SB30: Bill Text

SB30,555,14 71.52 (1e) “Disqualified loss" means the sum of the following amounts, exclusive of net gains from the sale or exchange of capital or business assets and exclusive of net profits:

SB30,555,15 (a) Net loss from sole proprietorships.

SB30,555,16 (b) Net capital loss.

SB30,555,18 (c) Net loss from sales of business property, excluding loss from involuntary conversions.

SB30,555,20 (d) Net loss from rental real estate, royalties, partnerships, tax-option S corporations, trusts, estates, and real estate mortgage investment conduits.

SB30,555,21 (e) Net farm loss.

SB30,1117 Section 1117 . 71.52 (1m) of the statutes is created to read:

SB30,555,24 71.52 (1m) “Farmer,” “farming,” and “farm premises” have the meanings given in s. 102.04 (3).

SB30,1118 Section 1118 . 71.52 (6) of the statutes is amended to read:

SB30,557,14 71.52 (6) “Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment insurance, the gross amount of “loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-backs and carry-forwards and, capital loss carry-forwards , and disqualified losses greater than $15,000 deducted in determining Wisconsin adjusted gross income shall be added to “income". “Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code. Amounts not included in adjusted gross income but added to “income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter. A marital property agreement or unilateral statement under ch. 766 has no effect in computing “income" for a person whose homestead is not the same as the homestead of that person's spouse.

SB30,1119 Section 1119 . 71.54 (1) (g) (intro.) of the statutes is amended to read:

SB30,557,18 71.54 (1) (g) 2012 and thereafter. (intro.) The Subject to sub. (2m), the amount of any claim filed in 2012 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

SB30,1120 Section 1120 . 71.54 (1) (g) 4. of the statutes is created to read:

SB30,557,24 71.54 (1) (g) 4. Except as provided in subd. 5., for claims filed in 2018 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year, no credit may be allowed under this paragraph unless the claimant or the claimant's spouse is over the age of 61 at the close of the year to which the claim relates.

SB30,1121 Section 1121 . 71.54 (1) (g) 5. and 6. of the statutes are created to read:

SB30,558,3 71.54 (1) (g) 5. For claims filed in 2018 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year, no credit may be allowed under this paragraph unless the claimant is disabled.

SB30,558,7 6. With regard to a claimant who is disabled, the claimant shall provide with his or her return proof that his or her disability is in effect for the taxable year to which the claim relates. Proof of disability may be demonstrated by any of the following:

SB30,558,9 a. A statement from the Veteran's Administration certifying that the claimant is receiving a disability benefit due to 100 percent disability.

SB30,558,11 b. A document, or copy of a document, from the Social Security Administration stating the date the disability began.

SB30,558,14 c. A statement from a physician, as defined in s. 448.01 (5), stating the beginning date of the disability and whether the disability is permanent or temporary.

SB30,1122 Section 1122 . 71.54 (1) (h) of the statutes is created to read:

SB30,558,21 71.54 (1) (h) 2018 and thereafter. For claims filed in 2018 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year, with regard to a claimant who is not disabled or who is under the age of 62 at the close of the year to which the claim relates, the amount of any claim filed in 2018 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

SB30,559,2 1. If the household income was $8,060 or less in the year to which the claim relates, the claim is limited to 80 percent of the lesser of 20 percent of the claimant's earned income in the taxable year to which the claim relates, or the claimant's property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's homestead.

SB30,559,8 2. If the household income was more than $8,060 in the year to which the claim relates, the claim is limited to 80 percent of the lesser of the amount by which 20 percent of the claimant's earned income in the taxable year to which the claim relates, or the claimant's property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's homestead, exceeds 8.785 percent of the household income exceeding $8,060.

SB30,559,10 3. No credit may be allowed if the household income of a claimant exceeds $24,680.

SB30,559,12 4. No credit may be allowed if the claimant under this paragraph had no earned income in the taxable year to which the claim relates.

SB30,1123 Section 1123 . 71.54 (2m) of the statutes is amended to read:

SB30,560,6 71.54 (2m) Indexing for inflation; 2010 2018 and thereafter. (a) For calendar years beginning after December 31, 2009, and before January 1, 2011 2017, the dollar amounts of the threshold income under sub. (1) (f) (g) 1. and 2., and the maximum household income under sub. (1) (f) (g) 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 2015 through July 2008 2016, 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.

SB30,560,12 (b) The department of revenue shall annually adjust the slope under sub. (1) (f) (g) 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.

SB30,1124 Section 1124 . 71.54 (4) of the statutes is amended to read:

SB30,560,17 71.54 (4) Department will compute credit. The claimant is not required to record on the claim the amount claimed. The claim allowable to persons who do not record the amount shall be computed by the department, which shall notify the claimant by mail of the amount of the allowable claim.

SB30,1125 Section 1125 . 71.55 (10) of the statutes is created to read:

SB30,560,23 71.55 (10) Farmers. Notwithstanding the provision in s. 71.52 (6) that requires the addition of certain disqualified losses to income, such an addition may not be made by a claimant who is a farmer whose primary income is from farming and whose farming generates less than $250,000 in gross receipts from the operation of farm premises in the year to which the claim relates.

SB30,1126 Section 1126 . 71.64 (9) (b) (intro.) of the statutes is amended to read:

SB30,561,4 71.64 (9) (b) (intro.) The department shall from time to time adjust the withholding tables to reflect any changes in income tax rates, any applicable surtax or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) resulting from statutory changes, except as follows:

SB30,1127 Section 1127 . 71.65 (2) (b) of the statutes is amended to read:

SB30,561,21 71.65 (2) (b) Every resident of this state and every nonresident carrying on activities within this state, whether taxable or not under this chapter, who pays in any calendar year for services performed within this state by an individual remuneration which that is excluded from the definition of wages, in the amount of $600 or more, shall, on or before February 28 January 31 of the year following the year in which the payments are made, furnish a statement, in such form as required by the department, disclosing the name of the payor, the name and address of the recipient of the payment, and the total amount paid in such the calendar year to such the recipient. The person who pays for the services shall, on or before January 31 of the year in which the statement is required to be furnished to the department that deadline, furnish the recipient of the payment with a copy of that the statement. In any case in which an individual receives wages and also remuneration for services which remuneration is excluded from such definition, both from the same payor, the wages and the excluded remuneration shall both be reported in the report required under this subsection in a manner satisfactory to the department, regardless of the amount of the excluded remuneration.

SB30,1128 Section 1128 . 71.65 (5) (a) (intro.), 1. and 2. of the statutes are consolidated, renumbered 71.65 (5) (a) and amended to read:

SB30,562,3 71.65 (5) (a) If an employer applies for an extension and shows good cause why an extension should be granted, the department may grant the following extensions for the following statements: 1. Thirty days a 30-day extension for filing a wage statement under sub. (1) or, an annual reconciliation report under sub. (3) (a) or (d). 2. Sixty days for filing, or a statement of nonwage payments under sub. (2) (b).

SB30,1129 Section 1129 . 71.67 (5) (a) of the statutes is amended to read:

SB30,562,10 71.67 (5) (a) Wager winnings. A person holding a license to sponsor and manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r) if the amount of the payment is more than $1,000.

SB30,1130 Section 1130 . 71.67 (5m) of the statutes is amended to read:

SB30,562,18 71.67 (5m) Withholding from payments to purchase assignment of lottery prize. A person that purchases an assignment of a lottery prize shall withhold from the amount of any payment made to purchase the assignment the amount that is determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r). Subsection (5) (b), (c) and (d), as it applies to the amounts withheld under sub. (5) (a), applies to the amount withheld under this subsection.

SB30,1131 Section 1131 . 71.70 (1) of the statutes is amended to read:

SB30,563,6 71.70 (1) Persons other than corporations. Persons other than corporations deducting rent or royalties in determining taxable income shall file a report that shows the amounts and the name and address of all natural persons each individual who are residents is a resident of this state and to whom royalties of $600 or more were are paid during the taxable year; and the amounts and the name and address of all natural persons each individual to whom rent of $600 or more is paid during the taxable year for property having a situs in this state. Such information shall be filed The person who deducts rent or royalties shall file the report on or before February 28 January 31 of the year following the year in which the payments were are made. The person who deducts rent or royalties shall, on or before January 31 of the year in which the report is required to be furnished that deadline, furnish the recipient of the payment with a copy of that the report.

SB30,1132 Section 1132 . 71.70 (2) of the statutes is amended to read:

SB30,563,14 71.70 (2) Corporations. All corporations doing business in this state shall file, on or before March 15 January 31, any information relative to payments made within the preceding calendar year of rents and royalties to all natural persons individuals taxable thereon under this chapter. A The corporation that makes the payment shall, on or before January 31 of the year in which the statement is required to be furnished to the department that deadline, furnish the recipient of the payment with a copy of that the statement.

SB30,1133 Section 1133 . 71.71 (title) of the statutes is amended to read:

SB30,563,16 71.71 (title) Wages subject to withholding.

SB30,1134 Section 1134 . 71.715 of the statutes is created to read:

SB30,564,2 71.715 Wages not subject to withholding. (1) Statement employer must furnish to employee. (a) Every employer, as defined in s. 71.63 (3), that pays in any calendar year wages, as defined in s. 71.63 (6), to an employee, as defined in s. 71.63 (2), from which the employer was not required to deduct and withhold from the employee under the general withholding provisions of subch. X., shall furnish to the employee, with respect to the wages paid by the employer to the employee during a calendar year, on or before January 31 of the year following the year in which the wages are paid, or, if the employee's employment is terminated before the close of a calendar year, on the day on which the last payment of wages is made, 2 legible copies of a written statement showing all of the following:

SB30,564,4 1. The name of the employer and the employer's Wisconsin income tax identification number, if any.

SB30,564,5 2. The name of the employee and the employee's social security number, if any.

SB30,564,7 3. The total amount of wages the employer paid in the calendar year to the employee.

SB30,564,9 (b) An employee that receives a statement under par. (a) shall furnish the department one copy of the statement along with the employee's return for the year.

SB30,564,14 (2) Statement employer must file. Every employer required to furnish a statement under sub. (1) (a) shall file, with respect to the wages paid by the employer to an employee as described in sub. (1) during the calendar year, on or before January 31 of the year following the year in which the wages are paid, one copy of the statement.

SB30,1135 Section 1135 . 71.72 of the statutes is amended to read:

SB30,565,6 71.72 Statement of nonwage payments. Every resident of this state and every nonresident carrying on activities within this state, whether taxable or not under this chapter, who pays in any calendar year for services performed within this state by an individual remuneration which that is excluded from the definition of wages in s. 71.63 (6), in the amount of $600 or more, shall, on or before February 28 January 31 of the year following the year in which the payments were are made, file a statement disclosing the name of the payor, the name and address of the recipient of the payment, and the total amount paid in such the calendar year to such the recipient. The person who pays for the services shall, on or before January 31 of the year in which the statement is required to be furnished to the department that deadline, furnish the recipient of the payment with a copy of that the statement. In any case in which an individual receives wages, as defined in s. 71.63 (6), and also remuneration for services which remuneration is excluded from such definition, both from the same payor, the wages and the excluded remuneration shall both be reported in the statement required by s. 71.71 (2) in a manner satisfactory to the department, regardless of the amount of the excluded remuneration.

SB30,1136 Section 1136 . 71.73 (2) (intro.), (a), (b) and (c) of the statutes are consolidated, renumbered 71.73 (2) and amended to read:

SB30,565,14 71.73 (2) Extensions. If an employer a person applies for an extension and shows good cause why an extension should be granted, the department of revenue may grant the following extensions for the following statements: (a) Sixty days a 30-day extension for filing a rent and royalty statement under s. 71.70. (b) Thirty days for filing, a wage statement under s. 71.71 . (c) Sixty days for filing, a wage statement under s. 71.715, or a statement of nonwage payments under s. 71.72.

SB30,1137 Section 1137 . 71.74 (11) of the statutes is amended to read:

SB30,566,7 71.74 (11) Notice of additional assessment. The department shall notify the taxpayer in writing of any additional assessment by office audit or field investigation. That notice shall be served as are circuit court summonses, or by registered mail, or by regular mail if the person assessed admits receipt or there is satisfactory evidence of receipt provided in s. 73.03 (73). In the case of joint returns, notice of additional assessment may be a joint notice and service on one spouse is proper notice to both spouses. If the spouses have different addresses at the time the notice of additional assessment is served and if either spouse notifies the department of revenue in writing of those addresses, the department shall serve a duplicate of the original notice on the spouse who has the address other than the address to which the original notice was sent, if no request for a redetermination or a petition for review has been commenced or finalized. For the spouse who did not receive the original notice, redetermination and appeal rights begin upon the service of a duplicate notice. If the taxpayer is a corporation and the department is unable to serve that taxpayer personally or by mail as provided in s. 73.03 (73), the department may serve the notice by publishing a class 3 notice, under ch. 985, in the official state newspaper.

SB30,1138 Section 1138 . 71.74 (14) of the statutes is amended to read:

SB30,566,24 71.74 (14) Additional remedy to collect tax. The department may also proceed under s. 71.91 (5) for the collection of any additional assessment of income or franchise taxes or surtaxes, after notice thereof has been given under sub. (11) and before the same shall have become delinquent, when it has reasonable grounds to believe that the collection of such additional assessment will be jeopardized by delay. In such cases notice of the intention to so proceed shall be given by registered mail to the taxpayer as provided in s. 73.03 (73), and the warrant of the department shall not issue if the taxpayer within 10 days after such notice furnishes a bond in such amount, not exceeding double the amount of the tax, and with such sureties as the department shall approve, conditioned upon the payment of so much of the additional taxes as shall finally be determined to be due, together with interest thereon as provided by s. 71.82 (1) (a). Nothing in this subsection shall affect the review of additional assessments provided by ss. 71.88 (1) (a) and (2) (a), 71.89 (2), 73.01, and 73.015, and any amounts collected under this subsection shall be deposited with the department and disbursed after final determination of the taxes as are amounts deposited under s. 71.90 (2).

SB30,1139 Section 1139 . 71.75 (7m) of the statutes is created to read:

SB30,567,4 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.

SB30,1140 Section 1140 . 71.77 (2n) of the statutes is created to read:

SB30,567,10 71.77 (2n) Notwithstanding sub. (2), the department may make an assessment to recover all or a part of any tax credit allocated by the Wisconsin Economic Development Corporation if the corporation has revoked the allocation and provided notice of the revocation to the department within one year of providing notice of the revocation to the taxpayer.

SB30,1141 Section 1141 . 71.775 (4) (a) (intro.) of the statutes is renumbered 71.775 (4) (a) and amended to read:

SB30,567,18 71.775 (4) (a) Each pass-through entity that is subject to the withholding under sub. (2) shall file an annual return that indicates the withholding amount paid to the state during the pass-through entity's taxable year. The pass-through entity shall file the return with the department no later than: on or before the date on which the pass-through entity is required to file for federal income tax purposes, not including any extension, under the Internal Revenue Code.

SB30,1142 Section 1142 . 71.775 (4) (a) 1. of the statutes is repealed.

SB30,1143 Section 1143 . 71.775 (4) (a) 2. of the statutes is repealed.

SB30,1144 Section 1144 . 71.775 (4) (fm) 3. of the statutes is created to read:

SB30,567,23 71.775 (4) (fm) 3. The secretary of revenue determines that because of casualty, disaster, or other unusual circumstances it is not equitable to impose interest.

SB30,1145 Section 1145 . 71.78 (2) of the statutes is amended to read:

SB30,568,24 71.78 (2) Disclosure of net tax. The department shall make available upon suitable forms prepared by the department information setting forth the net Wisconsin income tax or Wisconsin franchise tax reported as paid or payable in the returns filed by any individual or corporation, and any amount of delinquent taxes owed by any such individual or corporation, for any individual year upon request. When making available information setting forth the delinquent taxes owed by an individual or corporation, the information shall include interest, penalties, fees, and costs, which are unpaid for more than 90 days after all appeal rights have expired, except that such information may not be provided for any person who has reached an agreement or compromise with the department, or the department of justice, under s. 71.92 and is in compliance with that agreement, regarding the payment of delinquent taxes, or the name of any person who is protected by a stay that is in effect under the Federal Bankruptcy Code. Before the request is granted, the person desiring to obtain the information shall prove his or her identity and shall be required to sign a statement setting forth the person's address and reason for making the request and indicating that the person understands the provisions of this section with respect to the divulgement, publication, or dissemination of information obtained from returns as provided in sub. (1). The use of a fictitious name is a violation of this section. Within 24 hours after any information from any such tax return has been so obtained, the department shall mail send to the person from whose return the information has been obtained a notification which shall give the name and address of the person obtaining the information and the reason assigned for requesting the information. The department shall collect from the person requesting the information a fee of $4 for each return.

SB30,1146 Section 1146 . 71.80 (2) of the statutes is amended to read:

SB30,569,3 71.80 (2) Notice to taxpayer by department. The department shall notify each taxpayer by mail of the amount of income or franchise taxes assessed against the taxpayer and of the date when the taxes become delinquent.

SB30,1147 Section 1147 . 71.80 (12) (a) 2. of the statutes is amended to read:

SB30,569,8 71.80 (12) (a) 2. A signification of the nonresident's agreement that any notice, order, pleading, or process described in subd. 1. that is so served shall be of the same legal force and validity as if served on the nonresident personally, or on the nonresident's personal representative.

SB30,1148 Section 1148 . 71.80 (12) (b) 2. of the statutes is amended to read:

SB30,569,13 71.80 (12) (b) 2. A signification of that person's agreement that any notice, order, pleading, or process described in subd. 1. that is so served shall be of the same legal force and validity as if served on that person personally, or upon that person's personal representative.

SB30,1149 Section 1149 . 71.80 (12) (c) 2. a. of the statutes is amended to read:

SB30,569,18 71.80 (12) (c) 2. a. Within 10 days of completion of service, notice of the service and a copy of the served notice, order, pleading, or process are sent by mail by the state department, officer, or agency making the service to the person, or that person's personal representative, at that person's last-known address.

SB30,1150 Section 1150 . 71.80 (16) (b) of the statutes is amended to read:

SB30,570,13 71.80 (16) (b) A construction contractor required to file a surety bond under par. (a) may, in lieu of such requirement, but subject to approval by the department, deposit with the secretary of administration an amount of cash equal to the face of the bond that would otherwise be required. If an offer to deposit is made, the department shall issue a certificate to the secretary of administration authorizing said secretary to accept payment of such moneys and to give his or her receipt therefor. A copy of such certificate shall be mailed sent to the contractor who shall, within the time fixed by the department, pay such amount to the secretary of administration. A copy of the receipt of the secretary of administration shall be filed with the department. Upon final determination by the department of such contractor's liability for state income or franchise taxes, required unemployment insurance contributions, sales and use taxes, and income taxes withheld from wages of employees, interest and penalties, by reason of such contract or contracts, the department shall certify to the secretary of administration the amount of taxes, penalties, and interest as finally determined, shall instruct the secretary of administration as to the proper distribution of such amount, and shall state the amount, if any, to be refunded to such contractor. The secretary of administration shall make the payments directed by such certificate within 30 days after receipt thereof. Amounts refunded to the contractor shall be without interest.

SB30,1151 Section 1151 . 71.80 (20) of the statutes is amended to read:

SB30,570,18 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.

SB30,1152 Section 1152 . 71.80 (25) of the statutes is created to read: