LRBb2549/1
JK:hmh:jf
January 2002 Special Session
2001 - 2002 LEGISLATURE
ASSEMBLY AMENDMENT 3,
TO ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 1
March 14, 2002 - Offered by Representative Ziegelbauer.
AB1-ASA1-AA3,1,6
6"
Section 170ed. 71.04 (4) (bd) of the statutes is created to read:
AB1-ASA1-AA3,1,117
71.04
(4) (bd) For taxable years beginning after December 31, 2004, and before
8January 1, 2006, an apportionment fraction composed of the sales factor under sub.
9(7) representing 80% of the fraction, a property factor under sub. (5) representing
1010% of the fraction, and a payroll factor under sub. (6) representing 10% of the
11fraction.
AB1-ASA1-AA3,2,2
171.04
(4) (bg) For taxable years beginning after December 31, 2005, an
2apportionment fraction composed of the sales factor under sub. (7).".
AB1-ASA1-AA3,2,9
67. Page 65, line 19: after the period insert "For taxable years beginning after
7December 31, 2005, the apportionment fraction for the remaining net income of a
8financial organization is composed of a sales factor, as determined by rule by the
9department.".
AB1-ASA1-AA3,2,1612
71.04
(4m) Apportionment formula computation. (a) 1. For taxable years
13beginning before January 1, 2006, if both the numerator and the denominator of the
14sales factor under sub. (7) related to a taxpayer's remaining net income are zero, the
15sales factor under sub. (7) is eliminated from the apportionment formula to
16determine the taxpayer's remaining net income under sub. (4).
AB1-ASA1-AA3,2,2017
2. For taxable years beginning after December 31, 2005, if both the numerator
18and the denominator of the sales factor under sub. (7) related to a taxpayer's
19remaining net income are zero, none of the taxpayer's remaining net income is
20apportioned to this state.
AB1-ASA1-AA3,3,221
(b) 1. For taxable years beginning before January 1, 2006, if the numerator of
22the sales factor under sub. (7) related to a taxpayer's remaining net income is a
23negative number and the denominator of the sales factor under sub. (7) related to a
1taxpayer's remaining net income is a positive number, a negative number, or zero,
2the sales factor under sub. (7) is zero.
AB1-ASA1-AA3,3,73
2. For taxable years beginning after December 31, 2005, if the numerator of the
4sales factor under sub. (7) related to a taxpayer's remaining net income is a negative
5number and the denominator of the sales factor under sub. (7) related to a taxpayer's
6remaining net income is a positive number, a negative number, or zero, none of the
7taxpayer's remaining net income is apportioned to this state.
AB1-ASA1-AA3,3,128
(c) 1. For taxable years beginning before January 1, 2006, if the numerator of
9the sales factor under sub. (7) related to a taxpayer's remaining net income is a
10positive number and the denominator of the sales factor under sub. (7) related to a
11taxpayer's remaining net income is zero or a negative number, the sales factor under
12sub. (7) is one.
AB1-ASA1-AA3,3,1713
2. For taxable years beginning after December 31, 2005, if the numerator of the
14sales factor under sub. (7) related to a taxpayer's remaining net income is a positive
15number and the denominator of the sales factor under sub. (7) related to a taxpayer's
16remaining net income is zero or a negative number, all of the taxpayer's remaining
17net income is apportioned to this state.
AB1-ASA1-AA3,3,2019
71.04
(5) Property factor. (intro.) For purposes of sub. (4)
and for taxable
20years beginning before January 1, 2006:
AB1-ASA1-AA3,3,2322
71.04
(6) Payroll factor. (intro.) For purposes of sub. (4)
and for taxable years
23beginning before January 1, 2006:
AB1-ASA1-AA3,4,8
171.04
(7) (d) Sales, other than sales of tangible personal property, are in this
2state if the income-producing activity is performed in this state. If the
3income-producing activity is performed both in and outside this state the sales shall
4be divided between those states having jurisdiction to tax such business in
5proportion to the direct costs of performance incurred in each such state in rendering
6this service. Services performed in states which do not have jurisdiction to tax the
7business shall be deemed to have been performed in the state to which compensation
8is allocated by
sub. s. 71.04 (6)
, 1999 stats.".
AB1-ASA1-AA3,4,2111
71.04
(10) Department may waive factor. Where, in the case of any nonresident
12individual or nonresident estate or trust engaged in business within and without the
13state of Wisconsin and required to apportion its income as provided in this section,
14it shall be shown to the satisfaction of the department of revenue that the use of any
15one of the 3 factors provided under sub. (4) gives an unreasonable or inequitable final
16average ratio because of the fact that such nonresident individual or nonresident
17estate or trust does not employ, to any appreciable extent in its trade or business in
18producing the income taxed, the factors made use of in obtaining such ratio, this
19factor may, with the approval of the department of revenue, be omitted in obtaining
20the final average ratio which is to be applied to the remaining net income.
This
21subsection does not apply to taxable years beginning after December 31, 2005.".
AB1-ASA1-AA3,5,2
2"
Section 192gd. 71.25 (6) (bd) of the statutes is created to read:
AB1-ASA1-AA3,5,73
71.25
(6) (bd) For taxable years beginning after December 31, 2004, and before
4January 1, 2006, an apportionment fraction composed of the sales factor under sub.
5(7) representing 80% of the fraction, a property factor under sub. (9) representing
610% of the fraction, and a payroll factor under sub. (8) representing 10% of the
7fraction.
AB1-ASA1-AA3,5,109
71.25
(6) (bg) For taxable years beginning after December 31, 2005, an
10apportionment fraction composed of the sales factor under sub. (9).".
AB1-ASA1-AA3,5,17
1416. Page 88, line 12: after the period insert "For taxable years beginning after
15December 31, 2005, the apportionment fraction for the remaining net income of a
16financial organization is composed of a sales factor, as determined by rule by the
17department.".
AB1-ASA1-AA3,5,2420
71.25
(6m) Apportionment formula computation. (a) 1. For taxable years
21beginning before January 1, 2006, if both the numerator and the denominator of the
22sales factor under sub. (9) related to a taxpayer's remaining net income are zero, the
23sales factor under sub. (9) is eliminated from the apportionment formula to
24determine the taxpayer's remaining net income under sub. (6).
AB1-ASA1-AA3,6,4
12. For taxable years beginning after December 31, 2005, if both the numerator
2and the denominator of the sales factor under sub. (9) related to a taxpayer's
3remaining net income are zero, none of the taxpayer's remaining net income is
4apportioned to this state.
AB1-ASA1-AA3,6,95
(b) 1. For taxable years beginning before January 1, 2006, if the numerator of
6the sales factor under sub. (9) related to a taxpayer's remaining net income is a
7negative number and the denominator of the sales factor under sub. (9) related to a
8taxpayer's remaining net income is a positive number, a negative number, or zero,
9the sales factor under sub. (9) is zero.
AB1-ASA1-AA3,6,1410
2. For taxable years beginning after December 31, 2005, if the numerator of the
11sales factor under sub. (9) related to a taxpayer's remaining net income is a negative
12number and the denominator of the sales factor under sub. (9) related to a taxpayer's
13remaining net income is a positive number, a negative number, or zero, none of the
14taxpayer's remaining net income is apportioned to this state.
