Amendment AA8-ASA1-AB100

AB100-ASA1-AA8, s. 2261eg Section 2261eg. 71.06 (2) (intro.) of the statutes is amended to read:

AB100-ASA1-AA8,212,6 71.06 (2) Married persons. (intro.) The tax to be assessed, levied and collected upon the taxable incomes of all married persons for calendar year 1987 and corresponding fiscal years and for calendar and fiscal years thereafter shall be computed at the following rates:

AB100-ASA1-AA8, s. 2261ei Section 2261ei. 71.06 (2) (a) (intro.) of the statutes is amended to read:

AB100-ASA1-AA8,212,9 71.06 (2) (a) (intro.) For joint returns, for taxable years beginning after July 31, 1986, and before January 1, 1998:

AB100-ASA1-AA8, s. 2261ek Section 2261ek. 71.06 (2) (b) (intro.) of the statutes is amended to read:

AB100-ASA1-AA8,212,12 71.06 (2) (b) (intro.) For married persons filing separately, for taxable years beginning after July 31, 1986, and before January 1, 1998:

AB100-ASA1-AA8, s. 2261eL Section 2261eL. 71.06 (2) (c) of the statutes is created to read:

AB100-ASA1-AA8,212,14 71.06 (2) (c) For joint returns:

AB100-ASA1-AA8,212,16 1. For taxable years beginning after December 31, 1997, and before January 1, 1999:

AB100-ASA1-AA8,212,17 a. On all taxable income from $0 to $10,000, 4.85%.

AB100-ASA1-AA8,212,18 b. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.48%.

AB100-ASA1-AA8,212,19 c. On all taxable income exceeding $20,000, 6.87%.

AB100-ASA1-AA8,212,21 2. For taxable years beginning after December 31, 1998, and before January 1, 2000:

AB100-ASA1-AA8,212,22 a. On all taxable income from $0 to $10,000, 4.80%.

AB100-ASA1-AA8,212,23 b. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.42%.

AB100-ASA1-AA8,212,24 c. On all taxable income exceeding $20,000, 6.79%.

AB100-ASA1-AA8,213,2 3. For taxable years beginning after December 31, 1999, and before January 1, 2001:

AB100-ASA1-AA8,213,3 a. On all taxable income from $0 to $10,000, 4.75%.

AB100-ASA1-AA8,213,4 b. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.35%.

AB100-ASA1-AA8,213,5 c. On all taxable income exceeding $20,000, 6.72%.

AB100-ASA1-AA8,213,7 4. For taxable years beginning after December 31, 2000, and before January 1, 2002:

AB100-ASA1-AA8,213,8 a. On all taxable income from $0 to $10,000, 4.70%.

AB100-ASA1-AA8,213,9 b. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.29%.

AB100-ASA1-AA8,213,10 c. On all taxable income exceeding $20,000, 6.65%.

AB100-ASA1-AA8,213,11 5. For taxable years beginning after December 31, 2001:

AB100-ASA1-AA8,213,12 a. On all taxable income from $0 to $10,000, 4.66%.

AB100-ASA1-AA8,213,13 b. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.22%.

AB100-ASA1-AA8,213,14 c. On all taxable income exceeding $20,000, 6.58%.

AB100-ASA1-AA8, s. 2261em Section 2261em. 71.06 (2) (d) of the statutes is created to read:

AB100-ASA1-AA8,213,16 71.06 (2) (d) For married persons filing separately:

AB100-ASA1-AA8,213,18 1. For taxable years beginning after December 31, 1997, and before January 1, 1999:

AB100-ASA1-AA8,213,19 a. On all taxable income from $0 to $5,000, 4.85%.

AB100-ASA1-AA8,213,20 b. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.48%.

AB100-ASA1-AA8,213,21 c. On all taxable income exceeding $10,000, 6.87%.

AB100-ASA1-AA8,213,23 2. For taxable years beginning after December 31, 1998, and before January 1, 2000:

AB100-ASA1-AA8,213,24 a. On all taxable income from $0 to $5,000, 4.80%.

AB100-ASA1-AA8,213,25 b. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.42%.

AB100-ASA1-AA8,214,1 c. On all taxable income exceeding $10,000, 6.79%.

AB100-ASA1-AA8,214,3 3. For taxable years beginning after December 31, 1999, and before January 1, 2001:

AB100-ASA1-AA8,214,4 a. On all taxable income from $0 to $5,000, 4.75%.

AB100-ASA1-AA8,214,5 b. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.35%.

AB100-ASA1-AA8,214,6 c. On all taxable income exceeding $10,000, 6.72%.

AB100-ASA1-AA8,214,8 4. For taxable years beginning after December 31, 2000, and before January 1, 2002:

AB100-ASA1-AA8,214,9 a. On all taxable income from $0 to $5,000, 4.70%.

AB100-ASA1-AA8,214,10 b. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.29%.

AB100-ASA1-AA8,214,11 c. On all taxable income exceeding $10,000, 6.65%.

AB100-ASA1-AA8,214,12 5. For taxable years beginning after December 31, 2001:

AB100-ASA1-AA8,214,13 a. On all taxable income from $0 to $5,000, 4.66%.

AB100-ASA1-AA8,214,14 b. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.22%.

AB100-ASA1-AA8,214,15 c. On all taxable income exceeding $10,000, 6.58%.

AB100-ASA1-AA8, s. 2261eo Section 2261eo. 71.06 (2m) of the statutes is amended to read:

AB100-ASA1-AA8,214,20 71.06 (2m) Rate changes. If a rate under sub. (1), (1m) or (2) changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section 15 of the internal revenue code.".

AB100-ASA1-AA8,214,21 800. Page 963, line 22: after that line insert:

AB100-ASA1-AA8,214,23 " Section 2261fm. 71.06 (2s) of the statutes, as created by 1997 Wisconsin Act .... (this act), is renumbered 71.06 (2s) (a) and amended to read:

AB100-ASA1-AA8,215,13 71.06 (2s) (a) For taxable years beginning after December 31, 1996, and ending before January 1, 1998, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1) and (2) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this subsection paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1) and (2) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB100-ASA1-AA8, s. 2261fn Section 2261fn. 71.06 (2s) (b) of the statutes is created to read:

AB100-ASA1-AA8,216,2 71.06 (2s) (b) For taxable years beginning after December 31, 1997, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1m) and (2) (c) and (d) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately "adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly "adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1m) and (2) (c) and (d) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.".

AB100-ASA1-AA8,216,3 801. Page 973, line 20: after that line insert:

AB100-ASA1-AA8,216,4 " Section 2262ns. 71.07 (6) (a) of the statutes is amended to read:

AB100-ASA1-AA8,216,20 71.07 (6) (a) Married For taxable years beginning before January 1, 1998, married persons filing a joint return, except those who reduce their gross income under section 911 or 931 of the internal revenue code, may claim as a credit against, but not to exceed the amount of, Wisconsin net income taxes otherwise due an amount equal to 2% of the earned income of the spouse with the lower earned income, but not more than $300. In this paragraph, "earned income" means qualified earned income, as defined in section 221 (b) of the internal revenue code as amended to December 31, 1985, plus employe business expenses under section 62 (2) (B) to (D) of that code, allocable to Wisconsin under s. 71.04, plus amounts received by the individual for services performed in the employ of the individual's spouse minus the amount of disability income excluded under s. 71.05 (6) (b) 4. and minus any other amount not subject to tax under this chapter. Earned income is computed notwithstanding the fact that each spouse owns an undivided one-half interest in the whole of the marital property. A marital property agreement or unilateral statement under ch. 766 transferring income between spouses has no effect in computing earned income under this paragraph.

AB100-ASA1-AA8, s. 2262nt Section 2262nt. 71.07 (6) (am) of the statutes is created to read:

AB100-ASA1-AA8,217,8 71.07 (6) (am) 1. In this paragraph, "earned income" means qualified earned income, as defined in section 221 (b) of the internal revenue code as amended to December 31, 1985, plus employe business expenses under section 62 (2) (B) to (D) of that code, allocable to Wisconsin under s. 71.04, plus amounts received by the individual for services performed in the employ of the individual's spouse minus the amount of disability income excluded under s. 71.05 (6) (b) 4. and minus any other amount not subject to tax under this chapter. Earned income is computed notwithstanding the fact that each spouse owns an undivided one-half interest in the whole of the marital property. A marital property agreement or unilateral statement under ch. 766 transferring income between spouses has no effect in computing earned income under this paragraph.

AB100-ASA1-AA8,217,12 2. Married persons filing a joint return, except those who reduce their gross income under section 911 or 931 of the Internal Revenue Code, may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount equal to one of the following:

AB100-ASA1-AA8,217,15 a. For taxable years beginning after December 31, 1997, and before January 1, 1999, 2.17% of the earned income of the spouse with the lower earned income, but not more than $304.

AB100-ASA1-AA8,217,18 b. For taxable years beginning after December 31, 1998, and before January 1, 2000, 2.5% of the earned income of the spouse with the lower earned income, but not more than $350.

AB100-ASA1-AA8,217,21 c. For taxable years beginning after December 31, 1999, and before January 1, 2001, 2.75% of the earned income of the spouse with the lower earned income, but not more than $385.

AB100-ASA1-AA8,217,23 d. For taxable years beginning after December 31, 2000, 3% of the earned income of the spouse with the lower earned income, but not more than $420.

AB100-ASA1-AA8, s. 2262nu Section 2262nu. 71.07 (6) (b) of the statutes is amended to read:

AB100-ASA1-AA8,218,3 71.07 (6) (b) A claimant who has filed a timely claim under par. (a) this subsection may file an amended claim with the department of revenue within 4 years of the last day prescribed by law for filing the original claim.".

AB100-ASA1-AA8,218,4 802. Page 976, line 17: delete "71.06 (1)" and substitute "71.06 (1) , (1m)".

AB100-ASA1-AA8,218,6 803. Page 976, line 22: delete "71.06 (1)" and substitute "71.06 (1) or under s. 71.06 (1m), whichever taxable year is applicable,".

AB100-ASA1-AA8,218,7 804. Page 1019, line 9: delete that line.

AB100-ASA1-AA8,218,8 805. Page 1019, line 12: delete "(3s)" and substitute " (3)".

AB100-ASA1-AA8,218,9 806. Page 1019, line 17: after that line insert:

AB100-ASA1-AA8,218,10 " Section 2280ar. 71.34 (1) (j) of the statutes is created to read:

AB100-ASA1-AA8,218,13 71.34 (1) (j) An addition shall be made for credits computed under s. 71.28 (3) in taxable years of the tax-option corporation that begin before January 1, 1998, if the credits are passed through to shareholders.".

AB100-ASA1-AA8,218,18 807. Page 1047, line 19: delete that line and substitute "changes in dollar amounts in s. 71.06 (1), (1m) and (2) resulting from statutory changes, except that the department may not adjust the withholding tables to reflect the changes in rates in s. 71.06 (1m) and (2) (c) and (d) for any taxable year that begins before January 1, 2000.".

AB100-ASA1-AA8,218,19 808. Page 1047, line 20: delete "(5m)." and substitute "(5m).".

AB100-ASA1-AA8,218,20 809. Page 1052, line 24: after that line insert:

AB100-ASA1-AA8,218,21 " Section 2302m. 71.67 (4) (a) of the statutes is amended to read:

AB100-ASA1-AA8,219,3 71.67 (4) (a) The administrator of the lottery division in the 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) or (1m). The administrator shall deposit the amounts withheld, on a monthly basis, as would an employer depositing under s. 71.65 (3) (a).

AB100-ASA1-AA8, s. 2302no Section 2302no. 71.67 (5) (a) of the statutes is amended to read:

AB100-ASA1-AA8,219,10 71.67 (5) (a) Wager winnings. A person holding a license to sponsor and manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c) or (1m) if the amount of the payment is more than $1,000.".

AB100-ASA1-AA8,219,11 810. Page 1058, line 4: after that line insert:

AB100-ASA1-AA8,219,12 " Section 2315m. 71.75 (5) of the statutes is amended to read:

AB100-ASA1-AA8,220,6 71.75 (5) A claim for refund may be made within 2 4 years after the assessment of a tax or an assessment to recover all or part of any tax credit, including penalties and interest, under this chapter, assessed by office audit or field audit and paid if the assessment was not protested by the filing of a petition for redetermination. No claim may be allowed under this subsection for any tax, interest or penalty paid with respect to any item of income, credit or deduction self-assessed or determined by the taxpayer or assessed as the result of any assessment made by the department with respect to which all the conditions specified in this subsection are not met. If a claim is filed under this subsection, the department of revenue may make an additional assessment in respect to any item of income or deduction that was a subject of the prior assessment. No claim for refund may be made in respect to items that were not adjusted in the notice of assessment or of refund. A person whose returns for more than one year have been adjusted may make a claim under this subsection whether or not the net result of the adjustments for those years is an assessment. This subsection does not extend the time to file under s. 71.53 (2) or 71.59 (2), and it does not extend the time period during which the department of revenue may assess, or the taxpayer may claim a refund, in respect to any item of income or deduction that was not a subject of the prior assessment.".

AB100-ASA1-AA8,220,7 811. Page 1061, line 20: after that line insert:

AB100-ASA1-AA8,220,8 " Section 2321m. 71.78 (4) (p) of the statutes is created to read:

AB100-ASA1-AA8,220,10 71.78 (4) (p) The secretary of revenue and employes of that department for the purpose of calculating the penalty under s. 71.83 (1) (d).".