AB75: Bill Text

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.

AB75,1016,13 (4) Penalties. Unless specifically provided in this subchapter ss. 71.57 to 71.61, the penalties under subch. XIII apply for failure to comply with this subchapter ss. 71.57 to 71.61 unless the context requires otherwise.

AB75,1016,15 (5) Table prepared by department. The department shall prepare a table under which claims under this subchapter ss. 71.57 to 71.61 shall be determined.

AB75, s. 1776 Section 1776. 71.61 (6) of the statutes is created to read:

AB75,1016,23 71.61 (6) Prohibition of new claims. For taxable years beginning after December 31, 2009, no new claims for a credit may be filed under ss. 71.57 to 71.61, but if an otherwise eligible claimant is subject to a farmland preservation agreement, as defined in s. 91.01 (7), 2007 stats., that is in effect on July 1, 2010, the claimant may continue to file a claim for the credit under ss. 71.57 to 71.61 until the farmland preservation agreement expires, except that no claimant who files a claim under ss. 71.57 to 71.61 may file a claim under s. 71.613.

AB75, s. 1777 Section 1777. 71.613 of the statutes is created to read:

AB75,1017,2 71.613 Farmland preservation credit, 2010 and beyond. (1) Definitions. In this section:

AB75,1017,3 (a) "Agricultural use" has the meaning given in s. 91.01 (2).

AB75,1017,6 (b) "Claimant" means an owner, as defined in s. 91.01 (9), 2007 stats., of farmland, domiciled in this state during the entire taxable year to which the claim under this section relates, who files a claim under this section, except as follows:

AB75,1017,10 1. When 2 or more individuals of a household are able to qualify individually as a claimant, they may determine between them who the claimant shall be. If they are unable to agree, the matter shall be referred to the secretary of revenue, whose decision is final.

AB75,1017,13 2. 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 section for the year to which the credit under subch. VIII pertains.

AB75,1017,15 3. For partnerships except publicly traded partnerships treated as corporations under s. 71.22 (1k), "claimant" means each individual partner.

AB75,1017,17 4. For limited liability companies, except limited liability companies treated as corporations under s. 71.22 (1k), "claimant" means each individual member.

AB75,1017,23 5. For purposes of filing a claim under this section, the personal representative of an estate and the trustee of a trust shall be considered 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.

AB75,1017,25 6. For purposes of filing a claim under this section, when land is subject to a land contract, the claimant shall be the vendee under the contract.

AB75,1018,3 7. For purposes of filing a claim under this section, 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.

AB75,1018,4 8. For a tax-option corporation, "claimant" means each individual shareholder.

AB75,1018,5 (c) "Department" means the department of revenue.

AB75,1018,9 (d) "Farm" means a farm, as defined in s. 91.01 (13), that has produced at least $6,000 in gross farm revenues during the taxable year to which the claim relates or, in the taxable year to which the claim relates and the 2 immediately preceding taxable years, at least $18,000 in gross farm revenues.

AB75,1018,10 (e) "Farmland preservation agreement" has the meaning given in s. 91.01 (15).

AB75,1018,12 (f) "Farmland preservation zoning district" has the meaning given in s. 91.01 (18).

AB75,1018,16 (g) "Gross farm revenues" means gross receipts from agricultural use of a farm, excluding rent receipts, less the cost or other basis of livestock or other agricultural items purchased for resale which are sold or otherwise disposed of during the taxable year.

AB75,1018,18 (ge) "Household" means an individual and his or her spouse and all minor dependents.

AB75,1018,21 (h) "Qualifying acres" means the number of acres of a farm that correlate to a claimant's percentage of ownership interest in a farm to which one of the following applies:

AB75,1018,25 1. The farm is wholly or partially covered by a farmland preservation agreement, except that if the farm is only partially covered, the qualifying acres calculation includes only those acres which are covered by a farmland preservation agreement.

AB75,1019,2 2. The farm is located in a farmland preservation zoning district at the end of the taxable year to which the claim relates.

AB75,1019,8 3. If the claimant transferred the claimant's ownership interest in the farm during the taxable year to which the claim relates, the farm was wholly or partially covered by a farmland preservation agreement, or the farm was located in a farmland preservation zoning district, on the date on which the claimant transferred the ownership interest. For the purposes of this subdivision, a land contract is a transfer of ownership interest.

AB75,1019,17 (2) Filing claims. Subject to the limitations and conditions provided in sub. (3), a claimant may claim as a credit against the tax imposed under s. 71.02, 71.08, 71.23, or 71.43, an amount calculated by multiplying the claimant's qualifying acres by one of the following amounts, and if the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income or if there are no Wisconsin income taxes due on the claimant's income, the amount of the claim not used as an offset against income 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 appropriations under s. 20.835 (2) (do) and (qb):

AB75,1019,20 (a) Ten dollars, if the qualifying acres are located in a farmland preservation zoning district and are also subject to a farmland preservation agreement that is entered into after the effective date of this paragraph .... [LRB inserts date].

AB75,1019,24 (b) Seven dollars and 50 cents, if the qualifying acres are located in a farmland preservation zoning district but are not subject to a farmland preservation agreement that is entered into after the effective date of this paragraph .... [LRB inserts date].

AB75,1020,3 (c) Five dollars, if the qualifying acres are subject to a farmland preservation agreement that is entered into after the effective date of this paragraph .... [LRB inserts date], but are not located in a farmland preservation zoning district.

AB75,1020,5 (3) Limitations and conditions. (a) No credit may be allowed under this section unless all of the following apply:

AB75,1020,8 1. The claimant certifies to the department that the claimant has paid, or is legally responsible for paying, the property taxes levied against the qualifying acres to which the claim relates.

AB75,1020,13 2. The claimant certifies to the department that at the end of the taxable year to which the claim relates or, on the date on which the person transferred the person's ownership interest in the farm if the transfer occurs during the taxable year to which the claim relates, there was no outstanding notice of noncompliance issued against the farm under s. 91.82 (2).

AB75,1020,17 3. The claimant submits to the department a certification of compliance with soil and water conservation standards, as required by s. 91.80, issued by the county land conservation committee unless, in the last preceding year, the claimant received a tax credit under ss. 71.57 to 71.61 or this section for the same farm.

AB75,1020,20 (b) If a farm is jointly owned by 2 or more persons who file separate income or franchise tax returns, each person may claim a credit under this section based on the person's ownership interest in the farm.

AB75,1020,24 (c) If a person acquires or transfers ownership of a farm during a taxable year for which a claim may be filed under this section, the person may file a claim under this section based on the person's liability for the property taxes levied on the person's qualifying acres for the taxable year to which the claim relates.

AB75,1021,3 (d) A claimant shall claim the credit under this section on a form prepared by the department and shall submit any documentation required by the department. On the claim form, the claimant shall certify all of the following:

AB75,1021,4 1. The number of qualifying acres for which the credit is claimed.

AB75,1021,6 2. The location and tax parcel number for each parcel on which the qualifying acres are located.

AB75,1021,8 4. That the qualifying acres are covered by a farmland preservation agreement or located in a farmland preservation zoning district, or both.

AB75,1021,10 5. That the qualifying acres are part of a farm that complies with applicable state soil and water conservation standards, as required by s. 91.80.

AB75,1021,12 (e) No credit may be allowed under this section unless it is claimed within the time period under s. 71.75 (2).

AB75,1021,16 (f) The maximum amount of the credits that may be claimed under this section in any fiscal year is $27,280,000. If the total amount of eligible claims exceed this amount, the excess claims shall be paid in the next succeeding fiscal year to ensure that the limit specified in this paragraph is not exceeded.

AB75,1021,21 (g) For the 2011-2012 fiscal year, and for every succeeding fiscal year, the department shall prorate the per acre amounts specified in sub. (2) based on the department's estimated amount of eligible claims that will be filed for that fiscal year, and to account for any excess claims from the preceding fiscal year that are required to be paid under par. (f).

AB75,1022,2 (h) If the payment to which an eligible claimant is entitled under sub. (2) is delayed because the claim was an excess claim, as described in par. (f), the claimant is not entitled to any interest payment under s. 71.82 with regard to the delayed claim or with regard to any other refund to which the claimant is entitled if that other refund claim is claimed on the same income tax return as the credit under this section.

AB75,1022,7 (4) Administration. The department may enforce the credit under this section and may take any action, conduct any proceeding, and proceed as it is authorized in respect to taxes under this chapter. The income and franchise tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest, and penalties apply to the credit under this section.

AB75, s. 1778 Section 1778. 71.65 (5) (b) of the statutes is amended to read:

AB75,1022,15 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.

AB75, s. 1779 Section 1779. 71.74 (6) of the statutes is amended to read:

AB75,1022,24 71.74 (6) Consolidated statements. For the purpose of this chapter, whenever a corporation which is required to file an income or franchise tax return is affiliated with or related to any other corporation through stock ownership by the same interests or as parent or subsidiary corporations, or whose income is regulated through contract or other arrangement, the department may require such consolidated statements as in its opinion are necessary in order to determine the taxable income received by any one of the affiliated or related corporations or to determine whether the corporations are a unitary business.

AB75, s. 1780 Section 1780. 71.775 (4) (a) (intro.) of the statutes is amended to read:

AB75,1023,5 71.775 (4) (a) (intro.) Each pass-through entity that is subject to the withholding under sub. (2) shall pay the amount of the tax withheld to file an annual return that indicates the withholding amount paid to the state during the pass-through entity's taxable year. The entity shall file the return with the department no later than:

AB75, s. 1781 Section 1781. 71.775 (4) (b) of the statutes is repealed.

AB75, s. 1782 Section 1782. 71.775 (4) (bm) 1. of the statutes is created to read:

AB75,1023,14 71.775 (4) (bm) 1. For the return under par. (a), the department shall allow an automatic extension of 7 months or until the corresponding due date of the pass-through entity's federal income tax return or return of partnership income, whichever is later. Except for payments of estimated taxes, and except as provided in subd. 2., witholding taxes payable upon filing the return are not delinquent during the extension period but shall be subject to interest at the rate of 12 percent per year during that period.

AB75, s. 1783 Section 1783. 71.775 (4) (bm) 2. of the statutes is created to read:

AB75,1023,21 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.

AB75, s. 1784 Section 1784. 71.775 (4) (bn) of the statutes is created to read:

AB75,1024,3 71.775 (4) (bn) If a pass-through entity subject to withholding tax under sub. (2) does not file the return under par. (a) on or before the extension date provided in par. (bm), the pass-through entity is liable for the penalty provided in s. 71.83 (1), in addition to any unpaid tax, interest, and penalty otherwise assessable to a nonresident partner, member, shareholder, or beneficiary on income from the pass-through entity.

AB75, s. 1785 Section 1785. 71.775 (4) (c) of the statutes is renumbered 71.775 (4) (i).

AB75, s. 1786 Section 1786. 71.775 (4) (cm) of the statutes is created to read:

AB75,1024,8 71.775 (4) (cm) Except as provided in par. (L), pass-through entities shall make estimated payments of the withholding tax under sub. (2) in 4 installments, on or before the 15th day of each of the following months:

AB75,1024,9 1. The 3rd month of the taxable year.

AB75,1024,10 2. The 6th month of the taxable year.

AB75,1024,11 3. The 9th month of the taxable year.

AB75,1024,12 4. The 12th month of the taxable year.

AB75, s. 1787 Section 1787. 71.775 (4) (d) of the statutes is renumbered 71.775 (4) (j) and amended to read:

AB75,1024,21 71.775 (4) (j) A nonresident partner, member, shareholder, or beneficiary of a pass-through entity may claim a credit, as prescribed by the department, on his or her Wisconsin income or franchise tax return for the amount withheld under sub. (2) on his or her behalf for the tax period for which the income of the pass-through entity is reported. For purposes of determining whether interest under s. 71.84 applies to a nonresident partner, member, shareholder, or beneficiary, the amount withheld under sub. (2) is considered to be paid in 4 equal quarterly installments.

AB75, s. 1788 Section 1788. 71.775 (4) (dm) of the statutes is created to read:

AB75,1025,2 71.775 (4) (dm) Section 71.29 (3), (3m), (4), (5), (6), and (11), as it applies to estimated payments of income and franchise taxes for corporations, also applies to estimated payments of the withholding tax imposed under sub. (2) for pass-through entities.

AB75, s. 1789 Section 1789. 71.775 (4) (e) of the statutes is renumbered 71.775 (4) (k).

AB75, s. 1790 Section 1790. 71.775 (4) (em) of the statutes is created to read:

AB75,1025,15 71.775 (4) (em) Except as provided in par. (fm), in the case of any underpayment of estimated withholding taxes under par. (cm), interest shall be added to the aggregate withholding tax for the taxable year at the rate of 12 percent per year on the amount of the underpayment for the period of the underpayment. In this paragraph, "period of the underpayment" means the time period beginning with the due date of the installment and ending on either the unextended due date of the return under par. (a) or the date of payment, whichever is earlier. If 90 percent of the tax due under sub. (2) for the taxable year is not paid by the unextended due date of the return under par. (a), the difference between that amount and the estimated taxes paid, along with any interest due, shall accrue delinquent interest in the same manner as income and franchise taxes under s. 71.82 (2) (a).

AB75, s. 1791 Section 1791. 71.775 (4) (f) of the statutes is repealed.

AB75, s. 1792 Section 1792. 71.775 (4) (fm) of the statutes is created to read:

AB75,1025,19 71.775 (4) (fm) No interest is required under par. (em) for a pass-through entity if any of the following conditions apply:

AB75,1025,20 1. The amount of withholding tax due under sub. (2) is less than $500.

AB75,1025,23 2. The amount of withholding tax due under sub. (2) is less than $5,000, the pass-through entity had no withholding tax liability under sub. (2) for the preceding taxable year, and the preceding taxable year was 12 months.

AB75, s. 1793 Section 1793. 71.775 (4) (g) of the statutes is created to read:

AB75,1026,2 71.775 (4) (g) Except as provided under par. (h), the amount of each installment required under par. (cm) is 25 percent of the lesser of the following amounts:

AB75,1026,4 1. Ninety percent of the withholding tax under sub. (2) that is due for the taxable year.

AB75,1026,8 2. The withholding tax due under sub. (2) for the preceding taxable year, except that this subdivision does not apply if the preceding taxable year was less than 12 months or if the pass-through entity did not file a return under par. (a) for the preceding taxable year.

AB75, s. 1794 Section 1794. 71.775 (4) (h) of the statutes is created to read:

AB75,1026,25 71.775 (4) (h) If 22.5 percent for the first installment, 45 percent for the 2nd installment, 67.5 percent for the 3rd installment, and 90 percent for the 4th installment of the tax due under sub. (2) for the taxable year; computed by annualizing, under methods prescribed by the department, the pass-through entity's income for the months in the taxable year ending before the installment's due date; is less than the installment required under par. (g), the pass-through entity may pay the amount under this paragraph, rather than the amount under par. (g). For purposes of computing annualized income under this paragraph, the apportionment percentage computed under s. 71.25 (6), (10), and (12) from the return under par. (a) filed for the previous taxable year may be used if that return was filed with the department on or before the due date of the installment for which the income is being annualized and if the apportionment percentage on that previous year's return was greater than zero. Any pass-through entity that pays an amount calculated under this paragraph shall increase the next installment computed under par. (g) by an amount equal to the difference between the amount paid under this paragraph and the amount that would have been paid under par. (g).