Amendment AA1-AB192

LRBa0335/4

JK/MGG/RPN:kmg:km

1999 - 2000 LEGISLATURE

ASSEMBLY AMENDMENT 1, TO 1999 ASSEMBLY BILL 192

July 27, 1999 - Offered by Committee on Small Business and Economic Development.

AB192-AA1,1,1 At the locations indicated, amend the bill as follows:

AB192-AA1,1,2 1. Page 2, line 14: delete lines 14 to 16 and substitute:

AB192-AA1,1,4 "29.543 Donation and disposal of deer carcasses. (1) Definitions. In this section:

AB192-AA1,1,8 (a) "Charitable organization" means a nonprofit corporation, charitable trust or other nonprofit association that is described in section 501 (c) (3) of the Internal Revenue Code and that is exempt from taxation under section 501 (a) of the Internal Revenue Code.

AB192-AA1,1,10 (b) "Venison processor" means a person who is engaged in the business of processing venison.".

AB192-AA1,1,12 2. Page 2, line 18: delete "sell, give away" and substitute "donate to a charitable organization".

AB192-AA1,1,13 3. Page 3, line 2: delete "sold, given away" and substitute "donated".

AB192-AA1,2,1 4. Page 3, line 5: delete lines 5 to 7.

AB192-AA1,2,2 5. Page 3, line 8: before that line insert:

AB192-AA1,2,8 "(3m) Tax credit. A processor who is authorized to donate venison or a carcass under sub. (2) may claim a tax credit under s. 71.07 (5d) or 71.28 (5d) in an amount equal to the fair market value of the venison or carcass at the time that the processor donated the venison or carcass. The fair market value of the venison or carcass shall be based on the amount customarily charged by the processor for the processing and storage of venison or a carcass.".

AB192-AA1,2,11 6. Page 3, line 11: delete lines 11 to 12 and substitute "apply to a venison processor or to a charitable organization that receives donated venison under this section.".

AB192-AA1,2,12 7. Page 3, line 22: delete "give away, sell" and substitute "donate".

AB192-AA1,2,13 8. Page 4, line 1: after that line insert:

AB192-AA1,2,14 " Section 4m. 71.05 (6) (a) 15. of the statutes is amended to read:

AB192-AA1,2,19 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx) and, (3s) and (5d) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).

AB192-AA1, s. 5m Section 5m. 71.07 (5d) of the statutes is created to read:

AB192-AA1,2,24 71.07 (5d) Venison processing credit. (a) Any person who donates venison or a carcass under s. 29.543 may claim as a credit against the tax imposed under s. 71.02 an amount equal to the fair market value of the venison or carcass at the time that the processor donated the venison or carcass.

AB192-AA1,3,8 (b) 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 the costs of processing and storing the venison or carcass. 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.

AB192-AA1,3,10 (c) Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB192-AA1,3,13 (d) No person may claim the credit under this subsection and a deduction for state tax purposes under section 160, 165 or 170 of the Internal Revenue Code related to the same venison or carcass.

AB192-AA1, s. 6m Section 6m. 71.08 (1) (intro.) of the statutes is amended to read:

AB192-AA1,3,23 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3s), (5d), (6) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and, (3) and (5d) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and (3) and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

AB192-AA1, s. 7m Section 7m. 71.10 (4) (i) of the statutes is amended to read:

AB192-AA1,4,6 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under subch. IX, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s. 71.07 (2fd), venison processing credit under s. 71.07 (5d), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

AB192-AA1, s. 8m Section 8m. 71.21 (4) of the statutes is amended to read:

AB192-AA1,4,10 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2ds), (2dx) and, (3s) and (5d) and passed through to partners shall be added to the partnership's income.

AB192-AA1, s. 9m Section 9m. 71.26 (2) (a) of the statutes is amended to read:

AB192-AA1,5,2 71.26 (2) (a) Corporations in general. The "net income" of a corporation means the gross income as computed under the internal revenue code as modified under sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit computed under s. 71.28 (1) and (3) to (5) plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds) and , (1dx) and (5d) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, limited liability company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount of losses from the sale or other disposition of assets the gain from which would be wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise disposed of at a gain and minus deductions, as computed under the internal revenue code as modified under sub. (3), plus or minus, as appropriate, an amount equal to the difference between the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned or otherwise disposed of in a taxable transaction during the taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).

AB192-AA1, s. 10m Section 10m. 71.28 (5d) of the statutes is created to read:

AB192-AA1,5,7 71.28 (5d) Venison processing credit. (a) Any person who donates venison or a carcass under s. 29.543 may claim as a credit against the tax imposed under s. 71.23 an amount equal to the fair market value of the venison or carcass at the time that the processor donated the venison or carcass.

AB192-AA1,5,15 (b) 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 the costs of processing and storing the venison or carcass. 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.

AB192-AA1,5,17 (c) Subsection (4) (e) to (h), as it applies to the credit under sub. (4), applies to the credit under this subsection.

AB192-AA1,5,20 (d) No person may claim the credit under this subsection and a deduction for state tax purposes under section 160, 165 or 170 of the Internal Revenue Code related to the same venison or carcass.

AB192-AA1, s. 11m Section 11m. 71.30 (3) (f) of the statutes is amended to read:

AB192-AA1,5,25 71.30 (3) (f) The total of farmers' drought property tax credit under s. 71.28 (1fd), farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.28 (2m), venison processing credit under s. 71.28 (5d) and estimated tax payments under s. 71.29.

AB192-AA1, s. 12m Section 12m. 71.34 (1) (g) of the statutes is amended to read:

AB192-AA1,6,4 71.34 (1) (g) An addition shall be made for credits computed by a tax-option corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx) and, (3) and (5d) and passed through to shareholders.

AB192-AA1, s. 13m Section 13m. 77.92 (4) of the statutes is amended to read:

AB192-AA1,6,16 77.92 (4) "Net business income", with respect to a partnership, means taxable income as calculated under section 703 of the internal revenue code; plus the items of income and gain under section 702 of the internal revenue code; minus the items of loss and deduction under section 702 of the internal revenue code; plus payments treated as not made to partners under section 707 (a) of the internal revenue code; plus the credits claimed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx) and, (3s) and (5d); but excluding income, gain, loss and deductions from farming. "Net business income", with respect to a natural person, estate or trust, means profit from a trade or business for federal income tax purposes and includes net income derived as an employe as defined in section 3121 (d) (3) of the internal revenue code.

AB192-AA1, s. 13t Section 13t. 895.51 (2m) of the statutes is created to read:

AB192-AA1,6,21 895.51 (2m) Any venison processor, as defined in s. 29.543 (1) (b), who donates venison or a deer carcass under s. 29.543 is immune from civil liability for the death of or injury to an individual caused by the venison or carcass donated by the processor.

AB192-AA1, s. 14m Section 14m. Initial applicability.

AB192-AA1,7,5 (1) Venison processing credit. The treatment of sections 71.05 (6) (a) 15., 71.07 (5d), 71.08 (1) (intro.), 71.10 (4) (i), 71.21 (4), 71.26 (2) (a), 71.28 (5d), 71.30 (3) (f), 71.34 (1) (g) and 77.92 (4) 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 the treatment of sections 71.05 (6) (a) 15., 71.07 (5d), 71.08 (1) (intro.), 71.10 (4) (i), 71.21 (4), 71.26 (2) (a), 71.28 (5d), 71.30 (3) (f), 71.34 (1) (g) and 77.92 (4) of the statutes first applies to taxable years beginning on January 1 of the year after the year in which this subsection takes effect.".

AB192-AA1,7,6 (End)