AB637: Bill Text

Under current law, there is an income tax exclusion for individuals, fiduciaries, members of limited liability companies and partnerships, and shareholders of tax-option corporations for 30 percent of the net long-term capital gains realized from the sale of assets held more than one year and the sale of all assets acquired from a decedent, and an exclusion for 60 percent of such gains realized from the sale of farm assets held more than one year and the sale of all farm assets acquired from a decedent.

Under this bill, the exclusion of 30 percent of such net long-term capital gains, and all assets acquired from a decedent, does not apply to taxable years beginning after December 31, 2011. The bill does not affect the exclusion of the gains realized from the sale of farm assets held more than one year and the sale of farm assets acquired from a decedent.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

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:

AB637, s. 1 Section 1. 71.01 (14) of the statutes is amended to read:

AB637,4,5 71.01 (14) "Wisconsin net operating loss" of persons other than corporations means "federal net operating loss" adjusted as prescribed in s. 71.05 (6) (a) and (b), (7) to (12) and (19) to (21), except s. 71.05 (6) (b) 9., except that no deductions allowable on schedule A for federal income tax purposes are allowable.

AB637, s. 2 Section 2. 71.05 (6) (a) 15. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,4,13 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and (8r) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

AB637, s. 3 Section 3. 71.05 (6) (b) 9. of the statutes is amended to read:

AB637,5,11 71.05 (6) (b) 9. On assets held more than one year and on all assets acquired from a decedent, 30 percent of the capital gain as computed under the internal revenue code, not including capital gains for which the federal tax treatment is determined under section 406 of P.L. 99-514; not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason; and not including amounts treated as capital gain for federal income tax purposes from the sale or exchange of a lottery prize. For purposes of this subdivision, the capital gains and capital losses for all assets shall be netted before application of the percentage. This subdivision does not apply to taxable years that begin after December 31, 2011.

AB637, s. 4 Section 4. 71.05 (6) (b) 9m. of the statutes is amended to read:

AB637,5,23 71.05 (6) (b) 9m. On farm assets held more than one year and on all farm assets acquired from a decedent, to the extent that they are not subtracted under subd. 9. or 10., 60 percent of the capital gain as computed under the Internal Revenue Code, not including capital gains for which the federal tax treatment is determined under section 406 of P.L. 99-514; not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason; and not including amounts treated as capital gain for federal income tax purposes from the sale or exchange of a lottery prize. In this subdivision, "farm assets" means livestock, farm equipment, farm real property, and farm depreciable property. For purposes of this subdivision, the capital gains and capital losses for all assets shall be netted before application of the percentage.

AB637, s. 5 Section 5. 71.05 (6) (b) 25. of the statutes is amended to read:

AB637,6,8 71.05 (6) (b) 25. All gains that are not excluded from taxation under subd. 9., on business assets or 9m. on assets used in farming, including shares in a corporation or trust that meets the standards under s. 182.001 (1), or both, held more than one year, that are sold or otherwise disposed of to persons who are related to the seller or transferor by blood, marriage or adoption within the 3rd degree of kinship as determined under s. 990.001 (16), as computed under the Internal Revenue Code, not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason.

AB637, s. 6 Section 6. 71.05 (6) (b) 47. b. of the statutes, as created by 2011 Wisconsin Act 3, is amended to read:

AB637,7,5 71.05 (6) (b) 47. b. With respect to partners and members of limited liability companies, for taxable years beginning after December 31, 2010, for 2 consecutive taxable years beginning with the taxable year in which the partnership's or limited liability company's business locates to this state from another state or another country and begins doing business in this state, as defined in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d. and e., the partner's or member's distributive share of taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), and (8r); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19), multiplied by the apportionment fraction determined in s. 71.04 (4) and subject to s. 71.04 (7) or by separate accounting. No amounts subtracted under this subd. 47. b. may be included in the modification under par. (b) 9. or 9m.

AB637, s. 7 Section 7. 71.05 (6) (b) 47. c. of the statutes, as created by 2011 Wisconsin Act 3, is amended to read:

AB637,7,18 71.05 (6) (b) 47. c. With respect to shareholders of a tax-option corporation, for taxable years beginning after December 31, 2010, for 2 consecutive taxable years beginning with the taxable year in which the tax-option corporation's business locates to this state from another state or another country and begins doing business in this state, as defined in s. 71.22 (1r), and subject to the limitations provided under subd. 47. d. and e., the shareholder's distributive share of the entity's net income or loss as determined under this chapter, including interest income from federal, state, and municipal government obligations, multiplied by the apportionment fraction determined in s. 71.25 (6m) and subject to s. 71.25 (9) or by separate accounting. No amounts subtracted under this subdivision may be included in the modification under par. (b) 9. or 9m.

AB637, s. 8 Section 8. 71.05 (8) (b) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,8,8 71.05 (8) (b) A Wisconsin net operating loss may be carried forward against Wisconsin taxable incomes of the next 15 taxable years, if the taxpayer was subject to taxation under this chapter in the taxable year in which the loss was sustained, to the extent not offset against other income of the year of loss and to the extent not offset against Wisconsin modified taxable income of any year between the loss year and the taxable year for which the loss carry-forward is claimed. In this paragraph, "Wisconsin modified taxable income" means Wisconsin taxable income with the following exceptions: a net operating loss deduction or offset for the loss year or any taxable year thereafter is not allowed, the deduction for long-term capital gains under subs. (6) (b) 9. and 9m. and (25) is not allowed, the amount deductible for losses from sales or exchanges of capital assets may not exceed the amount includable in income for gains from sales or exchanges of capital assets and "Wisconsin modified taxable income" may not be less than zero.

AB637, s. 9 Section 9. 71.05 (25) (b) (intro.) of the statutes, as created by 2011 Wisconsin Act 32, is amended to read:

AB637,8,15 71.05 (25) (b) (intro.) For taxable years beginning after December 31, 2015, for a Wisconsin capital asset that is purchased after December 31, 2010, and held for at least 5 years, a claimant may subtract from federal adjusted gross income the lesser of one of the following amounts, to the extent that it is not subtracted under sub. (6) (b) 9. or 9m.:

AB637, s. 10 Section 10. 71.06 (1p) (e) of the statutes is amended to read:

AB637,8,18 71.06 (1p) (e) On all taxable income exceeding $225,000 but not exceeding $1,000,000, 7.75 percent.

AB637, s. 11 Section 11. 71.06 (1p) (f) of the statutes is created to read:

AB637,8,20 71.06 (1p) (f) On all taxable income exceeding $1,000,000, 8.75 percent.

AB637, s. 12 Section 12. 71.06 (2) (g) 5. of the statutes is amended to read:

AB637,8,23 71.06 (2) (g) 5. On all taxable income exceeding $300,000 but not exceeding $1,000,000, 7.75 percent.

AB637, s. 13 Section 13. 71.06 (2) (g) 6. of the statutes is created to read:

AB637,8,25 71.06 (2) (g) 6. On all taxable income exceeding $1,000,000, 8.75 percent.

AB637, s. 14 Section 14. 71.06 (2) (h) 5. of the statutes is amended to read:

AB637,9,3 71.06 (2) (h) 5. On all taxable income exceeding $150,000 but not exceeding $500,000, 7.75 percent.

AB637, s. 15 Section 15. 71.06 (2) (h) 6. of the statutes is created to read:

AB637,9,5 71.06 (2) (h) 6. On all taxable income exceeding $500,000, 8.75 percent.

AB637, s. 16 Section 16. 71.06 (2e) (b) of the statutes is amended to read:

AB637,9,23 71.06 (2e) (b) For taxable years beginning after December 31, 2009, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1p) (d) and (e) and (2) (g) 4. and 5. and (h) 4. and 5., and the dollar amount in the top bracket under subs. (1p) (e) (f) and (2) (g) 5. 6. and (h) 5. 6., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this paragraph and incorporate the changes into the income tax forms and instructions.

AB637, s. 17 Section 17. 71.07 (5n) of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB637, s. 18 Section 18. 71.07 (9e) (af) (intro.) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,10,7 71.07 (9e) (af) (intro.) For taxable years beginning after December 31, 1995, and before January 1, 2011, any natural person may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the Internal Revenue Code:

AB637, s. 19 Section 19. 71.07 (9e) (aj) of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB637, s. 20 Section 20. 71.09 (11) (f) of the statutes is amended to read:

AB637,10,14 71.09 (11) (f) The taxpayer has underpaid the taxpayer's estimated taxes due to the change in brackets under s. 71.06 (1p) (e) or (f) and (2) (g) 5. or 6. and (h) 5. or 6. This paragraph applies only in the first taxable year to which these bracket changes apply.

AB637, s. 21 Section 21. 71.10 (4) (cr) of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB637, s. 22 Section 22. 71.21 (4) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,10,22 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and (8r) and passed through to partners shall be added to the partnership's income.

AB637, s. 23 Section 23. 71.255 (2m) (d) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,11,4 71.255 (2m) (d) The department may not shall disregard the tax effect of an election under this subsection, or disallow the election, with respect to any controlled group member or members for any year of the election period, if the department determines that the election has the effect of tax avoidance.

AB637, s. 24 Section 24. 71.255 (6) (a) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,11,15 71.255 (6) (a) Except as provided in pars. (b), (bm), and (c) no tax credit, Wisconsin net business loss carry-forward, or other post-apportionment deduction earned by one member of the combined group, but not fully used by or allowed to that member, may be used in whole or in part by another member of the combined group or applied in whole or in part against the total income of the combined group. A member of a combined group may use a carry-forward of a credit, Wisconsin net business loss carry-forward, or other post-apportionment deduction otherwise allowable under s. 71.26 or 71.45, that was incurred by that same member in a taxable year beginning before January 1, 2009.

AB637, s. 25 Section 25. 71.255 (6) (bm) of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB637, s. 26 Section 26. 71.26 (2) (a) 4. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,12,2 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (8r), and (9s) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

AB637, s. 27 Section 27. 71.26 (4) (a) of the statutes, as affected by 2011 Wisconsin Act 32, is renumbered 71.26 (4) and amended to read:

AB637,12,21 71.26 (4) Except as provided in par. (b), a A corporation, except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss sustained in any of the next 15 preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was sustained, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under s. 71.25 (6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.

AB637, s. 28 Section 28. 71.26 (4) (b) of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB637, s. 29 Section 29. 71.28 (5n) of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB637, s. 30 Section 30. 71.30 (3) (dn) of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB637, s. 31 Section 31. 71.34 (1k) (g) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,13,8 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and (8r) and passed through to shareholders.

AB637, s. 32 Section 32. 71.36 (1m) (a) of the statutes is amended to read:

AB637,13,13 71.36 (1m) (a) A tax-option corporation may deduct from its net income all amounts included in the Wisconsin adjusted gross income of its shareholders, the capital gain deduction under s. 71.05 (6) (b) 9. and all amounts not taxable to nonresident shareholders under ss. 71.04 (1) and (4) to (9) and 71.362.

AB637, s. 33 Section 33. 71.45 (2) (a) 10. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,13,22 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1dd) to (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), (8r), and (9s) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, limited liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47 (1), (3), (3t), (4), (4m), and (5).

AB637, s. 34 Section 34. 71.45 (4) (a) of the statutes, as affected by 2011 Wisconsin Act 32, is renumbered 71.45 (4) and amended to read:

AB637,14,10 71.45 (4) Except as provided in par. (b), insurers Insurers computing tax under this subchapter may subtract from Wisconsin net income any Wisconsin net business loss sustained in any of the next 15 preceding taxable years to the extent not offset by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed and computed without regard to sub. (2) (a) 8. and 9. and this subsection and limited to the amount of net income, but no loss incurred for a taxable year before taxable year 1987 by a nonprofit service plan of sickness care under ch. 148, or dental care under s. 447.13 may be treated as a net business loss of the successor service insurer under ch. 613 operating by virtue of s. 148.03 or 447.13.

AB637, s. 35 Section 35. 71.45 (4) (b) of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB637, s. 36 Section 36. 71.47 (5n) of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB637, s. 37 Section 37. 71.49 (1) (dn) of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB637, s. 38 Section 38. 71.54 (1) (f) (intro.) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,14,22 71.54 (1) (f) 2001 to 2011 and thereafter. (intro.) Subject to sub. (2m), the amount of any claim filed in 2001 to 2011 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

AB637, s. 39 Section 39. 71.54 (1) (g) of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB637, s. 40 Section 40. 71.54 (2) (b) 3. of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,15,4 71.54 (2) (b) 3. Subject to sub. (2m), in calendar years 1990 to 2010 year 1990 or any subsequent calendar year, $1,450.

AB637, s. 41 Section 41. 71.54 (2) (b) 4. of the statutes, as created by 2011 Wisconsin Act 32, is repealed.

AB637, s. 42 Section 42. 71.54 (2m) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,15,25 71.54 (2m) Indexing for inflation; 2010 and thereafter. (a) For calendar years beginning after December 31, 2009, and before January 1, 2011, the dollar amounts of the threshold income under sub. (1) (f) 1. and 2., the maximum household income under sub. (1) (f) 3. and the maximum property taxes under sub. (2) (b) 3. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the 12-month average of the U.S. consumer price index for the month of August of the year before the previous year through the month of July of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the 12-month average of the U.S. consumer price index for August 2007 through July 2008, as determined by the federal department of labor, except that the adjustment may occur only if the percentage is a positive number. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this paragraph and incorporate the changes into the income tax forms and instructions.

AB637,16,6 (b) The department of revenue shall annually adjust the slope under sub. (1) (f) 2. such that, as a claimant's income increases from the threshold income as calculated under par. (a), to an amount that exceeds the maximum household income as calculated under par. (a), the credit that may be claimed is reduced to $0 and the department of revenue shall incorporate the changes into the income tax forms and instructions.

AB637, s. 43 Section 43. 72.01 (11m) of the statutes is amended to read:

AB637,16,15 72.01 (11m) "Federal credit" means, for deaths occurring after September 30, 2002, and before January 1, 2008, the federal estate tax credit allowed for state death taxes as computed under the federal estate tax law in effect on December 31, 2000, and; for deaths occurring after December 31, 2007, and before January 1, 2012, the federal estate tax credit allowed for state death taxes as computed under the federal estate tax law in effect on the day of the decedent's death; and for deaths occurring after December 31, 2011, the federal estate tax credit allowed for state death taxes as computed under the federal estate tax law in effect on December 31, 2002.

AB637, s. 44 Section 44. 72.01 (11n) of the statutes is amended to read:

AB637,16,23 72.01 (11n) "Federal estate tax" means, for deaths occurring after September 30, 2002, and before January 1, 2008, the federal estate tax as computed under the federal estate tax law in effect on December 31, 2000, and; for deaths occurring after December 31, 2007, and before January 1, 2012, the federal estate tax as computed under the federal estate tax law in effect on the day of the decedent's death; and for deaths occurring after December 31, 2011, the federal estate tax as computed under the federal estate tax law in effect on December 31, 2002.

AB637, s. 45 Section 45. 72.02 of the statutes is amended to read:

AB637,17,9 72.02 Estate tax imposed. An estate tax is imposed upon the transfer of all property that is subject to a federal estate tax and that has a taxable situs in this state, not including property used in farming as described under section 464 (e) (1) of the Internal Revenue Code. The tax imposed is equal to the federal credit against the federal estate tax as finally determined. If only a portion of a decedent's property has a taxable situs in this state, the tax imposed is the amount obtained by multiplying the federal credit by a fraction the numerator of which is the value of the decedent's estate that has a taxable situs in this state and the denominator of which is the total value of the property in the estate that qualifies for the federal credit.

AB637, s. 46 Section 46. 77.92 (4) of the statutes, as affected by 2011 Wisconsin Act 32, is amended to read:

AB637,18,2 77.92 (4) "Net business income," with respect to a partnership, means taxable income as calculated under section 703 of the Internal Revenue Code; plus the items of income and gain under section 702 of the Internal Revenue Code, including taxable state and municipal bond interest and excluding nontaxable interest income or dividend income from federal government obligations; minus the items of loss and deduction under section 702 of the Internal Revenue Code, except items that are not deductible under s. 71.21; plus guaranteed payments to partners under section 707 (c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), (5r), (5rm), and (8r); and plus or minus, as appropriate, transitional adjustments, depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and (19); but excluding income, gain, loss, and deductions from farming. "Net business income," with respect to a natural person, estate, or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employee as defined in section 3121 (d) (3) of the Internal Revenue Code.

AB637, s. 47 Section 47. Initial applicability.