federal extension of time to file under 26 USC 7508A due to a presidentially declared disaster or terroristic or military action.
SECTION 2. 71.07 (5) (a) 3. of the statutes is amended to read:
71.07 (5) (a) 3. Casualty and theft deductions under section 165 (c) (3) of the internal revenue code, except for casualty losses that are directly related to a presidentially declared disaster under 26 USC 7508A.
SECTION 3. 71.09 (11) (e) of the statutes is created to read:
71.09 (11) (e) For taxable years beginning after December 31, 2008, the taxpayer qualifies for a federal extension of time to file under 26 USC 7508A due to a presidentially declared disaster or terroristic or military action.
SECTION 4. 71.24 (7) of the statutes is renumbered 71.24 (7) (a) and amended to read:
71.24 (7) (a) In the case of a corporation required to file a return, the department of revenue shall allow an automatic extension of 7 months or until the original due date of the corporation's corresponding federal return, whichever is later. Any extension of time granted by law or by the internal revenue service for the filing of corresponding federal returns shall extend the time for filing under this subchapter to 30 days after the federal due date if the corporation reports the extension in the manner specified by the department on the return. Except for payments of estimated taxes, income or franchise taxes payable upon the filing of the tax return shall not become delinquent during such extension period, but shall, except as provided in par. (b), be subject to interest at the rate of 12% per year during such period.
SECTION 5. 71.27 (7) (b) of the statutes is created to read:
71.27 (7) (b) For taxable years beginning after December 31, 2008, for persons who qualify for a federal extension of time to file under 26 USC 7508A due to a presidentially declared disaster or terroristic or military action, income or franchise taxes payable upon the filing of the tax return are not subject to interest as otherwise provided under par. (a).
SECTION 6. 71.29 (7) (c) of the statutes is created to read:
71.29 (7) (c) For taxable years beginning after December 31, 2008, the taxpayer qualifies for a federal extension of time to file under 26 USC 7508A due to a presidentially declared disaster or terroristic or military action.
SECTION 7. 71.44 (3) of the statutes is renumbered 71.44 (3) (a) and amended to read:
71.44 (3) (a) In the case of a corporation required to file a return, the department of revenue shall allow an automatic extension of 7 months or until the original due date of the corporation's corresponding federal return, whichever is later. Any extension of time granted by law or by the internal revenue service for the filing of corresponding federal returns shall extend the time for filing under this subchapter to 30 days after the federal due date if the corporation reports the extension in the manner specified by the department on the return. Except for payments of estimated taxes, income or franchise taxes payable upon the filing of the tax return shall not become delinquent during such extension period, but shall, except as provided in par. (b), be subject to interest at the rate of 12% per year during such period.
SECTION 8. 71.44 (3) (b) of the statutes is created to read:
71.44 (3) (b) For taxable years beginning after December 31, 2008, for persons who qualify for a federal extension of time to file under 26 USC 7508A due to a presidentially declared disaster or terroristic or military action, income or franchise taxes payable upon the filing of the tax return are not subject to interest as otherwise provided under par. (a).
SECTION 9. 71.65 (5) (b) of the statutes is amended to read:
71.65 (5) (b) No extension under par. (a) extends the time to deposit with the public depository or pay to the department amounts that are required to be deducted and withheld under this subchapter. The department for good cause may extend for a period, not to exceed one month, the time for making any return or paying any amount required to be paid under this subchapter. The extension may be granted at any time if the extension request is filed with the department within or before the period for which the extension is requested.
SECTION 10. 71.775 (4) (bm) 2. of the statutes is created to read:
71.775 (4) (bm) 2. For taxable years beginning after December 31, 2008, for persons who qualify for a federal extension of time to file under 26 USC 7508A due to a presidentially declared disaster or terroristic or military action, withholding taxes that are otherwise due from a pass-through entity under sub. (2) are not subject to 12 percent interest as otherwise provided under subd. 1. during the extension period and for 30 days after the end of the federal extension period.
****NOTE: This is reconciled s.71.775 (4) (bm). This SECTION has been affected by drafts with the following LRB numbers: LRB-0371/P2 and LRB-1239/1.
SECTION 9343. Initial applicability; Revenue.
(1) ITEMIZED DEDUCTION CREDIT. The treatment of section 71.07 (5) (a) 3. of the statutes first applies to taxable years beginning on January 1, 2009.
(2) FILING WITHHOLDING STATEMENTS, EXTENSIONS. The treatment of section 71.65 (5) (b) of the statutes first applies to taxable years beginning on January 1, 2009.
(End)
LRB-1240LRB-1240/4
MES:bjk&cjs:ph
2009 - 2010 LEGISLATURE
DOA:......Lillethun, BB0281 - Reduce the 60% exclusion for long-term capital gains
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: reducing the exclusion amount for capital gains.
Analysis by the Legislative Reference Bureau
taxation
Income taxation
Under current law, there is an income tax exclusion for individuals, fiduciaries, members of limited liability corporations and partnerships, and shareholders of tax-option corporations for 60 percent of the net long-term capital gains realized from the sale of assets held for at least one year. This bill reduces the exclusion to 40 percent.
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 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. 71.05 (6) (b) 9. of the statutes is amended to read:
71.05 (6) (b) 9. On assets held more than one year and on all assets acquired from a decedent, 60% 40 percent of the capital gain as computed under the internal revenue code, not including capital gains for which the federal tax treatment is determined under section 406 of P.L. 99-514; not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason; and not including amounts treated as capital gain for federal income tax purposes from the sale or exchange of a lottery prize. For purposes of this subdivision, the capital gains and capital losses for all assets shall be netted before application of the percentage.
SECTION 9343. Initial applicability; Revenue.
(1) TAXATION OF CAPITAL GAINS. The treatment of section 71.05 (6) (b) 9. of the statutes first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after August 31 the treatment of section 71.05 (6) (b) 9. of the statutes first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.
(End)
LRB-1248LRB-1248/1
RAC:bjk:ph
2009 - 2010 LEGISLATURE
DOA:......Kraus, BB0309 - Elimination of base budget review reports
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
State government
State finance
Currently, every fiscal biennium, one-third of all state agencies prepare a base budget review report that contains a description of each programmatic activity of the state agency; an accounting of all expenditures in each of the prior three fiscal years, arranged by revenue source and expenditure category for that state agency; and, for each programmatic activity of the state agency, an accounting of all expenditures, arranged by revenue source and expenditure category in the last two quarters in each of the prior three fiscal years. This bill eliminates base budget review reports.
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. 16.42 (1) (f) of the statutes is repealed.
SECTION 2. 16.423 of the statutes is repealed.
SECTION 3. 16.46 (5g) of the statutes is repealed.
(End)
LRB-1249LRB-1249/3
RAC:bjk:md
2009 - 2010 LEGISLATURE
DOA:......Kraus, BB0308 - Publication of certain budget documents on Internet
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: the budget.
Analysis by the Legislative Reference Bureau
State government
State finance
Under current law, the governor must distribute a copy of the biennial state budget report, as well as the budget-in-brief, to each member of the legislature. Current law also permits the governor to distribute copies of these documents in either printed or optical disk format. This bill permits the governor to post the biennial state budget report and the budget-in-brief on the Internet in lieu of directly distributing copies of each to members of the legislature.
The bill also permits the secretary of administration to develop procedures to permit electronic compliance with auditing of certain claims requirements and the filing and preservation of documents relating to the claims.
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. 16.45 of the statutes is amended to read:
16.45 Budget message to legislature. In each regular session of the legislature, the governor shall deliver the budget message to the 2 houses in joint session assembled. Unless a later date is requested by the governor and approved by the legislature in the form of a joint resolution, the budget message shall be delivered on or before the last Tuesday in January of the odd-numbered year. With the message the governor shall transmit to the legislature, as provided in ss. 16.46 and 16.47, the biennial state budget report and the executive budget bill or bills together with suggestions for the best methods for raising the needed revenues. The governor may distribute the biennial state budget report in printed or optical disk format or post the biennial state budget report on the Internet.
SECTION 2. 16.46 (intro.) of the statutes is amended to read:
16.46 Biennial budget, contents. (intro.) The biennial state budget report shall be prepared by the secretary, under the direction of the governor, and a copy of a budget-in-brief thereof shall be furnished to each member of the legislature or posted on the Internet on the day of the delivery of the budget message. The biennial state budget report shall be furnished to each member of the legislature or posted on the Internet on the same day and shall contain the following information:
SECTION 3. 16.53 (4) of the statutes is amended to read:
16.53 (4) AUDIT ORDER ENDORSED ON CLAIM; RECORD. The order of the secretary auditing any claim shall be endorsed on or annexed to such claim, shall specify the amount allowed, the fund from which the same is payable, and the law that authorizes payment of such claim out of the treasury; and said order with the claim and all evidence relative thereto shall be filed and preserved in the secretary's office. The secretary may develop procedures to permit electronic compliance with any requirement under this subsection.
