Amendment ASA1-AB64

AB64-ASA1,1139 Section 1139 . 71.75 (7m) of the statutes is created to read:

AB64-ASA1,670,4 71.75 (7m) The department shall not issue a refund to an employed individual before March 1 unless both the individual and the individual's employer have filed all required returns and forms with the department for the taxable year for which the individual claims a refund.

AB64-ASA1,1140 Section 1140 . 71.77 (2n) of the statutes is created to read:

AB64-ASA1,670,9 71.77 (2n) Notwithstanding sub. (2), the department may make an assessment within one year of receiving notice of revocation from the Wisconsin Economic Development Corporation to recover all or a part of any tax credit claimed by a taxpayer, but revoked by the corporation.

AB64-ASA1,1151 Section 1151 . 71.80 (20) of the statutes is amended to read:

AB64-ASA1,670,14 71.80 (20) Electronic filing. If a person is required to file 50 10 or more wage statements or 50 10 or more of any one type of information return with the department, the person shall file the statements or the returns electronically, by means prescribed by the department.

AB64-ASA1,1152 Section 1152 . 71.80 (25) of the statutes is created to read:

AB64-ASA1,670,20 71.80 (25) Net operating and business loss carry-forward and carry-back. (a) No offset of Wisconsin income may be made under s. 71.05 (8) (b) 1., 71.26 (4) (a), or 71.45 (4) (a) unless the incurred loss was computed on a return that was filed within 4 years of the unextended due date for filing the original return for the taxable year in which the loss was incurred.

AB64-ASA1,670,23 (b) No carry-back of a loss may be allowed under s. 71.05 (8) (b) 1. unless claimed within 4 years of the unextended due date for filing the original return for the taxable year to which the loss is carried back.

AB64-ASA1,1153 Section 1153 . 71.83 (1) (cf) of the statutes is created to read:

AB64-ASA1,671,9 71.83 (1) (cf) Inconsistent estate basis reporting. If any portion of an underpayment of tax required to be shown on a Wisconsin return is the result of an inconsistent estate basis reporting, there shall be added to the tax an amount equal to 20 percent of that portion of the underpayment. For purposes of this paragraph, an inconsistent estate basis reporting occurs if the property basis claimed on a Wisconsin return exceeds the property basis determined under section 1014 (f) of the Internal Revenue Code. The department shall assess, levy, and collect the penalty under this paragraph in the same manner as it assesses, levies, and collects taxes under this chapter.

AB64-ASA1,1160d Section 1160d. 71.98 (8) of the statutes is created to read:

AB64-ASA1,671,14 71.98 (8) Charitable distributions from an individual retirement account. For taxable years beginning after December 31, 2017, section 408 (d) (8) of the Internal Revenue Code, relating to a tax-free qualified charitable distribution from an individual retirement account directly to a charitable organization.

AB64-ASA1,1162 Section 1162 . 73.03 (69) (b) 1. of the statutes is amended to read:

AB64-ASA1,671,22 73.03 (69) (b) 1. The business has at least 2 full-time employees and the amount of payroll compensation paid by the business in this state is equal to at least 50 percent of the amount of all payroll compensation paid by the business. An employee of a professional employer organization, as defined in s. 202.21 (5), or a professional employer group, as defined in s. 202.21 (4), who is performing services for a client is considered an employee solely of the client for purposes of this subdivision.

AB64-ASA1,1162m Section 1162m. 73.03 (71) (b) of the statutes is amended to read:

AB64-ASA1,672,6 73.03 (71) (b) After the department makes the determination under par. (a), the department shall determine how much the individual income tax rates under s. 71.06 may be reduced in the following taxable year in order to eliminate the alternative minimum tax under s. 71.08 and decrease individual income tax revenue by the amount determined under par. (a). For purposes of this paragraph, the department shall calculate the tax rate reductions in proportion to the share of gross tax attributable to each of the tax brackets under s. 71.06 in effect during the most recently completed taxable year.

AB64-ASA1,1162n Section 1162n. 73.03 (71) (c) of the statutes is amended to read:

AB64-ASA1,672,13 73.03 (71) (c) The department shall certify the determinations made under pars. (a) and (b) to the secretary of the department of administration, to the governor, and to the legislature and specify with that certification that the elimination of the alternative minimum tax and the new tax rates take effect in the taxable year following the taxable year in which the department makes the certification under this paragraph.

AB64-ASA1,1165d Section 1165d. 73.06 (3) of the statutes is amended to read:

AB64-ASA1,673,5 73.06 (3) The department of revenue, through its supervisors of equalization, shall examine and test the work of assessors during the progress of their assessments and ascertain whether any of them is assessing property at other than full value or is omitting property subject to taxation from the roll. The department and such supervisors shall have the rights and powers of a local assessor for the examination of persons and property and for the discovery of property subject to taxation. If any property has been omitted or not assessed according to law, they shall bring the same to the attention of the local assessor of the proper district and if such local assessor shall neglect or refuse to correct the assessment they shall report the fact to the board of review. If it discovers errors in identifying or valuing property that is exempt under s. 70.11 (39) or (39m), the department shall change the specification of the property as taxable or exempt and shall change the value of the property. All disputes between the department, municipalities, and property owners about the taxability or value of property that is reported under s. 79.095 (2) (a) or of the property under s. 70.995 (12r) shall be resolved by using the procedures under s. 70.995 (8).

AB64-ASA1,1169 Section 1169 . 77.14 of the statutes is amended to read:

AB64-ASA1,673,14 77.14 Forest croplands information, protection, appropriation. The department of natural resources shall publish and distribute information regarding the method of taxation of forest croplands under this subchapter, and may employ a fire warden in charge of fire prevention in forest croplands. All actual and necessary expenses incurred by the department of natural resources or by the department of revenue in the performance of their duties under this subchapter shall be paid from the appropriation made in s. 20.370 (1) (2) (mv) upon certification by the department incurring such expenses.

AB64-ASA1,1170 Section 1170 . 77.22 (2) (c) of the statutes is repealed.

AB64-ASA1,1171 Section 1171 . 77.22 (2) (d) of the statutes is repealed.

AB64-ASA1,1171r Section 1171r. 77.51 (1bm) of the statutes is created to read:

AB64-ASA1,673,20 77.51 (1bm) “Beekeeping” means the business of moving, raising, producing, and other management of bees or bee products, regardless of the number of hives of bees managed.

AB64-ASA1,1172 Section 1172 . 77.51 (2) of the statutes is amended to read:

AB64-ASA1,674,14 77.51 (2) “Contractors" and “subcontractors" are the consumers of tangible personal property or items or goods under s. 77.52 (1) (b) or (d) used by them in real property construction activities, and the sales and use tax applies to the sale of tangible personal property or items or goods under s. 77.52 (1) (b) or (d) to them. A contractor engaged primarily in real property construction activities may use resale certificates only with respect to purchases of tangible personal property or items or goods under s. 77.52 (1) (b) or (d) which that the contractor has sound reason to believe the contractor will sell to customers for whom the contractor will not perform real property construction activities involving the use of such tangible personal property or items or goods under s. 77.52 (1) (b) or (d). In this subsection, “real property construction activities" means activities that occur at a site where tangible personal property or items or goods under s. 77.52 (1) (b) or (d) that are applied or adapted to the use or purpose to which real property is devoted are affixed to that real property, if the intent of the person who affixes that property is to make a permanent accession to the real property. In this subsection, “real property construction activities" does not include affixing property subject to tax under s. 77.52 (1) (c) to real property or affixing to real property tangible personal property that remains tangible personal property after it is affixed.

AB64-ASA1,1173 Section 1173 . 77.51 (9) (a) of the statutes is renumbered 77.51 (9) (a) 1.

AB64-ASA1,1174 Section 1174 . 77.51 (9) (a) 2. of the statutes is created to read:

AB64-ASA1,674,23 77.51 (9) (a) 2. For purposes of subd. 1., it is presumed that a seller is not pursuing a vocation, occupation, or business or a partial vocation or occupation or part-time business as a vendor of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable services if the seller's total taxable sales price from sales of tangible personal property, items, property, and goods under s. 77.52 (1) (b), (c), and (d), and taxable services is less than $2,000 during a calendar year.

AB64-ASA1,1176 Section 1176 . 77.51 (12t) of the statutes is created to read:

AB64-ASA1,675,8 77.51 (12t) “Real property construction activities" means activities that occur at a site where tangible personal property or items or goods under s. 77.52 (1) (b) or (d) that are applied or adapted to the use or purpose to which real property is devoted are affixed to that real property, if the intent of the person who affixes that property is to make a permanent accession to the real property. “Real property construction activities" does not include affixing property subject to tax under s. 77.52 (1) (c) to real property or affixing to real property tangible personal property that remains tangible personal property after it is affixed.

AB64-ASA1,1177 Section 1177 . 77.51 (13) (am) of the statutes is amended to read:

AB64-ASA1,675,14 77.51 (13) (am) Any person making any retail sale of a motor vehicle, aircraft, snowmobile, recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, as defined in s. 23.335 (1) (q), or boat registered or titled, or required to be registered or titled, under the laws of this state or of the United States.

AB64-ASA1,1177d Section 1177d. 77.51 (13) (o) of the statutes is amended to read:

AB64-ASA1,675,17 77.51 (13) (o) A person selling drugs for animals or bees to a veterinarian. As used in this paragraph, “animal" includes livestock, pets , and poultry.

AB64-ASA1,1177t Section 1177t. 77.52 (2) (a) 5. a. of the statutes is repealed.

AB64-ASA1,1178 Section 1178 . 77.52 (2) (a) 10. of the statutes is amended to read:

AB64-ASA1,676,18 77.52 (2) (a) 10. Except for the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of any aircraft or aircraft parts; except for services provided by veterinarians; and except for installing or applying tangible personal property, or items or goods under sub. (1) (b) or (d), that, subject to par. (ag), when installed or applied, will constitute an addition or capital improvement of real property; the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of all items of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d), unless, at the time of that repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance, a sale in this state of the type of property, item, or good repaired, serviced, altered, fitted, cleaned, painted, coated, towed, inspected, or maintained would have been exempt to the customer from sales taxation under this subchapter, other than the exempt sale of a motor vehicle or truck body to a nonresident under s. 77.54 (5) (a) and other than nontaxable sales under s. 77.522 or unless the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance is provided under a contract that is subject to tax under subd. 13m. The tax imposed under this subsection applies to the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of items listed in par. (ag), regardless of whether the installation or application of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d) related to the items is an addition to or a capital improvement of real property, except that the tax imposed under this subsection does not apply to the original installation or the complete replacement of an item listed in par. (ag), if that installation or replacement is a real property construction activity under s. 77.51 (2).

AB64-ASA1,1179 Section 1179 . 77.52 (2m) (b) of the statutes is amended to read:

AB64-ASA1,677,2 77.52 (2m) (b) With respect to the services subject to tax under sub. (2) (a) 7., 10., 11., and 20. and except as provided in s. 77.54 (60) (b) and (bm) 2., all tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) physically transferred, or transferred electronically, to the customer in conjunction with the selling, performing, or furnishing of the service is a sale of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) separate from the selling, performing, or furnishing of the service.

AB64-ASA1,1181 Section 1181 . 77.52 (13) of the statutes is amended to read:

AB64-ASA1,677,15 77.52 (13) For the purpose of the proper administration of this section and to prevent evasion of the sales tax it shall be presumed that all receipts are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services is not a taxable sale at retail is upon the person who makes the sale unless that person takes from the purchaser an electronic or a paper certificate, in a manner prescribed by the department, to the effect that the property, item, good, or service is purchased for resale or is otherwise exempt, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), and (52), and (66).

AB64-ASA1,1182n Section 1182n. 77.522 (4) (h) of the statutes is repealed.

AB64-ASA1,1184 Section 1184 . 77.53 (17) of the statutes is amended to read:

AB64-ASA1,678,3 77.53 (17) This section does not apply to tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) purchased outside this state, as determined under s. 77.522, other than motor vehicles, boats, snowmobiles, recreational vehicles, as defined in s. 340.01 (48r), trailers, semitrailers, all-terrain vehicles, utility terrain vehicles, off-highway motorcycles, as defined in s. 23.335 (1) (q), and airplanes registered or titled or required to be registered or titled in this state, which is brought into this state by a nondomiciliary for the person's own storage, use or other consumption while temporarily within this state when such property, item, or good is not stored, used or otherwise consumed in this state in the conduct of a trade, occupation, business or profession or in the performance of personal services for wages or fees.

AB64-ASA1,1185 Section 1185 . 77.53 (18) of the statutes is amended to read:

AB64-ASA1,678,13 77.53 (18) This section does not apply to the storage, use or other consumption in this state of household goods or items, property, or goods under s. 77.52 (1) (b), (c), or (d) for personal use or to aircraft, motor vehicles, boats, snowmobiles, mobile homes, manufactured homes, as defined in s. 101.91 (2), recreational vehicles, as defined in s. 340.01 (48r), trailers, semitrailers, all-terrain vehicles, and utility terrain vehicles, and off-highway motorcycles, as defined in s. 23.335 (1) (q), for personal use, purchased by a nondomiciliary of this state outside this state, as determined under s. 77.522, 90 days or more before bringing the goods, items, or property into this state in connection with a change of domicile to this state.

AB64-ASA1,1185p Section 1185p. 77.54 (3) (a) of the statutes is amended to read:

AB64-ASA1,679,5 77.54 (3) (a) The sales price from the sales sale of and the storage, use, or other consumption of tractors and machines, including accessories, attachments, and parts, lubricants, nonpowered equipment, and other tangible personal property, or items or property under s. 77.52 (1) (b) or (c), that are used exclusively and directly, or are consumed or lose their identities, in the business of farming, including dairy farming, agriculture, horticulture, floriculture, silviculture, beekeeping, and custom farming services, but excluding automobiles, trucks, and other motor vehicles for highway use; excluding personal property that is attached to, fastened to, connected to, or built into real property or that becomes an addition to, component of, or capital improvement of real property; and excluding tangible personal property, or items or property under s. 77.52 (1) (b) or (c), used or consumed in the erection of buildings or in the alteration, repair, or improvement of real property, regardless of any contribution that that personal property, or item or property under s. 77.52 (1) (b) or (c), makes to the production process in that building or real property and regardless of the extent to which that personal property, or item or property under s. 77.52 (1) (b) or (c), functions as a machine, except as provided in par. (c).

AB64-ASA1,1185t Section 1185t. 77.54 (3m) (intro.) of the statutes is amended to read:

AB64-ASA1,679,10 77.54 (3m) (intro.) The sales price from the sale of and the storage, use, or other consumption of the following items if they are used exclusively by the purchaser or user in the business of farming; including dairy farming, agriculture, horticulture, floriculture, silviculture, beekeeping, and custom farming services:

AB64-ASA1,1185v Section 1185v. 77.54 (3m) (hm) of the statutes is created to read:

AB64-ASA1,679,12 77.54 (3m) (hm) Bees, beehives, and bee combs.

AB64-ASA1,1185w Section 1185w. 77.54 (3m) (L) of the statutes is amended to read:

AB64-ASA1,679,15 77.54 (3m) (L) Containers for fruits, vegetables, bee products, grain, hay, silage, and animal wastes.

AB64-ASA1,1186 Section 1186 . 77.54 (7) (b) (intro.) of the statutes is amended to read:

AB64-ASA1,679,23 77.54 (7) (b) (intro.) If the item transferred is a motor vehicle, snowmobile, recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, as defined in s. 23.335 (1) (q), or aircraft and the item is registered or titled, or required to be registered or titled, in this state or if the item is a boat that is registered or titled, or required to be registered or titled, in this state or under the laws of the United States, the exemption under par. (a) applies only if all of the following conditions are fulfilled:

AB64-ASA1,1186d Section 1186d. 77.54 (9m) of the statutes is amended to read:

AB64-ASA1,680,13 77.54 (9m) The sales price from the sale of and the storage, use, or other consumption of tangible personal property, or items or property under s. 77.52 (1) (b) or (c), sold to a construction contractor who, in fulfillment of a real property construction activity, transfers the tangible personal property, or items or property under s. 77.52 (1) (b) or (c), to an entity described under sub. (9a) (b), (c), (d), (em), or (f), a technical college district, the Board of Regents of the University of Wisconsin System, an institution, as defined in s. 36.05 (9), a college campus, as defined in 36.05 (6m), or the University of Wisconsin-Extension, if such tangible personal property, or items or property, becomes a component of a facility in this state that is owned by the entity. In this subsection, “facility" means any building, shelter, parking lot, parking garage, athletic field, athletic park, storm sewer, water supply system, or sewerage and waste water treatment facility, but does not include a highway, street, or road.

AB64-ASA1,1187 Section 1187 . 77.54 (20n) (d) of the statutes is created to read:

AB64-ASA1,680,17 77.54 (20n) (d) The sales price from the sale of and the storage, use, or other consumption of prepared food that is sold by a retailer and that meets all of the following conditions:

AB64-ASA1,680,18 1. The prepared food is not candy, soft drinks, or dietary supplements.

AB64-ASA1,680,21 2. The retailer manufactures the prepared food in a building assessed as manufacturing property under s. 70.995, or that would be assessed as manufacturing property under s. 70.995 if the building was located in this state.

AB64-ASA1,680,23 3. The retailer makes no retail sales of prepared food at the building described in subd. 2.

AB64-ASA1,680,24 4. Any of the following applies:

AB64-ASA1,681,3 a. The retailer freezes the prepared food prior to its sale and sells the prepared food at retail in a frozen state, and the prepared food is not sold with eating utensils that are provided by the retailer, as described in s. 77.51 (10m) (a) 3.

AB64-ASA1,681,4 b. The prepared food consists of more than 50 percent yogurt.

AB64-ASA1,1187d Section 1187d. 77.54 (23n) of the statutes is renumbered 77.54 (23n) (b) (intro.) and amended to read:

AB64-ASA1,681,12 77.54 (23n) (b) (intro.) The sales price from the sales of tangible personal property and property under s. 77.52 (1) (c) to, and the storage, use, or other consumption of tangible personal property and property under s. 77.52 (1) (c) by, a person who is licensed to operate a commercial radio or television station in this state, if the tangible personal property or property under s. 77.52 (1) (c) is used any of the following:

AB64-ASA1,681,18 1. Used exclusively and directly in, or is fuel or electricity consumed in, the origination or integration of various sources of program material for commercial radio or television transmissions that are generally available to the public free of charge without a subscription or service agreement. This subsection applies to vehicles licensed for highway use and equipment used to transmit or receive signals from a satellite.

AB64-ASA1,1187e Section 1187e. 77.54 (23n) (a) of the statutes is created to read:

AB64-ASA1,681,23 77.54 (23n) (a) In this subsection, “program material" means material transmitted by a commercial radio or television station that is generally available to the public free of charge without a subscription or service agreement. “ Program material" includes material used in origination.

AB64-ASA1,1187f Section 1187f. 77.54 (23n) (b) 2. to 5. of the statutes are created to read:

AB64-ASA1,682,3 77.54 (23n) (b) 2. Used primarily for transmitting or receiving commercial radio or television program material, including a broadcast transmitter, a satellite dish, and a communications tower and the material used to construct the tower.

AB64-ASA1,682,5 3. Leased space on a communications tower if the space is used exclusively for transmitting or receiving commercial radio or television program material.

AB64-ASA1,682,7 4. A motor vehicle licensed for highway use and used exclusively in the origination of commercial radio or television program material.

AB64-ASA1,682,9 5. A part, an accessory, or a supply, including fuel or electricity, that is used for any of the property that is exempt under in subds. 1. to 4.

AB64-ASA1,1187j Section 1187j. 77.54 (30) (a) 3. of the statutes is amended to read:

AB64-ASA1,682,13 77.54 (30) (a) 3. Electricity sold for use in farming, including but not limited to agriculture, dairy farming, floriculture, silviculture, and horticulture, and beekeeping.

AB64-ASA1,1187k Section 1187k. 77.54 (30) (a) 5. of the statutes is amended to read:

AB64-ASA1,682,17 77.54 (30) (a) 5. Fuel sold for use in farming, including but not limited to agriculture, dairy farming, floriculture, silviculture, and horticulture, and beekeeping.

AB64-ASA1,1187n Section 1187n. 77.54 (33) of the statutes is amended to read:

AB64-ASA1,682,20 77.54 (33) The sales price from sales the sale of and the storage, use, or other consumption of drugs used on farm livestock, not including workstock , or on bees.

AB64-ASA1,1187p Section 1187p. 77.54 (37) of the statutes is amended to read:

AB64-ASA1,682,24 77.54 (37) The sales price from revenues collected under s. 256.35 (3) and the surcharge established by rule by the public service commission under s. 256.35 (3m) (f) for customers of wireless providers, as defined in s. 256.35 (3m) (a) 6 .

AB64-ASA1,1188 Section 1188 . 77.54 (60) (a) of the statutes is renumbered 77.54 (60) (d) (intro.) and amended to read: