Amendment ASA1-AB100

AB100-ASA1, s. 1310e Section 1310e. 71.07 (3n) (a) 6. of the statutes is created to read:

AB100-ASA1,576,17 71.07 (3n) (a) 6. a. For taxable years that begin after December 31, 2003, and before January 1, 2006, "used exclusively," related to dairy animals, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB100-ASA1,576,20 b. For taxable years that begin after December 31, 2005, and before January 1, 2010, "used exclusively," related to livestock, dairy animals, or both, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB100-ASA1,576,23 c. For taxable years that begin after December 31, 2009, and before January 1, 2012, "used exclusively," related to livestock, means used to the exclusion of all other uses except for use not exceeding 5 percent of total use.

AB100-ASA1, s. 1311b Section 1311b. 71.07 (3n) (b) of the statutes is renumbered 71.07 (3n) (b) 1.

AB100-ASA1, s. 1311c Section 1311c. 71.07 (3n) (b) 2. of the statutes is created to read:

AB100-ASA1,577,6 71.07 (3n) (b) 2. Subject to the limitations provided in this subsection, for taxable years that begin after December 31, 2005, and before January 1, 2012, a claimant may claim as a credit against the tax imposed under ss. 71.02 and 71.08 an amount equal to 10 percent of the amount the claimant paid in the taxable year for livestock farm modernization or expansion related to the operation of the claimant's livestock farm.

AB100-ASA1, s. 1311d Section 1311d. 71.07 (3n) (e) of the statutes is renumbered 71.07 (3n) (e) 1. and amended to read:

AB100-ASA1,577,17 71.07 (3n) (e) 1. 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 expenses under par. (b), except that the aggregate amount of credits that the entity may compute shall not exceed $50,000. 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.

AB100-ASA1, s. 1311e Section 1311e. 71.07 (3n) (e) 2. of the statutes is created to read:

AB100-ASA1,577,22 71.07 (3n) (e) 2. If 2 or more persons own and operate the dairy or livestock farm, each person may claim a credit under par. (b) in proportion to his or her ownership interest, except that the aggregate amount of the credits claimed by all persons who own and operate the farm shall not exceed $50,000.

AB100-ASA1, s. 1311g Section 1311g. 71.07 (5) (a) 15. of the statutes is amended to read:

AB100-ASA1,578,4 71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance under section 213 of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 17. to 20., 35., 36., 37., and 38. and the amount claimed as a deduction for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.

AB100-ASA1, s. 1311i Section 1311i. 71.07 (5g) of the statutes is created to read:

AB100-ASA1,578,10 71.07 (5g) Health insurance risk-sharing plan assessments credit. (a) Definitions. In this subsection, "claimant" means a partner, limited liability company member, or tax-option corporation shareholder who files a claim under this subsection and who is a partner, member, or shareholder of an entity that is an insurer, as defined in s. 149.10 (5).

AB100-ASA1,578,15 (b) Filing claims. Subject to the limitations provided under this subsection, for taxable years beginning after December 31, 2005, a claimant may claim as a credit against the taxes imposed under s. 71.02 an amount that is equal to a percentage of the amount of the assessment under s. 149.13 that the claimant paid in the taxable year, as determined under par. (c).

AB100-ASA1,578,20 (c) Limitations. 1. The department of revenue, in consultation with the office of the commissioner of insurance, shall determine the percentage under par. (b) for each claimant for each taxable year so that the cost of the credit under this subsection and ss. 71.28 (5g), 71.47 (5g), and 76.655 is as close as practicable to $2,000,000 in the 2006-07 fiscal year and $5,000,000 in each fiscal year thereafter.

AB100-ASA1,579,3 2. 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 amounts described under par. (b). 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 interests.

AB100-ASA1,579,5 (d) Administration. 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.

AB100-ASA1, s. 1311j Section 1311j. 71.07 (6e) of the statutes is created to read:

AB100-ASA1,579,8 71.07 (6e) Veterans and surviving spouses property tax credit. (a) Definitions. In this subsection:

AB100-ASA1,579,10 1. "Claimant" means an eligible unremarried surviving spouse or an eligible veteran who files a claim under this subsection.

AB100-ASA1,579,12 2. "Eligible unremarried surviving spouse" means an unremarried surviving spouse of one of the following, as verified by the department of veterans affairs:

AB100-ASA1,579,16 a. An individual who had served on active duty in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces, who was a resident of this state at the time of entry into that active service, and who, while a resident of this state, died while on active duty.

AB100-ASA1,579,23 b. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service; who was at least 65 years of age at the time of his or her death or would have been 65 years of age at the close of the year in which the death occurred; who was a resident of this state at the time of his or her death; and who had a service-connected disability rating of 100 percent under 38 USC 1114 or 1134.

AB100-ASA1,580,2 c. An individual who had served in the national guard or a reserve component of the U.S. armed forces, who was a resident of this state at the time of entry into that service, and who, while a resident of this state, died in the line of duty while on active or inactive duty for training purposes.

AB100-ASA1,580,5 3. "Eligible veteran" means an individual who is at least 65 years of age and who is verified by the department of veterans affairs as meeting all of the following conditions:

AB100-ASA1,580,7 a. Served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated in the U.S. armed forces.

AB100-ASA1,580,8 b. Was a resident of this state at the time of entry into that active service.

AB100-ASA1,580,10 c. Is currently a resident of this state for purposes of receiving veterans benefits under ch. 45.

AB100-ASA1,580,12 d. Has a service-connected disability rating of 100 percent under 38 USC 1114 or 1134.

AB100-ASA1,580,13 4. "Principal dwelling" has the meaning given in sub. (9) (a) 2.

AB100-ASA1,581,3 5. "Property taxes" means real and personal property taxes, exclusive of special assessments, delinquent interest, and charges for service, paid by a claimant on the claimant's principal dwelling in this state during the taxable year for which credit under this subsection is claimed, less any property taxes paid which are properly includable as a trade or business expense under section 162 of the Internal Revenue Code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, "property taxes" is that part of property taxes paid that reflects the ownership percentage of the claimant. If the principal dwelling is sold during the taxable year, the "property taxes" for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to months of their respective ownership. "Property taxes" includes monthly parking permit fees in respect to a principal dwelling collected under s. 66.0435 (3) (c).

AB100-ASA1,581,10 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 the amount of the claimant's property taxes. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (em).

AB100-ASA1,581,12 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB100-ASA1,581,15 2. No credit may be allowed under this subsection if the individual, or the individual's spouse, files a claim under sub. (3m) or (9) or subch. VIII or IX that relates to the same taxable year for which a claim is made under this subsection.

AB100-ASA1,581,17 (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB100-ASA1, s. 1311m Section 1311m. 71.07 (6m) (b) of the statutes is renumbered 71.07 (6m) (b) (intro.) and amended to read:

AB100-ASA1,581,22 71.07 (6m) (b) Filing claims. (intro.) Subject to the limitations and conditions provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, one of the following amounts:

AB100-ASA1,581,25 1. For taxable years beginning before January 1, 2006, an amount up to $200 of military income for services performed by the claimant while he or she is stationed outside of the United States.

AB100-ASA1, s. 1311n Section 1311n. 71.07 (6m) (b) 2. of the statutes is created to read:

AB100-ASA1,582,4 71.07 (6m) (b) 2. For taxable years beginning after December 31, 2005, an amount up to $300 of military income for services performed by the claimant while he or she is stationed outside of the United States.

AB100-ASA1, s. 1312 Section 1312. 71.07 (10) of the statutes is amended to read:

AB100-ASA1,582,10 71.07 (10) Credits not allowed. The credits under s. 71.28 (4) and (5) may not be claimed by partners, including partners of a publicly traded partnership treated as a corporation under s. 71.22 (1) (1k), members of a limited liability company, including members of a limited liability company treated as a corporation under s. 77.22 (1) (1k), or shareholders of a tax-option corporation.

AB100-ASA1, s. 1312m Section 1312m. 71.08 (1) (intro.) of the statutes is amended to read:

AB100-ASA1,582,20 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), (3n), (3s), (3t), (5b), (5d), (6), (6e), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), (3n), and (3t) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), (3n), and (3t) 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:

AB100-ASA1, s. 1312r Section 1312r. 71.10 (4) (cp) of the statutes is created to read:

AB100-ASA1,582,23 71.10 (4) (cp) Health insurance risk-sharing plan assessments credit under s. 71.07 (5g).

AB100-ASA1, s. 1312u Section 1312u. 71.10 (4) (i) of the statutes is amended to read:

AB100-ASA1,583,6 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), veterans and surviving spouses property tax credit under s. 71.07 (6e), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

AB100-ASA1, s. 1313 Section 1313. 71.10 (5g) of the statutes is created to read:

AB100-ASA1,583,8 71.10 (5g) Veterans trust fund donations. (a) Definitions. In this subsection:

AB100-ASA1,583,9 1. "Department" means the department of revenue.

AB100-ASA1,583,10 2. "Veterans trust fund" means the fund under s. 25.36.

AB100-ASA1,583,14 (b) Voluntary payments. 1. `Designation on return.' Every individual filing an income tax return who has a tax liability or is entitled to a tax refund may designate on the return any amount of additional payment or any amount of a refund due that individual as a veterans trust fund donation.

AB100-ASA1,583,17 2. `Designation added to tax owed.' If the individual owes any tax, the individual shall remit in full the tax due and the amount designated on the return as a veterans trust fund donation when the individual files a tax return.

AB100-ASA1,583,21 3. `Designation deducted from refund.' Except as provided in par. (d), if the individual is owed a refund for that year after crediting under ss. 71.75 (9) and 71.80 (3) and (3m), the department of revenue shall deduct the amount designated on the return as a veterans trust fund donation from the amount of the refund.

AB100-ASA1,583,25 (c) Errors; failure to remit correct amount. If an individual who owes taxes fails to remit an amount equal to or in excess of the total of the actual tax due, after error corrections, and the amount designated on the return as a veterans trust fund donation:

AB100-ASA1,584,5 1. The department shall reduce the designation for the veterans trust fund to reflect the amount remitted in excess of the actual tax due, after error corrections, if the individual remitted an amount in excess of the actual tax due, after error corrections, but less than the total of the actual tax due, after error corrections, and the amount originally designated on the return as a veterans trust fund donation.

AB100-ASA1,584,7 2. The designation for the veterans trust fund donation is void if the individual remitted an amount equal to or less than the actual tax due, after error corrections.

AB100-ASA1,584,14 (d) Errors; insufficient refund. If an individual is owed a refund which does not equal or exceed the amount designated on the return as a veterans trust fund donation, after crediting under ss. 71.75 (9) and 71.80 (3) and (3m) and after error corrections, the department shall reduce the designation for the veterans trust fund donation to reflect the actual amount of the refund that the individual is otherwise owed, after crediting under ss. 71.75 (9) and 71.80 (3) and (3m) and after error corrections.

AB100-ASA1,584,16 (e) Conditions. If an individual places any conditions on a designation for the veterans trust fund donation, the designation is void.

AB100-ASA1,584,19 (f) Void designation. If a designation for the veterans trust fund donation is void, the department shall disregard the designation and determine amounts due, owed, refunded, and received without regard to the void designation.

AB100-ASA1,584,21 (g) Tax return. The secretary of revenue shall provide a place for the designations under this subsection on the individual income tax return.

AB100-ASA1,584,24 (h) Certification of amounts. Annually, on or before September 15, the secretary of revenue shall certify to the department of veterans affairs, the department of administration, and the state treasurer:

AB100-ASA1,585,3 1. The total amount of the administrative costs, including data processing costs, incurred by the department in administering this subsection during the previous fiscal year.

AB100-ASA1,585,5 2. The total amount received from all designations for veterans trust fund donations made by taxpayers during the previous fiscal year.

AB100-ASA1,585,8 3. The net amount remaining after the administrative costs, including data processing costs, under subd. 1. are subtracted from the total received under subd. 2.

AB100-ASA1,585,14 (i) Appropriations. From the moneys received from designations for veterans trust fund donations, an amount equal to the sum of administrative expenses, including data processing costs, certified under par. (h) 1. shall be deposited into the general fund and credited to the appropriation account under s. 20.566 (1) (hp), and the net amount remaining that is certified under par. (h) 3. shall be deposited into the veterans trust fund and used for veterans programs under s. 25.36 (1).

AB100-ASA1,585,21 (j) Amounts subject to refund. Amounts designated as veterans trust fund donations under this subsection are not subject to refund to the taxpayer unless the taxpayer submits information to the satisfaction of the department, within 18 months after the date on which the taxes are due or the date on which the return is filed, whichever is later, that the amount designated is clearly in error. Any refund granted by the department under this paragraph shall be deducted from the moneys received under this subsection in the fiscal year for which the refund is certified.

AB100-ASA1, s. 1314 Section 1314. 71.10 (6) (a) of the statutes is amended to read:

AB100-ASA1,586,4 71.10 (6) (a) Joint returns. Persons filing a joint return are jointly and severally liable for the tax, interest, penalties, fees, additions to tax and additional assessments under this chapter applicable to the return. A Except as provided in par. (e), a person shall be relieved of liability in regard to a joint return in the manner specified in section 6013 (e) 6015 (a) to (d) and (f) of the internal revenue code, notwithstanding the amount or percentage of the understatement Internal Revenue Code.

AB100-ASA1, s. 1315 Section 1315. 71.10 (6) (b) of the statutes is amended to read:

AB100-ASA1,586,17 71.10 (6) (b) Separate returns. A Except as provided in par. (e), a spouse filing a separate return may be relieved of liability for the tax, interest, penalties, fees, additions to tax and additional assessments under this chapter with regard to unreported marital property income in the manner specified in section 66 (c) of the internal revenue code Internal Revenue Code. The department may not apply ch. 766 in assessing a taxpayer with respect to marital property income the taxpayer did not report if that taxpayer failed to notify the taxpayer's spouse about the amount and nature of the income before the due date, including extensions, for filing the return for the taxable year in which the income was derived. The department shall include all of that marital property income in the gross income of the taxpayer and exclude all of that marital property income from the gross income of the taxpayer's spouse.

AB100-ASA1, s. 1316 Section 1316. 71.10 (6) (e) of the statutes is created to read:

AB100-ASA1,586,23 71.10 (6) (e) Application for relief. A person who seeks relief from liability under par. (a) or (b) shall apply for relief with the department, on a form prescribed by the department, within 2 years after the date on which the department first begins collection activities after the effective date of this paragraph .... [revisor inserts date].

AB100-ASA1, s. 1317 Section 1317. 71.10 (6m) (a) of the statutes is amended to read:

AB100-ASA1,587,13 71.10 (6m) (a) A Except as provided in par. (c), a formerly married or remarried person filing a return for a period during which the person was married may be relieved of liability for the tax, interest, penalties, fees, additions to tax and additional assessments under this chapter for unreported marital property income from that period as if the person were a spouse under section 66 (c) of the internal revenue code Internal Revenue Code. The department may not apply ch. 766 in assessing the former spouse of the person with respect to marital property income that the former spouse did not report if that former spouse failed to notify the person about the amount and nature of the income before the due date, including extensions, for filing the return for the taxable year during which the income was derived. The department shall include all of that marital property income in the gross income of the former spouse and exclude all of that marital property income from the gross income of the person.

AB100-ASA1, s. 1318 Section 1318. 71.10 (6m) (c) of the statutes is created to read:

AB100-ASA1,587,16 71.10 (6m) (c) A person who seeks relief from liability under par. (a) shall apply for relief with the department as provided under sub. (6) (e).

AB100-ASA1, s. 1319 Section 1319. 71.195 of the statutes is amended to read:

AB100-ASA1,587,21 71.195 Definition. In this subchapter, "partnership" includes limited liability companies and other entities that are treated as partnerships under the Internal Revenue Code, and "partnership" does not include publicly traded partnerships treated as corporations under s. 71.22 (1) (1k).

AB100-ASA1, s. 1319m Section 1319m. 71.21 (4) of the statutes is amended to read:

AB100-ASA1,587,25 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), and (5b), and (5g) and passed through to partners shall be added to the partnership's income.

AB100-ASA1, s. 1320 Section 1320. 71.22 (1) of the statutes is renumbered 71.22 (1k).

AB100-ASA1, s. 1321 Section 1321. 71.22 (1g) of the statutes is created to read:

AB100-ASA1,588,8 71.22 (1g) For purposes of s. 71.25 (9) (df) and (dh), "commercial domicile" means the location from which a trade or business is principally managed and directed, based on any factors the department determines are appropriate, including the location where the greatest number of employees of the trade or business work, have their office or base of operations, or from which the employees are directed or controlled.

AB100-ASA1, s. 1322 Section 1322. 71.22 (1t) of the statutes is created to read:

AB100-ASA1,588,13 71.22 (1t) For purposes of s. 71.25 (9) (df) and (dh), "domicile" means an individual's true, fixed, and permanent home where the individual intends to remain permanently and indefinitely and to which, whenever absent, the individual intends to return, except that no individual may have more than one domicile at any time.