Amendment SA10-AB768

LRBb3280/1

MES:kmg&jlg:ch

1997 - 1998 LEGISLATURE

SENATE AMENDMENT 10, TO 1997 ASSEMBLY BILL 768

May 7, 1998 - Offered by Senators Jauch, Decker, Shibilski, Wirch, Grobschmidt, Clausing, C. Potter, Moore, Risser, Plache, Chvala, Moen and Burke.

AB768-SA10,1,2 At the locations indicated, amend the bill, as shown by assembly substitute amendment 1, as follows:

AB768-SA10,1,4 1. Page 16, line 16: after "cities;" insert "creating an individual income tax subtract modification for severance pays;".

AB768-SA10,1,5 2. Page 206, line 16: after that line insert:

AB768-SA10,1,6 " Section 284ac. 71.05 (6) (b) 29. of the statutes is created to read:

AB768-SA10,1,9 71.05 (6) (b) 29. If an individual loses his or her job because the business for which he or she works closes and if the individual receives severance pay, the amount received as severance pay, up to $30,000, modified as follows:

AB768-SA10,2,2 a. From the amount of severance pay received, up to $30,000, if the claimant is single or married and filing as head of household and his or her federal adjusted gross income is more than $45,000 but not more than $60,000, subtract the product of the amount of severance pay received, up to $30,000, and the value of a fraction, the denominator of which is $15,000 and the numerator of which is the difference between the claimant's federal adjusted gross income and $45,000.

AB768-SA10,2,9 b. From the amount of severance pay received, up to $30,000, if the claimant is married and filing jointly and the claimant's and his or her spouse's federal adjusted gross income is more than $60,000 but not more than $90,000, subtract the product of the amount of severance pay received, up to $30,000, and the value of a fraction, the denominator of which is $30,000 and the numerator of which is the difference between the claimant's and his or her spouse's federal adjusted gross income and $60,000.

AB768-SA10,2,15 c. From the amount of severance pay received, up to $30,000, if the claimant is married and filing separately and the claimant's federal adjusted gross income is more than $30,000 but not more than $45,000, subtract the product of the amount of severance pay received, up to $30,000, and the value of a fraction, the denominator of which is $15,000 and the numerator of which is the difference between the claimant's federal adjusted gross income and $30,000.

AB768-SA10,3,2 d. For an individual who is a nonresident or part-year resident of this state, multiply the amount calculated under subd. 29. a., b. or c. by a fraction the numerator of which is the individual's wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the individual's total wages, salary, tips, unearned income and net earnings from a trade or business. In this subd. 29. d., for married persons filing separately "wages, salary, tips, unearned income and net earnings from a trade or business" means the separate wages, salary, tips, unearned income and net earnings from a trade or business of each spouse, and for married persons filing jointly "wages, salary, tips, unearned income and net earnings from a trade or business" means the total wages, salary, tips, unearned income and net earnings from a trade or business of both spouses.

AB768-SA10,3,5 e. Reduce the amount calculated under subd. 29. d. to the individual's aggregate wages, salary, tips, unearned income and net earnings from a trade or business that are taxable by this state.

AB768-SA10,3,11 f. No modification may be claimed under this subdivision by a claimant who is single or married and filing as head of household if the claimant's federal adjusted gross income is more than $60,000, by a claimant who is married and filing jointly if the claimant's and his or her spouse's federal adjusted gross income is more than $90,000 or by a claimant who is married and filing separately if the claimant's federal adjusted gross income is more than $45,000.".

AB768-SA10,3,12 3. Page 571, line 21: after that line insert:

AB768-SA10,3,17 "(3et) Severance pay income tax subtract modification. The treatment of section 71.05 (6) (b) 29. of the statutes first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31 this act first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.".

AB768-SA10,3,18 (End)