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. This
bill permits the governor to post the biennial state budget report and the
budget-in-brief on the Internet in lieu of distributing copies 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.
This bill increases the authorized bonding authority of DVA to make mortgage
loans from $2,205,840,000 to $2,400,840,000.
Current statutes contain a rule of procedure governing legislative action on
certain bills affecting GPR. Generally, the rule provides that the amount
appropriated from GPR may not exceed the amount appropriated from GPR in the
prior fiscal year, increased by any percentage increase in this state's aggregate
personal income. This bill provides that any amount appropriated to pay debt service
on appropriation obligations issued to purchase tobacco settlement revenues is
excluded from this GPR appropriation limitation.
Currently, the National and Community Service Board, which assists persons
who operate service programs that address unmet human, educational,
environmental, or public safety needs, may assess certain state agencies for the
amount specified by the board to pay its administrative costs but the board may not
expend more than the amounts appropriated for this purpose. This bill permits the
board to expend all moneys that the board receives from these assessments imposed
on certain state agencies without limitation.
Public utility regulation
This bill allows an investor-owned electric or natural gas public utility (energy
utility) to apply to the PSC for authorization to administer, fund, or provide
administrative services for a program that invests in energy efficiency
improvements for customers in which the costs borne by a customer for the
improvements are offset by the energy savings resulting from the improvement. If
the PSC authorizes such a program, the energy utility must file a tariff specifying
the terms and conditions for billing customers, as well as contracts between the
energy utility and a property owner who is benefited by the improvement that
require the owner to do the following: 1) inform lessees that are liable for utility
service that the cost of the improvement will appear on the lessees' utility bills; and
2) inform a purchaser of the property that the purchaser, or any other person who
is liable for utility service at the property, is liable for the unpaid costs of the
improvement and that such costs will appear on utility bills for the property.
The bill also does the following: 1) allows an energy utility to include a separate
line item on customer bills that offsets certain costs of the program with energy
savings resulting from an improvement made under the program; 2) prohibits an
energy utility from recovering from ratepayers any bad debt related to nonutility
services provided under a program; and 3) requires an owner of residential property
to make a disclosure about an improvement made under a program on the real estate
conditions report that is required for property transfers.
Under current law, DOA awards grants from the utility public benefits fund
(UPBF) to assist low-income households to weatherize and perform other energy
conservation services, pay energy bills, and identify or prevent energy crises. DOA
determines the amount of a monthly low-income assistance fee that electric utilities
must charge customers. The fees are used to fund the grants. Some of the fees are
also used to help fund the Wisconsin Works program, which provides work
experience and benefits for low-income custodial parents. Under current law, the
monthly fee may not exceed the lesser of $750 or 3 percent of the customer's total
charges for the month. This bill provides that the monthly fee may not exceed the
lesser of $750 or the sum of the foregoing 3 percent and a percentage of the customer's
total charges for the month that is sufficient to generate the amounts used to help
fund the Wisconsin Works program.
Current law also requires DOA to promulgate rules establishing the amount of
the fee. For any fiscal year, DOA must establish the fee by subtracting a specified
sum from the amount needed for assisting low-income customers. One component
of the specified sum is the amount of funding received by the state under federal
programs that provide weatherization and energy assistance to low-income
customers. Under this bill, for fiscal years 2009-10 and 2010-11, the amount of
funding received under the federal programs that is attributable to federal economic
stimulus funds must be deducted from the sum.
Current law requires that, in each fiscal year, DOA must ensure that the
amount awarded in grants for weatherization and other energy conservation
services is equal to 47 percent of the sum of the following: 1) the amounts received
under the weatherization and energy-assistance programs; 2) the amount spent by
certain electric and natural gas utilities assisting low-income households; 3) the
amount spent on all programs funded by the UPBF; and 4) the amount of monthly
low-income assistance fees that certain municipal electric utilities and electric retail
cooperatives are required to collect from their customers and members.
Instead of requiring DOA to ensure that 47 percent of the foregoing sum is spent
in fiscal years 2009-10 to 2011-12 on grants for weatherization and other energy
conservation services, this bill requires DOA to ensure that at least $75,000,000 is
spent in each fiscal year on such grants. In addition, in fiscal years 2010-11 and
2011-12, DOA must increase the amount spent on such grants to reflect the
cost-of-living increase that occurred during the previous fiscal year. Beginning in
fiscal year 2012-13, DOA must ensure that 47 percent of the foregoing sum is spent
on such grants, as is required under current law.
Under current law, DOA also administers federal programs for providing
weatherization and energy assistance. Current law requires DOA to transfer in each
fiscal year 15 percent of the federal funding for the energy assistance program to the
weatherization program. This bill allows, but does not require, DOA to make the
transfer. In addition, the bill requires DOA to deduct its administrative expenses for
the program before making a transfer.
Under current law, DOA administers the federal and state programs described
above. This bill transfers administrative responsibility from DOA to the PSC
effective January 1, 2010.
Under current law, the PSC awards grants from the wireless 911 fund to
wireless companies and local governments to reimburse certain costs incurred in
complying with federal requirements regarding wireless 911 emergency telephone
service. Current law requires that costs must be incurred during a specified
reimbursement period in order to be eligible for reimbursement. At the conclusion
of the reimbursement period, the PSC must distribute to wireless companies any
funds remaining in the wireless 911 fund. A wireless company must credit customer
accounts in amounts that correspond to the distribution made to the wireless
company. This bill prohibits the PSC from making any distribution from the 911
wireless fund that is not a grant for reimbursement of the costs described above.
Under current law, DATCP enforces certain requirements that apply to
advertising, sales representations, and sales and collection practices of
telecommunications providers, including telecommunications utilities subject to
varying degrees of regulation by the PSC. DATCP's enforcement costs are funded,
in general, by general purpose revenues. Under this bill, DATCP's enforcement costs
are funded by annual assessments paid by certain telecommunications utilities. The
bill requires the PSC to assess telecommunications utilities in proportion to their
gross operating revenues.
Other state government
This bill provides requirements for forming a legal relationship of domestic
partnership. Under the bill, a domestic partnership may be formed by two
individuals who are at least 18 years old, are not married or in another domestic
partnership, share a common residence, are not nearer of kin than second cousins,
and are members of the same sex.
To form a domestic partnership, the individuals apply for a declaration of
domestic partnership to the county clerk of the county in which at least one of them
has resided for at least 30 days. Each applicant must submit identification and a
certified copy of his or her birth certificate, as well as any other document affecting
the domestic partnership status, such as a death certificate or a certificate of
termination of domestic partnership. The clerk must then issue a declaration of
domestic partnership, which the parties must complete and submit to the register
of deeds of the county in which they reside. The register of deeds must record the
declaration and send the original to the state registrar of vital statistics.
To terminate a domestic partnership, at least one of the domestic partners must
file with the county clerk a notice of termination of domestic partnership. If only one
of the domestic partners signs the notice, he or she must also file an affidavit stating
either of the following: 1) that he or she has served the other domestic partner with
notice that he or she is going to file a notice of termination of domestic partnership;
or 2) that he or she has been unable to locate the other domestic partner and has
published a notice in a newspaper of general circulation in the county in which the
latest common residence of the domestic partners is located. Upon receipt of a notice
of termination, the clerk issues a certificate of termination of domestic partnership,
which must be recorded in the office of the register of deeds, who sends the original
to the state registrar of vital statistics. Termination of the domestic partnership is
effective 90 days after the certificate of termination of domestic partnership is
recorded in the office of the register of deeds. However, if one or both domestic
partners enters into a marriage that is valid in the state, the domestic partnership
is automatically terminated on the date of the marriage.
The bill provides that domestic partners are joint tenants if they are named as
owners in a document of title or as transferees or buyers in an instrument of transfer,
just as husbands and wives are joint tenants under current law.
Under current law, if the head of a department or independent agency in state
government finds any arbitrary discrimination based on marital status, the head is
required to take remedial action. This bill requires a department or independent
agency head to take remedial action if he or she finds any arbitrary discrimination
based on domestic partnership status.
This bill requires DCF, DHS, DWD, and DOA to develop a plan, by July 1, 2010,
for streamlining their processes, coordinating their computer systems, and
developing compatible billing methodologies for the purpose of coordinating the
administration of the public benefit programs administered by the departments and
implementing a system in which a single smart card may be used for all of those
programs. If statutory changes are necessary, the departments must prepare
proposed legislation by July 1, 2010.
This bill requires the UW Hospital and Clinics Authority to pay, no later than
June 30, 2009, $49,000,000 to the state for deposit into the general fund.
This bill directs the secretary of regulation and licensing to form a dedicated
work unit in DRL to support the work of the Medical Examining Board (MEB) and
the affiliated credentialing boards attached to the MEB by performing all aspects of
credential processing, examination, and complaint investigation, for any credential
issued or renewed by the MEB or any affiliated credentialing board.
Under current law, if a state agency enters into or renews a contract for services
that involves an estimated expenditure of more than $25,000, the agency must
conduct either a uniform cost-benefit analysis, for a new contract, or a continued
appropriateness review, for a contract renewal. This bill eliminates the requirement
that an agency conduct either a uniform cost-benefit analysis or a continued
appropriateness review.
Currently, DOA may sell certain state property if the Building Commission
authorizes the property to be sold during the period beginning on October 27, 2007,
and ending on June 30, 2009. Sales may be either on the basis of public bids or
negotiated prices, and need not reflect fair market value. Sales may be with or
without the approval of the state agency that has jurisdiction over the property.
This bill permits DOA to sell certain state property under the same terms and
conditions as those specified under current law if an offer of sale is approved by the
commission during the period beginning on the day this bill becomes law and ending
on June 30, 2011. With certain exceptions, proceeds of the sales are deposited in the
general fund. The bill does not apply to property under the jurisdiction of the Board
of Regents of the UW System, but the bill requires any sales of such property by the
Board of Regents to be used for the operation of the UW System.
Currently, under the federal coastal zone management program, the U.S.
Department of Commerce awards administrative grants as well as resource
management and coastal zone enhancement grants to eligible states to implement
a state's coastal zone management program. This bill transfers the administration
of this state's program from DOA to DNR. The bill does not transfer any positions
or employees.
Under current law, DATCP issues annual licenses to operators of vehicle scales.
DATCP is authorized to adjust the $60 license fee by rule, and may impose a $200
license fee surcharge on an applicant who has operated a scale without a license.
Currently, no person may construct or relocate a scale without a permit from DATCP,
but DATCP is not authorized to charge a permit fee. DATCP may grant a variance
from its scale construction standards, but DATCP is not authorized to charge a
variance fee.
This bill permits DATCP to adjust the $200 license fee surcharge by rule. The
bill also permits DATCP to establish and charge a fee for a permit to construct or
relocate a scale or for a variance from DATCP construction standards.
Under current law, an operator of a liquid petroleum (LP) gas meter must
register the meter with DATCP and pay a one-time registration fee of $25.
Operators must test LP gas meters annually or face a $100 testing surcharge.
Under this bill, DATCP issues annual licenses to operators of gas meters and
may charge a license fee in an amount DATCP sets by rule. DATCP may also impose
a surcharge in an amount set by rule on an applicant who has operated a gas meter
without a license, and may adjust the $100 testing surcharge by rule. The bill
requires DATCP to promulgate testing, reporting, and record-keeping standards for
gas meter operators, and permits DATCP to promulgate standards for gas meter
construction, operation, and maintenance.
Current law requires that a person who delivers fuel oil or certain other liquid
fuels from a vehicle equipped with a pump and metering device to equip the pump
and metering device with a delivery ticket printer that can print data including the
volume of fuel delivered.
The bill requires an operator of a vehicle tank meter (used to measure a delivery
of fuel oil or certain other liquid fuels) to obtain an annual license from DATCP.
DATCP may charge a license fee and may impose a license fee surcharge on an
applicant who operates a tank meter without a license. DATCP may set the amount
of the license fee and the license fee surcharge by rule and may promulgate standards
for tank meter construction, operation, and maintenance. Under the bill, a tank
meter operator must have the tank meter tested annually, and must report the
results to DATCP or pay a DATCP-imposed surcharge.
This bill prohibits a state employee from using a privately owned aircraft to
travel outside of this state for the conduct of state business. Currently, the use of a
privately owned aircraft for out-of-state travel is permitted if it is more efficient and
economical for the conduct of state business than commercial transportation.
taxation
Income taxation
Under current law, there are four income tax brackets for single individuals,
certain fiduciaries, heads of households, and married persons. The brackets are
indexed for inflation. The current rate of taxation for the lowest bracket is 4.6
percent of taxable income; the rate for the second bracket is 6.15 percent; the rate for
the third bracket is 6.5 percent; and the rate for the highest bracket is 6.75 percent.
The highest bracket applies to taxable income exceeding $112,500 for single
individuals, certain fiduciaries, and heads of households; $150,000 for married
persons filing jointly; and $75,000 for married separate filers.
This bill creates a fifth tax bracket with a taxation rate of 7.75 percent. For
single individuals, certain fiduciaries, and heads of households, this bracket applies
to taxable income exceeding $225,000. For married persons, this bracket applies to
taxable income exceeding $300,000 for joint filers and $150,000 for separate filers.
The bracket is indexed for inflation starting with taxable year 2010.
Under current law, an eligible claimant may recover a certain amount of
property taxes paid through the refundable farmland preservation tax credit. A
refundable tax credit may be paid to an eligible claimant by check if the amount of
the credit which is otherwise due the claimant exceeds the claimant's tax liability,
or if there is no outstanding tax liability.
A current eligibility requirement for the farmland preservation tax credit is
that the farmland to which the claim relates be subject either to a farmland
preservation agreement (FPA) or to a county exclusive agricultural use zoning
ordinance. An FPA and an exclusive agricultural use zoning ordinance impose
certain soil and water conservation standards. The term of an FPA is generally 10
to 25 years, although the parties may agree to relinquish the agreement under
certain circumstances.
The credit is computed based on property taxes accrued on the claimant's
farmland in the preceding year; the claimant's household income; and the
agreement, planning, or zoning provisions that cover the farmland. The maximum
credit is $4,200, and the minimum credit is $600, although the maximum credit may
be reduced based on the zoning ordinances in the county where the farmland is
located.
Under this bill, no new claims may be filed for taxable years beginning after
December 31, 2009, but an otherwise eligible claimant who is subject to an FPA that
is in effect on January 1, 2010, may continue to file a claim for the credit until the
agreement expires.
The bill also creates a new refundable farmland preservation credit. The credit
is funded from the lottery fund, up to approximately $15,000,000 of claims. Excess
claims, up to approximately $12,280,000, are paid from the general fund. The
maximum amount of credits that may be claimed each year may not exceed
$27,280,000. If the total amount of eligible claims exceed $27,280,00, DOR must pay
the excess claims in the subsequent fiscal year and prorate the per acre amounts (see
below) to account for prior year claims being paid in the year subsequent to that year.
If a claimant's payment is so delayed, the claimant may not receive any interest on
his delayed payment, or any other refund.
The new farmland preservation credit is calculated by multiplying a claimant's
qualifying acres by one of the following amounts: $10, if the acres are in a farmland
preservation zoning district and are subject to a new FPA (an FPA that was entered
into after the effective date of the bill); $7.50 if the acres are located in a farmland
preservation zoning district, but are not subject to a new FPA; or $5.00 if the acres
are subject to a new FPA, but are not located in a farmland preservation zoning
district.
Under the bill, qualifying acres are determined using several factors, including
the number of acres of farm that correlate to a claimant's percentage of ownership
interest in a farm, the extent to which the farm is covered by a new FPA, and whether
the farm is in farmland preservation zoning district. For a description of the
requirements of a new FPA, see "AGRICULTURE."
Under current law, for claims filed in 2001 and thereafter, the homestead tax
credit threshold income is $8,000; the maximum property taxes, or rent constituting
property taxes, that a claimant may use in calculating his or her credit are $1,450;
and the maximum household income is $24,500. Currently, as a claimant's income
exceeds $8,000, the credit is phased out until the credit equals zero when income
exceeds $24,500, and if the household income is $8,000 or less, the credit is 80 percent
of the property taxes accrued or rent constituting property taxes accrued. Using this
formula, the credit that may be claimed ranges from $10 to $1,160.
Under this bill, for claims filed in 2011 and thereafter, the maximum household
income is indexed for inflation. Also under the bill, as a claimant's income exceeds
the threshold income amount, the credit is phased out until the credit equals zero
when income exceeds the maximum income as adjusted for inflation.
Under current law, a corporation may claim an income and franchise tax credit
in an amount equal to 5 percent of its qualified research expenses, as defined by the
Internal Revenue Code, for research conducted in this state. In addition, a
corporation may claim an income and franchise tax credit equal to 5 percent of the
amount that it paid in the taxable year to construct and equip new facilities or
expand existing facilities used in this state for qualified research, as defined by the
Internal Revenue Code.
Under this bill, a corporation may also claim an income and franchise tax credit
equal to its qualified research expenses in the taxable year for research conducted
in this state that exceeds the amount equal to the average amount of the
corporation's qualified research expenses in the previous three taxable years
multiplied by 1.25. If the credit claimed by a corporation exceeds the corporation's
tax liability, the state does not issue a refund, but the corporation may carry forward
any remaining credit to five subsequent taxable years.
This bill allows a business to claim an income and franchise tax credit in an
amount up to 10 percent of the wages that the business paid in the taxable year to
certain full-time employees, as determined by Commerce. A business may also claim
a credit for the costs it incurred for certain job-related training. If the amount of the
taxpayer's credits exceed the taxpayer's tax liability, the taxpayer receives a refund.
This bill creates a refundable individual income tax credit for a beginning
farmer who enters into at least a three-year lease of an established farmer's
agricultural assets, other than land, and uses the assets for farming, and a
refundable individual and corporate income and franchise tax credit for the
established farmer whose assets are leased. If the amount of credit due a claimant
exceeds the claimant's tax liability, the excess is refunded to the claimant by check.
The credit first applies to taxable years beginning on January 1, 2011.
Under the bill, beginning farmer may claim a credit of up to $500 on a one-time
basis for the cost to enroll in a course in farm financial management that is offered
by an educational institution, such as the UW-Madison, UW-Extension, or the
Wisconsin Technical College System. An established farmer may claim a credit of 15
percent of the amount of payments received each year from the beginning farmer for
the lease of the farm assets, except that the credit may be claimed by the established
farmer only for the first three years of the lease.
A beginning farmer must have a net worth of less than $200,000 and have
farmed for fewer than ten years out of the preceding 15 years. An established farmer
must have engaged in farming for at least ten years.
Under current law, after December 31, 2009, individuals and certain entities,
including fiduciaries, corporations, and insurance companies, that are health care
providers may receive a credit on income taxes based on purchases of information
technology hardware and software for making and keeping electronic medical
records. This bill delays the effective date of the tax credit until after December 31,
2011.
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 (claimants) 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.
Also under this bill, for taxable years beginning after December 31, 2010, a
claimant may elect to defer the payment of income taxes on up to $10,000,000 of the
gain realized from the sale of any capital asset held more than one year (original
asset) that is treated as a long-term gain under the Internal Revenue Code (IRC),
if the claimant completes a number of requirements. The bill specifies that the basis
of the investment is the amount of the investment minus the gain generated by the
sale of the original asset. If a claimant defers the payment of income taxes on the
gain generated by the sale of the original asset, the claimant may not use that gain
to net the claimant's gains and losses as the claimant could do if the claimant did not
elect to defer the payment of taxes on the gain.
Under current law, 50 percent of the sales of the following tangible personal
property must be included in a taxpayer's sales factor for income and franchise tax
purposes:
1. Property that is shipped from storage in this state to the federal government
outside this state, if the destination state does not have tax jurisdiction over the
taxpayer.
2. Property that is shipped from storage in this state to a purchaser, other than
the federal government, if the destination state does not have tax jurisdiction over
the taxpayer.
3. Property sold by an office in this state, but not shipped from this state, if
neither the state from which the property is shipped nor the destination state has
tax jurisdiction over the taxpayer.
Under this bill, 100 percent of the sales of all such tangible personal property
must be included in a taxpayer's sales factor.
Under current law, 50 percent of the following must be included in a taxpayer's
sales factor for income and franchise tax purposes:
1. Gross receipts from the use of computer software that are received in a state
in which the taxpayer is not subject to an income tax, if the taxpayer's commercial
domicile is in this state.
2. Gross receipts from services, if the benefit of service is received in a state in
which the taxpayer is not subject to an income tax, but the taxpayer's employees or
representative's performed services from a location in this state.
Under this bill, 100 percent of such gross receipts must be included in a
taxpayer's sales factor.
Under current law, in order to claim the angel investment credit or the early
stage seed investment credit, the taxpayer must hold the investment for at least
three years. If a taxpayer holds the investment that is the basis for an angel
investment credit for less than one year, the taxpayer must pay DOR the amount of
the credit that the taxpayer received.
Under this bill, if a taxpayer holds an investment that is the basis for an angel
investment credit or early stage seed investment credit for less than three years, the
taxpayer must pay DOR the amount of the credit that the taxpayer received.
This bill adopts, for state income and franchise tax purposes, certain changes
made in IRC.
Under federal law, a business may deduct a percentage of income derived from
qualified domestic production activities, regardless of whether those activities
occurred in this state. The percentage of income derived from such activities that a
business may claim as a deduction is 3 percent in 2005 and 2006, 6 percent in 2007,
2008, and 2009, and 9 percent for 2010 and subsequent years. Under this bill, the
increased deduction for qualified domestic production activities does not apply for
state income and franchise tax purposes for taxable years beginning on or after
January 1, 2009.
This bill provides an income and franchise tax credit for 10 percent of the
amount that a person pays in the taxable year for meat processing modernization or
expansion related to the person's meat processing operation.
Under current law, a person may claim a credit against the person's income or
franchise tax liability that is equal to 10 percent of the amount that the person paid
in the taxable year for dairy manufacturing modernization or expansion related to
the claimant's dairy manufacturing operation. If the amount of the credit exceeds
the amount of the person's tax liability, the person receives a refund. Under current
law, dairy cooperatives are generally not subject to state income or franchise taxes
and therefore are not eligible to claim the credit for dairy manufacturing
modernization or expansion.
This bill allows the members of a dairy cooperative to claim the credit for the
dairy manufacturing modernization or expansion expenses paid by the cooperative.
The dairy cooperative determines the amount of the credit that each member may
claim based on the amount of milk each member delivers to the cooperative.
Under current law, a person who owns an income-producing historic building
may claim a federal income tax credit that is equal to 20 percent of certain costs to
rehabilitate the historic building. To claim the credit, the building must be listed,
or be eligible for listing, on the national register of historic places or located in certain
national, state, or local historic districts, and the rehabilitation work must comply
with standards established by the secretary of the interior.
Under current law, a person who may claim the federal income tax credit for
rehabilitating an income-producing historic building may also claim a state income
tax or franchise tax credit equal to 5 percent of certain costs to rehabilitate the
historic building. To claim the credit, the person must include with the person's tax
return evidence that the secretary of the interior approved the rehabilitation work
before the work began.
Under this bill, a person may claim the state income and franchise tax credit
for rehabilitating an income-producing historic building if the person includes with
the person's tax return evidence that the state historic preservation officer
recommended the rehabilitation work for approval by the secretary of the interior
before the rehabilitation work began and that the rehabilitation was approved by the
secretary of the interior.
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 (IRS) 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 the 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 disaster
or terror. 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 disaster or terror.
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 IRC and the standard deduction. Some deductions allowed
under the IRC, 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.
Under current law, partnerships, limited liability companies, tax-option
corporations, estates, and trusts (pass-through entities) must pay withholding tax
on Wisconsin income allocated to nonresident partners, members, shareholders, or
beneficiaries. The tax is due in a single annual payment. Under this bill, a
pass-through entity pays the withholding tax on the income allocated to nonresident
partners, members, shareholders, or beneficiaries in four quarterly installments.
Under current law, if a corporation that must file a state income or franchise
tax return is affiliated with any other corporation, DOR may require that the
corporation submit a consolidated statement so that DOR may determine the taxable
income received by any affiliated corporation. Under this bill, DOR may also require
a corporation to submit a consolidated statement in order for DOR to determine
whether the corporation and any affiliated corporation are a unitary business.
Under current law, a corporation that does not file its income or franchise tax
return by the due date is subject to a $30 penalty. If any other taxpayer fails to file
an income or franchise tax return by its due date, the taxpayer is subject to the
following penalties:
1. Two dollars, if the taxpayer's income tax is less than $10.
2. Three dollars, if the taxpayer's income tax is $10 or more, but less than $20.
3. Five dollars, if the taxpayer's income tax is $20 or more.
Under current law, however, a taxpayer that is not a corporation is subject to
a $30 penalty for a return that is at least 60 days late, regardless of the amount of
the taxpayer's income tax.
Under this bill, any taxpayer who does not file an income or franchise tax return
by the due date is subject to a $50 penalty. The bill also provides that fiduciaries,
partnerships, and tax-option corporations must provide schedules to their
beneficiaries, partners, and shareholders that specify the income, deductions,
credits, and other items related to the tax liability of the beneficiary, partner, or
shareholder. Any fiduciary, partnership, or tax-option corporation that fails to
provide the schedule is subject to a $50 penalty.
Under current law, a person may claim an income and franchise tax credit for
25 percent of the amount the person paid in the taxable year to install or retrofit
pumps that dispense motor vehicle fuel consisting of at least 85 percent ethanol or
at least 20 percent biodiesel fuel. This bill modifies the credit so that taxpayers may
claim the credit against the alternative minimum tax and so that corporations may
compute the credit, with other credits, in the same order as insurance companies.
