1995 Wisconsin Act 27

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:

71.88 (1) (a) Contested assessments and claims for refund. Except for refunds set off under s. 71.93 in respect to which appeal is to the agency to which the debt is owed, except for refunds set off under s. 71.935 in respect to which an appeal is held under procedures that the department of revenue establishes and except for refunds set off under s. 46.255 in respect to which a hearing is held before the circuit court, any person feeling aggrieved by a notice of additional assessment, refund, or notice of denial of refund may, within 60 days after receipt of the notice, petition the department of revenue for redetermination. A petition or an appeal by one spouse is a petition or an appeal by both spouses. The department shall make a redetermination on the petition within 6 months after it is filed.

27,3424g Section 3424g. 71.91 (5) (a) of the statutes is renumbered 71.91 (5) (ar) and amended to read:

71.91 (5) (ar) If any income or franchise tax is not paid when due, the department of revenue shall issue file a warrant with the clerk of circuit court and may issue a copy of the warrant to the sheriff of any county of the state commanding the sheriff to levy upon and sell enough of the taxpayer's real and personal property found within the county to pay the tax with the penalties, interest and costs, and to proceed upon the property in the same manner as upon an execution against property issued out of a court of record, and to return the warrant to the department and pay to it the money collected, or the part of it that is necessary to pay the tax, penalties, interest and costs within 60 days after the receipt of the warrant, and deliver the balance, if any, after deduction of lawful charges, to the taxpayer.

27,3424m Section 3424m. 71.91 (5) (ag) of the statutes is created to read:

71.91 (5) (ag) In this subsection:

1. “File" means mail, deliver or submit electronically.

27,3424r Section 3424r. 71.91 (5) (b) of the7 statutes is amended to read:

71.91 (5) (b) The sheriff shall, within 5 days after the receipt of the warrant, file with the clerk of the circuit court of his or her county a copy of the warrant, unless the taxpayer makes satisfactory arrangements for payment with the department, in which case, the sheriff shall, at the direction of the department, return the warrant to it. The clerk shall docket the warrant under par. (ar) as required by s. 806.11, and upon docketing the amount of the warrant, together with interest required by s. 71.82 (2), shall be considered in all respects as a final judgment. The clerk of circuit court shall accept, file and docket the warrant without prepayment of any fee, but the clerk shall submit a statement of the proper fee semiannually to the department covering the periods from January 1 to June 30 and July 1 to December 31. The fees shall then be paid by the state as provided by par. (h), but the fees provided by s. 814.61 (5) for filing and docketing the warrants shall be added to the amount of the warrant and collected from the taxpayer when satisfaction or release is presented for entry. The sheriff shall be entitled to the same fees for executing upon such warrant as upon an execution against property issued out of a court of record, to be collected in the same manner. Upon the sale of any real estate the sheriff shall execute a deed of the same, and the taxpayer shall have the right to redeem the real estate as from a sale under an execution against property upon a judgment of a court of record.

27,3427 Section 3427 . 71.93 (1) (a) 3. of the statutes is amended to read:

71.93 (1) (a) 3. An amount that the department of health and social services may recover under s. 49.083, 49.125, 49.195 (3) or 49.497, if the department of health and social services has certified the amount under s. 46.254.

27,3428 Section 3428 . 71.93 (1) (a) 3. of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

71.93 (1) (a) 3. An amount that the department of health and social services may recover under s. 49.125, 49.195 (3) or 49.497, if the department of health and social services has certified the amount under s. 46.254 49.85.

27,3429 Section 3429 . 71.93 (1) (a) 4. of the statutes is created to read:

71.93 (1) (a) 4. An amount that the department of industry, labor and human relations may recover under s. 49.125 or 49.195 (3), if the department of industry, labor and human relations has certified the amount under s. 49.85.

27,3429m Section 3429m. 71.935 of the statutes is created to read:

71.935 Setoffs for municipalities and counties. (1) In this section:

(a) “Debt" means an unpaid fine, fee, restitution or forfeiture of at least $20.

(b) “Debtor" means a person who owes a debt to a municipality or county.

(c) “Department" means the department of revenue.

(d) “Refund" has the meaning given under s. 71.93 (1) (d).

(2) A municipality or county may certify to the department any debt owed to it. Not later than 5 days after certification, the municipality or county shall notify the debtor in writing of its certification of the debt to the department, of the basis of the certification and of the debtor's right to appeal. The department shall establish an appeals process. At the time of certification, the municipality or county shall furnish to the department the name and social security number of each individual debtor and the name and federal employer identification number of each other debtor.

(3) If the debt remains uncollected and the debtor does not appeal or loses the appeal, the department shall set off the debt against any refund that is owed to the debtor after the setoff under s. 71.93. Any legal action contesting a setoff shall be brought against the municipality or county.

(4) Within 30 days after the end of each calendar quarter, the department shall settle with each municipality and county for the amounts that the department setoff for the municipality or county during that calendar quarter.

(5) At the time of each settlement, each municipality and county shall be charged for administration expenses, and the amounts charged shall be credited to the appropriation account under s. 20.566 (1) (h). Annually on or before November 1, the department shall review its costs incurred during the previous fiscal year in administering setoffs under this section and shall adjust its subsequent charges to each municipality and county to reflect that experience.

27,3430 Section 3430 . 72.22 (1) and (3) of the statutes are amended to read:

72.22 (1) When payable. The Except as provided in s. 72.225, the tax imposed by this chapter is due and payable on the date 9 months after the decedent's death.

(3) Payment. Payments must be made to the department. Full Except as provided in s. 72.225, full payment shall accompany the estate tax return. If a prepayment was made, any additional tax shown owing on the return, as filed, shall accompany the return.

27,3431 Section 3431 . 72.225 of the statutes is created to read:

72.225 Instalment payments; closely held businesses. (1) If a percentage of the federal tax on an estate may be paid in instalments under section 6166 of the internal revenue code, the same percentage of the taxes under this chapter may be paid under the same instalment schedule if written notice of the election to pay in instalments is given to the department within 9 months after the decedent's death. The provisions on acceleration under section 6166 (g) of the internal revenue code apply to payments under this section. The interest rate on payments is 12% and is calculated from the date of death.

(2) Upon the filing of a notice under sub. (1), distributees of real estate shall provide the department a certified copy of a lien for unpaid taxes and interest on the property to secure payment, and shall record the lien in the office of the register of deeds of the county in which the property is located. Distributees of personal property, upon the filing of a notice under sub. (1), shall either provide a lien or provide the department a financial guarantee bond equal to the estimated tax and interest elected to be paid under sub. (1) to secure payment if the tax has not been determined. Upon determination of the tax, distributees of personal property shall provide a lien or provide a financial guarantee bond sufficient to secure payment of the tax and interest or pay the department the excess over the amount of tax and interest secured by the bond. The department may accept a lien affecting only part of the property if there is sufficient security to secure payment of the tax. Any distributee who fails to provide the security required under this subsection or who disposes of one-third or more of the property on which the tax is secured under this subsection, shall pay the tax in full.

27,3432 Section 3432 . 72.23 of the statutes is amended to read:

72.23 (title) Interest Acceleration and interest. If the tax imposed by this chapter is not paid with 9 months of the decedent's date of death when it is due under s. 72.22, interest is due and payable at the rate of 12% per year from date of death. In computing time under this section, the day of death is excluded. If any payment of tax or interest under s. 72.225 is not paid when due, the unpaid portion of the tax and interest shall be paid upon notice by the department.

27,3434g Section 3434g. 73.03 (2a) of the statutes is amended to read:

73.03 (2a) To prepare, have published and distribute to each county having a county assessor system under s. 70.99 and to each town, city and village in the state for the use of assessors, assessment personnel and the public detailed assessment manuals, except that if an assessor is hired by more than one county, town, city or village the department shall provide that assessor with only one cost component of the manual rather than providing the cost component of the manual to each county, town, city or village that hires that assessor. The manual shall discuss and illustrate accepted assessment methods, techniques and practices with a view to more nearly uniform and more consistent assessments of property at the local level. The manual shall be amended by the department from time to time to reflect advances in the science of assessment, court decisions concerning assessment practices, costs, and statistical and other information deemed valuable to local assessors by the department. The manual shall incorporate standards for the assessment of all types of renewable energy resource systems used in this state as soon as such systems are used in sufficient numbers and sufficient data exists to allow the formulation of valid guidelines. The manual shall incorporate standards, which the department of revenue and the state historical society of Wisconsin shall develop, for the assessment of nonhistoric property in historic districts and for the assessment of historic property, including but not limited to property that is being preserved or restored; property that is subject to a protective easement, covenant or other restriction for historic preservation purposes; property that is listed in the national register of historic places in Wisconsin or in this state's register of historic places and property that is designated as a historic landmark and is subject to restrictions imposed by a municipality or by a landmarks commission. The manual shall incorporate general guidelines about ways to determine whether property is taxable in part under s. 70.11 (8) and examples of the ways that s. 70.11 (8) applies in specific situations. The manual shall state that assessors are required to comply with s. 70.32 (1g) and shall suggest procedures for doing so. The manual or a supplement to it shall specify per acre value guidelines for each municipality for various categories of agricultural land based on the income that could be generated from its actual or estimated rental for agricultural use, as defined by rule, and capitalization rates established by rule. The manual shall include guidelines for classifying land as agricultural land, as defined in s. 70.32 (2) (c) 1. and guidelines for distinguishing between land and improvements to land. The cost of the development, preparation, publication and distribution of the manual and of revisions and amendments to it shall be borne by the assessment districts and requesters at an individual volume cost or a subscription cost as determined by the department. All receipts shall be credited to the appropriation under s. 20.566 (2) (hi). The department shall, on the 4th Monday in August, certify past-due accounts and include them in the next apportionment of state special charges to counties and municipalities under s. 70.60. If the department provides an assessment manual to an assessor who is hired by more than one unit of government, those units of government shall each pay an equal share of the cost of that manual. The department may provide free assessment manuals to other state agencies or exchange them at no cost with agencies of other states or of the federal government for similar information or publications.

27,3437 Section 3437 . 73.03 (28m) of the statutes is created to read:

73.03 (28m) To enter into contracts for database and data processing services for audits of occasional sales of motor vehicles.

27,3438 Section 3438 . 73.03 (33m) of the statutes is amended to read:

73.03 (33m) To collect, as taxes under ch. 71 are collected, from each person who owes to the department of revenue delinquent taxes, fees, interest or penalties, a fee for each delinquent account equal to $25 or 4.5% $35 or 6.5% of the taxes, fees, interest and penalties owed; as of the due date specified in the assessment, notice of amount due or notice of redetermination; on that account, whichever is greater.

27,3438m Section 3438m. 73.03 (35) of the statutes is amended to read:

73.03 (35) To deny a portion of a credit claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL) or (2ds), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds) or (4) (am) or 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds) or (4) (am) if granting the full amount claimed would violate the requirement under s. 560.75 (9) or 560.797 (4) (e) or would bring the total of the credits granted to that claimant under that subsection s. 560.75 (9) or 560.797 (4) (e), or the total of the credits granted to that claimant under all of those subsections, over the limit for that claimant under s. 560.768, 560.795 (2) (b) or 560.797 (5) (b).

27,3439 Section 3439 . 73.03 (46) of the statutes is amended to read:

73.03 (46) In each school year, to determine and certify to the state superintendent of public instruction the rate for determining the primary secondary ceiling cost per member under s. 121.07 (6) (b); and in the 1994-95 school year and annually thereafter to determine and certify to the state superintendent of public instruction the rate for determining minimum aid payments under s. 121.10 (6) (d). The rate for any school year is the average percentage change in the consumer price index for all urban consumers, U.S. city average, for the calendar year ending on the 2nd preceding December 31, as computed by the federal department of labor.

27,3439m Section 3439m. 73.03 (49) of the statutes is created to read:

73.03 (49) To appoint a farmland advisory council that shall remain in existence until December 31, 2008, and that shall do the following:

(a) Advise the department of revenue on the supplement to the assessment manual's guidelines for assessing agricultural land, and on rules to implement use-value assessment of agricultural land and to reduce expansion of urban sprawl.

(b) Recommend to the legislature an appropriate penalty for converting agricultural land to another use to discourage urban sprawl.

(bm) Create a review process for objections to use-value assessment.

(c) Annually report to the legislature on the usefulness of use-value assessment as a way to preserve farmland and to reduce the conversion of farmland to other uses.

(d) Recommend a method to adjust the shared revenue formula and other formulas one factor of which is equalized value to compensate counties, municipalities and school districts that are adversely affected by use-value assessment.

(dg) Calculate the federal land bank's 5-year average capitalization rate and per-acre values based on actual or estimated income generated from rental for agricultural use.

(dm) Carry out its duties in cooperation with the strategic growth task force of the governor's land use council.

(e) Include the following members , who shall serve until December 31, 2008, or until resignation:

1. The secretary of revenue, who shall serve as a nonvoting chairperson.