natural resources
Fish, game, and wildlife
The bill requires DNR to establish a deer management assistance program for
collecting information from the public about deer health and the deer population in
this state and receiving suggestions from the public about managing the deer
population. DNR must analyze information received and use it to improve deer
health and manage the deer population in this state.
Under current law, a person who holds a deer hunting license may be issued a
bonus deer hunting permit that authorizes the person to take an additional deer of
the sex or type specified by DNR by rule. Generally, a person may not obtain more
than one bonus deer hunting permit in a single season. Under the bill, DNR may also
issue a bonus deer hunting permit to allow a person to take an additional deer in a
county or deer management area in which a deer has tested positive for chronic
wasting disease (CWD area). The bill provides that DNR may issue to a person more
than one bonus deer hunting permit in a single season if the additional permit
authorizes the person to take a deer in a CWD area.
This bill authorizes DNR to promulgate rules to implement the
recommendations contained in the 2012 final report of the assessment of this state's
deer management plans and policies.
This bill reduces the fees that apply to wolf harvesting approvals and repeals
the current law authority to hunt wolves during nighttime.
Current law authorizes DATCP to prohibit or regulate the importing of animals
into this state if necessary to prevent the introduction or spread of disease. This bill
authorizes DNR to import and introduce wild elk into specified counties if certain
conditions are met, including that the applicable DATCP requirements are met to the
extent possible.
The bill prohibits DNR from establishing an open season for hunting elk that
begins earlier than the Saturday nearest October 15.
Under current law, DNR issues small game hunting licenses and annual fishing
licenses at no charge to any resident who is in active service with the armed forces
and who is in the state on furlough or leave. Under the bill, DNR must issue a
resident small game hunting license, a resident deer hunting license, a resident
archer hunting license, or a resident annual fishing license without charging a fee
to a resident who served during the Iraq or Afghanistan wars as a member of the U.S.
armed forces, or as a member of a reserve component of the armed forces or national
guard. Only one license may be issued to each person who applies and the license
must be issued within one year of the person being released or discharged from the
armed forces or national guard.
Other natural resources
Current law authorizes the state to incur public debt under the Warren
Knowles-Gaylord Nelson Stewardship 2000 Program (stewardship program), which
is administered by DNR. The state may incur this debt to acquire land for the state
for conservation purposes and for property development activities and to award
grants or state aid to certain local governmental units and nonprofit conservation
organizations to acquire lands for these purposes.
Current law establishes the amounts that DNR may obligate in each fiscal year
through fiscal year 2019-20 for expenditure under each of the five stewardship
subprograms. The bill decreases the amount that DNR may obligate under the land
acquisition subprogram for fiscal years 2013-14 and 2014-15 and makes a
corresponding increase to the amount that DNR may obligate for those fiscal years
under the subprogram for property development and local assistance.
This bill increases DNR's bonding authority, for the purpose of funding a dam
safety program, debt service on which is paid from the general fund, by $4,000,000.
Current law requires that vehicles entering state parks or other recreational
sites managed by DNR display an annual or daily vehicle admission receipt
(admission sticker). This bill requires DNR to waive the fee for an annual admission
sticker for a vehicle with Wisconsin plates if the owner of the vehicle is a Wisconsin
resident serving on active duty in the U.S. armed forces (resident service member).
This bill also requires DNR to waive the annual fee for admission to state trails for
a resident service member. Each resident service member qualifies for the fee waiver
for state parks and state trails only once.
Under current law, vehicles are exempt from the admission sticker requirement
from November 1st to March 31st, and trail users are exempt from the admission fee
requirement for state trails from October 27th to March 31st. This bill exempts a
vehicle with a resident service member as an occupant from the admission sticker
requirement on Veterans Day and during the three-day Memorial Day weekend and
exempts a resident service member from a trail admission fee on these days.
Retirement and Group Insurance
Under current law, a Wisconsin Retirement System (WRS) participant who has
applied to receive an annuity must wait at least 30 days between terminating
WRS-covered employment and returning to WRS-covered employment as a
participating employee, or the participant is not eligible to receive a WRS retirement
annuity. This bill provides that the participant must remain separated from
WRS-covered employment for at least 75 days to be eligible for an annuity.
Currently, when a WRS participant terminates employment and receives an
annuity he or she may return to WRS-covered employment and either terminate the
annuity and again become a WRS participating employee or, instead, continue to
receive the annuity, as well as wages from WRS-covered employment. If a
participant does not terminate the annuity, the participant may not be a WRS
participating employee and, in the case of state employment, is not eligible for group
insurance benefits, and may not use any of his or her employment service as a rehired
annuitant for any WRS purposes. If the participant terminates the annuity, the
participant returns to participating employee status, is eligible for all group
insurance benefits provided to other participating employees, and is able to
accumulate additional years of creditable service under the WRS for the additional
period of covered employment.
The bill provides that if a WRS participant who is receiving an annuity, or a
disability annuitant who has attained his or her normal retirement date, is
appointed to a position in WRS-covered employment in which he or she is expected
to work at least two-thirds of what is considered full-time employment by DETF, the
participant's annuity must be terminated and no annuity payment is payable until
after the participant again terminates covered employment.
2011 Wisconsin Act 32 increased the number of hours that an employee must
work in order to become a WRS participating employee from one-third to two-thirds
of what is considered full-time employment, as determined by DETF by rule. Under
2011 Wisconsin Act 32, this change in law did not apply to those employees who were
first
hired by a WRS employer before July 1, 2011, regardless of whether they were
participating employees before that date. The bill provides that in order to be exempt
from this change in law, an employee must have been a
participating employee before
July 1, 2011.
Federal law authorizes the establishment of health savings accounts, under
which individuals and their employers may make tax-exempt contributions that can
be used for the payment of medical expenses. Federal law sets annual contribution
limits. As a condition of establishing a health savings account, an individual must
be covered under a high-deductible health insurance plan. The specific
requirements of the high-deductible plans are set in federal law, but generally
require the payment of deductibles and certain out-of-pocket expenses before an
individual's medical services are covered under the plan.
State employees receive health insurance through plans offered by the Group
Insurance Board (GIB). This bill requires GIB, beginning on January 1, 2015, to offer
a high-deductible health insurance plan and a health savings account. The bill also
requires the state to make contributions into an employee's health savings account
in an amount determined annually by the director of OSER.
Currently, the director of OSER establishes the amount that employees must
pay for health insurance premiums, subject to a general provision that the state may
not pay more than 88 percent of the average premium costs of the lowest cost health
insurance plans. Under current law, health insurance plans are assigned to three
different tiers, depending on cost.
This bill provides that the state may not pay more than 88 percent of the
average premium costs of the health insurance plans in each tier. In addition, the
bill provides that if any tier contains no health insurance plans, but is used to
establish the premiums for employees who work and reside outside of the state, the
amount these employees must pay is based on the premium contribution amount for
that tier in the prior year, adjusted by the average percentage change of the premium
contribution amount of the other tiers from the prior year.
The bill provides that craft employees must pay all of their health insurance
premiums, unless otherwise determined by the director. A craft employee is a state
employee who is a skilled journeyman craftsman, including the skilled journeyman
craftsman's apprentices and helpers, but does not include employees not in direct
line of progression in the craft. A craft employee may be either nonrepresented or
in a collective bargaining unit.
Current law provides that GIB may not enter into an agreement to modify or
expand any group insurance coverage in a manner that conflicts with laws or rules
promulgated by DETF or that materially affects the level of premiums or the level
of benefits under any group insurance coverage. This bill permits GIB to modify or
expand benefits if the modification or expansion is required by law or would maintain
or reduce premium costs for the state or its employees in the current or any future
year.
The bill provides that, beginning in 2014, GIB must impose a premium
surcharge for health care coverage for state employees and retired state employees
who use tobacco products and may terminate the health care coverage of any eligible
employee who falsely claims that he or she does not use tobacco products. During
2014 and 2015, the surcharge is $50 a month. The bill further provides that the
premium surcharges paid by annuitants who use tobacco products are be used to
reduce future health care coverage premiums for annuitants and to reimburse DETF
for costs incurred by DETF in providing health care coverage to annuitants.
WRS is established as a governmental plan and as a qualified plan for federal
income tax purposes under the Internal Revenue Code (IRC). Under current law, no
WRS benefit plan may be administered in a manner that violates a provision of the
IRC that authorizes or regulates the benefit plan or that would cause an otherwise
tax exempt benefit to become taxable under the IRC. This bill updates and conforms
numerous provisions governing WRS benefits and the administration of the WRS to
the IRC.
The bill requires the secretary of employee trust funds to submit an annual
report to the secretary of administration and JCF on DETF's progress in
modernizing its business processes and integrating its information technology
systems.
The bill further provides that, during the 2013-15 fiscal biennium, the
secretary of employee trust funds may request the governor to supplement any sum
certain appropriation from the public employee trust fund for the purpose of
modernizing business processes or integrating information technology systems of
DETF. Upon receiving such a request, the governor may approve or modify the
request and must notify JCF of the proposed action under JCF's passive review
process.
The bill provides that, during the 2013-15 fiscal biennium, the secretary of
employee trust funds may request the governor to create or abolish a full-time
equivalent position or portion thereof that is funded from revenues deposited in the
public employee trust fund if the employee holding the position would perform duties
relating to modernizing business processes or integrating information technology
systems. Upon receiving such a request, the governor may approve or modify the
request. If the governor proposes to approve or modify the request, the governor
must notify JCF of the proposed action under passive review.
This bill permits DETF to disclose information concerning the payment of
annuities under WRS to DOR for the purposes of administering the payment of state
taxes; collecting debts owed to DOR; locating WRS participants, or the assets of WRS
participants, who have failed to file tax returns, underreported their taxable income,
or who are delinquent debtors; identifying fraudulent tax returns and credit claims;
or providing information for tax-related prosecutions.
safety and professional services
Buildings and safety
Under current law, DSPS has various duties and powers relating to regulation
of petroleum products and hazardous substances, including:
1. Prescribing grade specifications for gasoline and similar fuels and
administering laws regulating the inspection and sale of those fuels and other
petroleum products.
2. Regulating the installation, maintenance, and removal of tanks that contain
flammable or combustible liquids or federally regulated hazardous substances
(dangerous materials).
3. Administering a program to inventory aboveground and underground
petroleum storage tanks.
This bill transfers these powers and duties, except for those that relate to the
reviewing of plans for dangerous materials, from DSPS to DATCP.
Professional regulation
Under current law, DSPS regulates professional employer organizations and
professional employer groups that contract with clients for, among other services, the
nontemporary placement of employees with those clients. DSPS regulates the
fund-raising activities of charitable organizations, professional fund-raisers, and
fund-raising counsel. This bill transfers the regulation of professional employer
organizations, professional employer groups, charitable organizations, professional
fund-raisers, and fund-raising counsel from DSPS to DFI. Under the bill, DFI
registers all of those persons and administers the laws governing their practices.
The bill also gives DFI a number of general powers and duties concerning the
regulation of those persons that are similar to many of the powers and duties DSPS
exercises under current law.
State Government
State employment
This bill establishes a pay progression plan for assistant state public defenders
and assistant attorneys general, consisting of 17 hourly salary steps, with each step
equal to one-seventeenth of the difference between the lowest and the highest hourly
salary for the salary range for assistant state public defenders and assistant
attorneys general. The pay progression plan is based entirely on merit.
Under the bill, beginning with the first pay period that occurs on or after July
1, 2013, all assistant state public defenders and assistant attorneys general who
have served for a continuous period of 12 months or more and who are not paid the
maximum hourly rate must be paid an hourly salary at the step that is immediately
above their hourly salary on June 30, 2013. All other assistant state public defenders
and assistant attorneys general who are not paid the maximum hourly rate must
receive the same increase when they have served with the state as assistant state
public defenders or assistant attorneys general for a continuous period of 12 months.
In addition, beginning with the first pay period that occurs on or after July 1,
2014, and with the first pay period that occurs on or after each succeeding July 1, all
assistant state public defenders and assistant attorneys general who have served for
a continuous period of 12 months or more and who are not paid the maximum hourly
rate may, at the discretion of the state public defender or the attorney general, be
paid an hourly salary at any step, or part thereof, above their hourly salary on the
immediately preceding June 30. All other assistant state public defenders and
assistant attorneys general or the attorney general who are not paid the maximum
hourly rate may, at the discretion of the state public defender or the attorney general,
be paid an hourly salary at any step, or part thereof, above their hourly salary on the
immediately preceding June 30, when they have served for a continuous period of 12
months. The bill provides, however, that no salary increase may exceed 10 percent
during a fiscal year.
This bill attaches the Wisconsin Employment Relations Commission (WERC)
to DWD. Currently, WERC is an independent state agency. The bill also eliminates
a requirement that WERC commissioners not have other employment and provides
that newly appointed commissioners are appointed to two-thirds of a full-time
equivalent position.
Currently, each cabinet secretary may appoint an executive assistant to
perform duties prescribed by the secretary. This bill eliminates this power and
instead authorizes each secretary to appoint an assistant deputy secretary to
perform duties prescribed by the secretary. This bill allows the attorney general to
appoint, in the unclassified service of the state civil service system, a solicitor general
and up to three deputy solicitors general and to assign assistant attorneys general
to assist the solicitor general.
State finance
Current statutes provide that no bill directly or indirectly affecting general
purpose revenues may be adopted if the bill would cause the estimated general fund
balance on June 30 of any fiscal year to be less than a certain amount of the total
general purpose revenue appropriations for that fiscal year. Currently, for fiscal
years 2015-16 and 2016-17, and for each fiscal year thereafter, the amount is 2
percent of total general purpose revenue appropriations for that fiscal year. This bill
provides that for fiscal years 2015-16 and 2016-17, the amount is $65,000,000; and
for 2017-18 and each fiscal year thereafter, the amount is 2 percent of total general
purpose revenue appropriations for that fiscal year.
Currently, in any fiscal year, the secretary of administration may temporarily
reallocate moneys to the general fund from other state funds in an amount not to
exceed, at any one time, 5 percent of the total general purpose revenue
appropriations for that fiscal year. This bill increases that maximum amount to 9
percent.
This bill transfers:
1. $16,000,000 from the petroleum inspection fund to the transportation fund
in each year of the fiscal biennium.
2. $23,000,000 from the general fund to the transportation fund in the fiscal
biennium.
3. $750,000 from the agrichemical management fund to the environmental
fund in fiscal year 2013-14.
4. $5,300,000 from the general fund to the veterans trust fund in fiscal year
2013-14.
State procurement
Current law generally authorizes state agencies to purchase materials,
supplies, or equipment. With some exceptions, purchases for which the estimated
cost exceeds $50,000 require bids to be invited or proposals to be solicited. Also,
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 raises the threshold to
$50,000 for either and exempts the following services: services that must, by law, be
performed by contract; services incidental to the purchase of a commodity; services
that must be provided per a contract, license, or warranty; services that cannot be
performed by state employees; services that are expected to be completed within 12
months; and Web-based software application services that are delivered and
managed remotely.
Current law requires DOA to certify a business as a disabled veteran-owned
business, a woman-owned business, or a minority business, but has different
requirements for each certification. DOA may certify a business as a minority
business if another state agency, a municipality, the federal government, an
American Indian tribe, or, if it uses substantially the same procedures as DOA would
use, a private business certifies the business as such. This bill makes the
certification practice consistent by permitting DOA to certify a business as a disabled
veteran-owned business or a woman-owned business if one of the entities listed
above certifies it as such.
Under current law, DOA must maintain a list of entities that are ineligible for
state contracts because they have violated a state procurement contract or a statute
governing state procurement. This bill requires DOA to include on the list an entity
that has been debarred from contracting with the federal government or any other
state agency.
Under current law, in a report that DOA submits to the governor and the
legislature, DOA must document how the division of legal services has reduced the
state's use of contracted employees. This bill eliminates the requirement that the
report include this information.
Under current law, with some exceptions, DOA must let by contract to the
lowest qualified responsible bidder all construction work when the estimated
construction cost of the project exceeds $50,000 or, if the estimated cost is less, when
contracting is in the best interest of the state. This bill requires DOA, for any project
that has an estimated construction cost that exceeds $185,000, to let the project to
the lowest qualified responsible bidder through single prime contracting, which is a
process in which DOA selects all mechanical, electrical, and plumbing contractors,
but contracts only with a general prime contractor, who then must contract with the
selected mechanical, electrical, and plumbing contractors. This bill also requires
DOA to certify persons as qualified and responsible and provides criteria for such
certification.
Other state government
Currently, with certain exceptions, DOA may sell or lease state-owned real
property if DOA determines that the sale is in the best interest of the state and the
Building Commission approves the sale. Also currently, various state agencies have
authority to sell real property under their jurisdiction subject to various conditions
and limitations. DOA's authority does not operate to permit the closure or sale of any
facility or institution the operation of which is required by law and does not extend
to property under the jurisdiction of the Board of Regents of the UW System. The
net proceeds of any sale by DOA are used to retire any outstanding public debt that
was incurred to acquire, construct, or improve the property or as required by any
applicable federal law or under the terms of any applicable gift or grant. DOA must
use any remaining net proceeds to retire other outstanding public debt.
Currently, with certain exceptions, the Building Commission may also sell
state-owned real property where this authority is not given to another state agency
by law, and may transfer land under its jurisdiction among agencies. Any sales of
surplus land having a value of at least $20,000 are subject to the approval of JCF.
However, the Building Commission does not have the authority to sell a parcel of
state-owned real property once DOA notifies the commission that an offer of sale or
sale with respect to the parcel is pending. The net proceeds of any sales by the
Building Commission must be used to retire any public debt that was used to acquire
or construct improvements on the property being sold. Any remaining net proceeds
must be deposited in the budget stabilization fund.
This bill permits DOA or the Building Commission to sell or lease any
state-owned real property unless prohibited by the state or federal constitution or
federal law. Sales by DOA are subject to the approval of the Building Commission.
The bill does not apply to sales conducted to enforce an obligation to this state. The
bill retains most of the existing exemptions from DOA's sales authority but
eliminates the current exemption allowing the Board of Regents of the UW System
to sell or lease state-owned real property independently of DOA. Under the bill, if
DOA or the Building Commission notifies the Board of Regents that an offer of sale,
sale, or lease is pending with the respect to a parcel of property, the Board of Regents
does not have authority to sell or lease that property. The bill eliminates the current
exception that exempts sales that would necessitate the closure of a facility or
institution which is provided for by law. However, the bill does not repeal any
statutes that require the operation of any facilities or institutions. Therefore, if DOA
or the Building Commission sells all the real property that is currently used to
operate a facility or institution, the facility or institution would need to continue in
operation. Under the bill, except with respect to exempt property, if any agency has
authority to sell or lease real property under any other law, the authority of that
agency does not apply after DOA or the Building Commission notifies the agency in
writing that an offer of sale or sale, or a lease agreement, is pending with respect to
the property. Under the bill, DOA and the Building Commission must first use the
net proceeds of any sale or lease to retire any public debt that was used to finance
the acquisition, construction, or improvement of the property that is sold.
Thereafter, DOA and the Building Commission must use the net proceeds of any sale
or lease to pay the costs of federal tax law compliance applicable to the debt. The bill
directs DOA and the Building Commission to use the remaining net proceeds of any
sale or lease, subject to current requirements, to retire any revenue obligation debt
in the fund that was used to acquire, construct, or improve property that was sold
and thereafter to pay the costs of federal tax law compliance applicable to the debt,
and thereafter, retire other similar revenue obligations. Thereafter, DOA and the
Building Commission are directed to use any remaining net proceeds to retire other
outstanding public debt. The bill provides that if any property that is proposed to
be sold by DOA or the Building Commission is co-owned by a nonstate entity, DOA
or the commission must afford to the co-owner the right of first refusal to purchase
the share of the property owned by the state on reasonable financial terms
established by DOA or the commission.
The bill also provides that if DOA sells or leases a state-owned heating, cooling,
or power plant, DOA may contract for the operation of any function that is performed
by the state on the property. The bill provides that if DOA or the Building
Commission sells or leases, or if DOA contracts with a purchaser or lessee, for the
operation of a state-owned heating, cooling, or power plant that is under the
jurisdiction of a state agency, the agency must convey all real and personal property
associated with the plant to the purchaser or lessee on terms specified by DOA or the
Building Commission.
In addition, the bill modifies the authority of the Building Commission to sell
or lease state-owned buildings, structures, and land to parallel the authority of DOA
so that the authority includes property under the jurisdiction of the Board of Regents
of the UW System and is not generally limited by sales authority given to state
agencies, and so that distribution of sales proceeds is accomplished in the same
manner as proceeds of DOA's sales are distributed. The bill deletes the current
limitation that certain sales of surplus land are subject to approval of JCF. The bill
directs each state agency to submit to DOA biennially an inventory of all real
property under its jurisdiction, together with the estimated fair market value of each
property. Under the bill, DOA must obtain appraisals of all properties in the
inventory that are identified by DOA for potential sale and submit to the Building
Commission an inventory containing a location, description, and fair market value
of each property identified for potential sale.
This bill creates a capital investment program in DOA and appropriates
$25,000,000 in general purpose revenue for the program in fiscal year 2013-14. The
purpose of the program is to make coinvestments in business startups and
investment capital projects.
This bill creates a broadband expansion program under which DOA, in
consultation with PSC, makes broadband expansion grants from the universal
service fund for the purpose of constructing broadband infrastructure in
underserved areas.
Under current law, DOA administers a program for making grants from the
utility public benefits fund to provide assistance to low-income households for 1)
weatherization and conservation assistance; and 2) payment of energy bills and
early identification or prevention of energy crises (bill and crisis assistance). In each
fiscal year, DOA must ensure that the amount spent under the program on grants
for weatherization and conservation assistance is equal to 47 percent of a sum that
is calculated for the fiscal year and that 53 percent of the sum is spent on grants for
bill and crisis assistance. This bill requires instead that 50 percent of the sum must
be allocated for grants for weatherization and conservation assistance, resulting in
50 percent for grants for bill and crisis assistance. The bill also makes changes to
how the sum is calculated, including eliminating certain federal funding amounts
from the calculation.
Under current law, counties collect a $25 fee for recording or filing most
instruments that are recorded or filed with a register of deeds. Counties must remit
$10 of each fee to DOA, which DOA uses to make land records modernization grants.
If a county meets certain requirements, the county may retain $8 of each $10 fee that
would otherwise be payable to DOA. In addition, counties may temporarily collect
a $30 fee for recording or filing most instruments that are recorded or filed with a
register of deeds if the county uses $5 of each fee for redacting social security
numbers from certain electronic format records. Under this bill the $30 fee is made
permanent and counties must remit $15 of each fee to DOA.
Currently, DOA may provide legal services to any executive branch state
agency that has a secretary who serves at the pleasure of the governor. This bill
provides that DOA may also provide legal services to an executive branch state
agency that does not have a secretary who serves at the pleasure of the governor, but
only at the request of the state agency.
This bill permits DOA to transfer information technology infrastructure
services staff and equipment from another executive branch agency, other than the
Board of Regents of the UW System, to DOA. The bill also permits DOA to assess
executive branch agencies for information technology infrastructure services
provided by DOA.
This bill authorizes the secretary of administration to maintain
intergovernmental affairs offices to conduct public outreach and promote
coordination among state agencies and authorities.
taxation
Income taxation
Under current law, there are five income tax brackets, which are indexed for
inflation. The rate of taxation under current law for the lowest bracket for single
individuals, certain fiduciaries, heads of households, and married persons is 4.60
percent of taxable income; the rate for the second bracket is 6.15 percent; the rate for
the third bracket is 6.50 percent; the rate for the fourth bracket is 6.75 percent; and
the rate for the highest bracket is 7.75 percent.
With regard to taxable year 2012, for single individuals, certain fiduciaries, and
heads of households, for example, the lowest bracket applies to taxable income of over
$0 up to $10,570; the second bracket applies to taxable income over $10,570 up to
$20,360; the third bracket applies to taxable income over $20,360 up to $158,500; the
fourth bracket applies to taxable income over $158,500 up to $232,660; and the fifth,
or top, bracket applies to taxable income over $232,660.
For taxable years beginning after December 31, 2012, this bill lowers the rate
of taxation in each of the first three brackets; the rates in the top two brackets remain
unchanged. Under the bill, the tax rate in the lowest bracket is reduced to 4.50
percent; the rate in the next higher bracket is reduced to 5.94 percent; and the rate
in the next higher bracket is reduced to 6.36 percent. The brackets will continue to
be indexed for inflation.
Under current law, the veterans and surviving spouses property tax credit may
be claimed by certain U.S. armed forces veterans and by the unremarried surviving
spouses of certain veterans or members of the national guard or reserves
(collectively, "veterans"). To be eligible to claim the credit, the veteran must meet
several criteria, including criteria related to the veteran's residency in this state and
his or her disability rating. Similarly, to be eligible to claim the credit as a spouse
of a veteran, the veteran to whom the unremarried surviving spouse was married
must have met these same residency and disability criteria.
In general, the credit may currently be claimed in an amount equal to the
property taxes paid by the claimant on the veteran's principal dwelling in the year
to which the claim relates. If the amount of the credit for which a claimant is eligible
exceeds the claimant's income tax liability, the excess amount of the credit is paid to
the claimant by check (refundable tax credit).
For taxable years beginning after December 31, 2013, this bill expands the
definition of eligible unremarried surviving spouse to include an individual who is
eligible for, and receives, dependency and indemnity compensation from the federal
government due to his or her spouse's status as a veteran whose death was
service-connected.
This bill creates penalties for a person who negligently or fraudulently files an
incorrect claim for a tax refund or credit. The penalty for negligence is 25 percent
of the difference between the amount claimed and the amount that should have been
claimed, and the penalty for fraud is 100 percent of the difference between the
amount claimed and the amount that should have been claimed. In addition, any
person, other than a corporation or limited liability company, who files an income tax
return in which the person tries to obtain a refund or credit with fraudulent intent
is guilty of a Class H felony.
This bill prohibits an individual who files a fraudulent claim for an earned
income tax credit or homestead tax credit (credit) from filing a claim for either credit
for ten years. The bill also prohibits an individual who files a reckless claim for one
of these credits from filing a claim for either credit for two years. Under the bill, a
claim is fraudulent if it is false or excessive and filed with fraudulent intent, as
determined by DOR, and a claim is reckless if it is improper, due to reckless or
intentional disregard of the provisions of the income tax statutes or of rules and
regulations of DOR, as determined by DOR.
Under current law, capital gains on certain Wisconsin-sourced capital assets
are exempted from taxation. For taxable years beginning after December 31, 2015,
an individual; an individual partner or member of a partnership, limited liability
company, or limited liability partnership; or an individual shareholder of a
tax-option corporation (claimant) may subtract from federal adjusted gross income
the lesser of the claimant's federal net capital gain as reported on the claimant's
federal tax return if, in that year, the claimant had a qualifying gain, or the
claimant's qualifying gain.
The capital gains exemption defines "qualifying gain" as the gain realized by
the sale of any asset that is purchased after December 31, 2010, held for at least five
consecutive years, is a Wisconsin capital asset at the time of purchase and for at least
two of the next four years, and treated as a long-term gain under federal law. A
"Wisconsin capital asset" is real or tangible personal property that is located in this
state and used in a Wisconsin business, or stock or other ownership interest in a
Wisconsin business. Currently, a business may apply to WEDC for annual
certification for the exemption. WEDC may certify a business if it determines that,
in the taxable year ending immediately before the date of the business's application,
at least 50 percent of the business's payroll is paid in Wisconsin and at least 50
percent of the value of the business's real and tangible personal property is used by
the business in this state.
This bill transfers from WEDC to DOR the responsibility for registering a
business, subject to the business meeting the same conditions related to payroll and
the value of the business's real and tangible personal property as is the case under
current law certification. Also under the bill, excluded gain is not limited to net
capital gain, and the bill clarifies that the exclusion is for gain on investments in a
business and not for individual assets of the business.
Under current law, there are two income tax deferrals for capital gains that are
reinvested in qualified Wisconsin businesses. Under one of the deferrals (long-term
deferral), 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. Under the bill, the
long-term deferral may no longer be claimed for taxable years beginning after
December 31, 2013.
