LRBs0049/1
ISR/JK/RAC:cmh:jf
1999 - 2000 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 1999 ASSEMBLY BILL 300
May 5, 1999 - Offered by Committee on Ways and Means.
AB300-ASA1,1,13
1An Act to repeal 20.115 (4) (g), 20.115 (4) (h), 20.505 (8) (i), 20.835 (3) (q), 66.058
2(3) (c) 8., 74.09 (3) (b) 6., 74.09 (3) (b) 7., 74.09 (3) (f), 79.10 (1m), 79.10 (5), 79.10
3(7m) (b), 79.10 (9) (bm), 79.10 (11), 562.077 and 563.05 (6);
to renumber
4563.135 and 563.80;
to renumber and amend 79.10 (7m) (a);
to amend
520.115 (4) (a), 20.115 (4) (b), 20.435 (7) (kg), 20.455 (2) (g), 20.505 (8) (h), 20.505
6(8) (j), 20.566 (2) (r), 20.566 (8) (q), 25.75 (2), 25.75 (3) (intro.), 25.75 (3) (e), 71.08
7(1) (intro.), 71.10 (4) (i), 74.29, 77.22 (2) (intro.), 77.23, 79.10 (2), 79.10 (6m),
879.10 (9) (b), 79.10 (9) (c), 93.31, 562.065 (3) (d) (title), 562.065 (3m) (c) (title)
9and 2., 562.124 (2), 563.13 (4), 563.16, 563.92 (2), 563.98 (1g) and 565.02 (7);
to
10repeal and recreate 20.505 (8) (g); and
to create 20.505 (8) (am), 20.505 (8)
11(jm), 20.835 (2) (r), 71.07 (9b), 562.065 (3) (cm), 563.055 (6), 563.135 (2m),
12563.22 (2) (c) and 563.80 (2m) of the statutes;
relating to: the lottery and
13gaming tax credit and making appropriations.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB300-ASA1, s. 1
1Section
1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated:
-
See PDF for table ![PDF](https://docs.legis.wisconsin.gov/assets/image/file_acrobat.gif)
AB300-ASA1,2,74
20.115
(4) (a)
Aid to Wisconsin livestock breeders association. The amounts in
5the schedule
, less moneys available under par. (h), for the purpose of aid to the
6Wisconsin livestock breeders association for the conduct of junior livestock shows
7and other livestock educational programs under s. 93.31.
AB300-ASA1,3,39
20.115
(4) (b)
Aids to county and district fairs. A sum sufficient The amounts
10in the schedule to provide state aids to counties and agricultural societies,
11associations or boards and to incorporated dairy or livestock associations, not to
12exceed $15,000 per fair as provided in s. 93.23.
No moneys in excess of the difference
13between $585,000 and the amount of moneys available under par. (g) in each fiscal
1year may be expended from this appropriation. If the total due the several counties
2and agricultural societies under this paragraph exceeds
$585,000 the amounts in the
3schedule, the department shall equitably prorate that amount.
AB300-ASA1, s. 6
6Section
6. 20.435 (7) (kg) of the statutes is amended to read:
AB300-ASA1,3,107
20.435
(7) (kg)
Compulsive gambling awareness campaigns. The amounts in
8the schedule for the purpose of awarding grants under s. 46.03 (43). All moneys
9transferred from
ss. s. 20.505 (8)
(g) and (h)
and 20.566 (8) (q) shall be credited to this
10appropriation account.
AB300-ASA1, s. 7
11Section
7. 20.455 (2) (g) of the statutes is amended to read:
AB300-ASA1,3,1812
20.455
(2) (g)
Gaming law enforcement; racing revenues. From all moneys
13received under ss. 562.02 (2) (f), 562.04 (1) (b) 4. and (2) (d), 562.05 (2), 562.065 (3)
14(cm) and (d)
, (3m) (c) 2. and (4)
and, 562.09 (2) (e)
and 562.124 (2), the amounts in
15the schedule for the performance of the department's gaming law enforcement
16responsibilities as specified in s. 165.70 (3m).
Notwithstanding s. 20.001 (3) (a), the
17unencumbered balance of this appropriation account at the end of each fiscal year
18shall be transferred to the lottery fund.
AB300-ASA1, s. 8
19Section
8. 20.505 (8) (am) of the statutes is created to read:
AB300-ASA1,3,2320
20.505
(8) (am)
Interest on racing and bingo moneys. A sum sufficient equal
21to the amount earned by the investment fund on revenues received under pars. (g)
22and (jm) and s. 20.455 (2) (g) for the purpose of transferring this amount to the lottery
23fund.
AB300-ASA1, s. 9
24Section
9. 20.505 (8) (g) of the statutes is repealed and recreated to read:
AB300-ASA1,4,8
120.505
(8) (g)
General program operations; racing. The amounts in the
2schedule for general program operations under ch. 562. All moneys received by the
3department of administration under ss. 562.02 (2) (f), 562.04 (1) (b) 4. and (2) (d),
4562.05 (2), 562.065 (3) (cm) and (d), (3m) (c) 2. and (4), 562.09 (2) (e) and 562.124 (2),
5less the amounts appropriated under s. 20.455 (2) (g), shall be credited to this
6appropriation account. Notwithstanding s. 20.001 (3) (a), the unencumbered
7balance of this appropriation account at the end of each fiscal year shall be
8transferred to the lottery fund.
AB300-ASA1,4,1610
20.505
(8) (h)
General program operations; Indian gaming. The amounts in the
11schedule for general program operations under ch. 569. All Indian gaming receipts,
12as defined in s. 569.01 (1m), less the amounts appropriated under s. 20.455 (2) (gc),
13shall be credited to this appropriation account. Annually, of the moneys received
14under this appropriation account, an amount equal to
50% of the amount in the
15schedule under s. 20.435 (7) (kg) shall be transferred to the appropriation account
16under s. 20.435 (7) (kg).
AB300-ASA1,4,2419
20.505
(8) (j)
General program operations;
charitable raffles and crane games. 20The amounts in the schedule for general program operations
relating to raffles under
21chs. subchs. II and VIII of ch. 563 and
relating to crane games under ch. 564. All
22moneys received by the department of administration
under ch. 563, except s. 563.80,
23and under
s. ss. 563.92 (2), 563.98 (1g) and 564.02 (2) shall be credited to this
24appropriation account.
AB300-ASA1,5,7
120.505 (
8) (jm)
General program operations; bingo. The amounts in the
2schedule for general program operations relating to bingo under subchs. II to VII of
3ch. 563. All moneys received by the department of administration under ss. 563.055,
4563.13 (4), 563.135, 563.16, 563.22 (2) and 563.80 shall be credited to this
5appropriation account. Notwithstanding s. 20.001 (3) (a), the unencumbered
6balance of this appropriation account at the end of each fiscal year shall be
7transferred to the lottery fund.
AB300-ASA1,5,109
20.566
(2) (r)
Lottery and gaming credit administration. From the lottery fund,
10the amounts in the schedule for the administration of the lottery
and gaming credit.
AB300-ASA1,5,1612
20.566
(8) (q)
General program operations. From the lottery fund, the amounts
13in the schedule for general program operations under ch. 565.
Annually, of the
14moneys appropriated under this paragraph, an amount equal to 36% of the amount
15in the schedule under s. 20.435 (7) (kg) shall be transferred to the appropriation
16account under s. 20.435 (7) (kg).
AB300-ASA1,5,1918
20.835
(2) (r)
Lottery and gaming credit. From the lottery fund, a sum
19sufficient to make the payments under s. 71.07 (9b) (e).
AB300-ASA1,5,2522
25.75
(2) Creation. There is created a separate nonlapsible trust fund known
23as the lottery fund, to consist of gross lottery revenues received by the department
24of revenue
and moneys transferred to the lottery fund under ss. 20.455 (2) (g) and
2520.505 (8) (am), (g) and (jm).
AB300-ASA1, s. 19
1Section
19. 25.75 (3) (intro.) of the statutes is amended to read:
AB300-ASA1,6,42
25.75
(3) Distribution of gross lottery revenues. (intro.)
Amounts The
3distribution of the gross lottery revenues in the fund shall be
distributed as follows 4subject to all of the following:
AB300-ASA1,6,106
25.75
(3) (e)
Lottery and gaming credit state administration expenses. From
7the appropriation under s. 20.566 (2) (r), lottery proceeds
and moneys transferred to
8the lottery fund under ss. 20.455 (2) (g) and 20.505 (8) (am), (g) and (jm) shall be used
9to offset department of revenue expenses in administering the lottery
and gaming 10credit.
AB300-ASA1,6,1313
71.07
(9b) Lottery and gaming credit. (a) In this subsection:
AB300-ASA1,6,1514
1. "Claimant" means a natural person who files a claim or on whose behalf a
15claim is filed under this subsection but does not include an estate, fiduciary or trust.
AB300-ASA1,6,2016
2. "Principal dwelling" means any dwelling, whether owned or rented, and the
17land surrounding it that is reasonably necessary for use of the dwelling as a primary
18dwelling of the claimant and may include a part of a multidwelling or multipurpose
19building and a part of the land upon which it is built that is used as the claimant's
20primary dwelling.
AB300-ASA1,7,1021
3. "Property taxes" means real and personal property taxes, exclusive of special
22assessments, delinquent interest and charges for service, paid by a claimant on the
23claimant's principal dwelling during the taxable year for which credit under this
24subsection is claimed, less any property taxes paid which are properly includable as
25a trade or business expense under section
162 of the Internal Revenue Code. If the
1principal dwelling on which the taxes were paid is owned by 2 or more persons or
2entities as joint tenants or tenants in common or is owned by spouses as marital
3property, "property taxes" is that part of property taxes paid that reflects the
4ownership percentage of the claimant. If the principal dwelling is sold during the
5taxable year the "property taxes" for the seller and buyer shall be the amount of the
6tax prorated to each in the closing agreement pertaining to the sale or, if not so
7provided for in the closing agreement, the tax shall be prorated between the seller
8and buyer in proportion to months of their respective ownership. "Property taxes"
9includes monthly parking permit fees in respect to a principal dwelling collected
10under s. 66.058 (3) (c).
AB300-ASA1,7,2111
4. "Rent constituting property taxes" means 25% of rent if heat is not included,
12or 20% of rent if heat is included, paid during the taxable year for which credit is
13claimed under this subsection, at arm's length, for the use of a principal dwelling and
14contiguous land, excluding any payment for domestic, food, medical or other services
15which are unrelated to use of the dwelling as housing, less any rent paid that is
16properly includable as a trade or business expense under the Internal Revenue Code.
17"Rent" includes space rental paid to a landlord for parking a mobile home. Rent shall
18be apportioned among the occupants of a principal dwelling according to their
19respective contribution to the total amount of rent paid. "Rent" does not include rent
20paid for the use of housing which was exempt from property taxation, except housing
21for which payments in lieu of taxes were made under s. 66.40 (22).
AB300-ASA1,8,222
(b) Subject to the limitations under this subsection, a claimant may claim as
23a credit against the taxes imposed under s. 71.02 an amount not exceeding a
24percentage, as determined annually by the joint committee on finance under par. (d),
25of the first $2,000 of property taxes or rent constituting property taxes, or 10% of the
1first $1,000 of property taxes or rent constituting property taxes of a married person
2filing separately.
AB300-ASA1,8,143
(c) For an unmarried person or a married person filing a separate return who
4is a part-year resident of this state, the credit under this subsection is limited to that
5fraction of the amount determined under this subsection that Wisconsin adjusted
6gross income is of federal adjusted gross income. No credit is allowed under this
7subsection for unmarried persons or married persons filing separate returns who are
8nonresidents of this state. If one spouse is not domiciled in this state during the
9entire taxable year, the credit on a joint return is determined by multiplying the
10school property tax credit that would be available to them if both spouses were
11domiciled in this state during the entire taxable year by a fraction the numerator of
12which is their joint Wisconsin adjusted gross income and the denominator of which
13is their joint federal adjusted gross income. No credit is allowed under this
14subsection on a joint return if both spouses are nonresidents of this state.
AB300-ASA1,9,715
(d) Before October 16, the department of administration shall determine the
16total funds available for distribution under this subsection in the following year and
17the percentage of property taxes or rent constituting property taxes that a claimant
18may claim under par. (b) in the current taxable year and shall inform the joint
19committee on finance of that total and percentage. Total funds available for
20distribution shall be all moneys projected to be transferred to the lottery fund under
21ss. 20.455 (2) (g) and 20.505 (8) (am), (g) and (jm) and all existing and projected
22lottery proceeds and interest for the fiscal year of the distribution, less the amount
23estimated to be expended under ss. 20.455 (2) (r), 20.566 (2) (r) and 20.835 (2) (q) and
24less the required reserve under s. 20.003 (5). The joint committee on finance may
25revise the total amount to be distributed or the percentage under par. (b) if it does
1so at a meeting that takes place before November 1. If the joint committee on finance
2does not schedule a meeting to take place before November 1, the total determined
3by the department of administration shall be the total amount estimated to be
4distributed under this subsection in the following year and the percentage
5determined by the department of administration shall be the percentage of property
6taxes or rent constituting property taxes that a claimant may claim under par. (b) in
7the current taxable year.
AB300-ASA1,9,128
(e) If the allowable amount of the claim under this subsection exceeds the
9income taxes otherwise due on the claimant's income, the amount of the claim that
10is not used to offset those taxes shall be certified by the department of revenue to the
11department of administration for payment by check, share draft or other draft drawn
12from the appropriation under s. 20.835 (2) (r).
AB300-ASA1,9,1413
(f) No credit may be allowed under this subsection unless it is claimed within
14the period specified in s. 71.75 (2).
AB300-ASA1,9,1815
(g) In any case in which a principal dwelling is rented by a person from another
16person under circumstances deemed by the department to be not at arm's length, the
17department may determine rent at arm's length, and, for purposes of this subsection,
18such determination shall be final.
AB300-ASA1,9,2019
(h) Section 71.28 (4) (g) and (h) as it relates to the credit under s. 71.28 (4)
20relates to the credit under this subsection.
AB300-ASA1, s. 23
21Section
23. 71.08 (1) (intro.) of the statutes is amended to read:
AB300-ASA1,9,2522
71.08
(1) Imposition. (intro.) If the tax imposed on a natural person, married
23couple filing jointly, trust or estate under s. 71.02, not considering the credits under
24ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3s), (6)
and,
25(9b) and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and (3) and
171.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and (3) and subchs. VIII
2and IX and payments to other states under s. 71.07 (7), is less than the tax under this
3section, there is imposed on that natural person, married couple filing jointly, trust
4or estate, instead of the tax under s. 71.02, an alternative minimum tax computed
5as follows:
AB300-ASA1,10,127
71.10
(4) (i) The total of claim of right credit under s. 71.07 (1), farmland
8preservation credit under subch. IX, homestead credit under subch. VIII, farmland
9tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s.
1071.07 (2fd),
lottery and gaming credit under s. 71.07 (9b), earned income tax credit
11under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under
12subch. X.
AB300-ASA1,10,23
1774.29 August settlement. On or before August 20, the county treasurer shall
18pay in full to the proper treasurer all real property taxes
, including taxes offset by
19the credit under s. 79.10 (5), and special taxes included in the tax roll which have not
20previously been paid to, or retained by, the proper treasurer. A county may, by
21resolution adopted by the county board, direct the county treasurer to pay in full to
22the proper treasurer all special assessments and special charges included in the tax
23roll which have not previously been paid to, or retained by, the proper treasurer.
AB300-ASA1, s. 29
24Section
29. 77.22 (2) (intro.) of the statutes is amended to read:
AB300-ASA1,11,3
177.22
(2) (intro.) The secretary of revenue shall prescribe the form required
2under sub. (1). The form
shall include an application for a credit under s. 79.10 (5)
3and shall provide for the submission of the following:
AB300-ASA1,11,11
577.23 Disposition of fees and returns. On or before the 15th day of each
6month the register shall submit to the county treasurer transfer fees collected
7together with the returns filed in the office during the preceding month for the
8treasurer's transmission to the department of revenue under s. 77.24
and shall
9submit to the county treasurer, or to the city treasurer if the property is located in
10a city that collects taxes under s. 74.87, all applications for credits under s. 79.10 (5)
11that the county register of deeds receives during the preceding month.
AB300-ASA1,11,2114
79.10
(2) Notice to municipalities. On or before December 1 of the year
15preceding the distribution under sub. (7m) (a), the department of revenue shall
16notify the clerk of each town, village and city
of the estimated fair market value, as
17determined under sub. (11), to be used to calculate the lottery credit under sub. (5)
18and of the amount to be distributed to it under sub. (7m)
(a) on the following 4th
19Monday in July. The anticipated receipt of such distribution shall not be taken into
20consideration in determining the tax rate of the municipality but shall be applied as
21tax credits.
AB300-ASA1,12,1224
79.10
(6m) Corrections of state property tax credit payments. If the
25department of administration or the department of revenue determines by October
11 of the year of any distribution under
subs.
sub. (4)
and (5) that there was an
2overpayment or underpayment made in that year's distribution by the department
3of administration to municipalities, as determined under
subs. sub. (4)
and (5),
4because of an error by the department of administration, the department of revenue
5or any municipality, the overpayment or underpayment shall be corrected as
6provided in this subsection. Any overpayment shall be corrected by reducing the
7subsequent year's distribution, as determined under
subs. sub. (4)
and (5), by an
8amount equal to the amount of the overpayment. Any underpayment shall be
9corrected by increasing the subsequent year's distribution, as determined under
10subs. sub. (4)
and (5), by an amount equal to the amount of the underpayment.
11Corrections shall be made in the distributions to all municipalities affected by the
12error. Corrections shall be without interest.