SB62: Bill Text

This bill requires that all related corporations file a combined report for state income and franchise tax purposes and calculate their state tax liability based on the business activity of all the related corporations.

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 as credit against the person's income or franchise tax liability, in each of two consecutive taxable years, 12.5 percent of the person's investment in a qualified new business venture, as determined by Commerce. The maximum amount of a person's investment that can be used as the basis for the credit is $2,000,000 and a business may receive no more than $1,000,000 in investments that qualify for the credit.

Under this bill, a person may claim an income and franchise tax credit equal to 25 percent of the person's investment in a qualified new business venture. The bill allows a person to use more than $2,000,000 in investments as the basis for the credit and to transfer the amount of any unused credit to another taxpayer.

Under current law, a person must add to the person's taxable income the amount of any deduction the person claimed for interest expenses and rental expenses paid to a related entity, unless the expenses are paid primarily for business purposes and not in order to avoid taxes. Under this bill,a person must add to the person's taxable income the amount of any deduction the person claimed for interest expenses, rental expenses, intangible expenses, and management fees paid to a related entity, unless the expenses or fees are paid primarily for business purposes and not in order to avoid taxes.

Other taxation

This bill adopts the substantive provisions of the Main Street Equity Act for purposes of administering and collecting state, county, and stadium district sales and use taxes. The act is intended to modernize sales and use tax administration for the states that adopt the act and to encourage out-of-state retailers to collect the state, county, and stadium district sales and use taxes voluntarily. Under current federal law, generally, an out-of-state retailer who sells tangible personal property or services to customers in this state is not required to collect the sales tax or use tax imposed on such sales, if the retailer has no physical presence in this state. See Quill v. North Dakota, 504 U.S. 298; 112 S. Ct. 1904 (1992).

This bill also imposes sales and use taxes on specified digital goods and additional digital goods. "Specified digital goods" are digital audio works, digital audiovisual works, and digital books. "Additional digital goods" means greeting cards, finished artwork, periodicals, and video or electronic games, if all such items are transferred electronically. Under the bill, the sale of specified digital goods or additional digital goods that are transferred electronically to the purchaser are exempt from the sales and use taxes, if the sale of the goods in tangible form is exempt from the sales and use taxes.

transportation

Under current law, the Department of Transportation (DOT) must annually submit to the Joint Committee on Finance (JCF) a plan for adjusting DOT's federal funds appropriations if the most recent federal funds estimates vary from DOT's federal funds appropriations by more than 5 percent.

This bill specifies that this requirement does not apply with respect to the first $300,000,000 of federal economic stimulus funds, intended to be used for transportation purposes, resulting from federal legislation enacted between January 2009 and January 2011 (stimulus funds). The bill also requires DOT, with one exception, to encumber or expend the first $300,000,000 of stimulus funds only for specified projects.

Wisconsin housing and economic development authority

Under current law, the Wisconsin Housing and Economic Development Authority (WHEDA) makes, participates in making, and issues bonds or notes to fund homeownership mortgage loans on behalf of qualified, low-income applicants. Homeownership mortgage loans include loans to finance the construction or long-term financing of a residential structure or dwelling unit that is the principle residence of the applicant. Homeownership mortgage loans may not be made to finance the acquisition or replacement of an applicant's existing mortgage.

This bill authorizes WHEDA to issue bonds for and to make and participate in the making of loans for the refinancing of qualified subprime loans if WHEDA determines that the applicant will suffer financial hardship if the loan is not refinanced. A qualified subprime loan is defined as an adjustable rate single-family residential mortgage loan made after December 31, 2001 and before January 1, 2008. The bill directs the secretary of administration to determine the date after which no bonds or notes may be issued by WHEDA to refinance subprime loans.

This bill establishes a Homeowner Eviction and Lien Protection program under the authority of WHEDA. Under the program, WHEDA may enter into agreements with lenders to encourage the lenders to refinance mortgage loans of persons or families who are not able to obtain refinancing in the absence of an agreement. WHEDA may also make and participate in making loans to refinance mortgage loans. A mortgage loan is defined as a loan secured by a first lien real estate mortgage on a single-family dwelling that is used as the principal residence of the applicant. The bill appropriates a total of $4,000,000 in GPR in the 2008-09 and 2009-10 fiscal years to WHEDA to operate the program. The bill requires WHEDA to make quarterly reports to the Joint Committee on Finance, and authorizes the cochairpersons of the Joint Committee on Finance to convene a meeting at any time to review or dissolve the program.

This bill will be referred to the Joint Survey Committee on Tax Exemptions for a detailed analysis, which will be printed as an appendix to this bill.

Because this bill directly or substantially affects the development, construction, cost or availability of housing in this state, the Department of Administration, as required by law, will prepare a report to be printed as an appendix to this bill.

Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report concerning the proposed penalty and the costs or savings that are likely to result if the bill is enacted.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB62, s. 1 Section 1. 13.94 (1) (ms) of the statutes is created to read:

SB62,15,2 13.94 (1) (ms) No later than July 1, 2014, prepare a financial and performance evaluation audit of the economic development tax benefit program under ss. 560.701 to 560.706. The legislative audit bureau shall file a copy of the report of the audit under this paragraph with the distributees specified in par. (b).

SB62, s. 2 Section 2. 13.94 (4) (a) 1. of the statutes is amended to read:

SB62,15,19 13.94 (4) (a) 1. Every state department, board, examining board, affiliated credentialing board, commission, independent agency, council or office in the executive branch of state government; all bodies created by the legislature in the legislative or judicial branch of state government; any public body corporate and politic created by the legislature including specifically the Fox River Navigational System Authority, the Lower Fox River Remediation Authority, and the Wisconsin Aerospace Authority, a professional baseball park district, a local professional football stadium district, a local cultural arts district and a long-term care district under s. 46.2895; every Wisconsin works agency under subch. III of ch. 49; every provider of medical assistance under subch. IV of ch. 49; technical college district boards; development zones designated under s. 560.71; every county department under s. 51.42 or 51.437; every nonprofit corporation or cooperative or unincorporated cooperative association to which moneys are specifically appropriated by state law; and every corporation, institution, association or other organization which receives more than 50% of its annual budget from appropriations made by state law, including subgrantee or subcontractor recipients of such funds.

SB62, s. 3 Section 3. 15.09 (6) of the statutes is amended to read:

SB62,16,6 15.09 (6) Reimbursement for expenses. Members of a council shall not be compensated for their services, but, except as otherwise provided in this subsection, members of councils created by statute shall be reimbursed for their actual and necessary expenses incurred in the performance of their duties, such reimbursement in the case of an elective or appointive officer or employee of this state who represents an agency as a member of a council to be paid by the agency which pays his or her salary. Members of the mortgage loan originator council under s. 15.187 (1) may not be reimbursed for their actual and necessary expenses incurred in the performance of their duties. Members of the agricultural education and workforce development council may not be reimbursed for their actual and necessary expenses incurred in the performance of their duties.

SB62, s. 4 Section 4. 15.187 (1) (intro.), (a), (b) and (c) of the statutes are amended to read:

SB62,16,12 15.187 (1) Loan Mortgage loan originator review council. (intro.) There is created in the department of financial institutions a mortgage loan originator council. The council shall consist of the following members, appointed by the secretary of financial institutions for 4-year terms:

SB62,16,14 (a) Three Four persons who are mortgage loan originators registered licensed under s. 224.72 (1m) 224.725.

SB62,16,16 (b) One person who is an agent of a mortgage broker registered licensed under s. 224.72 (1m).

SB62,16,18 (c) One person who is an agent of a mortgage banker registered licensed under s. 224.72 (1m).

SB62, s. 5 Section 5. 15.187 (1) (d) of the statutes is repealed.

SB62, s. 6 Section 6. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB62, s. 7 Section 7. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB62, s. 8 Section 8. 20.143 (1) (c) of the statutes is amended to read:

SB62,18,4 20.143 (1) (c) Wisconsin development fund; grants, loans, reimbursements, and assistance. Biennially, the amounts in the schedule for grants and loans under s. 560.275 (2) and subch. V of ch. 560; for reimbursements under s. 560.167; for providing assistance under s. 560.06; for the costs specified in s. 560.607; for the loan under 1999 Wisconsin Act 9, section 9110 (4); for the grants under 1995 Wisconsin Act 27, section 9116 (7gg), 1995 Wisconsin Act 119, section 2 (1), 1997 Wisconsin Act 27, section 9110 (6g), 1999 Wisconsin Act 9, section 9110 (5), 2003 Wisconsin Act 33, section 9109 (1d) and (2q), and 2007 Wisconsin Act 20, section 9108 (4u), (6c), (7c), (7f), (8c), (8i), (9i), and (10q), and 2009 Wisconsin Act .... (this act), section 9110 (2 ) and (3); and for providing up to $100,000 annually for the continued development of a manufacturing and advanced technology training center in Racine. Of the amounts in the schedule, $50,000 shall be allocated in each of fiscal years 1997-98 and 1998-99 for providing the assistance under s. 560.06 (1).

SB62, s. 9 Section 9. 20.143 (1) (gm) of the statutes is amended to read:

SB62,18,10 20.143 (1) (gm) Wisconsin development fund, administration of grants and loans. All moneys received from origination fees under s. 560.68 (3), and from transfer fees under s. 560.205 (3) (e), for administering the programs under subch. V of ch. 560 and for the costs of underwriting grants and loans awarded under subch. V of ch. 560.

SB62, s. 10 Section 10. 20.143 (2) (b) of the statutes is amended to read:

SB62,18,15 20.143 (2) (b) Housing grants and loans; general purpose revenue. Biennially, the amounts in the schedule for grants and loans under s. 560.9803 and for grants under s. 560.9805 and for the grant under 2009 Wisconsin Act .... (this act), section 9110 (1).

SB62, s. 11 Section 11. 20.435 (4) (gp) of the statutes is repealed.

SB62, s. 12 Section 12. 20.435 (4) (jw) of the statutes is amended to read:

SB62,18,24 20.435 (4) (jw) BadgerCare Plus and hospital assessment administrative costs. Biennially, the amounts in the schedule to provide a portion of the state share of administrative costs for the BadgerCare Plus Medical Assistance program under s. 49.471. Ten and for administration of the hospital assessment under s. 50.38. All moneys transferred under s. 50.38 (9) and 10 percent of all moneys received from penalty assessments under s. 49.471 (9) (c) shall be credited to this appropriation account.

SB62, s. 13 Section 13. 20.435 (4) (w) of the statutes is amended to read:

SB62,19,6 20.435 (4) (w) Medical Assistance trust fund. From the Medical Assistance trust fund, biennially, the amounts in the schedule for meeting costs of medical assistance administered under ss. 46.27, 46.275 (5), 46.278 (6), 46.283 (5), 46.284 (5), 49.45, and 49.472 (6), for refunds under s. 50.38 (6) (a), and for administrative costs associated with augmenting the amount of federal moneys received under 42 CFR 433.51.

SB62, s. 14 Section 14. 20.435 (4) (xc) of the statutes is created to read:

SB62,19,15 20.435 (4) (xc) Hospital assessment fund; hospital payments. From the hospital assessment fund, the amounts in the schedule to reimburse eligible hospitals for services provided under the Medical Assistance Program under subch. IV of ch. 49, make payments to health maintenance organizations under s. 49.45 (59), provide supplemental funds to rural hospitals under s. 49.45 (5m) (am), make supplemental payments to Level I adult trauma centers under s. 49.45 (6y) (ap), make supplemental payments to hospitals based on performance under s. 49.45 (6y) (ar), make refunds under s. 50.38 (6), and make the transfer under s. 50.38 (8).

SB62, s. 15 Section 15. 20.490 (3) of the statutes is created to read:

SB62,19,21 20.490 (3) Homeownership mortgage assistance. (a) Homeowner eviction lien protection program. As a continuing appropriation, the amounts in the schedule to operate the homeowner eviction and lien protection program under s. 234.605. Notwithstanding s. 20.001 (3) (c), at the close of fiscal year 2009-10, the unencumbered balance of this appropriation account shall lapse to the general fund.

SB62, s. 16 Section 16. 20.566 (1) (ho) of the statutes is created to read:

SB62,20,2 20.566 (1) (ho) Collections under multistate streamlined sales tax project. From moneys collected under the multistate streamlined sales tax project as provided under s. 73.03 (28e), a sum sufficient to pay the dues necessary to participate in the governing board of the multistate streamlined sales tax project.

SB62, s. 17 Section 17. 20.835 (2) (bd) of the statutes is created to read:

SB62,20,5 20.835 (2) (bd) Meat processing facility investment credit. A sum sufficient to make the payments under ss. 71.07 (3r), 71.28 (3r), and 71.47 (3r).

SB62, s. 18 Section 18. 20.835 (2) (bn) of the statutes is amended to read:

SB62,20,9 20.835 (2) (bn) Dairy manufacturing facility investment credit. The amounts in the schedule to make the payments under ss. 71.07 (3p) (d) 2., 71.28 (3p) (d) 2., and 71.47 (3p) (d) 2.

SB62, s. 19 Section 19. 20.835 (2) (bp) of the statutes is created to read:

SB62,20,13 20.835 (2) (bp) Dairy manufacturing facility investment credit; dairy cooperatives. A sum sufficient to make the payments under ss. 71.07 (3p) (d) 3., 71.28 (3p) (d) 3., and 71.47 (3p) (d) 3.

SB62, s. 20 Section 20. 24.61 (4) of the statutes is amended to read:

SB62,20,17 24.61 (4) Loan limitations. Notwithstanding sub. (3), the board may not loan moneys to a county unless the governing body of the county demonstrates to the board's satisfaction that s. 67.045 (1) (a), (b), (c), (d), (e) or, (f), (g), or (h) applies.

SB62, s. 21 Section 21. 24.63 (4) of the statutes is amended to read:

SB62,20,24 24.63 (4) Repayment before due date permitted. Any borrower after March 15 January 1 and prior to August September 1 of any year may repay one or more installments of a state trust fund loan in advance of the due date, and all interest upon such advance payment shall thereupon terminate. The board may charge a borrower who repays one or more installments of a loan a fee to cover any administrative costs incurred by the board in originating and servicing the loan.

SB62, s. 22 Section 22. 24.66 (3) (am) of the statutes is amended to read:

SB62,21,5 24.66 (3) (am) For short-term loans by common, union high and 1st class city school districts. Every application for a loan, the required repayment of which is 10 years or less, shall be approved and authorized for a common, union high or 1st class city school district under par. (a) or under the procedure in s. 67.12 (12) (c), to the extent applicable.

SB62, s. 23 Section 23. 24.66 (3) (bm) of the statutes is amended to read:

SB62,21,10 24.66 (3) (bm) For short-term loans by unified school districts. Every application for a loan, the required repayment of which is 10 years or less, shall be approved and authorized for a unified school district under par. (b) or under the procedure in s. 67.12 (12) (c), to the extent applicable.

SB62, s. 24 Section 24. 24.66 (3) (c) of the statutes is created to read:

SB62,21,17 24.66 (3) (c) Alternative short-term loan process for all school districts. 1. If the procedure in par. (a) or (b) is not used for the approval of a school district loan, the required repayment of which is 10 years or less, the governing body of the school district, before any certificate of indebtedness is issued, shall adopt and record a resolution specifying the purposes and the maximum amount of the certificate of indebtedness issued.

SB62,22,21 2. Unless the purpose and amount of the borrowing have been approved by the electors under s. 67.05 (6a) or considered approved by the electors under s. 67.05 (7) (d) 3., the purpose is to refund any outstanding obligation, the purpose is to pay unfunded prior service liability contributions under the Wisconsin Retirement System if all of the proceeds of the note will be used for that purpose, or the borrowing would not be subject to a referendum as a bond issue under s. 67.05 (7) (cc), (h), or (i), or s. 67.12 (12) (e) 2g., (f), or (h) applies, the school district clerk shall, within 10 days after a governing body of a school district adopts a resolution as described above to issue a certificate of indebtedness, publish notice of such adoption as a class 1 notice, under ch. 985. Alternatively, the notice may be posted as provided under s. 10.05. The notice need not set forth the full contents of the resolution, but shall state the maximum amount proposed to be borrowed, the purpose thereof, that the resolution was adopted under this subsection, and the place where, and the hours during which, the resolution may be inspected. If, within 30 days after publication or posting, a petition conforming to the requirements of s. 8.40 is filed with the school district clerk for a referendum on the resolution signed by at least 7,500 electors of the district or at least 20 percent of the number of district electors voting for governor at the last general election, as determined under s. 115.01 (13), whichever is the lesser, then the resolution shall not be effective unless adopted by a majority of the district electors voting at the referendum. The referendum shall be called in the manner provided under s. 67.05 (6a), except that the question which appears on the ballot shall be "Shall .... (name of district) borrow the sum of $.... for (state purpose) by issuing its general obligation promissory note (or notes) under section 24.66 (3) of the Wisconsin Statutes?". If a governing body of a school district adopts a resolution to borrow a sum of money under this subsection and a sufficient petition for referendum is not filed within the time permitted, then the power of the governing body of a school district to borrow the sum and expend the sum for the purpose stated shall be deemed approved by the school district electors upon the expiration of the time for filing the petition.

SB62,22,25 3. If the governing body of a school district adopts a resolution to borrow a sum of money under this subsection, and if subd. 2. does not apply, the governing body of a school district has the power to borrow and spend the sum for the purpose stated without the approval of the electors of the school district.

SB62, s. 25 Section 25. 24.70 (4) of the statutes is amended to read:

SB62,23,10 24.70 (4) Payment to secretary of administration board. The treasurer of each municipality shall transmit to the secretary of administration on his or her board on its order the full amount levied for state trust fund loans within 15 days after March 15. Each cooperative educational service agency shall similarly transmit the annual amount owed on any state trust fund loan made to the agency by that date. The secretary of administration shall notify the board when he or she receives payment. Any payment not made by March 30 is delinquent and is subject to a penalty of one percent per month to be paid to the secretary of administration board with the delinquent payment.

SB62, s. 26 Section 26. 24.71 (4) of the statutes is amended to read:

SB62,23,18 24.71 (4) Payment to secretary of administration board. The school district treasurer shall transmit to the secretary of administration board the full amount levied for state trust fund loans within 15 days after March 15. The secretary of administration shall notify the board when he or she receives payment. Any payment not made by March 30 is delinquent and is subject to a penalty of one percent per month or fraction thereof, to be paid to the secretary of administration board with the delinquent payment.

SB62, s. 27 Section 27. 24.715 (3) of the statutes is amended to read:

SB62,23,25 24.715 (3) Payment to state treasurer board. The system board shall transmit to the state treasurer board on its own order the full amount levied for state trust fund loans within 15 days after March 15. The state treasurer shall notify the board when he or she receives payment. Any payment not made by March 30 is delinquent and is subject to a penalty of one percent per month or fraction thereof, to be paid to the state treasurer board with the delinquent payment.

SB62, s. 28 Section 28. 24.716 (3) of the statutes is amended to read:

SB62,24,8 24.716 (3) Payment to secretary of administration board. The district board shall transmit to the secretary of administration board on its own order the full amount levied for state trust fund loans within 15 days after March 15. The secretary of administration shall notify the board when he or she receives payment. Any payment not made by March 30 is delinquent and is subject to a penalty of 1 percent per month or fraction thereof, to be paid to the secretary of administration board with the delinquent payment.

SB62, s. 29 Section 29. 25.17 (1) (gs) of the statutes is created to read:

SB62,24,10 25.17 (1) (gs) Hospital assessment fund (s. 25.772);

SB62, s. 30 Section 30. 25.77 (11) of the statutes is created to read:

SB62,24,12 25.77 (11) All moneys transferred under s. 50.38 (8).

SB62, s. 31 Section 31. 25.77 (12) of the statutes is created to read:

SB62,24,14 25.77 (12) All moneys recouped and deposited under s. 50.38 (6) (a) 4.

SB62, s. 32 Section 32. 25.772 of the statutes is created to read:

SB62,24,19 25.772 Hospital assessment fund. There is established a separate nonlapsible trust fund designated as the hospital assessment fund, to consist of all moneys received under s. 50.38 (2) from assessments on hospitals and all moneys recouped and deposited under s. 50.38 (6) (a) 3.

SB62, s. 33 Section 33. 38.41 (3) (d) of the statutes is created to read:

SB62,24,23 38.41 (3) (d) Beginning in the 2008-09 school year, the board shall award at least $1,000,000 annually under sub. (1) for training in advanced manufacturing skills, with priority given to welding.

SB62, s. 34 Section 34. 46.27 (9) (a) of the statutes is amended to read: