AB75: Bill Text

AB75,1004,11 6. "Lease amount" is the amount of the cash payment paid by a beginning farmer to an established farmer each year for leasing the established farmer's agricultural assets.

AB75,1004,20 (b) Filing claims. For taxable years beginning after December 31, 2010, and subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.43 an amount equal to 15 percent of the lease amount received by the claimant in the taxable year. If the allowable amount of the claim exceeds the taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (en).

AB75,1004,23 (c) Limitations. 1. A claimant may only claim the credit under this subsection for the first 3 years of any lease of the claimant's agricultural assets to a beginning farmer.

AB75,1004,25 2. Along with a claimant's income tax return, a claimant shall submit to the department a certificate of eligibility provided under s. 93.53 (5) (c).

AB75,1005,8 3. Partnerships, limited liability companies, and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on the amounts received by the entities under par. (b). A partnership, limited liability company, or tax-option corporation shall compute the amount of credit that each of its partners, members, or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies, and shareholders of tax-option corporations may claim the credit in proportion to their ownership interests.

AB75,1005,10 (d) Administration. Subsection (4) (e), (g), and (h), as it applies to the credit under that sub. (4), applies to the credit under this subsection.

AB75, s. 1734 Section 1734. 71.49 (1) (db) of the statutes is created to read:

AB75,1005,12 71.49 (1) (db) Super research and development credit under s. 71.47 (4m).

AB75, s. 1735 Section 1735. 71.49 (1) (em) of the statutes is renumbered 71.49 (1) (eh).

AB75, s. 1736 Section 1736. 71.49 (1) (ema) of the statutes is created to read:

AB75,1005,15 71.49 (1) (ema) Economic development tax credit under s. 71.47 (1dy).

AB75, s. 1737 Section 1737. 71.49 (1) (emb) of the statutes is renumbered 71.49 (1) (ei).

AB75, s. 1738 Section 1738. 71.49 (1) (en) of the statutes is renumbered 71.49 (1) (ej).

AB75, s. 1739 Section 1739. 71.49 (1) (eo) of the statutes is renumbered 71.49 (1) (ek).

AB75, s. 1740 Section 1740. 71.49 (1) (eom) of the statutes is renumbered 71.49 (1) (eL).

AB75, s. 1741 Section 1741. 71.49 (1) (f) of the statutes is amended to read:

AB75,1006,2 71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), dairy manufacturing facility investment credit under s. 71.47 (3p), job tax credit under s. 71.47 (3q), meat processing facility investment credit under s. 71.47 (3r), enterprise zone jobs credit under s. 71.47 (3w), film production services credit under s. 71.47 (5f) (b) 2., beginning farmer and farm asset owner tax credit under s. 71.47 (8r), and estimated tax payments under s. 71.48.

AB75, s. 1742 Section 1742. 71.54 (2m) of the statutes is created to read:

AB75,1006,16 71.54 (2m) Indexing for inflation; 2010 and thereafter. (a) For calendar years beginning after December 31, 2009, the dollar amount for the maximum household income under sub. (1) (f) 3. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that the adjustment may occur only if the percentage is a positive number. The amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this paragraph and incorporate the changes into the income tax forms and instructions.

AB75,1006,22 (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.

AB75, s. 1743 Section 1743. 71.57 of the statutes is amended to read:

AB75,1007,2 71.57 Purpose. The purpose of this subchapter ss. 71.58 to 71.61 is to provide credit to owners of farmland which is subject to agricultural use restrictions, through a system of income or franchise tax credits and refunds and appropriations from the general fund.

AB75, s. 1744 Section 1744. 71.58 (intro.) of the statutes is amended to read:

AB75,1007,4 71.58 Definitions. (intro.) In this subchapter ss. 71.57 to 71.61:

AB75, s. 1745 Section 1745. 71.58 (1) (intro.) of the statutes is amended to read:

AB75,1007,8 71.58 (1) (intro.) "Claimant" means an owner of farmland, as defined in s. 91.01 (9), 2007 stats., of farmland, domiciled in this state during the entire year for which a credit under this subchapter ss. 71.57 to 71.61 is claimed, except as follows:

AB75, s. 1746 Section 1746. 71.58 (1) (b) of the statutes is amended to read:

AB75,1007,13 71.58 (1) (b) If any person in a household has claimed or will claim credit under subch. VIII, all persons from that household are ineligible to claim any credit under this subchapter ss. 71.57 to 71.61 for the year to which the credit under subch. VIII pertained.

AB75, s. 1747 Section 1747. 71.58 (1) (d) of the statutes is amended to read:

AB75,1007,21 71.58 (1) (d) For purposes of filing a claim under this subchapter ss. 71.57 to 71.61, the personal representative of an estate and the trustee of a trust shall be deemed owners of farmland. "Claimant" does not include the estate of a person who is a nonresident of this state on the person's date of death, a trust created by a nonresident person, a trust which receives Wisconsin real property from a nonresident person or a trust in which a nonresident settlor retains a beneficial interest.

AB75, s. 1748 Section 1748. 71.58 (1) (e) of the statutes is amended to read:

AB75,1007,25 71.58 (1) (e) For purposes of filing a claim under this subchapter ss. 71.57 to 71.61, when land is subject to a land contract, the claimant shall be the vendee under the contract.

AB75, s. 1749 Section 1749. 71.58 (1) (f) of the statutes is amended to read:

AB75,1008,4 71.58 (1) (f) For purposes of filing a claim under this subchapter ss. 71.57 to 71.61, when a guardian has been appointed in this state for a ward who owns the farmland, the claimant shall be the guardian on behalf of the ward.

AB75, s. 1750 Section 1750. 71.58 (3) of the statutes is amended to read:

AB75,1008,14 71.58 (3) "Farmland" means 35 or more acres of real property in this state owned by the claimant or any member of the claimant's household during the taxable year for which a credit under this subchapter ss. 71.57 to 71.61 is claimed if the farmland, during that year, produced not less than $6,000 in gross farm profits resulting from the farmland's agricultural use, as defined in s. 91.01 (1), 2007 stats., or if the farmland, during that year and the 2 years immediately preceding that year, produced not less than $18,000 in such profits, or if at least 35 acres of the farmland, during all or part of that year, was enrolled in the conservation reserve program under 16 USC 3831 to 3836.

AB75, s. 1751 Section 1751. 71.58 (4) of the statutes is amended to read:

AB75,1008,21 71.58 (4) "Gross farm profits" means gross receipts, excluding rent, from agricultural use, as defined in s. 91.01 (1), 2007 stats., including the fair market value at the time of disposition of payments in kind for placing land in federal programs or payments from the federal dairy termination program under 7 USC 1446 (d), less the cost or other basis of livestock or other items purchased for resale which are sold or otherwise disposed of during the taxable year.

AB75, s. 1752 Section 1752. 71.58 (8) of the statutes is amended to read:

AB75,1009,20 71.58 (8) "Property taxes accrued" means property taxes, exclusive of special assessments, delinquent interest and charges for service, levied on the farmland and improvements owned by the claimant or any member of the claimant's household in any calendar year under ch. 70, less the tax credit, if any, afforded in respect of the property by s. 79.10. "Property taxes accrued" shall not exceed $6,000. If farmland is owned by a tax-option corporation, a limited liability company or by 2 or more persons or entities as joint tenants, tenants in common or partners or is marital property or survivorship marital property and one or more such persons, entities or owners is not a member of the claimant's household, "property taxes accrued" is that part of property taxes levied on the farmland, reduced by the tax credit under s. 79.10, that reflects the ownership percentage of the claimant and the claimant's household. For purposes of this subsection, property taxes are "levied" when the tax roll is delivered to the local treasurer for collection. If farmland is sold during the calendar year of the levy the "property taxes accrued" for the seller is the amount of the tax levy, reduced by the tax credit under s. 79.10, prorated to each in the closing agreement pertaining to the sale of the farmland, except that if the seller does not reimburse the buyer for any part of those property taxes there are no "property taxes accrued" for the seller, and the "property taxes accrued" for the buyer is the property taxes levied on the farmland, reduced by the tax credit under s. 79.10, minus, if the seller reimburses the buyer for part of the property taxes, the amount prorated to the seller in the closing agreement. With the claim for credit under this subchapter ss. 71.57 to 71.61, the seller shall submit a copy of the closing agreement and the buyer shall submit a copy of the closing agreement and a copy of the property tax bill.

AB75, s. 1753 Section 1753. 71.59 (1) (a) of the statutes is amended to read:

AB75,1010,5 71.59 (1) (a) Subject to the limitations provided in this subchapter ss. 71.57 to 71.61 and s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income or franchise taxes otherwise due, the amount derived under s. 71.60. If the allowable amount of claim exceeds the income or franchise taxes otherwise due on or measured by the claimant's income or if there are no Wisconsin income or franchise taxes due on or measured by the claimant's income, the amount of the claim not used as an offset against income or franchise taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft drawn on the general fund.

AB75, s. 1754 Section 1754. 71.59 (1) (b) (intro.) of the statutes is amended to read:

AB75,1010,9 71.59 (1) (b) (intro.) Every claimant under this subchapter ss. 71.57 to 71.61 shall supply, at the request of the department, in support of the claim, all of the following:

AB75, s. 1755 Section 1755. 71.59 (1) (b) 4. of the statutes is amended to read:

AB75,1010,13 71.59 (1) (b) 4. Certification by the claimant that each county land conservation committee with jurisdiction over the farmland has been notified that the claimant intends to submit a claim under this subchapter ss. 71.57 to 71.61.

AB75, s. 1756 Section 1756. 71.59 (1) (c) of the statutes is amended to read:

AB75,1010,21 71.59 (1) (c) A farmland preservation agreement submitted under par. (b) 3. shall contain provisions specified under s. 91.13 (8), 2007 stats., including either a provision requiring farming operations to be conducted in substantial accordance with a soil and water conservation plan prepared under s. 92.104, 2007 stats., or a provision requiring farming operations to be conducted in compliance with reasonable soil and water conservation standards established under s. 92.105, 2007 stats.

AB75, s. 1757 Section 1757. 71.59 (1) (d) 1. of the statutes is amended to read:

AB75,1010,25 71.59 (1) (d) 1. That the lands are within the boundaries of an agricultural zoning district which is part of an adopted ordinance meeting the standards of subch. V of ch. 91, 2007 stats., and certified under s. 91.06, 2007 stats.

AB75, s. 1758 Section 1758. 71.59 (1) (d) 5. of the statutes is amended to read:

AB75,1011,5 71.59 (1) (d) 5. That soil and water conservation standards applicable to the land are established and approved as required under s. 92.105 (1) to (3), 2007 stats., and that no notice of noncompliance is in effect under s. 92.105 (5) , 2007 stats., with respect to the claimant at the time the certificate is issued.

AB75, s. 1759 Section 1759. 71.59 (2) (intro.) of the statutes is amended to read:

AB75,1011,8 71.59 (2) Ineligible claims. (intro.) No credit shall be allowed under this subchapter ss. 71.57 to 71.61:

AB75, s. 1760 Section 1760. 71.59 (2) (b) of the statutes is amended to read:

AB75,1011,12 71.59 (2) (b) If a notice of noncompliance with an applicable soil and water conservation plan under s. 92.104, 2007 stats., is in effect with respect to the claimant at the time the claim is filed.

AB75, s. 1761 Section 1761. 71.59 (2) (c) of the statutes is amended to read:

AB75,1011,16 71.59 (2) (c) If a notice of noncompliance with applicable soil and water conservation standards under s. 92.105, 2007 stats., is in effect with respect to the claimant at the time the claim is filed.

AB75, s. 1762 Section 1762. 71.59 (2) (d) of the statutes is amended to read:

AB75,1011,21 71.59 (2) (d) For property taxes accrued on farmland zoned for exclusive agricultural use under an ordinance certified under subch. V of ch. 91, 2007 stats., which is granted a special exception or conditional use permit for a use which is not an agricultural use, as defined in s. 91.01 (1), 2007 stats.

AB75, s. 1763 Section 1763. 71.59 (2) (e) of the statutes is amended to read:

AB75,1011,25 71.59 (2) (e) If the department determines that ownership of the farmland has been transferred to the claimant primarily for the purpose of maximizing benefits under this subchapter ss. 71.57 to 71.61.

AB75, s. 1764 Section 1764. 71.60 (1) (b) of the statutes is amended to read:

AB75,1012,10 71.60 (1) (b) The credit allowed under this subchapter ss. 71.57 to 71.61 shall be limited to 90% of the first $2,000 of excessive property taxes plus 70% of the 2nd $2,000 of excessive property taxes plus 50% of the 3rd $2,000 of excessive property taxes. The maximum credit shall not exceed $4,200 for any claimant. The credit for any claimant shall be the greater of either the credit as calculated under this subchapter ss. 71.57 to 71.61 as it exists at the end of the year for which the claim is filed or as it existed on the date on which the farmland became subject to a current agreement under subch. II or III of ch. 91, 2007 stats., using for such calculations household income and property taxes accrued of the year for which the claim is filed.

AB75, s. 1765 Section 1765. 71.60 (1) (c) 1. of the statutes is amended to read:

AB75,1012,16 71.60 (1) (c) 1. If the farmland is located in a county which has a certified agricultural preservation plan under subch. IV of ch. 91, 2007 stats., at the close of the year for which credit is claimed and is in an area zoned by a county, city or village for exclusive agricultural use under ch. 91, 2007 stats., at the close of such year, the amount of the claim shall be that as specified in par. (b).

AB75, s. 1766 Section 1766. 71.60 (1) (c) 2. of the statutes is amended to read:

AB75,1013,2 71.60 (1) (c) 2. If the farmland is subject to a transition area agreement under subch. II of ch. 91, 2007 stats., on July 1 of the year for which credit is claimed, or the claimant had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, and the farmland is located in a city or village which has a certified exclusive agricultural use zoning ordinance under subch. V of ch. 91, 2007 stats., in effect at the close of the year for which credit is claimed, or in a town which is subject to a certified county exclusive agricultural use zoning ordinance under subch. V of ch. 91, 2007 stats., in effect at the close of the year for which credit is claimed, the amount of the claim shall be that as specified in par. (b).

AB75, s. 1767 Section 1767. 71.60 (1) (c) 3. of the statutes is amended to read:

AB75,1013,17 71.60 (1) (c) 3. If the claimant or any member of the claimant's household owns farmland which is ineligible for credit under subd. 1. or 2. but was subject to a farmland preservation agreement under subch. III of ch. 91, 2007 stats., on July 1 of the year for which credit is claimed, or the owner had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, and if the owner has applied by the end of the year in which conversion under s. 91.41, 2007 stats., is first possible for conversion of the agreement to a transition area agreement under subch. II of ch. 91, 2007 stats., and the transition area agreement has subsequently been executed, and the farmland is located in a city or village which has a certified exclusive agricultural use zoning ordinance under subch. V of ch. 91, 2007 stats., in effect at the close of the year for which credit is claimed, or in a town which is subject to a certified county exclusive agricultural use zoning ordinance under subch. V of ch. 91, 2007 stats., in effect at the close of the year for which credit is claimed, the amount of the claim shall be that specified in par. (b).

AB75, s. 1768 Section 1768. 71.60 (1) (c) 4. of the statutes is amended to read:

AB75,1013,25 71.60 (1) (c) 4. If the claimant or any member of the claimant's household owns farmland which is ineligible for credit under subd. 1. or 2. but which is subject to a farmland preservation agreement or a transition area agreement under subch. II of ch. 91, 2007 stats., on July 1 of the year for which credit is claimed, or the owner had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, the amount of the claim shall be limited to 80% of that specified in par. (b).

AB75, s. 1769 Section 1769. 71.60 (1) (c) 5. of the statutes is amended to read:

AB75,1014,11 71.60 (1) (c) 5. If the claimant or any member of the claimant's household owns farmland which is ineligible for credit under subds. 1. to 4. but was subject to a farmland preservation agreement under subch. III of ch. 91, 2007 stats., on July 1 of the year for which credit is claimed, or the owner had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, and if the owner has applied by the end of the year in which conversion under s. 91.41, 2007 stats., is first possible for conversion of the agreement to an agreement under subch. II of ch. 91, 2007 stats., and the agreement under subch. II of ch. 91, 2007 stats., has subsequently been executed, the amount of the claim shall be limited to 80% of that specified in par. (b).

AB75, s. 1770 Section 1770. 71.60 (1) (c) 6. of the statutes is amended to read:

AB75,1014,18 71.60 (1) (c) 6. If the farmland is located in an agricultural district under a certified county agricultural preservation plan under subch. IV of ch. 91, 2007 stats., at the close of the year for which credit is claimed, and is located in an area zoned for exclusive agricultural use under a certified town ordinance under subch. V of ch. 91, 2007 stats., at the close of such year, the amount of the claim shall be the amount specified in par. (b).

AB75, s. 1771 Section 1771. 71.60 (1) (c) 6m. of the statutes is amended to read:

AB75,1015,3 71.60 (1) (c) 6m. If the farmland is located in an agricultural district under a certified county agricultural preservation plan under subch. IV of ch. 91, 2007 stats., at the close of the year for which credit is claimed, and is located in an area zoned for exclusive agricultural use under a certified county or town ordinance under subch. V of ch. 91, 2007 stats., for part of a year but not at the close of that year because the farmland became subject to a city or village extraterritorial zoning ordinance under s. 62.23 (7a), the amount of the claim shall be equal to the amount that the claim would have been under this section if the farmland were subject to a certified county or town exclusive agricultural use ordinance at the close of the year.

AB75, s. 1772 Section 1772. 71.60 (1) (c) 7. of the statutes is amended to read:

AB75,1015,10 71.60 (1) (c) 7. If the farmland is located in an area zoned for exclusive agricultural use under a certified county, city or village ordinance under subch. V of ch. 91, 2007 stats., at the close of the year for which credit is claimed, but the county in which the farmland is located has not adopted an agricultural preservation plan under subch. IV of ch. 91, 2007 stats., by the close of such year, the amount of the claim shall be limited to 70% of that specified in par. (b).

AB75, s. 1773 Section 1773. 71.60 (1) (c) 8. of the statutes is amended to read:

AB75,1015,16 71.60 (1) (c) 8. If the farmland is subject to a farmland preservation agreement under subch. III of ch. 91, 2007 stats., on July 1 of the year for which credit is claimed or the claimant had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, the amount of the claim shall be limited to 50% of that specified in par. (b).

AB75, s. 1774 Section 1774. 71.60 (2) of the statutes is amended to read:

AB75,1015,22 71.60 (2) If the farmland is subject to a certified ordinance under subch. V of ch. 91, 2007 stats., or an agreement under subch. II of ch. 91, 2007 stats., in effect at the close of the year for which the credit is claimed, the amount of the claim is 10% of the property taxes accrued or the amount determined under sub. (1), whichever is greater.

AB75, s. 1775 Section 1775. 71.61 of the statutes is amended to read:

AB75,1016,2 71.61 General provisions. (1) Department may apply credit against any tax liability. The amount of any claim otherwise payable under this subchapter ss. 71.57 to 71.61 may be applied by the department against any amount certified to the department under s. 71.93 or 71.935 or may be credited under s. 71.80 (3) or (3m).

AB75,1016,5 (2) Credits are income. All amounts allowed as credits under this subchapter ss. 71.57 to 71.61 constitute income for income and franchise tax purposes and are reportable as such in the year of receipt.

AB75,1016,7 (3) Interest not allowed. No interest may be allowed on any payment made to a claimant under this subchapter ss. 71.57 to 71.61.

AB75,1016,10 (3m) Administration. The income tax provisions in this chapter relating to assessments, refunds, appeals and collection apply to the credit under this subchapter ss. 71.57 to 71.61.