LRBa2791/1
JS:jlg:ijs
April 1998 Special Session
1997 - 1998 LEGISLATURE
ASSEMBLY AMENDMENT 4,
TO ASSEMBLY BILL 5
May 15, 1998 - Offered by Representatives Kunicki and Jensen.
AB5-AA4,1,11 At the locations indicated, amend the bill as follows:
AB5-AA4,1,3 21. Page 2, line 7: delete the material beginning with that line and ending with
3page 3, line 3, and substitute:
AB5-AA4,1,4 4" Section 2g. 71.22 (11) of the statutes is amended to read:
AB5-AA4,1,105 71.22 (11) Except as provided in s. 71.45 (2), "Wisconsin net income", for
6corporations engaged in business wholly within this state, means net income and,
7for corporations engaged in business both within and outside this state, means the
8amount assigned to this state under s. 71.25 (6), (10) (c) or (13) or by a separate
9accounting or allocation, if allowed under s. 71.25 (6), or by another method approved
10under s. 71.25 (11) or, (12) or (14).
AB5-AA4, s. 2r 11Section 2r. 71.25 (14) of the statutes is created to read:
AB5-AA4,2,812 71.25 (14) Alternative allocation. (a) Upon request by a corporation on or
13before January 1, 2000, the department of revenue may authorize a corporation or

1a subsidiary thereof to use and continue to use a different method of apportioning its
2income to this state for purposes of this subchapter, and may specify the method of
3apportionment that the corporation or subsidiary shall use. This provision is to be
4used exclusively in the event of a corporate restructuring that would result in an
5unfair representation of the degree of business activity in this state. In no instance
6may the alternative method proposed under the new corporate structure result in
7less franchise or income tax revenue to the state than the current corporate structure
8is liable for, given the same overall level of sales, payroll and property.
AB5-AA4,2,139 (b) Before the department of revenue grants permission to any corporation to
10use an alternative method of allocation under par. (a), the department of revenue
11shall promulgate rules that specify in more detail the circumstances in which that
12authority may be granted and the kinds of alternative methods that the department
13may authorize.
AB5-AA4,3,314 (c) At least 14 days before giving final approval to an alternative method of
15apportionment under par. (a), the department of revenue shall submit the proposed
16alternative method of apportionment to the cochairpersons of the joint committee for
17review of administrative rules, together with a description of the proposed
18alternative, the reasons for the proposed alternative and an estimate of its fiscal
19effect. If, within 14 days after receipt of the proposed alternative method, the
20cochairpersons of the joint committee for review of administrative rules do not notify
21the department of revenue that the proposed alternative must be promulgated as an
22administrative rule in order to be used, the department of revenue may give final
23approval to the proposed method without promulgating an administrative rule. If
24the cochairpersons of the joint committee for review of administrative rules notify
25the department of revenue within 14 days after receipt of the proposed alternative

1that the proposed alternative must be promulgated as an administrative rule, the
2proposed alternative may not be used until it is promulgated as an administrative
3rule under ch. 227.".
AB5-AA4,3,5 42. Page 4, line 1: delete "section 71.25 (12)" and substitute "sections 71.22 (11)
5and 71.25 (14)".
AB5-AA4,3,66 (End)
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