AB100-SA47,1,1211 3. The individual is at least 55 years of age before the close of the taxable year
12to which the exemption claim relates.
AB100-SA47, s. 1285g 13Section 1285g. 71.05 (1) (aq) of the statutes is created to read:
AB100-SA47,2,3
171.05 (1) (aq) Individual retirement income. Up to $10,000 of payments or
2distributions received each year by an individual from an individual retirement
3account established under 26 USC 408 or 26 USC 408A, if all of the following apply:
AB100-SA47,2,44 1. The individual does not claim an exemption under par. (ap).
AB100-SA47,2,65 2. The individual does not work more than 1,044 hours during the year to which
6the exemption claim relates.
AB100-SA47,2,87 3. The individual is at least 55 years of age before the close of the taxable year
8to which the exemption claim relates.".
AB100-SA47,2,9 92. Page 564, line 20: after that line insert:
AB100-SA47,2,10 10" Section 1286d. 71.05 (6) (b) 4. of the statutes is amended to read:
AB100-SA47,2,2211 71.05 (6) (b) 4. Disability payments other than disability payments that are
12paid from a retirement plan, the payments from which are exempt under sub. (1)
13(ap)
, if the individual either is single or is married and files a joint return, to the
14extent those payments are excludable under section 105 (d) of the internal revenue
15code
Internal Revenue Code as it existed immediately prior to its repeal in 1983 by
16section 122 (b) of P.L. 98-21, except that if an individual is divorced during the
17taxable year that individual may subtract an amount only if that person is disabled
18and the amount that may be subtracted then is $100 for each week that payments
19are received or the amount of disability pay reported as income, whichever is less.
20If the exclusion under this subdivision is claimed on a joint return and only one of
21the spouses is disabled, the maximum exclusion is $100 for each week that payments
22are received or the amount of disability pay reported as income, whichever is less.".
AB100-SA47,2,23 233. Page 572, line 24: after that line insert:
AB100-SA47,2,24 24" Section 1292e. 71.06 (1p) (intro.) of the statutes is amended to read:
AB100-SA47,3,6
171.06 (1p) Fiduciaries, single individuals and heads of households; after 2000
2to 2005. (intro.) The tax to be assessed, levied, and collected upon the taxable incomes
3of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve
4funds, and single individuals and heads of households shall be computed at the
5following rates for taxable years beginning after December 31, 2000, and before
6January 1, 2006
:
AB100-SA47, s. 1292f 7Section 1292f. 71.06 (1q) of the statutes is created to read:
AB100-SA47,3,128 71.06 (1q) Fiduciaries, single individuals and heads of households; after
92005.
The tax to be assessed, levied, and collected upon the taxable incomes of all
10fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
11single individuals and heads of households shall be computed at the following rates
12for taxable years beginning after December 31, 2005:
AB100-SA47,3,1313 (a) On all taxable income from $0 to $7,500 , 4.6 percent.
AB100-SA47,3,1514 (b) On all taxable income exceeding $7,500 but not exceeding $15,000, 6.15
15percent.
AB100-SA47,3,1716 (c) On all taxable income exceeding $15,000 but not exceeding $112,500, 6.5
17percent.
AB100-SA47,3,1918 (d) On all taxable income exceeding $112,500 but not exceeding $1,000,000,
196.75 percent.
AB100-SA47,3,2020 (e) On all taxable income exceeding $1,000,000, 7.75 percent.
AB100-SA47, s. 1292g 21Section 1292g. 71.06 (2) (g) (intro.) of the statutes is amended to read:
AB100-SA47,3,2322 71.06 (2) (g) (intro.) For joint returns, for taxable years beginning after
23December 31, 2000, and before January 1, 2006:
AB100-SA47, s. 1292h 24Section 1292h. 71.06 (2) (h) (intro.) of the statutes is amended to read:
AB100-SA47,4,2
171.06 (2) (h) (intro.) For married persons filing separately, for taxable years
2beginning after December 31, 2000, and before January 1, 2006:
AB100-SA47, s. 1292i 3Section 1292i. 71.06 (2) (i) of the statutes is created to read:
AB100-SA47,4,54 71.06 (2) (i) For joint returns, for taxable years beginning after
5December 31, 2005:
AB100-SA47,4,66 1. On all taxable income from $0 to $10,000, 4.6 percent.
AB100-SA47,4,87 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.15
8percent.
AB100-SA47,4,109 3. On all taxable income exceeding $20,000 but not exceeding $150,000, 6.5
10percent.
AB100-SA47,4,1211 4. On all taxable income exceeding $150,000 but not exceeding $1,000,000, 6.75
12percent.
AB100-SA47,4,1313 5. On all taxable income exceeding $1,000,000, 7.75 percent.
AB100-SA47, s. 1292j 14Section 1292j. 71.06 (2) (j) of the statutes is created to read:
AB100-SA47,4,1615 71.06 (2) (j) For married persons filing separately, for taxable years beginning
16after December 31, 2005:
AB100-SA47,4,1717 1. On all taxable income from $0 to $5,000, 4.6 percent.
AB100-SA47,4,1918 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.15
19percent.
AB100-SA47,4,2120 3. On all taxable income exceeding $10,000 but not exceeding $75,000, 6.5
21percent.
AB100-SA47,4,2322 4. On all taxable income exceeding $75,000 but not exceeding $500,000, 6.75
23percent.
AB100-SA47,4,2424 5. On all taxable income exceeding $500,000, 7.75 percent.
AB100-SA47, s. 1292k
1Section 1292k. 71.06 (2e) of the statutes is renumbered 71.06 (2e) (a) and
2amended to read:
AB100-SA47,6,33 71.06 (2e) Bracket indexing. (a) For taxable years beginning after
4December 31, 1998, and before January 1, 2000, the maximum dollar amount in
5each tax bracket, and the corresponding minimum dollar amount in the next bracket,
6under subs. (1m) and (2) (c) and (d), and for taxable years beginning after
7December 31, 1999, and before January 1, 2006, the maximum dollar amount in
8each tax bracket, and the corresponding minimum dollar amount in the next bracket,
9under subs. (1n), (1p), and (2) (e), (f), (g), and (h), and for taxable years beginning
10after December 31, 2006, the maximum dollar amount in each tax bracket, and the
11corresponding minimum dollar amount in the next bracket, under subs. (1q) and (2)
12(i) and (j),
shall be increased each year by a percentage equal to the percentage
13change between the U.S. consumer price index for all urban consumers, U.S. city
14average, for the month of August of the previous year and the U.S. consumer price
15index for all urban consumers, U.S. city average, for the month of August 1997, as
16determined by the federal department of labor, except that for taxable years
17beginning after December 31, 2000, and before January 1, 2002, the dollar amount
18in the top bracket under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall
19be increased by a percentage equal to the percentage change between the U.S.
20consumer price index for all urban consumers, U.S. city average, for the month of
21August of the previous year and the U.S. consumer price index for all urban
22consumers, U.S. city average, for the month of August 1999, as determined by the
23federal department of labor. Each amount that is revised under this subsection
24paragraph shall be rounded to the nearest multiple of $10 if the revised amount is
25not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount

1shall be increased to the next higher multiple of $10. The department of revenue
2shall annually adjust the changes in dollar amounts required under this subsection
3paragraph and incorporate the changes into the income tax forms and instructions.
AB100-SA47, s. 1292L 4Section 1292L. 71.06 (2e) (b) of the statutes is created to read:
AB100-SA47,6,185 71.06 (2e) (b) For taxable years beginning after December 31, 2004, and before
6January 1, 2006, the maximum dollar amount in each tax bracket, and the
7corresponding minimum dollar amount in the next bracket, under subs. (1q) (a), (b),
8(c), and (d) and (2) (i) 1., 2., 3., and 4. and (j) 1., 2., 3., and 4., shall be increased each
9year by a percentage equal to the percentage change between the U.S. consumer
10price index for all urban consumers, U.S. city average, for the month of August of the
11previous year and the U.S. consumer price index for all urban consumers, U.S. city
12average, for the month of August 1997, as determined by the federal department of
13labor. Each amount that is revised under this paragraph shall be rounded to the
14nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised
15amount is a multiple of $5, such an amount shall be increased to the next higher
16multiple of $10. The department of revenue shall annually adjust the changes in
17dollar amounts required under this paragraph and incorporate the changes into the
18income tax forms and instructions.
AB100-SA47, s. 1292m 19Section 1292m. 71.06 (2m) of the statutes is amended to read:
AB100-SA47,6,2320 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), or (2)
21changes during a taxable year, the taxpayer shall compute the tax for that taxable
22year by the methods applicable to the federal income tax under section 15 of the
23internal revenue code Internal Revenue Code.
AB100-SA47, s. 1292n 24Section 1292n. 71.06 (2s) (d) of the statutes is amended to read:
AB100-SA47,7,13
171.06 (2s) (d) For taxable years beginning after December 31, 2000, and before
2January 1, 2006,
with respect to nonresident individuals, including individuals
3changing their domicile into or from this state, the tax brackets under subs. (1p) and
4(2) (g) and (h) shall be multiplied by a fraction, the numerator of which is Wisconsin
5adjusted gross income and the denominator of which is federal adjusted gross
6income. In this paragraph, for married persons filing separately "adjusted gross
7income" means the separate adjusted gross income of each spouse, and for married
8persons filing jointly "adjusted gross income" means the total adjusted gross income
9of both spouses. If an individual and that individual's spouse are not both domiciled
10in this state during the entire taxable year, the tax brackets under subs. (1p) and (2)
11(g) and (h) on a joint return shall be multiplied by a fraction, the numerator of which
12is their joint Wisconsin adjusted gross income and the denominator of which is their
13joint federal adjusted gross income.
AB100-SA47, s. 1202o 14Section 1202o. 71.06 (2s) (e) of the statutes is created to read:
AB100-SA47,8,215 71.06 (2s) (e) For taxable years beginning after December 31, 2005, with
16respect to nonresident individuals, including individuals changing their domicile
17into or from this state, the tax brackets under subs. (1q) and (2) (i) and (j) shall be
18multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income
19and the denominator of which is federal adjusted gross income. In this paragraph,
20for married persons filing separately "adjusted gross income" means the separate
21adjusted gross income of each spouse, and for married persons filing jointly "adjusted
22gross income" means the total adjusted gross income of both spouses. If an individual
23and that individual's spouse are not both domiciled in this state during the entire
24taxable year, the tax brackets under subs. (1q) and (2) (i) and (j) on a joint return shall
25be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted

1gross income and the denominator of which is their joint federal adjusted gross
2income.".
AB100-SA47,8,3 34. Page 588, line 3: after that line insert:
AB100-SA47,8,4 4" Section 1318e. 71.125 of the statutes is amended to read:
AB100-SA47,8,9 571.125 Imposition of tax. (1) Except as provided in sub. (2), the tax imposed
6by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q),
7and (2) shall apply to the Wisconsin taxable income of estates or trusts, except
8nuclear decommissioning trust or reserve funds, and that tax shall be paid by the
9fiduciary.
AB100-SA47,8,14 10(2) Each electing small business trust, as defined in section 1361 (e) (1) of the
11Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1), (1m),
12(1n) or, (1p), or (1q), whichever taxable year is applicable, on its income as computed
13under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12),
14(19), and (20).
AB100-SA47, s. 1318s 15Section 1318s. 71.17 (6) of the statutes is amended to read:
AB100-SA47,8,1916 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under
17section 685 of the Internal Revenue Code for federal income tax purposes, that
18election applies for purposes of this chapter and each trust shall compute its own tax
19and shall apply the rates under s. 71.06 (1), (1m), (1n) or , (1p), or (1q).".
AB100-SA47,8,20 205. Page 614, line 11: after that line insert:
AB100-SA47,8,21 21" Section 1343g. 71.25 (9) (a) of the statutes is amended to read:
AB100-SA47,9,822 71.25 (9) (a) The sales factor is a fraction, the numerator of which is the total
23sales of the taxpayer in this state during the tax period, and the denominator of
24which is the total sales of the taxpayer everywhere during the tax period. For sales

1of tangible personal property, the numerator of the sales factor is the sales of the
2taxpayer during the tax period under par. (b) 1. and 2. plus 50% of the sales of the
3taxpayer during the tax period under pars. (b) 2m. and 3. and (c). For purposes of
4determining the numerator of the sales factor for a member of a combined reporting
5group under s. 71.255 (7), "taxpayer" means the member of a combined reporting
6group, as defined in s. 71.255 (1) (c), that transferred title to tangible personal
7property or, for sales other than sales of tangible personal property, that made the
8sale.
".
AB100-SA47,9,9 96. Page 616, line 12: after that line insert:
AB100-SA47,9,10 10" Section 1349e. 71.255 of the statutes is created to read:
AB100-SA47,9,11 1171.255 Combined reporting. (1) Definitions. In this section:
AB100-SA47,9,1512 (a) "Brother-sister parent corporation" means a parent corporation that is a
13member of a commonly controlled group, if any members of the commonly controlled
14group are not connected to the parent corporation by stock ownership or interest
15ownership as described in par. (d).
AB100-SA47,9,1816 (b) "Combined report" means a form prescribed by the department that
17specifies the income of each taxpayer member of a commonly controlled group
18operating as a unitary business.
AB100-SA47,9,2019 (c) "Combined reporting group" means the members of a commonly controlled
20group that are included in a combined report under sub. (2).
AB100-SA47,9,2221 (d) "Commonly controlled group" means any of the following, but does not
22include an insurer that is exempt from taxation under s. 71.45 (1):
AB100-SA47,9,2423 1. A parent corporation and any corporation or chain of corporations that are
24connected to the parent corporation by direct or indirect ownership by the parent

1corporation if the parent corporation owns stock representing more than 50 percent
2of the voting power of at least one of the connected corporations or if the parent
3corporation or any of the connected corporations own stock that cumulatively
4represents more than 50 percent of the voting power of each of the connected
5corporations.
AB100-SA47,10,86 2. Any 2 or more corporations if a common owner directly or indirectly owns
7stock representing more than 50 percent of the voting power of the corporations or
8the connected corporations.
AB100-SA47,10,129 3. A partnership or limited liability company if a parent corporation or any
10corporation connected to the parent corporation by common ownership directly or
11indirectly owns more than a 50 percent interest in the capital and profits of the
12partnership or limited liability company.
AB100-SA47,10,1413 4. Any 2 or more corporations if stock representing more than 50 percent of the
14voting power in each corporation is interest that cannot be separately transferred.
AB100-SA47,10,1915 5. Any 2 or more corporations if stock representing more than 50 percent of the
16voting power in each corporation is directly owned by, or for the benefit of, family
17members. In this subdivision, "family member" means an individual related by
18blood, marriage, or adoption within the 2nd degree of kinship as computed under s.
19852.03 (2), 1995 stats., or the spouse of such an individual.
AB100-SA47,10,2420 6. A corporation, partnership, or limited liability company if a parent
21corporation or any corporation connected to the parent corporation by common
22ownership does not hold more than a 50 percent ownership interest in the
23corporation, partnership, or limited liability company but effectively controls the
24corporation, partnership, or limited liability company.
AB100-SA47,10,2525 (e) "Corporation" has the meaning given in s. 71.22 (1) or 71.42 (1).
AB100-SA47,11,1
1(f) "Department" means the department of revenue.
AB100-SA47,11,42 (g) "Designated agent" means the taxpayer member of a commonly controlled
3group that files a group return on behalf of the taxpayer members of a combined
4reporting group.
AB100-SA47,11,65 (h) "Group return" means a tax return filed on behalf of the taxpayer members
6of a combined reporting group.
AB100-SA47,11,97 (i) "Intercompany transaction" means a transaction between corporations,
8partnerships, or limited liability companies that become members of the same
9combined reporting group immediately after the transaction.
AB100-SA47,11,1110 (im) "Partnership" means any entity considered a partnership under section
117701 of the Internal Revenue Code.
AB100-SA47,11,1412 (j) "Separate return" means a return filed by a corporation, regardless of
13whether the corporation is a member of a combined reporting group or is required
14to file a tax return under s. 71.24 or 71.44.
AB100-SA47,11,1715 (k) "Taxpayer member" means a corporation that is subject to tax under s. 71.23
16(1) or (2) or 71.43, that is a member of a combined reporting group, and that files a
17combined report under this section.
AB100-SA47,11,2318 (L) "Top-tier corporation" means a member of a commonly controlled group
19that is not connected with a parent corporation by stock ownership or interest
20ownership as described in par. (d), is a parent corporation, or is a brother-sister
21parent corporation, regardless of whether it is doing business in this state or deriving
22income from sources in this state, and regardless of whether its income and
23apportionment factors are excluded from a combined report filed under this section.
AB100-SA47,12,724 (m) "Unitary business" includes the business activities or operations of an
25entity that are of mutual benefit to, integrated with, or dependent upon or that

1contribute to activities of at least one other entity, including transactions that serve
2an operational function, as determined by the department. Two or more businesses
3are presumed to be a unitary business if the businesses have unity of ownership,
4operation, and use as indicated by centralized management or a centralized
5executive force; centralized purchasing, advertising, or accounting; intercorporate
6sales or leases; intercorporate services; intercorporate debts; intercorporate use of
7proprietary materials; interlocking directorates; or interlocking corporate officers.
AB100-SA47,12,16 8(2) Corporations required to use combined reporting. (a) Except as provided
9in par. (b), and subject to sub. (6), a corporation that is subject to the tax imposed
10under s. 71.23 (1) or (2) or 71.43, that is a member of a commonly controlled group,
11and that is engaged, in whole or in part, in a unitary business with one or more
12members of the commonly controlled group shall compute the corporation's income
13attributable to this state by using the income computation under s. 71.26 or 71.45,
14the apportionment formula under s. 71.25 (6) or 71.45, and the tax credits under s.
1571.28 or 71.47 of all of the following that are members of the commonly controlled
16group:
AB100-SA47,12,2117 1. Any corporation organized or incorporated under the laws of the United
18States, any state of the United States, the District of Columbia, the Commonwealth
19of Puerto Rico, any possession of the United States, or any political subdivision of the
20United States, including corporations under sections 931 to 936 of the Internal
21Revenue Code.
AB100-SA47,12,23222. Any domestic international sales corporation under sections 991 to 994 of the
23Internal Revenue Code.
AB100-SA47,12,25243. Any foreign sales corporation under sections 921 to 927 of the Internal
25Revenue Code.
AB100-SA47,13,2
14. Any export trade corporation under sections 970 and 971 of the Internal
2Revenue Code.
AB100-SA47,13,73 5. Any corporation, regardless of its place of incorporation if the average of its
4property factor under s. 71.25 (7) and its payroll factor under s. 71.25 (8), for property
5and payroll within the United States and computed on an annual basis, is at least
620 percent during any part of the taxable year that a corporation is a member of the
7commonly controlled group.
AB100-SA47,13,118 6. Any corporation not described in subds. 1. to 5. to the extent of the
9corporation's income within the United States and the corporation's property factor
10under s. 71.25 (7) and payroll factor under s. 71.25 (8) assignable to a location within
11the United States.
AB100-SA47,13,2212 (b) A corporation that is subject to the tax imposed under s. 71.23 (1) or (2) or
1371.43, that is a member of a commonly controlled group, and that is engaged, in whole
14or in part, in a unitary business with one or more members of the commonly
15controlled group may, subject to sub. (6), compute the corporation's income
16attributable to this state by using the income computation under s. 71.26 or 71.45,
17the apportionment formula under s. 71.25 (6) or 71.45, and the tax credits under s.
1871.28 or 71.47 of all the members of the commonly controlled group, regardless of the
19country in which any member of the commonly controlled group is organized or
20incorporated or conducts business, if all top-tier corporations that are members of
21the commonly controlled group elect under sub. (3) to compute the corporation's
22income as provided under this paragraph.
AB100-SA47,14,5 23(3) Computation election. (a) A top-tier corporation that is a member of a
24commonly controlled group may elect on the commonly controlled group's behalf, and
25in the manner prescribed by the department, to compute the income of each

1corporation that is a member of the commonly controlled group under sub. (2) (b).
2If more than one member of the commonly controlled group is a top-tier corporation,
3an election under this subsection is not effective unless all top-tier corporations elect
4on the commonly controlled group's behalf, and in the manner prescribed by the
5department, to compute income under sub. (2) (b).
AB100-SA47,14,136 (b) A top-tier corporation shall file an election made under par. (a) with the
7department before the last day of the taxable year. The top-tier corporation shall
8designate a taxable year that corresponds with the taxable year of any taxpayer
9member that is subject to the tax imposed under s. 71.23 (1) or (2) or 71.43. If the
10top-tier corporation fails to file the election before the last day of the taxable year
11designated under this paragraph, all members of the commonly controlled group to
12which the top-tier corporation belongs, including the top-tier corporation, shall
13compute income under sub. (2) (a).
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