AB133-ASA1-CA1,320,1713
71.07
(9) (b) 1. Subject to the limitations under this subsection and except as
14provided in
subd. subds. 2.
and 3., a claimant may claim as a credit against, but not
15to exceed the amount of, taxes under s. 71.02, 10% of the first $2,000 of property taxes
16or rent constituting property taxes, or 10% of the first $1,000 of property taxes or rent
17constituting property taxes of a married person filing separately.
AB133-ASA1-CA1,320,2419
71.07
(9) (b) 3. For taxable years beginning after December 31, 1999, and before
20January 1, 2001, subject to the limitations under this subsection, a claimant may
21claim as a credit against, but not to exceed the amount of, taxes under s. 71.02, 6.4%
22of the first $2,000 of property taxes or rent constituting property taxes, or 6.4% of the
23first $1,000 of property taxes or rent constituting property taxes of a married person
24filing separately.".
AB133-ASA1-CA1,321,66
71.10
(4) (cm) The armed forces member tax credit under s. 71.07 (6m).".
AB133-ASA1-CA1,321,1610
71.14
(3) (intro.) Except as provided in sub. (2) and s. 71.04 (1) (b) 2., trusts
11created by contract, declaration of trust or implication of law
that are made
12irrevocable before the effective date of this subsection .... [revisor inserts date], shall
13be considered resident at the place where the trust is being administered. The
14following trusts shall be considered to be administered in the state of domicile of the
15corporate trustee of the trust at any time that the grantor of the trust is not a resident
16of this state:
AB133-ASA1-CA1,321,2118
71.14
(3m) (a) Subject to par. (b) and except as provided in sub. (2) and s. 71.04
19(1) (b) 2., only the following trusts, or portions of trusts, which become irrevocable
20on or after the effective date of this paragraph .... [revisor inserts date], are resident
21of this state:
AB133-ASA1-CA1,322,222
1. Trusts, or portions of trusts, the assets of which consist of property placed
23in the trust by a person who is a resident of this state at the time that the property
1was placed in the trust if, at the time that the assets were placed in the trust, the trust
2was irrevocable.
AB133-ASA1-CA1,322,63
2. Trusts, or portions of trusts, the assets of which consist of property placed
4in the trust by a person who is a resident of this state at the time that the trust
5became irrevocable if, at the time that the property was placed in the trust, the trust
6was revocable.
AB133-ASA1-CA1,322,77
(b) A trust described under par. (a):
AB133-ASA1-CA1,322,98
1. Is revocable if the person whose property constitutes the trust may revest
9title to the property in that person.
AB133-ASA1-CA1,322,1110
2. Is irrevocable if the power to revest title, as described in par. (a), does not
11exist.".
AB133-ASA1-CA1,322,19
15954. Page 854, line 11: delete that line and substitute "state for pecuniary
16gain, if the income from the partnership or company is unitary or operational income
17of the taxpayer or a direct or indirect affiliate of the taxpayer or if such income has
18a taxable presence in this state. "Doing business" also includes issuing credit, debit
19or travel and entertainment cards to customers in this state.".
AB133-ASA1-CA1,323,20
171.23
(2) Franchise tax. For the privilege of exercising its franchise
, buying
2or selling lottery prizes if the winning tickets were originally bought in this state or
3doing business in this state in a corporate capacity, except as provided under sub. (3),
4every domestic or foreign corporation, except corporations specified in s. 71.26 (1),
5and every nuclear decommissioning trust or reserve fund shall annually pay a
6franchise tax according to or measured by its entire Wisconsin net income of the
7preceding taxable year at the rate set forth in s. 71.27 (2). In addition, except as
8provided in sub. (3) and s. 71.26 (1), a corporation that ceases doing business in this
9state and a nuclear decommissioning trust or reserve fund that is terminated shall
10pay a special franchise tax according to or measured by its entire Wisconsin net
11income for the taxable year during which the corporation ceases doing business in
12this state or the nuclear decommissioning trust or reserve fund is terminated at the
13rates under s. 71.27 (2). Every corporation organized under the laws of this state
14shall be deemed to be residing within this state for the purposes of this franchise tax.
15All provisions of this chapter and ch. 73 relating to income taxation of corporations
16shall apply to franchise taxes imposed under this subsection, unless the context
17requires otherwise. The tax imposed by this subsection on national banking
18associations shall be in lieu of all taxes imposed by this state on national banking
19associations to the extent it is not permissible to tax such associations under federal
20law.
AB133-ASA1-CA1,324,422
71.25
(5) (b)
Nonapportionable income. 1. Income, gain or loss from the sale
23of nonbusiness real property or nonbusiness tangible personal property, rental of
24nonbusiness real property or nonbusiness tangible personal property and royalties
25from nonbusiness real property or nonbusiness tangible personal property are
1nonapportionable and shall be allocated to the situs of the property
, except that all
2income that is realized from the sale of or purchase and subsequent sale or
3redemption of lottery prizes if the winning tickets were originally bought in this state
4shall be allocated to this state.
AB133-ASA1-CA1,324,105
2. All income, gain or loss from intangible property that is earned by a personal
6holding company, as defined in section
542 of the internal revenue code, as amended
7to December 31, 1974, shall be allocated to the residence of the taxpayer
, except that
8all income that is realized from the sale of or purchase and subsequent sale or
9redemption of lottery prizes if the winning tickets were originally bought in this state
10shall be allocated to this state.".
AB133-ASA1-CA1,324,2013
71.23
(3) (d) The storage for no more than 90 days in this state in or on property
14owned by a person, other than the foreign corporation, of the foreign corporation's
15tangible personal property, if the tangible personal property is transferred to the
16person and is used in this state by the person for fabricating, processing,
17manufacturing or printing on the parcel of property in or on which the tangible
18personal property is stored and if the parcel of property has an assessed value, for
19property tax purposes, of at least $10,000,000 but no more than $11,000,000 on
20January 1, 1999.".
AB133-ASA1-CA1,325,523
71.25
(5) (a)
Apportionable income. (intro.) Except as provided in sub. (6),
24corporations engaged in business both within and without this state are subject to
1apportionment.
Income gain or loss from the sources listed in this paragraph is
2presumed apportionable as unitary or operational income or other income that has
3a taxable presence in this state. Apportionable income includes all income or loss of
4corporations, other than nonapportionable income as specified in par. (b), including,
5but not limited to, income, gain or loss from the following sources:".
AB133-ASA1-CA1,325,18
11"4. If the benefit of a service is received in this state, as provided under this
12subsection, and the taxpayer submits evidence to the department that another state
13that has jurisdiction to tax the service attributes the receipts from the service to that
14state to determine the income that is taxable by that state, the taxpayer may elect,
15by a method prescribed by the department, to attribute the receipts from the service
16to this state in proportion to the direct cost of performing such service in this state
17as compared to the total direct cost of performing the service in all states that have
18jurisdiction to tax such service.".
AB133-ASA1-CA1,326,2423
71.26
(1) (a)
Certain corporations. Income of corporations organized under ch.
24185, except income of a cooperative sickness care association organized under s.
1185.981, or of a service insurance corporation organized under ch. 613, that is derived
2from a health maintenance organization as defined in s. 609.01 (2) or a limited
3service health organization as defined in s. 609.01 (3), or operating under subch. I
4of ch. 616 which are bona fide cooperatives operated without pecuniary profit to any
5shareholder or member, or operated on a cooperative plan pursuant to which they
6determine and distribute their proceeds in substantial compliance with s. 185.45,
7and the income, except the unrelated business taxable income as defined in section
8512 of the internal revenue code and except income that is derived from a health
9maintenance organization as defined in s. 609.01 (2) or a limited service health
10organization as defined in s. 609.01 (3), of all religious, scientific, educational,
11benevolent or other corporations or associations of individuals not organized or
12conducted for pecuniary profit. This paragraph does not apply to the income of
13savings banks, mutual loan corporations or savings and loan associations.
This
14paragraph does not apply to income that is realized from the sale of or purchase and
15subsequent sale or redemption of lottery prizes if the winning tickets were originally
16bought in this state. This paragraph applies to the income of credit unions except to
17the income of any credit union that is derived from public deposits for any taxable
18year in which the credit union is approved as a public depository under ch. 34 and
19acts as a depository of state or local funds under s. 186.113 (20). For purposes of this
20paragraph, the income of a credit union that is derived from public deposits is the
21product of the credit union's gross annual income for the taxable year multiplied by
22a fraction, the numerator of which is the average monthly balance of public deposits
23in the credit union during the taxable year, and the denominator of which is the
24average monthly balance of all deposits in the credit union during the taxable year.".
AB133-ASA1-CA1,327,193
71.26
(3) (L) Section 265 is excluded and replaced by the rule that any amount
4otherwise deductible under this chapter that is directly or indirectly related to
5income wholly exempt from taxes imposed by this chapter or to losses from the sale
6or other disposition of assets the gain from which would be exempt under this
7paragraph if the assets were sold or otherwise disposed of at a gain is not deductible.
8In this paragraph, "wholly exempt income", for corporations subject to franchise or
9income taxes, includes
amounts received from affiliated or subsidiary corporations
10for interest, dividends or capital gains that
, because of the degree of common
11ownership, control or management between the payor and payee, are not subject to
12taxes under this chapter. In this paragraph, "wholly exempt income", for
13corporations subject to income taxation under this chapter, also includes interest on
14obligations of the United States. In this paragraph, "wholly exempt income" does not
15include income excludable, not recognized, exempt or deductible under specific
16provisions of this chapter. If any expense or amount otherwise deductible is
17indirectly related both to wholly exempt income or loss and to other income or loss,
18a reasonable proportion of the expense or amount shall be allocated to each type of
19income or loss, in light of all the facts and circumstances.".
AB133-ASA1-CA1,328,422
71.28
(1di) (a) (intro.) Except as provided in pars. (dm) and (f) and s. 73.03 (35),
23for any taxable year for which the person is
certified under s. 560.765 (3) for entitled
24under s. 560.795 (3) to claim tax benefits, any person may claim as a credit against
1taxes otherwise due under this chapter 2.5% of the purchase price of depreciable,
2tangible personal property, or 1.75% of the purchase price of depreciable, tangible
3personal property that is expensed under section
179 of the internal revenue code for
4purposes of the taxes under this chapter, except that:
AB133-ASA1-CA1,328,126
71.28
(1di) (a) 1. The investment must be in property that is purchased after
7the person is
certified under s. 560.765 (3) for
entitled under s. 560.795 (3) to claim 8tax benefits and that is used for at least 50% of its use in the conduct of the
person's 9business operations
for which the claimant is certified under s. 560.765 (3) at a
10location in a development zone under subch. VI of ch. 560 or, if the property is mobile,
11the base of operations of the property for at least 50% of its use must be a location
12in a development zone.
AB133-ASA1-CA1,328,1614
71.28
(1di) (d) 1. A copy of
the claimant's certification for a verification from
15the department of commerce that the claimant may claim tax benefits under s.
16560.765 (3) 560.795 (3).
AB133-ASA1-CA1,328,2518
71.28
(1di) (f) If
the certification of a person
for who is entitled under s. 560.795
19(3) to claim tax benefits
under s. 560.765 (3) is revoked becomes ineligible for such
20tax benefits, that person may claim no credits under this subsection for the taxable
21year that includes the day on which the
certification is revoked person becomes
22ineligible for tax benefits or succeeding taxable years and that person may carry over
23no unused credits from previous years to offset tax under this chapter for the taxable
24year that includes the day on which
certification is revoked the person becomes
25ineligible for tax benefits or succeeding taxable years.
AB133-ASA1-CA1,329,72
71.28
(1di) (g) If a person who is
certified under s. 560.765 (3) for entitled under
3s. 560.795 (3) to claim tax benefits ceases business operations in the development
4zone during any of the taxable years that that zone exists, that person may not carry
5over to any taxable year following the year during which operations cease any
6unused credits from the taxable year during which operations cease or from previous
7taxable years.
AB133-ASA1-CA1,329,139
71.28
(1di) (j) No credit may be claimed under this subsection for taxable years
10that begin
on January 1, 1998, or thereafter after December 31, 1997, and end before
11January 1, 2000. Credits under this subsection for taxable years that begin before
12January 1, 1998, may be carried forward to taxable years that begin on January 1,
131998, or thereafter.".
AB133-ASA1-CA1,329,16
14967. Page 912, line 2: delete the material beginning with "certified" and
15ending with "(3)" on line 3 and substitute "
entitled under s. 560.795 (3) to claim tax
16benefits or certified under s. 560.765 (3)
or 560.797 (4)".
AB133-ASA1-CA1,330,419
71.28
(1dx) (c)
Credit precluded. If the certification of a person for tax benefits
20under s. 560.765 (3)
or 560.797 (4) is revoked,
or if the person becomes ineligible for
21tax benefits under s. 560.795 (3), that person may not claim credits under this
22subsection for the taxable year that includes the day on which the certification is
23revoked
; the taxable year that includes the day on which the person becomes
24ineligible for tax benefits; or succeeding taxable years and that person may not carry
1over unused credits from previous years to offset tax under this chapter for the
2taxable year that includes the day on which certification is revoked
; the taxable year
3that includes the day on which the person becomes ineligible for tax benefits; or
4succeeding taxable years.
AB133-ASA1-CA1,330,116
71.28
(1dx) (d)
Carry-over precluded. If a person who is
entitled under s.
7560.795 (3) to claim tax benefits or certified under s. 560.765 (3)
or 560.797 (4) for tax
8benefits ceases business operations in the development zone during any of the
9taxable years that that zone exists, that person may not carry over to any taxable
10year following the year during which operations cease any unused credits from the
11taxable year during which operations cease or from previous taxable years.".
AB133-ASA1-CA1,330,2416
71.28
(2m) (b) 1. a. Subject to the limitations provided in this subsection and
17s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income or
18franchise taxes otherwise due, the amount derived under par. (c). If the allowable
19amount of claim exceeds the income or franchise taxes otherwise due on or measured
20by the claimant's income or if there are no Wisconsin income or franchise taxes due
21on or measured by the claimant's income, the amount of the claim not used as an
22offset against income or franchise taxes shall be certified to the department of
23administration for payment to the claimant by check, share draft or other draft paid
24from the
appropriation appropriations under s. 20.835 (2)
(q) (dn) and (ka).
AB133-ASA1-CA1, s. 1744be
1Section 1744be. 71.28 (2m) (b) 1. a. of the statutes, as affected by 1999
2Wisconsin Act .... (this act), is repealed and recreated to read:
AB133-ASA1-CA1,331,103
71.28
(2m) (b) 1. a. Subject to the limitations provided in this subsection and
4s. 71.80 (3) and (3m), a claimant may claim as a credit against Wisconsin income
5taxes otherwise due, the amount derived under par. (c). If the allowable amount of
6claim exceeds the income taxes otherwise due on the claimant's income or if there are
7no Wisconsin income taxes due on the claimant's income, the amount of the claim not
8used as an offset against income taxes shall be certified to the department of
9administration for payment to the claimant by check, share draft or other draft paid
10from the appropriations under s. 20.835 (2) (ka) and (q).
AB133-ASA1-CA1,331,1813
71.28
(2m) (c) 3. The department shall annually adjust the percentage that is
14used to determine the amount of a claim under subd. 1. based on the estimated
15number of claims and the amount estimated to be expended from the appropriation
16under s. 20.835 (2)
(q) (dn), as determined under s. 79.13. The department shall
17incorporate the annually adjusted percentage into the income tax forms and
18instructions.
AB133-ASA1-CA1, s. 1744bg
19Section 1744bg. 71.28 (2m) (c) 3. of the statutes, as affected by 1999 Wisconsin
20Act .... (this act), is repealed and recreated to read:
AB133-ASA1-CA1,332,221
71.28
(2m) (c) 3. The department shall annually adjust the percentage that is
22used to determine the amount of a claim under subd. 1. based on the estimated
23number of claims and the amount estimated to be expended from the appropriation
24under s. 20.835 (2) (q), as determined under s. 79.13. The department shall
1incorporate the annually adjusted percentage into the income tax forms and
2instructions.".
AB133-ASA1-CA1,332,105
71.362
(1) All tax-option items of nonresident individuals, nonresident estates
6and nonresident trusts derived from a tax-option corporation not requiring
7apportionment under sub. (2) shall follow the situs of the business of the corporation
8from which they are derived
, except that all income that is realized from the sale of
9or purchase and subsequent sale or redemption of lottery prizes if the winning tickets
10were originally bought in this state shall be allocated to this state.
AB133-ASA1-CA1,332,2412
71.362
(2) Nonresident individuals, nonresident estates and nonresident
13trusts deriving income from a tax-option corporation which is engaged in business
14within and without this state shall be taxed only on the income of the corporation
15derived from business transacted and property located in this state and losses and
16other items of the corporation deductible by such shareholders shall be limited to
17their proportionate share of the Wisconsin loss or other item
, except that all income
18that is realized from the sale of or purchase and subsequent sale or redemption of
19lottery prizes if the winning tickets were originally bought in this state shall be
20allocated to this state. For purposes of this subsection, all intangible income of
21tax-option corporations passed through to shareholders is business income that
22follows the situs of the business
, except that all income that is realized from the sale
23of or purchase and subsequent sale or redemption of lottery prizes if the winning
24tickets were originally bought in this state shall be allocated to this state.".
AB133-ASA1-CA1,334,25
71.43
(2) Franchise tax on corporations. For the privilege of exercising its
6franchise
, buying or selling lottery prizes if the winning tickets were originally
7bought in this state or doing business in this state in a corporate capacity, except as
8provided under s. 71.23 (3), every domestic or foreign corporation, except
9corporations specified in ss. 71.26 (1) and 71.45 (1), shall annually pay a franchise
10tax according to or measured by its entire Wisconsin net income of the preceding
11taxable year at the rates set forth in s. 71.46 (2). In addition, except as provided in
12ss. 71.23 (3), 71.26 (1) and 71.45 (1), a corporation that ceases doing business in this
13state shall pay a special franchise tax according to or measured by its entire
14Wisconsin net income for the taxable year during which the corporation ceases doing
15business in this state at the rate under s. 71.46 (2). Every corporation organized
16under the laws of this state shall be deemed to be residing within this state for the
17purposes of this franchise tax. All provisions of this chapter and ch. 73 relating to
18income taxation of corporations shall apply to franchise taxes imposed under this
19subsection, unless the context requires otherwise. The tax imposed by this
20subsection on insurance companies subject to taxation under this chapter shall be
21based on Wisconsin net income computed under s. 71.45, and no other provision of
22this chapter relating to computation of taxable income for other corporations shall
23apply to such insurance companies. All other provisions of this chapter shall apply
1to insurance companies subject to taxation under this chapter unless the context
2clearly requires otherwise.
AB133-ASA1-CA1,334,224
71.45
(1) Exempt and excludable income. There shall be exempt from taxation
5under this subchapter income of insurers exempt from federal income taxation
6pursuant to section
501 (c) (15) of the internal revenue code, town mutuals organized
7under or subject to ch. 612, foreign insurers, and domestic insurers engaged
8exclusively in life insurance business, domestic insurers insuring against financial
9loss by reason of nonpayment of principal, interest and other sums agreed to be paid
10under the terms of any note or bond or other evidence of indebtedness secured by a
11mortgage, deed of trust or other instrument constituting a lien or charge on real
12estate and corporations organized under ch. 185, but not including income of
13cooperative sickness care associations organized under s. 185.981, or of a service
14insurance corporation organized under ch. 613, that is derived from a health
15maintenance organization as defined in s. 609.01 (2) or a limited service health
16organization as defined in s. 609.01 (3), or operating under subch. I of ch. 616 which
17are bona fide cooperatives operated without pecuniary profit to any shareholder or
18member, or operated on a cooperative plan pursuant to which they determine and
19distribute their proceeds in substantial compliance with s. 185.45.
This subsection
20does not apply to income that is realized from the sale of or purchase and subsequent
21sale or redemption of lottery prizes if the winning tickets were originally bought in
22this state.".
