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January 2011 Special Session
2011 - 2012 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO SENATE BILL 2
January 18, 2011 - Offered by
Joint Committee on Finance.
SB2-SSA1,1,3
1An Act to create 71.83 (1) (ce) and subchapter XVI of chapter 71 [precedes 71.98]
2of the statutes;
relating to: adopting federal law as it relates to health savings
3accounts for state income and franchise tax purposes and providing a penalty.
Analysis by the Legislative Reference Bureau
This substitute amendment adopts, for state income and franchise tax
purposes, a number of provisions in the Internal Revenue Code that relate to
claiming a deduction for an amount that a person pays into a health savings account.
The substitute amendment also specifies that any gain generated by a health savings
account is exempt from taxation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB2-SSA1, s. 1
4Section
1. 71.83 (1) (ce) of the statutes is created to read:
SB2-SSA1,2,35
71.83
(1) (ce)
Health savings accounts. Any person who is liable for a penalty
6for federal income tax purposes under section
223 (f) (4) of the Internal Revenue Code
1is liable for a penalty equal to 33 percent of that penalty. The department of revenue
2shall assess, levy, and collect the penalty under this paragraph as it assesses, levies,
3and collects taxes under this chapter.
SB2-SSA1, s. 2
4Section
2. Subchapter XVI of chapter 71 [precedes 71.98] of the statutes is
5created to read:
SB2-SSA1,2,87
subchapter xvi
8
Internal revenue code update
SB2-SSA1,2,10
971.98 Internal Revenue Code update. The following federal laws, to the
10extent that they apply to the Internal Revenue Code, apply to this chapter:
SB2-SSA1,2,13
11(1) Health savings accounts. Sections
106 (d),
220 (f) (5) (A),
223, and
408 (d)
12(9) of the Internal Revenue Code, all as amended to December 31, 2010, and relating
13to health savings accounts.
SB2-SSA1,2,16
15(1) Required general fund balance. Section 20.003 (4) of the statutes does not
16apply to the action of the legislature in enacting this act.
SB2-SSA1,2,1818
(1) This act first applies to taxable years beginning on January 1, 2011.
