Amendment AA2-ASA1-AB133

AB133-ASA1-AA2,237,16 " Section 1653f. 70.111 (25) of the statutes is created to read:

AB133-ASA1-AA2,237,20 70.111 (25) Digital broadcasting equipment. Digital broadcasting equipment owned and used by a radio station or a television station, except that this subsection does not apply to digital broadcasting equipment that is owned and used by a cable television system, as defined in s. 66.082 (2) (d).".

AB133-ASA1-AA2,237,21 583. Page 812, line 2: after that line insert:

AB133-ASA1-AA2,237,22 " Section 1660m. 70.58 of the statutes is amended to read:

AB133-ASA1-AA2,238,8 70.58 Forestation state tax. There is levied an annual tax of two-tenths of one mill for each dollar of the assessed valuation of the property of the state as determined by the department of revenue under s. 70.57, for the purpose of acquiring, preserving and developing the forests of the state and for the purpose of forest crop law and county forest law administration and aid payments, for grants to forestry cooperatives under s. 36.56, and for the acquisition, purchase and development of forests described under s. 25.29 (7) (a) and (b), the proceeds of the tax to be paid into the conservation fund. The tax shall not be levied in any year in which general funds are appropriated for the purposes specified in this section, equal to or in excess of the amount which the tax would produce.".

AB133-ASA1-AA2,238,9 584. Page 812, line 2: after that line insert:

AB133-ASA1-AA2,238,10 " Section 1655p. 70.337 (5) of the statutes is amended to read:

AB133-ASA1-AA2,238,16 70.337 (5) Each person that is required to file a report under sub. (1) shall pay a reasonable fee that is sufficient to defray the costs to the taxation district of distributing and reviewing the forms under sub. (1) and of preparing the form for the department of revenue under sub. (2). The amount of the fee shall be established by the governing body of the taxation district. This subsection does not apply to a church or religious association that is required to file a report under sub. (1).".

AB133-ASA1-AA2,238,17 585. Page 825, line 14: after that line insert:

AB133-ASA1-AA2,238,18 " Section 1674v. 71.04 (1) (a) of the statutes is amended to read:

AB133-ASA1-AA2,240,12 71.04 (1) (a) All income or loss of resident individuals and resident estates and trusts shall follow the residence of the individual, estate or trust. Income or loss of nonresident individuals and nonresident estates and trusts from business, not requiring apportionment under sub. (4), (10) or (11), shall follow the situs of the business from which derived, except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state. All items of income, loss and deductions of nonresident individuals and nonresident estates and trusts derived from a tax-option corporation not requiring apportionment under sub. (9) shall follow the situs of the business of the corporation from which derived, except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state. Income or loss of nonresident individuals and nonresident estates and trusts derived from rentals and royalties from real estate or tangible personal property, or from the operation of any farm, mine or quarry, or from the sale of real property or tangible personal property shall follow the situs of the property from which derived. Income from personal services of nonresident individuals, including income from professions, shall follow the situs of the services. A nonresident limited partner's distributive share of partnership income shall follow the situs of the business, except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state. A nonresident limited liability company member's distributive share of limited liability company income shall follow the situs of the business , except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state. Income of nonresident individuals, estates and trusts from the state lottery under ch. 565 is taxable by this state. Income of nonresident individuals, estates and trusts from any multijurisdictional lottery under ch. 565 is taxable by this state, but only if the winning lottery ticket or lottery share was purchased from a retailer, as defined in s. 565.01 (6), located in this state or from the department. Income of nonresident individuals, nonresident trusts and nonresident estates from pari-mutuel winnings or purses under ch. 562 is taxable by this state. Income of nonresident individuals, estates and trusts from winnings from a casino or bingo hall that is located in this state and that is operated by a Native American tribe or band shall follow the situs of the casino or bingo hall. All other income or loss of nonresident individuals and nonresident estates and trusts, including income or loss derived from land contracts, mortgages, stocks, bonds and securities or from the sale of similar intangible personal property, shall follow the residence of such persons, except as provided in par. (b) and sub. (9), except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state.".

AB133-ASA1-AA2,240,13 586. Page 826, line 13: delete lines 13 to 16 and substitute:

AB133-ASA1-AA2,240,17 "71.04 (4) (a) For taxable years beginning before January 1, 2001, an apportionment fraction composed of a sales factor under sub. (7) representing 50% of the fraction, a property factor under sub. (5) representing 25% of the fraction and a payroll factor under sub. (6) representing 25% of the fraction.

AB133-ASA1-AA2, s. 1675bb Section 1675bb. 71.04 (4) (am) of the statutes is created to read:

AB133-ASA1-AA2,240,22 71.04 (4) (am) For taxable years beginning after December 31, 2000, and before January 1, 2002, an apportionment fraction composed of a sales factor under sub. (7) representing 63% of the fraction, a property factor under sub. (5) representing 18.5% of the fraction and a payroll factor under sub. (6) representing 18.5% of the fraction.".

AB133-ASA1-AA2,240,24 587. Page 829, line 19: after "of the service" insert ", except as provided in subd. 4".

AB133-ASA1-AA2,241,1 588. Page 830, line 14: after that line insert:

AB133-ASA1-AA2,241,7 "4. If the benefit of a service is received in this state, as provided under this subsection, and the service is performed in a state that does not attribute the receipts from a service to the state in which the purchaser of the service receives the service, the taxpayer may elect, by a method prescribed by the department, to attribute the receipts from the service to this state in proportion to the direct cost of performing such service.".

AB133-ASA1-AA2,241,8 589. Page 832, line 13: after that line insert:

AB133-ASA1-AA2,241,9 " Section 1682nb. 71.04 (8) (b) of the statutes is amended to read:

AB133-ASA1-AA2,241,20 71.04 (8) (b) "Public utility", as used in this section, means any business entity which owns or operates any plant, equipment, property, franchise, or license for the transmission of communications or the production, transmission, sale, delivery, or furnishing of electricity, water or steam, the rates of charges for goods or services of which have been established or approved by a federal, state or local government or governmental agency. "Public utility" also means any business entity providing service to the public and engaged in the transportation of goods and persons for hire, as defined in s. 194.01 (4), regardless of whether or not the entity's rates or charges for services have been established or approved by a federal, state or local government or governmental agency. This paragraph does not apply to gas and electric companies for taxable years beginning after December 31, 1999.".

AB133-ASA1-AA2,241,22 590. Page 832, line 21: after "(9d)" insert "and the net business income of gas and electric companies shall be apportioned under sub. (4)".

AB133-ASA1-AA2,241,23 591. Page 832, line 21: after that line insert:

AB133-ASA1-AA2,241,24 " Section 1682pd. 71.04 (9) of the statutes is amended to read:

AB133-ASA1-AA2,242,14 71.04 (9) Nonresident income from multistate tax-option corporation. Nonresident individuals and nonresident estates and trusts deriving income from a tax-option corporation which is engaged in business within and without this state shall be taxed only on the income of the corporation derived from business transacted and property located in this state and losses and other items of the corporation deductible by such shareholders shall be limited to their proportionate share of the Wisconsin loss or other item, except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state. For purposes of this subsection, all intangible income of tax-option corporations passed through to shareholders is business income that follows the situs of the business , except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state.".

AB133-ASA1-AA2,242,16 592. Page 834, line 19: delete ", (2dy) and (3s)" and substitute "and, (2dy), (3s) and (5r)".

AB133-ASA1-AA2,242,17 593. Page 834, line 22: after that line insert:

AB133-ASA1-AA2,242,18 " Section 1685c. 71.05 (6) (b) 9. of the statutes is amended to read:

AB133-ASA1-AA2,243,3 71.05 (6) (b) 9. On assets held more than one year and on all assets acquired from a decedent, 60% of the capital gain as computed under the internal revenue code, not including capital gains for which the federal tax treatment is determined under section 406 of P.L. 99-514 and; not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason; and not including amounts treated as capital gain for federal income tax purposes from the sale or exchange of a lottery prize. For purposes of this subdivision, the capital gains and capital losses for all assets shall be netted before application of the percentage.".

AB133-ASA1-AA2,243,4 594. Page 836, line 7: after that line insert:

AB133-ASA1-AA2,243,5 " Section 1688j. 71.05 (6) (b) 31. of the statutes is created to read:

AB133-ASA1-AA2,243,8 71.05 (6) (b) 31. For taxable years beginning after December 31, 1998, an amount up to $500 that an individual contributes to an individual who is a candidate for elective public office in this state.".

AB133-ASA1-AA2,243,9 595. Page 849, line 7: after that line insert:

AB133-ASA1-AA2,243,10 " Section 1710db. 71.07 (3m) (b) 1. a. of the statutes is amended to read:

AB133-ASA1-AA2,243,18 71.07 (3m) (b) 1. a. Subject to the limitations provided in this subsection and s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income taxes otherwise due, the amount derived under par. (c). If the allowable amount of 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 to the department of administration for payment to the claimant by check, share draft or other draft paid from the appropriation under s. 20.835 (2) (q) (dn).

AB133-ASA1-AA2, s. 1710dc Section 1710dc. 71.07 (3m) (b) 1. a. of the statutes, as affected by 1999 Wisconsin Act .... (this act), is repealed and recreated to read:

AB133-ASA1-AA2,244,4 71.07 (3m) (b) 1. a. Subject to the limitations provided in this subsection and s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income taxes otherwise due, the amount derived under par. (c). If the allowable amount of 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 to the department of administration for payment to the claimant by check, share draft or other draft paid from the appropriation under s. 20.835 (2) (q).".

AB133-ASA1-AA2,244,5 596. Page 849, line 7: after that line insert:

AB133-ASA1-AA2,244,6 " Section 1710df. 71.07 (3m) (c) 1. of the statutes is amended to read:

AB133-ASA1-AA2,244,13 71.07 (3m) (c) 1. Any claimant may claim against taxes otherwise due under this chapter 10% a percentage, as determined by the department under subd. 3., of the property taxes accrued in the taxable year to which the claim relates, up to a maximum claim of $1,000 $2,000 for taxable years ending before January 1, 2001, and up to a maximum claim of $1,500 for taxable years beginning after December 31, 2000, except that the credit under this subsection plus the credit under subch. IX may not exceed 95% of the property taxes accrued on the farm.

AB133-ASA1-AA2, s. 1710dg Section 1710dg. 71.07 (3m) (c) 3. of the statutes is created to read:

AB133-ASA1-AA2,244,20 71.07 (3m) (c) 3. The department shall annually adjust the percentage that is used to determine the amount of the claim under subd. 1. based on the estimated number of claims and the amount estimated to be expended from the appropriation under s. 20.835 (2) (q), as determined under s. 79.13. The department shall incorporate the annually adjusted percentage into the income tax forms and instructions.".

AB133-ASA1-AA2,244,22 597. Page 849, line 13: after "labor union" insert ", to travel expenses or to home office expenses".

AB133-ASA1-AA2,244,23 598. Page 849, line 20: after that line insert:

AB133-ASA1-AA2,244,24 " Section 2713g. 71.07 (5r) of the statutes is created to read:

AB133-ASA1-AA2,245,1 71.07 (5r) Education credit. (a) In this subsection:

AB133-ASA1-AA2,245,4 1. "Claimant" means a sole proprietor, a partner, a member of a limited liability company or a shareholder of a tax-option corporation who files a claim under this subsection.

AB133-ASA1-AA2,245,6 2. "Degree-granting program" means an educational program for which an associate, a bachelor's or a graduate degree is awarded upon successful completion.

AB133-ASA1-AA2,245,10 3. "Qualified postsecondary institution" means a University of Wisconsin System institution, a technical college system institution or a regionally accredited 4-year nonprofit college or university having its regional headquarters and principal place of business in this state, notwithstanding s. 16.973 (1) (b).

AB133-ASA1-AA2,245,15 (b) A claimant may claim as a credit against the tax imposed under this subchapter an amount equal to 50% of the tuition that the claimant paid or incurred during the taxable year for an individual to participate in an education program of a qualified postsecondary institution, if the individual is enrolled in a degree-granting program.

AB133-ASA1-AA2,245,18 (c) A claimant may not claim the credit under par. (b) for any tuition amounts that the claimant excluded under s. 71.05 (6) (b) 28. or under section 127 of the Internal Revenue Code.

AB133-ASA1-AA2,245,20 (d) The carry-over provisions of s. 71.28 (4) (e) and (f), as they apply to the credit under s. 71.28 (4), apply to the credit under this subsection.

AB133-ASA1-AA2,246,3 (e) Partnerships, limited liability companies and tax-option corporations may not claim the credit under this subsection, but the eligibility for, and the amount of, the credit are based on their payment of tuition under par. (b). A partnership, limited liability company or tax-option corporation shall compute the amount of credit that each of its partners, members or shareholders may claim and shall provide that information to each of them. Partners, members of limited liability companies and shareholders of tax-option corporations may claim the credit in proportion to their ownership interest.

AB133-ASA1-AA2,246,5 (f) Section 71.28 (4) (g) and (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.".

AB133-ASA1-AA2,246,6 599. Page 850, line 3: after that line insert:

AB133-ASA1-AA2,246,7 " Section 1715m. 71.07 (6m) of the statutes is created to read:

AB133-ASA1-AA2,246,9 71.07 (6m) Armed forces member tax credit. (a) Definitions. In this subsection:

AB133-ASA1-AA2,246,11 1. "Claimant" means an active duty member of the U.S. armed forces, as defined in 26 USC 7701 (a) (15).

AB133-ASA1-AA2,246,14 2. "Military income" means an amount of basic, special or incentive pay income, as those terms are used in 37 USC chapters 3 and 5, received by a claimant from the federal government.

AB133-ASA1-AA2,246,18 (b) Filing claims. Subject to the limitations and conditions provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, an amount up to $200 of military income for services performed by the claimant while he or she is stationed outside of the United States.

AB133-ASA1-AA2,246,20 (c) Limitations and conditions. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB133-ASA1-AA2,246,22 2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.

AB133-ASA1-AA2,246,24 3. If both spouses of a married couple meet the definition of claimant under par. (a) 1., each spouse may claim the credit under this subsection.

AB133-ASA1-AA2,247,2 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.".

AB133-ASA1-AA2,247,3 600. Page 851, line 1: after "(3s)," insert "(5r),".

AB133-ASA1-AA2,247,4 601. Page 851, line 2: after "(6)" insert ", (6m)".

AB133-ASA1-AA2,247,7 602. Page 851, line 2: delete the material beginning with "(2m)" and ending with "(2m) and (3)" on line 3 and substitute "(2m) and, (3) and (5r) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (1fd), (2m) and, (3) and (5r)".

AB133-ASA1-AA2,247,8 603. Page 851, line 7: after that line insert:

AB133-ASA1-AA2,247,9 " Section 1719j. 71.10 (4) (cm) of the statutes is created to read:

AB133-ASA1-AA2,247,10 71.10 (4) (cm) The armed forces member tax credit under s. 71.07 (6m).".

AB133-ASA1-AA2,247,11 604. Page 851, line 7: after that line insert:

AB133-ASA1-AA2,247,12 " Section 1719i. 71.10 (3) (a) (title) of the statutes is created to read:

AB133-ASA1-AA2,247,13 71.10 (3) (a) (title) Voluntary payments.

AB133-ASA1-AA2, s. 1719j Section 1719j. 71.10 (3) (a) of the statutes is renumbered 71.10 (3) (a) 1. and amended to read:

AB133-ASA1-AA2,247,22 71.10 (3) (a) 1. `Designation on return.' Every Any individual filing an income tax return who has a tax liability or is entitled to a tax refund may designate on the return an additional payment in the amount of $1 or a deduction from any refund due that individual in the amount of $1 for the Wisconsin election campaign fund for the use of eligible candidates under s. 11.50. If the individuals filing a married couple files a joint return have a tax liability or are entitled to a tax refund, each individual spouse may make a designation of $1 under this subsection.

AB133-ASA1-AA2, s. 1719jk Section 1719jk. 71.10 (3) (a) 2. and 3. of the statutes are created to read:

AB133-ASA1-AA2,248,3 71.10 (3) (a) 2. `Designation added to tax owed.' If the individual owes any tax, the individual shall remit in full the tax due and an additional $1 for the Wisconsin election campaign fund when the individual files a tax return.

AB133-ASA1-AA2,248,7 3. `Designation deducted from refund.' Except as provided under par. (c) if the individual is owed a refund for that year after crediting under ss. 71.75 (9) and 71.80 (3), the department of revenue shall deduct $1 for the Wisconsin election campaign fund from the amount of the refund.

AB133-ASA1-AA2, s. 1719jm Section 1719jm. 71.10 (3) (b) of the statutes is renumbered 71.10 (3) (f) and amended to read:

AB133-ASA1-AA2,249,2 71.10 (3) (f) Administration, certification of amounts confidentiality. The secretary of revenue shall provide a place for those designations on the face of the individual income tax return and shall provide next to that place a statement that a designation will not increase tax liability or reduce a refund. Annually on August 15, the secretary of revenue shall certify to the elections board, the department of administration and the state treasurer under s. 11.50 the total amount of received from all designations made during the preceding fiscal year. If any individual attempts to place any condition or restriction upon a designation, that individual is deemed not to have made a designation on his or her tax return Amounts designated for the Wisconsin election campaign fund under this subsection are not subject to refund to the taxpayer unless the taxpayer submits information to the satisfaction of the department of revenue within 18 months after the date taxes are due or the date the return is filed, whichever is later, that the amount designated is clearly in error. Any refund granted by the department of revenue under this subdivision shall be deducted from the moneys received under this subsection in the fiscal year that the refund is certified. The names of persons making designations under this subsection shall be strictly confidential.

AB133-ASA1-AA2, s. 1719jn Section 1719jn. 71.10 (3) (bm) of the statutes is created to read:

AB133-ASA1-AA2,249,8 71.10 (3) (bm) Errors; failure to remit correct amount. If an individual who owes a tax fails to remit an amount equal to or in excess of the total of the actual tax due, after error corrections, and the amount designated on the return for the Wisconsin election campaign fund, the designation for the Wisconsin election campaign fund is void.

AB133-ASA1-AA2, s. 1719jp Section 1719jp. 71.10 (3) (c) of the statutes is repealed and recreated to read:

AB133-ASA1-AA2,249,12 71.10 (3) (c) Errors; insufficient refund. If an individual is owed a refund that does not equal or exceed $1, after crediting under ss. 71.75 (9) and 71.80 (3) and after error corrections, the designation for the Wisconsin election campaign fund is void.

AB133-ASA1-AA2, s. 1719jr Section 1719jr. 71.10 (3) (d) of the statutes is created to read:

AB133-ASA1-AA2,249,15 71.10 (3) (d) Conditions. If an individual places any conditions on a designation for the Wisconsin election campaign fund, the designation is void.

AB133-ASA1-AA2, s. 1719jt Section 1719jt. 71.10 (3) (e) of the statutes is created to read:

AB133-ASA1-AA2,249,20 71.10 (3) (e) Void designation. If a designation for the Wisconsin election campaign fund is void, the department of revenue shall disregard the designation and determine amounts due, owed, refunded and received without regard to the void designation.".

AB133-ASA1-AA2,249,21 605. Page 851, line 9: after that line insert: