SB89: Bill Text

SB89,5,12 71.05 (26) (a) 2m. “Investment” means amounts paid to acquire stock or other ownership interest in a partnership, corporation, tax-option corporation, or limited liability company treated as a partnership or corporation.

SB89,5 Section 5. 71.255 (2) (c) of the statutes is renumbered 71.255 (2) (c) 1. and amended to read:

SB89,5,20 71.255 (2) (c) 1. Except as provided in par. (d), if 80 percent or more of a corporation's worldwide income is active foreign business income, as defined in section 861 (c) (1) (B) of the Internal Revenue Code, the income and apportionment factor or factors of the corporation shall not be included in the combined report, but the corporation shall compute and allocate or apportion its income from the unitary business separately.

SB89,6 Section 6. 71.255 (2) (c) 2. of the statutes is created to read:

SB89,6,2 71.255 (2) (c) 2. For purposes of subd. 1., “active foreign business income” means gross income derived from sources outside the United States, as determined in subchapter N of the Internal Revenue Code, including income of a subsidiary corporation, and attributable to the active conduct of a trade or business in a foreign country or in a U.S. possession.

SB89,7 Section 7. 71.255 (2) (c) 3. of the statutes is created to read:

SB89,6,7 71.255 (2) (c) 3. For purposes of subd. 2., a corporation is considered a subsidiary if the parent corporation owns, directly or indirectly, stock with at least 50 percent of the total voting power of the corporation and the stock has a value equal to at least 50 percent of the total value of the stock of the corporation.

SB89,8 Section 8. 71.255 (7) (b) 7. of the statutes is amended to read:

SB89,6,14 71.255 (7) (b) 7. Executing waivers, closing agreements, powers of attorney, and other documents as necessary or required regarding the combined report filed under sub. (2) (a). Any waiver, agreement, power of attorney, or document executed by the designated agent relating to a combined report shall be considered as executed by all members of the combined group, including any corporation not included in the combined report that the department asserts is a member of the combined group.

SB89,9 Section 9. 71.34 (1k) (h) of the statutes is renumbered 71.34 (1k) (h) (intro.) and amended to read:

SB89,6,18 71.34 (1k) (h) (intro.) Section 162 of the internal revenue code Internal Revenue Code (relating to trade or business expenses) is modified so as follows:

SB89,6,21 3. So that payments for wages, salaries, bonuses, interest or other expenses paid to an entertainer or entertainment corporation may be deducted only if the corporation complies with ss. 71.63 (3) (b), 71.64 (4) and (5), and 71.80 (15) (e).

SB89,10 Section 10. 71.34 (1k) (h) 1. of the statutes is created to read:

SB89,7,2 71.34 (1k) (h) 1. So that payments for wages, salaries, commissions, and bonuses of employees and officers may be deducted only if the name, address, and amount paid to each resident of this state to whom compensation of $600 or more has been paid during the taxable year is reported or if the department of revenue is satisfied that failure to report has resulted in no revenue loss to this state.

SB89,11 Section 11. 71.34 (1k) (h) 2. of the statutes is created to read:

SB89,7,6 71.34 (1k) (h) 2. So that payments for rent may be deducted only if the amount paid, together with the names and addresses of the parties to whom rent has been paid, is reported as provided under s. 71.70 (2).

SB89,12 Section 12. 74.41 (2) (intro.) of the statutes is amended to read:

SB89,7,9 74.41 (2) Amount required for submission. (intro.) A tax may be included on a form submitted under sub. (1) only if one all of the following applies apply:

SB89,13 Section 13. 74.41 (2) (a) of the statutes is repealed.

SB89,14 Section 14. 74.41 (2) (b) of the statutes is amended to read:

SB89,7,13 74.41 (2) (b) The tax under sub. (1) for any single description of property in the tax roll for any one year is $500 $250 or more.

SB89,15 Section 15. 74.41 (2) (bm) of the statutes is created to read:

SB89,7,19 74.41 (2) (bm) The tax under sub. (1) was refunded or rescinded for any of the 5 assessment years immediately preceding the year in which the form under sub. (1) is submitted or refunded or rescinded because of a court determination and submitted under sub. (1) no later than one year after the date of the court's determination.

SB89,16 Section 16. 77.51 (5) of the statutes is amended to read:

SB89,8,7 77.51 (5) For purposes of subs. (13) (e) and (f) and (15a) and s. 77.52 (2m), “incidental" means depending upon or appertaining to something else as primary; something necessary, appertaining to, or depending upon another which is termed the principal; or something incidental to the main purpose of the service. Tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) transferred by a service provider in conjunction with the sale of a service is incidental to the service if the purchaser's main purpose or objective is to obtain the service rather than the property, items, or goods, even though the property, items, or goods may be necessary or essential to providing the service. Tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) transferred by a service provider in conjunction with the sale of a service is not incidental to the service if the service provider charges a separate and optional fee for the property, items, or goods.

SB89,17 Section 17. 77.51 (11d) of the statutes is amended to read:

SB89,8,12 77.51 (11d) For purposes of subs. (1ag), (1f), (3pf), and (9p), and (17g) and ss. 77.52 (4), (20), and (21), 77.522, and 77.54 (51), (52), and (60), “product" includes tangible personal property, and items, property, and goods under s. 77.52 (1) (b), (c), and (d), and services.

SB89,18 Section 18. 77.51 (13) (fm) of the statutes is created to read:

SB89,8,15 77.51 (13) (fm) A person selling, performing, or furnishing any service under s. 77.52 (2) (a) 5. or 12. to a service provider described in s. 77.52 (2m) (am).

SB89,19 Section 19. 77.51 (17g) of the statutes is created to read:

SB89,8,18 77.51 (17g) “Separate and optional fee” means a fee charged to receive a distinct and identifiable product, if any of the following applies:

SB89,8,23 (a) The fee is in addition to fees that the seller charges for other distinct and identifiable products sold to the same buyer, the fee is separately set forth on the invoice given by the seller to the buyer, and the seller does not require the buyer to pay the fee if the buyer chooses not to receive the additional distinct and identifiable product for which the fee applies.

SB89,9,5 (b) The seller charges a single amount for multiple distinct and identifiable products and offers the buyer the option of paying a lower amount if the buyer chooses not to receive one or more of the distinct and identifiable products. For purposes of this paragraph, the separate and optional fee is the single amount the seller charges for the multiple distinct and identifiable products less the reduced amount the seller charges to the buyer because the buyer chooses not to receive one or more of the products.

SB89,20 Section 20. 77.52 (2m) (am) of the statutes is created to read:

SB89,9,10 77.52 (2m) (am) A person selling, performing, or furnishing any service in sub. (2) (a) 1., regardless of whether the selling, performing, or furnishing of the service is a retail sale, is the consumer of any services under sub. (2) (a) 5. or 12. purchased by the person for the person's use or for the use of the person's customers.

SB89,21 Section 21. 77.52 (4) of the statutes is created to read:

SB89,9,14 77.52 (4) If a seller charges a separate and optional fee for a product, the fee is a separate sale and the tax treatment is determined independently from fees that the seller charges for other products.

SB89,22 Section 22. 77.54 (30) (a) 6. of the statutes is amended to read:

SB89,9,18 77.54 (30) (a) 6. Fuel and electricity consumed directly in manufacturing tangible personal property, or items or property under s. 77.52 (1) (b) or (c), in this state.

SB89,23 Section 23. 77.54 (30) (g) of the statutes is created to read:

SB89,9,25 77.54 (30) (g) For purposes of par. (a) 6., fuel and electricity “consumed directly in manufacturing” means only fuel and electricity used to operate machines and equipment used directly in the step-by-step manufacturing process. For purposes of par. (a) 6., fuel and electricity are not “consumed directly in manufacturing” if they are used in providing plant heating or cooling, air conditioning, communications, lighting, safety and fire prevention, research and product development, receiving, storage, sales, distribution, warehousing, shipping, advertising, or administrative activities. For purposes of par. (a) 6., fuel and electricity used directly in manufacturing steam that is used by the manufacturer in further manufacturing or to heat a facility, or both, is consumed directly in manufacturing.

SB89,24 Section 24. 77.54 (64) of the statutes is created to read:

SB89,10,8 77.54 (64) The sales price from the sale of and the storage, use, or other consumption of patient health care records that are sold to the patient or to a person that the patient authorizes to receive the records.

SB89,25 Section 25. 77.70 of the statutes is amended to read:

SB89,10,25 77.70 Adoption by county ordinance. Any county desiring to impose county sales and use taxes under this subchapter may do so by the adoption of an ordinance, stating its purpose and referring to this subchapter. The rate of the tax imposed under this section is 0.5 percent of the sales price or purchase price. The county sales and use taxes may be imposed only for the purpose of directly reducing the property tax levy and only in their entirety as provided in this subchapter. That ordinance shall be effective on the first day of January, the first day of April, the first day of July or the first day of October. A certified copy of that ordinance shall be delivered to the secretary of revenue at least 120 days prior to its effective date. The repeal of any such ordinance shall be effective on December 31. A certified copy of a repeal ordinance shall be delivered to the secretary of revenue at least 120 days before the effective date of the repeal. Except as provided under s. 77.60 (9), the department of revenue may not issue any assessment nor act on any claim for a refund or any claim for an adjustment under s. 77.585 after the end of the calendar year that is 4 years after the year in which the county has enacted a repeal ordinance under this section.

SB89,26 Section 26. 77.76 (3) of the statutes is amended to read:

SB89,11,24 77.76 (3) From the appropriation under s. 20.835 (4) (g) the department of revenue shall distribute 98.25 percent of the county taxes reported for each enacting county, minus the county portion of the retailers' discounts, to the county and shall indicate the taxes reported by each taxpayer, no later than 75 days following the last day of the calendar quarter in which such amounts were reported. In this subsection, the “county portion of the retailers' discount" is the amount determined by multiplying the total retailers' discount by a fraction the numerator of which is the gross county sales and use taxes payable and the denominator of which is the sum of the gross state and county sales and use taxes payable. The county taxes distributed shall be increased or decreased to reflect subsequent refunds, audit adjustments, and all other adjustments of the county taxes previously distributed. Interest paid on refunds of county sales and use taxes shall be paid from the appropriation under s. 20.835 (4) (g) at the rate paid by this state under s. 77.60 (1) (a). The county may retain the amount it receives or it may distribute all or a portion of the amount it receives to the towns, villages, cities, and school districts in the county. After receiving notice from the department of revenue, a county shall reimburse the department for the amount by which any refunds, including interest, of the county's sales and use taxes that the department pays or allows in a reporting period exceeds the amount of the county's sales and use taxes otherwise payable to the county under this subsection for the same or subsequent reporting period. Any county receiving a report under this subsection is subject to the duties of confidentiality to which the department of revenue is subject under s. 77.61 (5) and (6).

SB89,27 Section 27. 77.82 (8) of the statutes is amended to read:

SB89,12,8 77.82 (8) Order. If an application under sub. (2), (4m), or (12) is approved, the department shall issue an order designating the land as managed forest land for the time period specified in the application. If an application under sub. (4) is approved, the department shall amend the original order to include the additional parcel. The department shall provide the applicant with a copy of the order or amended order and shall also file a copy with the department of revenue, the supervisor of assessments, and the clerk of each municipality in which the land is located, and shall record the order with the register of deeds in each county in which the land is located.

SB89,28 Section 28. 77.98 (3) of the statutes is amended to read:

SB89,12,15 77.98 (3) Except as provided in sub. (4), for For purposes of sub. (1) (a), “premises" shall be broadly construed and shall include the lobby, aisles, and auditorium of a theater or the seating, aisles, and parking area of an arena, a rink, or a stadium, or the parking area of a drive-in or an outdoor theater. The premises of a caterer with respect to catered meals or beverages shall be the place where served.

SB89,29 Section 29. 77.98 (4) (a) of the statutes is amended to read:

SB89,13,2 77.98 (4) (a) Except as provided in par. (b), the tax imposed under this section shall not be imposed on the sale of alcoholic beverages, candy, prepared food, or soft drinks sold by a person primarily engaged, as determined by the department, in the retail trade as a food and beverage store, as classified under sector 44-45, subsector 445, of the North American Industry Classification System, 1997 2017 edition, published by the U.S. office of management and budget, beginning on the first day of the calendar quarter that is at least 120 days after the date on which the bonds issued by the district under subch. II of ch. 229 during the first 60 months after April 26, 1994, and any debt issued to fund or refund those bonds, are retired. The district shall notify the department of revenue, in the manner prescribed by the department, when such bonds and debt are retired.

SB89,30 Section 30. 125.02 (18) of the statutes is renumbered 125.02 (18) (intro.) and amended to read:

SB89,13,11 125.02 (18) (intro.) “Restaurant" means a restaurant, as defined in s. 97.01 (14g). any building, room, or place where meals are prepared or served or sold to transients or the general public, including all places used in connection with it and including any public or private school lunchroom for which food service is provided by contract. For purposes of this subsection, “meals" does not include soft drinks, ice cream, milk, milk drinks, ices, and confections. “Restaurant" does not include any of the following:

SB89,31 Section 31. 125.02 (18) (a) to (h) of the statutes are created to read:

SB89,13,14 125.02 (18) (a) Taverns that serve free lunches consisting of popcorn, cheese, crackers, pretzels, cold sausage, cured fish, or bread and butter.

SB89,13,17 (b) Churches, religious, fraternal, youths' or patriotic organizations, service clubs and civic organizations which occasionally prepare, serve, or sell meals to transients or the general public.

SB89,13,20 (c) Any public or private school lunchroom for which food service is directly provided by the school, or a private individual selling foods from a movable or temporary stand at public farm sales.

SB89,13,22 (d) Any bed and breakfast establishment, as defined in s. 97.01 (1g), that serves breakfasts only to its lodgers.

SB89,13,24 (e) The serving of food or beverage through a licensed vending machine, as defined in s. 97.01 (15p).

SB89,14,4 (f) Any college campus, as defined in s. 36.05 (6m), institution as defined in s. 36.51 (1) (b), or technical college that serves meals only to the students enrolled in the college campus, institution, or technical college or to authorized elderly persons under s. 36.51 or 38.36.

SB89,14,6 (g) A concession stand at a locally sponsored sporting event, such as a little league game.

SB89,14,7 (h) A potluck event, as defined in s. 97.01 (13g).

SB89,32 Section 32. 125.29 (6) of the statutes is amended to read:

SB89,14,16 125.29 (6) Restaurants. A brewer may operate a restaurant on the brewery premises and at an off-site retail outlet established by the brewer. A brewer may not hold a license under s. 97.30 for a restaurant for the operation of operate a restaurant at any other location except that a brewer may possess or hold an indirect interest in a Class “B" license for not more than 20 restaurants in each of which the sale of alcohol beverages accounts for less than 60 percent of the restaurant's gross receipts if no fermented malt beverages manufactured by the brewer are offered for sale in any of these restaurants.

SB89,33 Section 33. 139.11 (4) (a) of the statutes is renumbered 139.11 (4) (a) (intro.) and amended to read:

SB89,14,24 139.11 (4) (a) (intro.) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating to confidentiality of income and franchise tax returns, apply to any information obtained from any person on a fermented malt beverage tax return, report, schedule, exhibit, or other document or from an audit report relating to any of those documents, except that the department of revenue shall publish brewery the following:

SB89,14,25 1. Brewery production and sales statistics.

SB89,34 Section 34. 139.11 (4) (a) 2. of the statutes is created to read:

SB89,15,7 139.11 (4) (a) 2. A current list, available on paper and on the department's Internet site, providing detailed information regarding every person issued a wholesalers permit under s. 125.28, brewers permit under s. 125.29, brewpub permit under s. 125.295, or out-of-state shippers permit under s. 125.30. The information provided under this subdivision shall include the name and address of the permit holder and the date on which the department issued the permit.

SB89,35 Section 35. 139.38 (6) of the statutes is amended to read:

SB89,15,16 139.38 (6) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating to confidentiality of income and franchise tax returns, apply to any information obtained from any person on a cigarette tax return, report, schedule, exhibit, or other document or from an audit report pertaining to the same return, report, schedule, exhibit, or document, except that the department shall publish on its Internet site, at least quarterly, a current list of permits issued to distributors and jobbers under s. 139.34 and include on the list the name and address of the permit holder and the date on which the department issued the permit.

SB89,36 Section 36. 139.82 (6) of the statutes is amended to read:

SB89,16,2 139.82 (6) Sections 71.78 (1), (1m), and (4) to (9) and 71.83 (2) (a) 3. and 3m., relating to confidentiality of income and franchise tax returns, apply to any information obtained from any person on a tobacco product tax return, report, schedule, exhibit, or other document or from an audit report pertaining to the same return, report, schedule, exhibit, or document, except that the department shall publish on its Internet site, at least quarterly, a current list of permits issued to distributors and subjobbers under s. 139.79 and include on the list the name and address of the permit holder and the date on which the department issued the permit.

SB89,37 Section 37. 177.24 (3) (a) of the statutes is amended to read:

SB89,16,14 177.24 (3) (a) Except as provided in par. pars. (b) and (c), if a claim is allowed, the administrator shall deliver the property to the claimant or pay the claimant the amount the administrator actually received or the net proceeds of the sale of the property, together with any additional amount required under s. 177.21. If the property claimed was interest bearing to the owner on the date of surrender by the holder, the administrator shall pay interest at a rate of 6 percent per year or any lesser rate the property earned while in the possession of the holder. Interest begins to accrue when the property is delivered to the administrator and ceases on the earlier of the expiration of 10 years after delivery or the date on which payment is made to the owner. No interest on interest-bearing property is payable for any period before December 31, 1984.

SB89,38 Section 38. 177.24 (3) (c) of the statutes is created to read:

SB89,16,17 177.24 (3) (c) The administrator shall not pay interest under par. (a) on claimed property that is a U.S. savings bond.

SB89,39 Section 39. 196.025 (6) (b) 1. of the statutes is amended to read:

SB89,17,9 196.025 (6) (b) 1. Except as provided in subd. 2., a communications provider shall impose collect from each subscriber a monthly fee of $0.75 on each communications service connection with an assigned telephone number, including a communication service provided via a voice over Internet protocol connection. If a communications provider provides multiple communications service connections to a subscriber, the fee required to be collected by the communications provider under this subdivision shall impose be a separate fee under this subdivision on each of the first 10 connections and one additional fee for each 10 additional connections per billed account. A communications provider may list the fee separately from other charges on a subscriber's bill, and if a communications provider does so, the communications provider shall identify the fee as “police and fire protection fee," or, if the communications provider combines the fee with a charge imposed under s. 256.35 (3), the communications provider shall identify the combined fee and charge as “charge for funding countywide 911 systems plus police and fire protection fee." Any partial payment of a fee by a subscriber shall first be applied to any amount the subscriber owes the communications provider for communications service.

SB89,40 Section 40. 196.025 (6) (b) 2. of the statutes is amended to read:

SB89,17,18 196.025 (6) (b) 2. A communications provider that offers a prepaid wireless telecommunications plan, or a retailer that offers such a plan on behalf of a communications provider, shall impose collect from each subscriber or purchaser a fee equal to $0.38 on each retail transaction for such a plan that occurs in this state. A communications provider or retailer may state the amount of the fee separately on a bill for the retail transaction, and if a communications provider or retailer does so, the communications provider or retailer shall identify the fee as “police and fire protection fee."

SB89,41 Section 41. 196.025 (6) (c) 2. of the statutes is amended to read:

SB89,17,25 196.025 (6) (c) 2. The commission may contract with the department for the collection of fees imposed under par. (b) 2. If the commission and department enter into such a contract, no later than the first calendar month following the calendar month in which a communications provider or retailer receives from a subscriber a fee imposed under par. (b) 2., the communications provider or retailer shall remit the fee to the department.

SB89,42 Section 42. 196.025 (6) (cm) of the statutes is created to read:

SB89,18,3 196.025 (6) (cm) If the commission contracts with the department to collect fees as provided under par. (c) 2., all of the following apply:

SB89,18,7 1. The department may require communications providers and retailers to register with the department, file returns with the department, and pay the fees required under this section to the department in the manner and form prescribed by the department, subject to par. (c) 2.

SB89,18,10 2. a. The department may determine compliance with this section using a field or office audit. Sections 77.59 (1) to (5m), (8), and (8m) and 77.62, as they apply to taxes under subch. III of ch. 77, apply to fees required under this section.