SB197-SSA3, s. 31 6Section 31. 71.26 (3) (x) of the statutes is amended to read:
SB197-SSA3,36,117 71.26 (3) (x) Sections 1501 to 1505, 1551, 1552, 1563 and 1564 (relating to
8consolidated returns) are excluded, except to the extent that they pertain to
9intercompany transactions and the carry forward of net business loss under s. 71.255
10and except that they are modified so that more than 50% ownership is substituted
11for at least 80% ownership
.
SB197-SSA3, s. 32 12Section 32. 71.26 (4) of the statutes is amended to read:
SB197-SSA3,37,413 71.26 (4) Net business loss carry-forward. A corporation, except a tax-option
14corporation or an insurer to which s. 71.45 (4) applies, may offset against its
15Wisconsin net business income any Wisconsin net business loss sustained in any of
16the next 15 preceding taxable years, if the corporation was subject to taxation under
17this chapter in the taxable year in which the loss was sustained, to the extent not
18offset by other items of Wisconsin income in the loss year and by Wisconsin net
19business income of any year between the loss year and the taxable year for which an
20offset is claimed. For purposes of this subsection Wisconsin net business income or
21loss shall consist of all the income attributable to the operation of a trade or business
22in this state, less the business expenses allowed as deductions in computing net
23income. The Wisconsin net business income or loss of corporations engaged in
24business within and without the state shall be determined under s. 71.255 or 71.25
25(6) and (10) to (12). Nonapportionable losses having a Wisconsin situs under s. 71.25

1(5) (b) shall be included in Wisconsin net business loss; and nonapportionable income
2having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be
3included in other items of Wisconsin income and Wisconsin net business income for
4purposes of this subsection.
SB197-SSA3, s. 33 5Section 33. 71.29 (2) of the statutes is amended to read:
SB197-SSA3,37,86 71.29 (2) Who shall pay. Every Except as provided in s. 71.255 (11), every
7corporation subject to tax under s. 71.23 (1) or (2) and every virtually exempt entity
8subject to tax under s. 71.125 or 71.23 (1) or (2) shall pay an estimated tax.
SB197-SSA3, s. 34 9Section 34. 71.44 (1) (a) of the statutes is amended to read:
SB197-SSA3,38,210 71.44 (1) (a) Every Except as provided in par. (e), every corporation, except
11corporations all of whose income is exempt from taxation and except as provided in
12sub. (1m), shall furnish to the department a true and accurate statement, on or before
13March 15 of each year, except that returns for fiscal years ending on some other date
14than December 31 shall be furnished on or before the 15th day of the 3rd month
15following the close of such fiscal year and except that returns for less than a full
16taxable year shall be furnished on or before the date applicable for federal income
17taxes under the internal revenue code, in such manner and form and setting forth
18such facts as the department deems necessary to enforce this chapter. Every
19corporation that is required to furnish a statement under this paragraph and that
20has income that is not taxable under this subchapter shall include with its statement
21a report that identifies each item of its nontaxable income. The statement shall be
22subscribed by the president, vice president, treasurer, assistant treasurer, chief
23accounting officer or any other officer duly authorized so to act. In the case of a return
24made for a corporation by a fiduciary, the fiduciary shall subscribe the return. The
25fact that an individual's name is subscribed on the return shall be prima facie

1evidence that the individual is authorized to subscribe the return on behalf of the
2corporation.
SB197-SSA3, s. 35 3Section 35. 71.44 (1) (e) of the statutes is created to read:
SB197-SSA3,38,64 71.44 (1) (e) A corporation that is a member of a commonly controlled group,
5as defined in s. 71.255 (1) (d), and engaged in a unitary business, as defined in s.
671.255 (1) (m), shall file a tax return under s. 71.255.
SB197-SSA3, s. 36 7Section 36. 71.45 (3) (intro.) of the statutes is amended to read:
SB197-SSA3,38,168 71.45 (3) Apportionment. (intro.) With respect Except as provided in sub. (3d),
9to determine Wisconsin income for purposes of the franchise tax, domestic insurers
10not engaged in the sale of life insurance but which that, in the taxable year, have
11collected received premiums, other than life insurance premiums, written on
12subjects of
for insurance on property or risks resident, located or to be performed
13outside this state, there shall be subtracted from multiply the net income figure
14derived by application of sub. (2) (a) to arrive at Wisconsin income constituting the
15measure of the franchise tax an amount calculated by multiplying such adjusted
16federal taxable income
by the arithmetic average of the following 2 percentages:
SB197-SSA3, s. 37 17Section 37. 71.45 (3) (a) of the statutes is amended to read:
SB197-SSA3,39,818 71.45 (3) (a) The Subject to sub. (3d), the percentage of total determined by
19dividing the sum of direct
premiums written on all property and risks for insurance
20other than life insurance, with respect to all property and risks resident, located, or
21to be performed in this state, and assumed premiums written for reinsurance, other
22than life insurance, with respect to all property and risks resident, located, or to be
23performed in this state, by the sum of direct premiums written for insurance on all
24property and risks, other than life insurance,
wherever located during the taxable
25year, as reflects
, and assumed premiums written on insurance for reinsurance on all

1property and risks
, other than life insurance, where the subject of insurance was
2resident, located or to be performed outside this state
wherever located. In this
3paragraph, "direct premiums" means direct premiums as reported for the taxable
4year on an annual statement that is filed by the insurer with the commissioner of
5insurance under s. 601.42 (1g) (a). In this paragraph, "assumed premiums" means
6assumed reinsurance premiums from domestic insurance companies as reported for
7the taxable year on an annual statement that is filed with the commissioner of
8insurance under s. 601.42 (1g) (a)
.
SB197-SSA3, s. 38 9Section 38. 71.45 (3) (b) of the statutes is renumbered 71.45 (3) (b) 1. and
10amended to read:
SB197-SSA3,39,1511 71.45 (3) (b) 1. The Subject to sub. (3d), the percentage of determined by
12dividing the payroll, exclusive of life insurance payroll, paid in this state in the
13taxable year by
total payroll, exclusive of life insurance payroll, paid everywhere in
14the taxable year as reflects such compensation paid outside this state.
15Compensation
.
SB197-SSA3,39,24 162. Under subd. 1., payroll is paid outside in this state if the individual's service
17is performed entirely outside in this state; or the individual's service is performed
18both within and without in and outside this state, but the service performed within
19outside this state is incidental to the individual's service without in this state; or
20some service is performed without in this state and the base of operations, or if there
21is no base of operations, the place from which the service is directed or controlled is
22without in this state, or the base of operations or the place from which the service is
23directed or controlled is not in any state in which some part of the service is
24performed, but the individual's residence is outside in this state.
SB197-SSA3, s. 39 25Section 39. 71.45 (3d) of the statutes is created to read:
SB197-SSA3,40,7
171.45 (3d) Phase in; domestic insurers. (a) Except as provided in par. (d), for
2taxable years beginning after December 31, 2005, and before January 1, 2007, a
3domestic insurer that is subject to apportionment under sub. (3) and this subsection
4shall multiply the net income figure derived by the application of sub. (2) by an
5apportionment fraction composed of the percentage under sub. (3) (a) representing
660% of the fraction and the percentage under sub. (3) (b) 1. representing 40% of the
7fraction.
SB197-SSA3,40,138 (b) Except as provided in par. (d), for taxable years beginning after December
931, 2006, and before January 1, 2008, a domestic insurer that is subject to
10apportionment under sub. (3) and this subsection shall multiply the net income
11figure derived by the application of sub. (2) by an apportionment fraction composed
12of the percentage under sub. (3) (a) representing 80% of the fraction and the
13percentage under sub. (3) (b) 1. representing 20% of the fraction.
SB197-SSA3,40,1714 (c) Except as provided in par. (d), for taxable years beginning after December
1531, 2007, a domestic insurer that is subject to apportionment under sub. (3) and this
16subsection shall multiply the net income figure derived by the application of sub. (2)
17by the percentage under sub. (3) (a).
SB197-SSA3,41,218 (d) If a taxpayer who is subject to apportionment under sub. (3) has a net gain
19of 100 employees in this state in any taxable year beginning after the effective date
20of this paragraph .... [revisor inserts date], and before January 1, 2008, the
21taxpayer's remaining net income may, at the taxpayer's option, be apportioned to this
22state by an apportionment fraction composed of the percentage under sub. (3) (a)
23beginning with the taxable year in which the employees are hired, except that if the
24taxpayer does not retain such employees in this state for at least 3 consecutive

1taxable years, the taxpayer shall apportion the taxpayer's remaining net income as
2provided under pars. (a) to (c), as appropriate.
SB197-SSA3, s. 40 3Section 40. 71.45 (3e) of the statutes is created to read:
SB197-SSA3,41,84 71.45 (3e) Apportionment formula computation. (a) 1. For taxable years
5beginning before January 1, 2008, if both the numerator and the denominator used
6to determine the percentage under sub. (3) (a) related to a taxpayer's net income are
7zero, the percentage under sub. (3) (a) is eliminated from the apportionment formula
8to determine the taxpayer's income under sub. (3).
SB197-SSA3,41,129 2. For taxable years beginning after December 31, 2007, if both the numerator
10and the denominator used to determine the percentage under sub. (3) (a) related to
11a taxpayer's net income are zero, none of the taxpayer's net income is apportioned
12to this state.
SB197-SSA3,41,1713 (b) 1. For taxable years beginning before January 1, 2008, if the numerator
14used to determine the percentage under sub. (3) (a) related to a taxpayer's net income
15is a negative number and the denominator used to determine the percentage under
16sub. (3) (a) related to a taxpayer's net income is a positive number, a negative number,
17or zero, the percentage under sub. (3) (a) is zero.
SB197-SSA3,41,2218 2. For taxable years beginning after December 31, 2007, if the numerator used
19to determine the percentage under sub. (3) (a) related to a taxpayer's net income is
20a negative number and the denominator used to determine the percentage under
21sub. (3) (a) related to a taxpayer's net income is a positive number, a negative number,
22or zero, none of the taxpayer's net income is apportioned to this state.
SB197-SSA3,42,223 (c) 1. For taxable years beginning before January 1, 2008, if the numerator used
24to determine the percentage under sub. (3) (a) related to a taxpayer's net income is
25a positive number and the denominator used to determine the percentage under sub.

1(3) (a) related to a taxpayer's net income is zero or a negative number, the percentage
2under sub. (3) (a) is one.
SB197-SSA3,42,73 2. For taxable years beginning after December 31, 2007, if the numerator used
4to determine the percentage under sub. (3) (a) related to a taxpayer's net income is
5a positive number and the denominator used to determine the percentage under sub.
6(3) (a) related to a taxpayer's net income is zero or a negative number, all of the
7taxpayer's net income is apportioned to this state.
SB197-SSA3, s. 41 8Section 41. 71.45 (3m) of the statutes is amended to read:
SB197-SSA3,42,169 71.45 (3m) Arithmetic average. The Except as provided in sub. (3d), the
10arithmetic average of the 2 percentages referred to in sub. (3) shall be applied to the
11net income figure arrived at by the successive application of sub. (2) (a) and (b) with
12respect to Wisconsin insurers to which sub. (2) (a) and (b) applies and which have
13collected received premiums, other than life insurance premiums, written upon for
14insurance, other than life insurance, where the subject of such insurance was on
15property or risks
resident, located or to be performed outside this state, to arrive at
16Wisconsin income constituting the measure of the franchise tax.
SB197-SSA3, s. 42 17Section 42. 71.46 (3) of the statutes is repealed.
SB197-SSA3, s. 43 18Section 43. 71.48 of the statutes is amended to read:
SB197-SSA3,42,21 1971.48 Payments of estimated taxes. Sections Except as provided in s.
2071.255 (11), ss.
71.29 and 71.84 (2) shall apply to insurers subject to taxation under
21this chapter.
SB197-SSA3, s. 44 22Section 44. 71.84 (2) (a) of the statutes is amended to read:
SB197-SSA3,43,823 71.84 (2) (a) Except as provided in s. 71.29 (7), in the case of any underpayment
24of estimated tax under s. 71.255, 71.29 or 71.48 there shall be added to the aggregate
25tax for the taxable year interest at the rate of 12% per year on the amount of the

1underpayment for the period of the underpayment. For corporations, except as
2provided in par. (b), "period of the underpayment" means the time period from the
3due date of the installment until either the 15th day of the 3rd month beginning after
4the end of the taxable year or the date of payment, whichever is earlier. If 90% of the
5tax shown on the return is not paid by the 15th day of the 3rd month following the
6close of the taxable year, the difference between that amount and the estimated taxes
7paid, along with any interest due, shall accrue delinquent interest under s. 71.91 (1)
8(a).
SB197-SSA3, s. 45 9Section 45. Nonstatutory provisions; revenue.
SB197-SSA3,43,1510 (1) Income apportionment for financial organizations; rules. The
11department of revenue shall submit in proposed form rules related to the
12apportionment of the income of financial organizations under sections 71.04 (4) (e)
13and 71.25 (6) (e) of the statutes, as created by this act, to the legislative council staff
14under section 227.15 (1) of the statutes no later than the first day of the 4th month
15beginning after the effective date of this subsection.
SB197-SSA3, s. 46 16Section 46. Initial applicability.
SB197-SSA3,43,19 17(1) Single sales factor apportionment. The treatment of section 71.45 (3)
18(intro.), (a), and (b) and (3m) of the statutes first applies to taxable years beginning
19after December 31, 2005.
SB197-SSA3,43,22 20(2) Combined reporting. The treatment of sections 71.25 (9) (a), 71.255, 71.26
21(3) (x) and (4), 71.29 (2), 71.44 (1) (e), 71.46 (3), 71.48, and 71.84 (2) (a) of the statutes
22first applies to taxable years beginning on January 1, 2005.
Loading...
Loading...