Tax 3.095(5)
(5)
Taxable securities. Interest and dividends payable on the following securities shall be subject to the Wisconsin income tax on individuals and fiduciaries:
Tax 3.095(5)(a)2.
2. District of Columbia general obligation bonds issued after January 28, 1987, D.C. Code 47-33.
Tax 3.095(5)(a)4.
4. Public housing agency bonds issued after January 28, 1987, and by agencies located outside Wisconsin. Public housing agency bonds issued on or prior to January 28, 1987, by agencies located outside Wisconsin where the interest from the bonds qualifies for exemption from federal income taxation solely because of section
103 of the internal revenue code.
Tax 3.095(5)(a)6.
6. Transit bonds of the Washington Metropolitan Area Transit Authority.
Tax 3.095(5)(a)8.
8. WHEDA bonds issued after January 28, 1987, and all business development revenue bonds, economic development revenue bonds and CHAP housing revenue bonds issued by WHEDA, regardless of when issued, unless specifically exempt by law, ch.
234, Stats.
Tax 3.095 Note
Note: In 1968, the Federal National Mortgage Association became 2 separate corporations. One corporation retained the original name and the other is known as the Government National Mortgage Association.
Tax 3.095 History
History: Cr.
Register, August, 1976, No. 248, eff. 9-1-76; emerg. cr. (1) (g) to (i), am. (2) (intro.), r. (2) (b), (h) and (j), eff. 7-31-87; r. and recr.
Register, April, 1988, No. 388, eff. 5-1-88; emerg. am. (3) (intro.) and (c), cr. (3) (g), r. and recr. (4) (b), eff. 1-1-89; am. (2) (intro.), (3) (intro.), (c), (f), (4) (intro.) and (b), cr. (4) (c) to (f),
Register, August, 1989, No. 404, eff. 9-28-89; cr. (1) (a), (b), (f), (g), (i), (q), (r) and (v), (2) (a), (d), (f), (g), (m), (o), (p) to (u), (w), (zh), (zq) and (zr), (4) (b) and (e); renum. (1) (a) to (n), (2) (a) to (zb), (4) (a), (b), (d) and (e) to be (1) (c) to (e), (h), (j) to (p), (s) to (u), (2) (b), (c), (e), (h) to (l), (n), (v), (x) to (zd), (zf), (ze), (zg), (zi) to (zp), (4) (d), (h), (g) and (a) and am. (1) (p),
Register, June, 1991, No. 426, eff. 7-1-91; r. and recr.
Register, January, 1994, No. 457, eff. 2-1-94; corrections in (4) (a) 4. and 5. made under s. 13.93 (2m) (b) 7., Stats.,
Register October 2002 No. 562;
CR 12-011: r. (4) (a) 9., cr. (4) (a) 12. to 20.
Register July 2012 No. 679, eff. 8-1-12;
CR 14-005: cr. (2) (e), (4) (a) 21.
Register August 2014 No. 704, eff. 9-1-14;
CR 17-019: cr. (4) (a) 22.,
Register June 2018 No. 750 eff. 7-1-18
; CR 19-096: am. (4) (a) (title), (b) (title), 8., 11., 12., 16, cr. (4) (b) 18e., 18m., 18s., 21g., 21r., am. (4) (b) 24., 38., (5) (b) 1., 12., 13., 15., 17., cr. (5) (b) 17m., am. (5) (b) 22., 23.
Register April 2020 No. 772, eff. 5-1-20.
Tax 3.096
Tax 3.096 Interest paid on money borrowed to purchase exempt government securities. Tax 3.096(1)(1)
Any amount of distributable and nondistributable interest or dividend income which is by federal law exempt from the Wisconsin income tax shall be reduced by any related expense before it is claimed as a subtraction modification on a Wisconsin fiduciary income tax return.
Tax 3.096(2)
(2) Interest expense is a “related expense" if it is incurred to purchase securities producing exempt interest or dividend income and if it is deducted in computing Wisconsin taxable income.
Tax 3.096(3)
(3) Interest expense is not a “related expense" if it is incurred to purchase securities producing exempt interest or dividend income but is not deducted in computing Wisconsin taxable income (for example, because the taxpayer elects the standard rather than to itemize deductions).
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See PDF for table 
Tax 3.096 History
History: Cr.
Register, January, 1977, No. 253, eff. 2-1-77; am. (1),
Register, June, 1990, No. 414, eff. 7-1-90.
Tax 3.098
Tax 3.098 Railroad retirement supplemental annuities. Railroad retirement supplemental annuities paid under
45 USC 231m are exempt from the Wisconsin taxable income of their recipients.
Tax 3.098 Note
Note: 1) The Railroad Retirement Act of 1974 as amended by P.L. 98-76 (45 USC s. 231m), effective August 12, 1983, provides that:
Tax 3.098 Note
“(a) Except as provided in subsection (b) of this section and the Internal Revenue Code of 1954 [26 USCS §§ 1 et seq.], notwithstanding any other law of the United States, or of any State . . . no annuity or supplemental annuity shall be . . . subject to any tax. . . .
Tax 3.098 Note
(b) (1) This section shall not operate to exclude the amount of any supplemental annuity paid to an individual under section (2) (b) of this Act [45 USCS § 231a (b)] from income taxable pursuant to Federal income tax provisions of the Internal Revenue Code of 1954 [26 USCS §§ 1 et seq.]"
Tax 3.098 Note
2) 45 USCS. s. 231m prohibits states from taxing railroad retirement supplemental annuity payments. Taxpayers may make a modification to federal adjusted gross income to remove this income in computing Wisconsin adjusted gross income.
Tax 3.098 History
History: Cr.
Register, January, 1977, No. 253, eff. 2-1-77; am.
Register, July, 1989, No. 403, eff. 8-1-89.
