2015 WISCONSIN ACT 216
An Act to repeal 76.02 (7) and subchapter V of chapter 76 [precedes 76.90]; to renumber and amend 71.05 (6) (b) 50., 71.26 (3) (ym), 71.34 (1k) (n) and 71.45 (2) (a) 19.; to amend 20.913 (1) (b), 71.04 (4) (intro.), 71.04 (8) (c), 71.13 (2) (a) 3., 71.13 (2) (b), 71.17 (3) (intro.), 71.25 (6) (intro.), 71.25 (10) (c), 71.26 (2) (b) 10. d., 71.26 (3) (f), 71.63 (3) (c), 71.78 (1), 71.78 (2), 71.78 (4) (o), 73.01 (4) (a), 73.01 (5) (a), 73.03 (50) (d), 73.09 (2), 73.09 (4) (b), 73.09 (7) (a), 74.23 (1) (a) 2., 74.25 (1) (a) 2., 74.25 (1) (a) 3., 74.30 (1) (b), 74.30 (1) (c), 76.01, 76.02 (2), 76.04 (1), 76.07 (1), 76.07 (2), 76.13 (1), 77.255, 77.52 (7), 77.54 (61) (intro.), 77.59 (3), 77.59 (4), 77.61 (11), 77.65 (2) (g), 77.71 (2), 77.71 (4), 78.80 (3), 139.11 (4) (a), 139.11 (4) (b) (intro.), 139.38 (6), 139.82 (6) and 227.03 (1); and to create 71.01 (6) (j) 3. g., 71.01 (6) (j) 3. h., 71.05 (6) (b) 50. b., 71.22 (4) (j) 3. g., 71.22 (4) (j) 3. h., 71.22 (4m) (j) 3. g., 71.22 (4m) (j) 3. h., 71.26 (3) (ym) 2., 71.34 (1g) (j) 3. g., 71.34 (1g) (j) 3. h., 71.34 (1k) (n) 2., 71.42 (2) (j) 3. g., 71.42 (2) (j) 3. h., 71.45 (2) (a) 19. b., 71.78 (4) (t), 76.30 (2) (j), 77.61 (5) (b) 13., 77.71 (5), 77.73 (2m), 78.005 (13d), 78.39 (5f), 78.55 (5p), 78.64 (4), 139.01 (5p), 139.30 (8p), 139.75 (5p) and 168.01 (2s) of the statutes; relating to: tax administration technical changes.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
216,1
Section
1. 20.913 (1) (b) of the statutes is amended to read:
20.913 (1) (b) Excess tax payments. Taxes collected in excess of lawful taxation, when claims therefor have been established as provided in ss. 71.30 (4), 71.74 (13), 71.75, 71.89 (1), 72.24, 74.35, 74.37, 76.13 (3), 76.39, 76.84, 76.91, 78.19, 78.20, 78.68 (10), 78.75, 78.80 (1m), 139.092, 139.25 (1), 139.36, 139.365 and 139.39 (4).
216,2
Section
2. 71.01 (6) (j) 3. g. of the statutes is created to read:
71.01
(6) (j) 3. g. P.L.
114-14.
216,3
Section
3. 71.01 (6) (j) 3. h. of the statutes is created to read:
71.01
(6) (j) 3. h. P.L.
114-26.
216,4
Section
4. 71.04 (4) (intro.) of the statutes is amended to read:
71.04 (4) Nonresident allocation and apportionment formula. (intro.) Nonresident individuals and nonresident estates and trusts engaged in business within and without the state shall be taxed only on such income as is derived from business transacted and property located within the state. The amount of such income attributable to Wisconsin may be determined by an allocation and separate accounting thereof, when the business of such nonresident individual or nonresident estate or trust within the state is not an integral part of a unitary business, but the department of revenue may permit an allocation and separate accounting in any case in which it is satisfied that the use of such method will properly reflect the income taxable by this state. In all cases in which allocation and separate accounting is not permissible, the determination shall be made in the following manner: for all businesses except air carriers, financial organizations, telecommunications companies, pipeline companies, public utilities, railroads, sleeping car companies and car line companies there shall first be deducted from the total net income of the taxpayer the part thereof (less related expenses, if any) that follows the situs of the property or the residence of the recipient. The remaining net income shall be apportioned to this state by use of the following:
216,5
Section
5. 71.04 (8) (c) of the statutes is amended to read:
71.04 (8) (c) The net business income of railroads, sleeping car companies, car line companies, pipeline companies, financial organizations, telecommunications companies, air carriers, and public utilities requiring apportionment shall be apportioned pursuant to rules of the department of revenue, but the income taxed is limited to the income derived from business transacted and property located within the state.
216,6
Section
6. 71.05 (6) (b) 50. of the statutes is renumbered 71.05 (6) (b) 50. a. and amended to read:
71.05 (6) (b) 50. a. Starting
Except as provided in subd. 50. b., starting with the first taxable year beginning after December 31, 2013, and for each of the next 4 taxable years, 20 percent of the amount determined by subtracting the combined federal adjusted basis of all depreciated or amortized assets as of the last day of the taxable year beginning in 2013 that are also being depreciated or amortized for Wisconsin from the combined Wisconsin adjusted basis of those assets on the same day.
216,7
Section
7. 71.05 (6) (b) 50. b. of the statutes is created to read:
71.05 (6) (b) 50. b. If any taxable year for which the modification under subd. 50. a. is required is a fractional year under s. 71.03 (3), the difference between the modification allowed for the fractional year and the modification allowed for the 12-month taxable year shall be a modification for the first taxable year beginning after December 31, 2018.
216,8
Section
8. 71.13 (2) (a) 3. of the statutes is amended to read:
71.13 (2) (a) 3. Gift tax returns or reports, sales Sales and use tax returns, and withholding returns or reports that were required to be filed, if not previously filed.
216,9
Section
9. 71.13 (2) (b) of the statutes is amended to read:
71.13 (2) (b) Upon receipt of the returns described in par. (a), the department shall immediately determine the amount of taxes including interest, penalties, and costs to be payable, as well as any delinquent income, withholding, sales, and use, and gift taxes, penalties, interest, and costs due, and shall certify those amounts to the court. The court shall then enter an order directing the personal representative or trustee to pay the amounts found to be due by the department and take the department's receipt for the amount paid. The receipt shall be evidence of the payment and shall be filed with the court before a final distribution of the estate or trust is ordered and the personal representative or trustee is discharged. The filing of the receipt shall in no manner affect the obligation of the personal representative or trustee to file income, sales, and withholding returns covering transactions reportable during the final taxable year of the estate or trust and to pay income, sales, use and withholding taxes, penalties, interest, and costs due as the result of such transactions.
216,10
Section
10. 71.17 (3) (intro.) of the statutes is amended to read:
71.17 (3) Liability for payment of taxes due from decedent. (intro.) Any income, withholding, sales, or use, or gift taxes, penalties, interest, and costs found to be due from a decedent, an estate, or a trust for any of the years open to assessment under s. 71.77 and any delinquent income, withholding, sales, or use, or gift taxes, penalties, interest, and costs found to be due shall be assessed against and paid by one of the following:
216,11
Section
11. 71.22 (4) (j) 3. g. of the statutes is created to read:
71.22
(4) (j) 3. g. P.L.
114-14.
216,12
Section
12. 71.22 (4) (j) 3. h. of the statutes is created to read:
71.22
(4) (j) 3. h. P.L.
114-26.
216,13
Section
13. 71.22 (4m) (j) 3. g. of the statutes is created to read:
71.22
(4m) (j) 3. g. P.L.
114-14.
216,14
Section
14. 71.22 (4m) (j) 3. h. of the statutes is created to read:
71.22
(4m) (j) 3. h. P.L.
114-26.
216,15
Section
15. 71.25 (6) (intro.) of the statutes is amended to read:
71.25 (6) Allocation and separate accounting and apportionment formula. (intro.) Corporations engaged in business within and without the state shall be taxed only on such income as is derived from business transacted and property located within the state. The amount of such income attributable to Wisconsin may be determined by an allocation and separate accounting thereof, when the business of such corporation within the state is not an integral part of a unitary business, but the department of revenue may permit an allocation and separate accounting in any case in which it is satisfied that the use of such method will properly reflect the income taxable by this state. In all cases in which allocation and separate accounting is not permissible, the determination shall be made in the following manner: for all businesses except air carriers, financial organizations, telecommunications companies, pipeline companies, public utilities, railroads, sleeping car companies, car line companies and corporations or associations that are subject to a tax on unrelated business income under s. 71.26 (1) (a) there shall first be deducted from the total net income of the taxpayer the part thereof (less related expenses, if any) that follows the situs of the property or the residence of the recipient. The remaining net income shall be apportioned to this state by use of the following:
216,16
Section
16. 71.25 (10) (c) of the statutes is amended to read:
71.25 (10) (c) The net business income of railroads, sleeping car companies, car line companies, pipeline companies, financial organizations, telecommunications companies, air carriers, and public utilities requiring apportionment shall be apportioned pursuant to rules of the department of revenue, but the income taxed is limited to the income derived from business transacted and property located within the state.
71.26
(2) (b) 10. d. For purposes of subd. 10. a., "Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2013, except that "Internal Revenue Code" includes the provisions of P.L.
113-97, P.L.
113-159, P.L.
113-168, section 302901 of P.L.
113-287, sections 171, 172, and 201 to 221 of P.L.
113-295,
and sections 102, 105, and 207 of division B of P.L.
113-295, P.L. 114-14, and P.L. 114-26.
216,18
Section
18. 71.26 (3) (f) of the statutes is amended to read:
71.26 (3) (f) Section 164 (a) is modified so that foreign taxes are not deductible unless the income on which the tax is based is taxable under this chapter and so that gross receipts taxes assessed in lieu of property taxes, the license fee under s. 76.28 and the taxes under ss. 70.375, and 76.81 and 76.91 are deductible.
216,19
Section
19. 71.26 (3) (ym) of the statutes is renumbered 71.26 (3) (ym) 1. and amended to read:
71.26 (3) (ym) 1. Starting
Except as provided in subd. 2., starting with the first taxable year beginning after December 31, 2013, and for each of the next 4 taxable years, a corporation shall subtract 20 percent of the amount determined by subtracting the combined federal adjusted basis of all depreciated or amortized assets as of the last day of the taxable year beginning in 2013 that are also being depreciated or amortized for Wisconsin from the combined Wisconsin adjusted basis of those assets on the same day.
216,20
Section
20. 71.26 (3) (ym) 2. of the statutes is created to read:
71.26 (3) (ym) 2. If any taxable year for which the modification under subd. 1. is required is a fractional year under s. 71.24 (6) (c), the difference between the modification allowed for the fractional year and the modification allowed for the 12-month taxable year shall be a modification for the first taxable year beginning after December 31, 2018.
216,21
Section
21. 71.34 (1g) (j) 3. g. of the statutes is created to read:
71.34
(1g) (j) 3. g. P.L.
114-14.
216,22
Section
22. 71.34 (1g) (j) 3. h. of the statutes is created to read:
71.34
(1g) (j) 3. h. P.L.
114-26.
216,23
Section
23. 71.34 (1k) (n) of the statutes is renumbered 71.34 (1k) (n) 1. and amended to read:
71.34 (1k) (n) 1. Starting
Except as provided in subd. 2., starting with the first taxable year beginning after December 31, 2013, and for each of the next 4 taxable years, a subtraction shall be made in an amount equal to 20 percent of the amount determined by subtracting the combined federal adjusted basis of all depreciated or amortized assets as of the last day of the taxable year beginning in 2013 that are also being depreciated or amortized for Wisconsin from the combined Wisconsin adjusted basis of those assets on the same day.
216,24
Section
24. 71.34 (1k) (n) 2. of the statutes is created to read:
71.34 (1k) (n) 2. If any taxable year for which the modification under subd. 1. is required is a fractional year under s. 71.24 (6) (c), the difference between the modification allowed for the fractional year and the modification allowed for the 12-month taxable year shall be a modification for the first taxable year beginning after December 31, 2018.
216,25
Section
25. 71.42 (2) (j) 3. g. of the statutes is created to read:
71.42
(2) (j) 3. g. P.L.
114-14.
216,26
Section
26. 71.42 (2) (j) 3. h. of the statutes is created to read:
71.42
(2) (j) 3. h. P.L.
114-26.
216,27
Section
27. 71.45 (2) (a) 19. of the statutes is renumbered 71.45 (2) (a) 19. a. and amended to read:
71.45 (2) (a) 19. a. Starting
Except as provided in subd. 19. b., starting with the first taxable year beginning after December 31, 2013, and for each of the next 4 taxable years, by subtracting 20 percent of the amount determined by subtracting the combined federal adjusted basis of all depreciated or amortized assets as of the last day of the taxable year beginning in 2013 that are also being depreciated or amortized for Wisconsin from the combined Wisconsin adjusted basis of those assets on the same day.
216,28
Section
28. 71.45 (2) (a) 19. b. of the statutes is created to read:
71.45 (2) (a) 19. b. If any taxable year for which the modification under subd. 19. a. is required is a fractional year under s. 71.44 (2) (c), the difference between the modification allowed for the fractional year and the modification allowed for the 12-month taxable year shall be a modification for the first taxable year beginning after December 31, 2018.
216,29
Section
29. 71.63 (3) (c) of the statutes is amended to read:
71.63
(3) (c) In regard to a single-owner entity that is disregarded as a separate entity under section
7701 of the Internal Revenue Code,
the owner, not the entity, is an "employer," except that, if the entity elects to be an employer for federal withholding tax purposes, the entity is the employer for purposes of this subchapter.
216,30
Section
30. 71.78 (1) of the statutes is amended to read:
71.78 (1) Divulging information. Except as provided in subs. (4), (4m) and (10), no person may divulge or circulate or offer to obtain, divulge, or circulate any information derived from an income, franchise, withholding, fiduciary, partnership, or limited liability company or gift tax return or tax credit claim, including information which may be furnished by the department as provided in this section. This subsection does not prohibit publication by any newspaper of information lawfully derived from such returns or claims for purposes of argument or prohibit any public speaker from referring to such information in any address. This subsection does not prohibit the department from publishing statistics classified so as not to disclose the identity of particular returns, or claims or reports and the items thereof. This subsection does not prohibit employees or agents of the department of revenue from offering or submitting any return, including joint returns of a spouse or former spouse, separate returns of a spouse, individual returns of a spouse or former spouse, and combined individual income tax returns, or from offering or submitting any claim, schedule, exhibit, writing, or audit report or a copy of, and any information derived from, any of those documents as evidence into the record of any contested matter involving the department in proceedings or litigation on state tax matters if, in the department's judgment, that evidence has reasonable probative value.
216,31
Section
31. 71.78 (2) of the statutes is amended to read:
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, or Wisconsin gift 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 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.
216,32
Section
32. 71.78 (4) (o) of the statutes is amended to read:
71.78 (4) (o) A licensing department or the supreme court, if the supreme court agrees, for the purpose of denial, nonrenewal, discontinuation and revocation of a license based on tax delinquency under s. 73.0301 or unemployment insurance contribution delinquency under s. 108.227.
