LRBb1309/1
MES/JK/RAC:all:md
2011 - 2012 LEGISLATURE
ASSEMBLY AMENDMENT 7,
TO ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 2011 ASSEMBLY BILL 40
June 14, 2011 - Offered by Representatives Barca, Roys, Seidel and Young.
AB40-ASA1-AA7,1,8
413.086 Bills affecting individual taxes. No house of the legislature may
5pass a bill that affects the taxes paid by any individual unless the bill is referred to
6the department of revenue and the department of revenue certifies that the bill will
7not increase the amount of taxes that would be paid by any individual over the
8amount that the individual would be required to pay under current law.".
AB40-ASA1-AA7,2,411
71.01
(1b) For purposes of s. 71.04 (7) (df)
, and (dh),
(dj), and (dk), "commercial
12domicile" means the location from which a trade or business is principally managed
1and directed, based on any factors the department determines are appropriate,
2including the location where the greatest number of employees of the trade or
3business work, have their office or base of operations, or from which the employees
4are directed or controlled.
AB40-ASA1-AA7,2,106
71.01
(1n) For purposes of s. 71.04 (7) (df)
, and (dh),
(dj), and (dk), "domicile"
7means an individual's true, fixed, and permanent home where the individual intends
8to remain permanently and indefinitely and to which, whenever absent, the
9individual intends to return, except that no individual may have more than one
10domicile at any time.
AB40-ASA1-AA7,2,1916
71.01
(10g) For purposes of s. 71.04 (7) (df)
, and (dh),
(dj), and (dk), "state"
17means a state of the United States, the District of Columbia, the commonwealth of
18Puerto Rico, or any territory or possession of the United States, unless the context
19requires that "state" means only the state of Wisconsin.".
AB40-ASA1-AA7,3,823
71.04
(7) (a) The sales factor is a fraction, the numerator of which is the total
24sales of the taxpayer in this state during the tax period, and the denominator of
1which is the total sales of the taxpayer everywhere during the tax period. For sales
2of tangible personal property, the numerator of the sales factor is the sales of the
3taxpayer during the tax period under par. (b) 1. and 2. plus
100 50 percent of the sales
4of the taxpayer during the tax period under pars. (b) 2m. and 3. and (c).
For purposes
5of applying pars. (b) 2m. and 3. and (c), if a taxpayer is within another state's
6jurisdiction for income or franchise tax purposes for any part of the taxable year, it
7is considered to be within that state's jurisdiction for income or franchise tax
8purposes for the entire taxable year.
AB40-ASA1-AA7,3,1510
71.04
(7) (d) Except as provided in pars. (df) and (dh), sales, other than sales
11of tangible personal property, are in this state if the income-producing activity is
12performed in this state. If the income-producing activity is performed both in and
13outside this state the sales shall be divided between those states having jurisdiction
14to tax such business in proportion to the direct costs of performance incurred in each
15such state in rendering this service.
AB40-ASA1-AA7,3,2017
71.04
(7) (df) 3. If the taxpayer is not subject to income tax in the state in which
18the gross receipts are considered received under this paragraph, but the taxpayer's
19commercial domicile is in this state, 50 percent of those gross receipts shall be
20included in the numerator of the sales factor.
AB40-ASA1-AA7,4,222
71.04
(7) (dh) 4. If the taxpayer is not subject to income tax in the state in which
23the benefit of the service is received, the benefit of the service is received in this state
24to the extent that the taxpayer's employees or representatives performed services
25from a location in this state. Fifty percent of the taxpayer's receipts that are
1considered received in this state under this paragraph shall be included in the
2numerator of the sales factor.
AB40-ASA1-AA7,4,10
10"
Section 1755h. 71.05 (6) (a) 24. of the statutes is amended to read:
AB40-ASA1-AA7,4,1511
71.05
(6) (a) 24. The amount deducted or excluded under the Internal Revenue
12Code for interest expenses
, and rental expenses
, intangible expenses, and
13management fees that are directly or indirectly paid, accrued, or incurred to, or in
14connection directly or indirectly with one or more direct or indirect transactions with,
15one or more related entities.".
AB40-ASA1-AA7,4,17
17"
Section 1760d. 71.05 (6) (b) 46. of the statutes is amended to read:
AB40-ASA1-AA7,4,2318
71.05
(6) (b) 46. An amount added, pursuant to par. (a) 24. or s. 71.26 (2) (a) 7.,
1971.34 (1k) (j), or 71.45 (2) (a) 16., to the federal income of a related entity that paid
20interest expenses
, or rental expenses
, intangible expenses, or management fees to
21the individual or fiduciary, to the extent that the related entity could not offset such
22amount with the deduction allowable under subd. 45. or s. 71.26 (2) (a) 8., 71.34 (1k)
23(k), or 71.45 (2) (a) 17.".
AB40-ASA1-AA7,5,4
311. Page 707, line 11: delete that line and substitute "(b) 1. and 2.
(d), (df)
1.
4and 2.,
and (dh)
1., 2., and 3., (dj) 1. and (dk) 1. and research expenses".
AB40-ASA1-AA7,5,2211
71.10
(1) Allocation of gross income, deductions, credits between 2 or more
12businesses. In any case of 2 or more organizations, trades or businesses (whether or
13not incorporated, whether or not organized in the United States,
and whether or not
14affiliated
, and whether or not unitary) owned or controlled directly or indirectly by
15the same interests, the secretary or the secretary's delegate may distribute,
16apportion or allocate gross income, deductions, credits or allowances between or
17among such organizations, trades or businesses, if the secretary determines that
18such distribution, apportionment or allocation is necessary in order to prevent
19evasion of taxes or clearly to reflect the income of any of such organizations, trades
20or businesses.
The authority granted under this subsection is in addition to, and not
21a limitation of or dependent on, the provisions of ss. 71.05 (6) (a) 24. and (b) 45., 71.26
22(2) (a) 7. and 8., 71.34 (1k) (j) and (k), 71.45 (2) (a) 16. and 17., and 71.80 (23).
AB40-ASA1-AA7,6,105
71.22
(1g) For purposes of s. 71.25 (9) (df)
, and (dh),
(dj), and (dk), "commercial
6domicile" means the location from which a trade or business is principally managed
7and directed, based on any factors the department determines are appropriate,
8including the location where the greatest number of employees of the trade or
9business work, have their office or base of operations, or from which the employees
10are directed or controlled.
AB40-ASA1-AA7,7,312
71.22
(1r) "Doing business in this state" includes
, except as prohibited under
13P.L. 86-272, issuing credit, debit, or travel and entertainment cards to customers in
14this state;
regularly selling products or services of any kind or nature to customers
15in this state that receive the product or service in this state; regularly soliciting
16business from potential customers in this state; regularly performing services
17outside this state for which the benefits are received in this state; regularly engaging
18in transactions with customers in this state that involve intangible property and
19result in receipts flowing to the taxpayer from within this state; holding loans
20secured by real or tangible personal property located in this state; owning, directly
21or indirectly, a general or limited partnership interest in a partnership that does
22business in this state, regardless of the percentage of ownership; and owning,
23directly or indirectly, an interest in a limited liability company that does business in
24this state, regardless of the percentage of ownership, if the limited liability company
1is treated as a partnership for federal income tax purposes.
A taxpayer doing
2business in this state for any part of the taxable year is considered to be doing
3business in this state for the entire taxable year.
AB40-ASA1-AA7,7,95
71.22
(1t) For purposes of s. 71.25 (9) (df)
, and (dh),
(dj), and (dk), "domicile"
6means an individual's true, fixed, and permanent home where the individual intends
7to remain permanently and indefinitely and to which, whenever absent, the
8individual intends to return, except that no individual may have more than one
9domicile at any time.
AB40-ASA1-AA7,7,1513
71.22
(3m) For purposes of
ss. s. 71.26 (2) (a) 7. and 9.
and 71.255 (2) (d) 1.,
14"interest expenses" means interest that would otherwise be deductible under section
15163 of the Internal Revenue Code, as modified under s. 71.26 (3).".
AB40-ASA1-AA7,7,2320
71.22
(9g) For purposes of s. 71.25 (9) (df)
, and (dh),
(dj), and (dk), "state" means
21a state of the United States, the District of Columbia, the commonwealth of Puerto
22Rico, or any territory or possession of the United States, unless the context requires
23that "state" means only the state of Wisconsin.
AB40-ASA1-AA7,8,3
171.25 Situs of income; allocation and apportionment. (intro.) For
2purposes of determining the situs of income under this section
and s. 71.255 (5) (a)
31. and 2.:
AB40-ASA1-AA7,8,116
71.25
(5) (b) 2. All income, gain, or loss from intangible property that is earned
7by a personal holding company, as defined in section
542 of the Internal Revenue
8Code, as amended to December 31, 1974, shall be allocated to the residence of the
9taxpayer, except that all income that is realized from the sale of or purchase and
10subsequent sale or redemption of lottery prizes if the winning tickets were originally
11bought in this state shall be allocated to this state.
