27,3405r
Section 3405r. 71.45 (1t) of the statutes is created to read:
71.45 (1t) Exemption from the income tax. The interest and income from the following obligations are exempt from the tax imposed under s. 71.43 (1):
(a) Those issued under s. 66.39.
(b) Those issued under s. 66.40.
(c) Those issued under s. 66.431.
(d) Those issued under s. 66.4325.
(e) Those issued under s. 234.65 to fund an economic development loan to finance construction, renovation or development of property that would be exempt under s. 70.11 (36).
(f) Those issued under subch. II of ch. 229.
27,3406
Section 3406
. 71.45 (2) (a) (intro.) of the statutes is amended to read:
71.45 (2) (a) (intro.) Insurers subject to taxation under this chapter shall pay a tax according to or measured by net income. Such tax is payable under s. 71.44 (1). “Net Except as provided in sub. (5), “net income" of an insurer subject to taxation under this chapter means federal taxable income as determined in accordance with the provisions of the internal revenue code adjusted as follows:
27,3406m
Section 3406m. 71.45 (2) (a) 3. of the statutes is amended to read:
71.45 (2) (a) 3. For insurers subject to taxation under s. 71.43 (1), by adding to federal taxable income the amount of any interest income, except interest under sub. (1t), that is not included in federal taxable income except the amount of any interest income which is by federal law exempt from taxation by this state and, for insurers subject to taxation under s. 71.43 (2), by adding to federal taxable income the amount of any interest income which is not included in federal taxable income.
27,3406r
Section 3406r. 71.45 (2) (a) 10. of the statutes is amended to read:
71.45 (2) (a) 10. By adding to federal taxable income the amount of credit computed under s. 71.47 (1di)
(1dd) to (1ds) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, limited liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and the amount of credit computed under s. 71.47 (1), (3), (4) and (5).
27,3406v
Section 3406v. 71.45 (2) (a) 13. of the statutes is amended to read:
71.45 (2) (a) 13. By adding or subtracting, as appropriate, the difference between the depreciation deduction under the federal internal revenue code as amended to December 31, 1993 1994, and the depreciation deduction under the federal internal revenue code in effect for the taxable year for which the return is filed, so as to reflect the fact that the insurer may choose between these 2 deductions, except that property first placed in service by the taxpayer on or after January 1, 1983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, and property first placed in service in taxable year 1981 or thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985 stats., is required to be depreciated under the internal revenue code as amended to December 31, 1980, shall continue to be depreciated under the internal revenue code as amended to December 31, 1980.
27,3407
Section 3407
. 71.45 (5) of the statutes is created to read:
71.45 (5) Exceptions. The net income of a cooperative sickness care association organized under s. 185.981, or of a service insurance corporation organized under ch. 613, that is derived from a health maintenance organization, as defined in s. 609.01 (2), or a limited service health organization, as defined in s. 609.01 (3), is the net income that would be determined if the cooperative sickness care association or service insurance corporation were subject to federal income taxation and as if that income were that of an insurance company.
27,3407m
Section 3407m. 71.47 (1dd) of the statutes is created to read:
71.47 (1dd) Development zones day care credit. (a) In this subsection:
1. “Day care center benefits" means benefits provided at a day care facility that is licensed under s. 48.65 or 48.69 and that for compensation provides care for at least 6 children.
2. “Employment-related day care expenses" means amounts paid or incurred by a claimant for providing or making day care center benefits available to a qualifying individual in order to enable a member of a targeted group to be employed by the claimant.
4. “Member of a targeted group" means a person under sub. (1dj) (am) 1.
5. “Qualifying individual" means a dependent of a member of a targeted group who is employed by a claimant and with respect to whom the member is entitled to a deduction under section 151 (c) of the internal revenue code for federal income tax purposes, a dependent of a member of a targeted group who is employed by a claimant if the dependent is physically or mentally incapable of caring for himself or herself or the spouse of a member of a targeted group who is employed by the claimant if the spouse is physically or mentally incapable of caring for himself or herself.
(b) Except as provided in s. 73.03 (35), for any taxable year for which that person is certified under s. 560.765 (3) and begins business operations in a zone under s. 560.71 after the effective date of this paragraph .... [revisor inserts date], or certified under s. 560.797 (4) (a), for each zone for which the person is certified or entitled a person may credit against taxes otherwise due under this subchapter employment-related day care expenses, up to $1,200 for each qualifying individual.
(c) Subsection (1di) (b), (c), (d) 1., (f) and (g), as it applies to the credit under sub. (1di), applies to the credit under this subsection.
(d) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.
(dm) No credit may be allowed under this subsection unless the claimant includes with the claimant's return a statement from the department of development verifying the amount of qualifying employment-related day care expenses.
(e) The credit under this subsection, as it applies to a person certified under s. 560.765 (3), applies to a person who conducts economic activity in a zone under s. 560.795 (1) and who is entitled to tax benefits under s. 560.795 (3), subject to the limits under s. 560.795 (2). A credit under this subsection may be credited using expenses incurred by a claimant on the effective date of this paragraph .... [revisor inserts date].
27,3407r
Section 3407r. 71.47 (1de) of the statutes is created to read:
71.47 (1de) Development zones environmental remediation credit. (a) Except as provided in s. 73.03 (35), for any taxable year for which a person is certified under s. 560.765 (3) and begins business operations in a zone under s. 560.71 after the effective date of this paragraph .... [revisor inserts date], or certified under s. 560.797 (4) (a), for each zone for which the person is certified or entitled the person may claim as a credit against taxes otherwise due under this subchapter an amount equal to 7.5% of the amount that the person expends to remove or contain environmental pollution, as defined in s. 144.01 (3), in the zone or to restore soil or groundwater that is affected by environmental pollution, as defined in s. 144.01 (3), in the zone if the person fulfills all of the following requirements:
1. Begins the work, other than planning and investigating, for which the credit is claimed after the area that includes the site where the work is done is designated a development zone under s. 560.71
, a development opportunity zone under s. 560.795 or an enterprise development zone under s. 560.797 and after the claimant is certified under s. 560.765 (3)
, entitled under s. 560.795 (3) (a) or certified under s. 560.797 (4) (a).
(b) Subsection (1di) (b), (c), (d), (f) and (g), as it applies to the credit under s. 71.07 (2di), applies to the credit under this subsection.
(c) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.
(d) The credit under this subsection, as it applies to a person certified under s. 560.765 (3), applies to a person who conducts economic activity in a zone under s. 560.795 (1) and who is entitled to tax benefits under s. 560.795 (3), subject to the limits under s. 560.795 (2). A credit under this subsection may be credited using expenses incurred by a claimant on the effective date of this paragraph .... [revisor inserts date].
27,3408g
Section 3408g. 71.47 (1dj) (d) of the statutes is amended to read:
71.47 (1dj) (d) If the allowable amount of the credit under par. (am) exceeds the taxes otherwise due under this chapter on or measured by the claimant's income, the amount of the credit not used as an offset against those taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft unless the claimant does not fulfill the requirements under sub. (1di) (b) 2. and bases the claim on activity in a zone under s. 560.797.
27,3410mm
Section 3410mm. 71.47 (1dj) (h) of the statutes is created to read:
71.47 (1dj) (h) For claims based on activity in a zone under s. 560.797, the rules under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.
27,3410r
Section 3410r. 71.47 (1ds) (c) of the statutes is amended to read:
71.47 (1ds) (c) If the allowable amount of the credit under par. (b) exceeds the taxes otherwise due under this chapter on or measured by the claimant's income, the amount of the credit not used as an offset against those taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft unless the claimant does not fulfill the requirements under sub. (1di) (b) 2. and bases the claim on activity in a zone under s. 560.797.
27,3411mm
Section 3411mm. 71.47 (1ds) (h) of the statutes is created to read:
71.47 (1ds) (h) For claims based on activity in a zone under s. 560.797, the rules under sub. (1di) (b) and (c) as they apply to the credit under that subsection apply to the credit under this subsection.
27,3412m
Section 3412m. 71.47 (6) (a) of the statutes is amended to read:
71.47 (6) (a) Any person may credit against taxes otherwise due under this chapter, up to the amount of those taxes, an amount equal to 5% of the costs of qualified rehabilitation expenditures, as defined in section 48 (g) (2) 47 (c) (2) of the internal revenue code, for certified historic structures on property located in this state if the physical work of construction or destruction in preparation for construction begins after December 31, 1988, and the rehabilitated property is placed in service after June 30, 1989.
27,3412rg
Section 3412rg. 71.49 (1) (eb), (ec), (en) and (eo) of the statutes are created to read:
71.49 (1) (eb) Development zones jobs credit under s. 71.47 (1dj) if the credit is based on activity in a zone under s. 560.797.
(ec) Development zones sales tax credit under s. 72.47 (1ds) if the credit is based on activity in a zone under s. 560.797.
(en) Development zones day care credit under s. 71.28 (1dd).
(eo) Development zones environmental remediation credit under s. 71.28 (1de).
27,3412rr
Section 3412rr. 71.49 (1) (f) of the statutes is amended to read:
71.49 (1) (f) The total of farmers' drought property tax credit under s. 71.47 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), development zones sales tax credit under s. 71.47 (1ds) unless the credit is based on activity in a zone under s. 560.797, development zones jobs credit under s. 71.47 (1dj) unless the credit is based on activity in a zone under s. 560.797 and estimated tax payments under s. 71.48.
27,3413
Section 3413
. 71.52 (6) of the statutes is amended to read:
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 and general relief (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.07 (154), 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 compensation, 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-forwards and capital loss carry-forwards 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. 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.
27,3414
Section 3414
. 71.54 (2) (a) (intro.) of the statutes is amended to read:
71.54 (2) (a) (intro.) Property taxes accrued or rent constituting property taxes accrued shall be reduced by one-twelfth for each month or portion of a month for which the claimant received general relief from any municipality or county under s. 59.07 (154) equal to or in excess of $400, or received assistance under s. 49.19, except assistance received:
27,3414m
Section 3414m. 71.55 (1) of the statutes is amended to read:
71.55 (1) Application of credit against any liability. The amount of any claim otherwise payable under this subchapter may be applied by the department of revenue against any amount certified to the department under s. 71.93 or 71.935 or may be credited under s. 71.80 (3) or (3m).
27,3415r
Section 3415r. 71.61 (1) of the statutes is amended to read:
71.61 (1) Department may apply credit against any tax liability. The amount of any claim otherwise payable under this subchapter may be applied by the department against any amount certified to the department under s. 71.93 or 71.935 or may be credited under s. 71.80 (3) or (3m).
27,3417m
Section 3417m. 71.67 (4) (a) of the statutes is amended to read:
71.67 (4) (a) The administrator of the lottery division in the gaming commission department under ch. 565 shall withhold from any lottery prize of $2,000 or more an amount determined by multiplying the amount of the prize by the highest rate applicable to individuals under s. 71.06 (1). The administrator shall deposit the amounts withheld, on a monthly basis, as would an employer depositing under s. 71.65 (3) (a).
27,3419
Section 3419
. 71.67 (6) of the statutes is created to read:
71.67 (6) Withholding registration; fee. Each employer who is required to withhold under this chapter shall obtain a valid certificate under s. 73.03 (50).
27,3419m
Section 3419m. 71.75 (1) of the statutes is amended to read:
71.75 (1) Except as provided in ss. 46.255, 71.77 (5) and (7) (b) and 71.93 and 71.935, the provisions for refunds and credits provided in this section shall be the only method for the filing and review of claims for refund of income and surtaxes, and no person may bring any action or proceeding for the recovery of such taxes other than as provided in this section.
27,3420m
Section 3420m. 71.75 (9) of the statutes is amended to read:
71.75 (9) All refunds under this chapter are subject to attachment under ss. 46.255 and, 71.93 and 71.935.
27,3420x
Section 3420x. 71.78 (4) (L) of the statutes is amended to read:
71.78 (4) (L) The administrator of the lottery division in the gaming commission department for the purpose of withholding lottery winnings under s. 565.30 (5).
27,3422
Section 3422
. 71.78 (4) (n) of the statutes is created to read:
71.78 (4) (n) The state public defender and the department of administration for the purpose of collecting payment ordered under s. 48.275 (2), 757.66, 973.06 (1) (e) or 977.076 (1).
27,3422m
Section 3422m. 71.78 (4) (o) of the statutes is created to read:
71.78 (4) (o) The department of regulation and licensing
or an examining board or affiliated credentialing board attached to the department of regulation and licensing for the purpose of determining under s. 440.08 (2r) whether an applicant for renewal of a credential is liable for any delinquent taxes owed to this state.
27,3423
Section 3423
. 71.78 (5) of the statutes is amended to read:
71.78 (5) Agreement with department. Copies of returns and claims specified in sub. (1) and related schedules, exhibits, writings or audit reports shall not be furnished to the persons listed under sub. (4), except persons under sub. (4) (e) and, (k) , (n) and (o) or under an agreement between the department of revenue and another agency of government.
27,3423g
Section 3423g. 71.78 (9) of the statutes is amended to read:
71.78 (9) (title) Disclosure of debtor address to state agency. The department of revenue may supply the address of a debtor to an agency certifying a debt of that debtor under s. 71.93 or to a municipality or county certifying a debt of a debtor under s. 71.935.
27,3423mn
Section 3423mn. 71.80 (3) of the statutes is amended to read:
71.80 (3) Crediting of overpayments on individual or separate returns. In the case of any overpayment, refundable credit or refund on an individual or separate return, the department of revenue, within the applicable period of limitations, may credit the amount of overpayment, refundable credit or refund including any interest allowed, against any liability in respect to any tax collected by the department, a debt under s. 71.93 or 71.935 or a certification under s. 46.255 on the part of the person who made the overpayment or received the refundable credit or the refund and shall refund any balance to the person. The department shall presume that the overpayment, refundable credit or refund is nonmarital property of the filer. Within 2 years after the crediting, the spouse or former spouse of the person filing the return may file a claim for a refund of amounts credited by the department if the spouse or former spouse shows by clear and convincing evidence that all or part of the state tax overpayment, refundable credit or refund was nonmarital property of the nonobligated spouse.
27,3423s
Section 3423s. 71.80 (3m) (a) of the statutes is amended to read:
71.80 (3m) (a) Against any liability of either spouse or both spouses in respect to an amount owed the department, a certification under s. 46.255 that is subject to s. 766.55 (2) (b) or a debt under s. 71.93 or 71.935 that is subject to s. 766.55 (2) (b) and that was incurred during marriage by a spouse after December 31, 1985, or after both spouses are domiciled in this state, whichever is later, except as provided in s. 71.10 (6) (a) and (b) and (6m).
27,3423t
Section 3423t. 71.80 (3m) (b) 2. of the statutes is amended to read:
71.80 (3m) (b) 2. In respect to a debt under s. 71.93 or 71.935 or a certification under s. 46.255 if that debt or certification is not subject to s. 766.55 (2) (b).
27,3424b
Section 3424b. 71.80 (12) of the statutes is amended to read:
71.80 (12) (title) Secretary of state Department deemed lawful attorney for nonresident. (a) The transaction of business or the performance of personal services in this state or the derivation of income from property the income from which has a taxable situs in this state by any nonresident person, except where the nonresident is a foreign corporation that has been licensed pursuant to ch. 180, shall be deemed an irrevocable appointment by such person, binding upon that person, that person's executor, administrator or personal representative, of the secretary of state department of financial institutions to be that person's lawful attorney upon whom may be served any notice, order, pleading or process (including without limitation by enumeration any notice of assessment, denial of application for abatement or denial of claim for refund) by any administrative agency or in any proceeding by or before any administrative agency, or in any proceeding or action in any court, to enforce or effect full compliance with or involving the provisions of this chapter. The transaction of business, the performance of personal services or derivation of income from such property in this state shall be a signification of that person's agreement that any such notice, order, pleading or process which is so served shall be of the same legal force and validity as if served on that person personally, or upon that person's executor, administrator or personal representative.
(b) The transaction of business in this state or the derivation of income which has a situs in this state under the provisions of this chapter by any person while a resident of this state shall be deemed an irrevocable appointment by such person, binding upon that person, that person's executor, administrator or personal representative, effective upon such person becoming a nonresident of this state, of the secretary of state department of financial institutions to be that person's true and lawful attorney upon whom may be served any notice, order, pleading or process (including without limitation by enumeration any notice of assessment, denial of application for abatement or denial of claim for refund) by any administrative agency or in any proceeding by or before an administrative agency, or in any proceeding or action in any court, to enforce or effect full compliance with or involving the provisions of this chapter. And the transaction of such business or the derivation of such income shall be a signification of that person's agreement that any such notice, order, pleading or process which is so served shall be of the same legal force and validity as if served on that person personally, or upon that person's executor, administrator or personal representative.
(c) Service under par. (a) or (b) shall be made by serving a copy upon the secretary of state department of financial institutions or by filing such copy in the secretary of state's office with the department of financial institutions, and such service shall be sufficient service upon such person, or that person's executor, administrator or personal representative if notice of such service and a copy of the notice, order, pleading or process are within 10 days thereafter sent by mail by the state department, officer or agency making such service to such person, or that person's executor, administrator or personal representative, at that person's last-known address, and that an affidavit of compliance herewith is filed with the secretary of state department of financial institutions. The secretary of state department of financial institutions shall keep a record of all such notices, orders, pleadings, processes and affidavits and shall note in such record the day and hour of service upon the secretary department.
27,3424dm
Section 3424dm. 71.88 (1) (a) of the statutes is amended to read:
