Wisconsin Legislature: 59,1133

(b) Net capital loss.

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

(e) Net farm loss.

59,1117 Section 1117 . 71.52 (1m) of the statutes is created to read:

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

59,1118 Section 1118 . 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 (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment insurance, the gross amount of “loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-backs and carry-forwards and, capital loss carry-forwards, and disqualified losses deducted in determining Wisconsin adjusted gross income shall be added to “income". “Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code. Amounts not included in adjusted gross income but added to “income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter. A marital property agreement or unilateral statement under ch. 766 has no effect in computing “income" for a person whose homestead is not the same as the homestead of that person's spouse.

59,1120 Section 1120 . 71.54 (1) (g) 4. of the statutes is created to read:

71.54 (1) (g) 4. Except as provided in subds. 5. and 7., for claims filed in 2018 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year, no credit may be allowed under this paragraph unless the claimant or the claimant's spouse is over the age of 61 at the close of the year to which the claim relates.

59,1121 Section 1121 . 71.54 (1) (g) 5., 6. and 7. of the statutes are created to read:

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

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

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

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

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

7. For claims filed in 2018 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year, with regard to a claimant who is not disabled or who is under the age of 62 at the close of the year to which the claim relates, no credit may be allowed under this paragraph if the claimant had no earned income in the taxable year to which the claim relates.

59,1125 Section 1125 . 71.55 (10) of the statutes is created to read:

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

59,1125s Section 1125s. 71.613 (2) (intro.) of the statutes is amended to read:

71.613 (2) Filing claims. (intro.) Subject to the limitations and conditions provided in sub. (3), a claimant may claim as a credit against the tax imposed under s. 71.02, 71.08, 71.23, or 71.43, an amount calculated by multiplying the claimant's qualifying acres by one of the following amounts, and if the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income or if there are no Wisconsin income taxes due on the claimant's income, the amount of the claim not used as an offset against income taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (do):

59,1127 Section 1127 . 71.65 (2) (b) of the statutes is amended to read:

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

59,1128 Section 1128 . 71.65 (5) (a) (intro.), 1. and 2. of the statutes are consolidated, renumbered 71.65 (5) (a) and amended to read:

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

59,1131 Section 1131 . 71.70 (1) of the statutes is amended to read:

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

59,1132 Section 1132 . 71.70 (2) of the statutes is amended to read:

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

59,1133 Section 1133 . 71.71 (title) of the statutes is amended to read:

71.71 (title) Wages subject to withholding.

59,1134 Section 1134 . 71.715 of the statutes is created to read:

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

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

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

3. The total amount of wages the employer paid in the calendar year to the employee.

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

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

59,1135 Section 1135 . 71.72 of the statutes is amended to read:

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

59,1136 Section 1136 . 71.73 (2) (intro.), (a), (b) and (c) of the statutes are consolidated, renumbered 71.73 (2) and amended to read:

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

59,1139 Section 1139 . 71.75 (7m) of the statutes is created to read:

71.75 (7m) The department shall not issue a refund to an employed individual before March 1 unless both the individual and the individual's employer have filed all required returns and forms with the department for the taxable year for which the individual claims a refund.

59,1140 Section 1140 . 71.77 (2n) of the statutes is created to read:

71.77 (2n) Notwithstanding sub. (2), the department may make an assessment within one year of receiving notice of revocation from the Wisconsin Economic Development Corporation to recover all or a part of any tax credit claimed by a taxpayer, but revoked by the corporation.

59,1151 Section 1151. 71.80 (20) of the statutes is amended to read:

71.80 (20) Electronic filing. If a person is required to file 50 10 or more wage statements or 50 10 or more of any one type of information return with the department, the person shall file the statements or the returns electronically, by means prescribed by the department.

59,1152 Section 1152 . 71.80 (25) of the statutes is created to read:

71.80 (25) Net operating and business loss carry-forward and carry-back. (a) No offset of Wisconsin income may be made under s. 71.05 (8) (b) 1., 71.26 (4) (a), or 71.45 (4) (a) unless the incurred loss was computed on a return that was filed within 4 years of the unextended due date for filing the original return for the taxable year in which the loss was incurred.

(b) No carry-back of a loss may be allowed under s. 71.05 (8) (b) 1. unless claimed within 4 years of the unextended due date for filing the original return for the taxable year to which the loss is carried back.

59,1153 Section 1153 . 71.83 (1) (cf) of the statutes is created to read:

71.83 (1) (cf) Inconsistent estate basis reporting. If any portion of an underpayment of tax required to be shown on a Wisconsin return is the result of an inconsistent estate basis reporting, there shall be added to the tax an amount equal to 20 percent of that portion of the underpayment. For purposes of this paragraph, an inconsistent estate basis reporting occurs if the property basis claimed on a Wisconsin return exceeds the property basis determined under section 1014 (f) of the Internal Revenue Code. The department shall assess, levy, and collect the penalty under this paragraph in the same manner as it assesses, levies, and collects taxes under this chapter.

59,1160d Section 1160d. 71.98 (8) of the statutes is created to read:

71.98 (8) Charitable distributions from an individual retirement account. For taxable years beginning after December 31, 2017, section 408 (d) (8) of the Internal Revenue Code, relating to a tax-free qualified charitable distribution from an individual retirement account directly to a charitable organization.

59,1162 Section 1162 . 73.03 (69) (b) 1. of the statutes is amended to read:

73.03 (69) (b) 1. The business has at least 2 full-time employees and the amount of payroll compensation paid by the business in this state is equal to at least 50 percent of the amount of all payroll compensation paid by the business. An employee of a professional employer organization, as defined in s. 202.21 (5), or a professional employer group, as defined in s. 202.21 (4), who is performing services for a client is considered an employee solely of the client for purposes of this subdivision.

59,1162m Section 1162m. 73.03 (71) (b) of the statutes is amended to read:

73.03 (71) (b) After the department makes the determination under par. (a), the department shall determine how much the individual income tax rates under s. 71.06 may be reduced in the following taxable year in order to eliminate the alternative minimum tax under s. 71.08 and decrease individual income tax revenue by the amount determined under par. (a). For purposes of this paragraph, the department shall calculate the tax rate reductions in proportion to the share of gross tax attributable to each of the tax brackets under s. 71.06 in effect during the most recently completed taxable year.

59,1162n Section 1162n. 73.03 (71) (c) of the statutes is amended to read:

73.03 (71) (c) The department shall certify the determinations made under pars. (a) and (b) to the secretary of the department of administration, to the governor, and to the legislature and specify with that certification that the elimination of the alternative minimum tax and the new tax rates take effect in the taxable year following the taxable year in which the department makes the certification under this paragraph.

59,1165d Section 1165d. 73.06 (3) of the statutes is amended to read:

73.06 (3) The department of revenue, through its supervisors of equalization, shall examine and test the work of assessors during the progress of their assessments and ascertain whether any of them is assessing property at other than full value or is omitting property subject to taxation from the roll. The department and such supervisors shall have the rights and powers of a local assessor for the examination of persons and property and for the discovery of property subject to taxation. If any property has been omitted or not assessed according to law, they shall bring the same to the attention of the local assessor of the proper district and if such local assessor shall neglect or refuse to correct the assessment they shall report the fact to the board of review. If it discovers errors in identifying or valuing property that is exempt under s. 70.11 (39) or (39m), the department shall change the specification of the property as taxable or exempt and shall change the value of the property. All disputes between the department, municipalities, and property owners about the taxability or value of property that is reported under s. 79.095 (2) (a) or of the property under s. 70.995 (12r) shall be resolved by using the procedures under s. 70.995 (8).

59,1169 Section 1169 . 77.14 of the statutes is amended to read:

77.14 Forest croplands information, protection, appropriation. The department of natural resources shall publish and distribute information regarding the method of taxation of forest croplands under this subchapter, and may employ a fire warden in charge of fire prevention in forest croplands. All actual and necessary expenses incurred by the department of natural resources or by the department of revenue in the performance of their duties under this subchapter shall be paid from the appropriation made in s. 20.370 (1) (2) (mv) upon certification by the department incurring such expenses.

59,1170 Section 1170 . 77.22 (2) (c) of the statutes is repealed.

59,1171 Section 1171 . 77.22 (2) (d) of the statutes is repealed.

59,1171r Section 1171r. 77.51 (1bm) of the statutes is created to read:

77.51 (1bm) “Beekeeping” means the business of moving, raising, producing, and other management of bees or bee products, regardless of the number of hives of bees managed.

59,1172 Section 1172 . 77.51 (2) of the statutes is amended to read:

77.51 (2) “Contractors" and “subcontractors" are the consumers of tangible personal property or items or goods under s. 77.52 (1) (b) or (d) used by them in real property construction activities, and the sales and use tax applies to the sale of tangible personal property or items or goods under s. 77.52 (1) (b) or (d) to them. A contractor engaged primarily in real property construction activities may use resale certificates only with respect to purchases of tangible personal property or items or goods under s. 77.52 (1) (b) or (d) which that the contractor has sound reason to believe the contractor will sell to customers for whom the contractor will not perform real property construction activities involving the use of such tangible personal property or items or goods under s. 77.52 (1) (b) or (d). In this subsection, “real property construction activities" means activities that occur at a site where tangible personal property or items or goods under s. 77.52 (1) (b) or (d) that are applied or adapted to the use or purpose to which real property is devoted are affixed to that real property, if the intent of the person who affixes that property is to make a permanent accession to the real property. In this subsection, “real property construction activities" does not include affixing property subject to tax under s. 77.52 (1) (c) to real property or affixing to real property tangible personal property that remains tangible personal property after it is affixed.

59,1173 Section 1173 . 77.51 (9) (a) of the statutes is renumbered 77.51 (9) (a) 1.

59,1174 Section 1174 . 77.51 (9) (a) 2. of the statutes is created to read:

77.51 (9) (a) 2. For purposes of subd. 1., it is presumed that a seller is not pursuing a vocation, occupation, or business or a partial vocation or occupation or part-time business as a vendor of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable services if the seller's total taxable sales price from sales of tangible personal property, items, property, and goods under s. 77.52 (1) (b), (c), and (d), and taxable services is less than $2,000 during a calendar year.

59,1176 Section 1176 . 77.51 (12t) of the statutes is created to read:

77.51 (12t) “Real property construction activities" means activities that occur at a site where tangible personal property or items or goods under s. 77.52 (1) (b) or (d) that are applied or adapted to the use or purpose to which real property is devoted are affixed to that real property, if the intent of the person who affixes that property is to make a permanent accession to the real property. “Real property construction activities" does not include affixing property subject to tax under s. 77.52 (1) (c) to real property or affixing to real property tangible personal property that remains tangible personal property after it is affixed.

59,1177 Section 1177 . 77.51 (13) (am) of the statutes is amended to read:

77.51 (13) (am) Any person making any retail sale of a motor vehicle, aircraft, snowmobile, recreational vehicle, as defined in s. 340.01 (48r), trailer, semitrailer, all-terrain vehicle, utility terrain vehicle, off-highway motorcycle, as defined in s. 23.335 (1) (q), or boat registered or titled, or required to be registered or titled, under the laws of this state or of the United States.

59,1177d Section 1177d. 77.51 (13) (o) of the statutes is amended to read:

77.51 (13) (o) A person selling drugs for animals or bees to a veterinarian. As used in this paragraph, “animal" includes livestock, pets, and poultry.

59,1177t Section 1177t. 77.52 (2) (a) 5. a. of the statutes is repealed.

59,1178 Section 1178 . 77.52 (2) (a) 10. of the statutes is amended to read:

77.52 (2) (a) 10. Except for the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of any aircraft or aircraft parts; except for services provided by veterinarians; and except for installing or applying tangible personal property, or items or goods under sub. (1) (b) or (d), that, subject to par. (ag), when installed or applied, will constitute an addition or capital improvement of real property; the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, and maintenance of all items of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d), unless, at the time of that repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance, a sale in this state of the type of property, item, or good repaired, serviced, altered, fitted, cleaned, painted, coated, towed, inspected, or maintained would have been exempt to the customer from sales taxation under this subchapter, other than the exempt sale of a motor vehicle or truck body to a nonresident under s. 77.54 (5) (a) and other than nontaxable sales under s. 77.522 or unless the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance is provided under a contract that is subject to tax under subd. 13m. The tax imposed under this subsection applies to the repair, service, alteration, fitting, cleaning, painting, coating, towing, inspection, or maintenance of items listed in par. (ag), regardless of whether the installation or application of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d) related to the items is an addition to or a capital improvement of real property, except that the tax imposed under this subsection does not apply to the original installation or the complete replacement of an item listed in par. (ag), if that installation or replacement is a real property construction activity under s. 77.51 (2).

59,1179 Section 1179 . 77.52 (2m) (b) of the statutes is amended to read:

77.52 (2m) (b) With respect to the services subject to tax under sub. (2) (a) 7., 10., 11., and 20. and except as provided in s. 77.54 (60) (b) and (bm) 2., all tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) physically transferred, or transferred electronically, to the customer in conjunction with the selling, performing, or furnishing of the service is a sale of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d) separate from the selling, performing, or furnishing of the service.

59,1181 Section 1181 . 77.52 (13) of the statutes is amended to read:

77.52 (13) For the purpose of the proper administration of this section and to prevent evasion of the sales tax it shall be presumed that all receipts are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services is not a taxable sale at retail is upon the person who makes the sale unless that person takes from the purchaser an electronic or a paper certificate, in a manner prescribed by the department, to the effect that the property, item, good, or service is purchased for resale or is otherwise exempt, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), and (52), and (66).

59,1182n Section 1182n. 77.522 (4) (h) of the statutes is repealed.

59,1184 Section 1184 . 77.53 (17) of the statutes is amended to read: