Amendment SA48-AB100

AB100-SA48,31,4 71.26 (3) (e) 1. So that payments for wages, salaries, commissions and bonuses of employees and officers may be deducted only if the name, address and amount paid to each resident of this state to whom compensation of $600 or more has been paid during the taxable year is reported or if the department of revenue is satisfied that failure to report has resulted in no revenue loss to this state. A deduction for wages, salaries, commissions, and bonuses paid to an employee or officer shall not exceed an amount equal to the product of the wages, salaries, commissions, and bonuses paid to the corporation's lowest paid full-time employee multiplied by 25.

AB100-SA48, s. 1363h Section 1363h. 71.26 (3) (x) of the statutes is amended to read:

AB100-SA48,31,10 71.26 (3) (x) Sections 1501 to 1505, 1551, 1552, 1563 and 1564 (relating to consolidated returns) are excluded, except to the extent that they pertain to intercompany transactions and the carry-forward of net business loss under s. 71.255 and except that they are modified so that more than 50 percent ownership is substituted for at least 80 percent ownership.

AB100-SA48, s. 1363m Section 1363m. 71.26 (4) of the statutes is amended to read:

AB100-SA48,32,3 71.26 (4) Net business loss carry-forward. A corporation, except a tax-option corporation or an insurer to which s. 71.45 (4) applies, may offset against its Wisconsin net business income any Wisconsin net business loss sustained in any of the next 15 preceding taxable years, if the corporation was subject to taxation under this chapter in the taxable year in which the loss was sustained, to the extent not offset by other items of Wisconsin income in the loss year and by Wisconsin net business income of any year between the loss year and the taxable year for which an offset is claimed. For purposes of this subsection Wisconsin net business income or loss shall consist of all the income attributable to the operation of a trade or business in this state, less the business expenses allowed as deductions in computing net income. The Wisconsin net business income or loss of corporations engaged in business within and without the state shall be determined under s. 71.25 (6) and (10) to (12) or 71.255. Nonapportionable losses having a Wisconsin situs under s. 71.25 (5) (b) shall be included in Wisconsin net business loss; and nonapportionable income having a Wisconsin situs under s. 71.25 (5) (b), whether taxable or exempt, shall be included in other items of Wisconsin income and Wisconsin net business income for purposes of this subsection.".

AB100-SA48,32,4 8. Page 653, line 12: after that line insert:

AB100-SA48,32,5 " Section 1385m. 71.29 (2) of the statutes is amended to read:

AB100-SA48,32,8 71.29 (2) Who shall pay. Every Except as provided in s. 71.255 (11), every corporation subject to tax under s. 71.23 (1) or (2) and every virtually exempt entity subject to tax under s. 71.125 or 71.23 (1) or (2) shall pay an estimated tax.".

AB100-SA48,32,9 9. Page 681, line 17: after that line insert:

AB100-SA48,32,10 " Section 1406b. 71.44 (1) (a) of the statutes is amended to read:

AB100-SA48,33,4 71.44 (1) (a) Every Except as provided in par. (e), every corporation, except corporations all of whose income is exempt from taxation and except as provided in sub. (1m), shall furnish to the department a true and accurate statement, on or before March 15 of each year, except that returns for fiscal years ending on some other date than December 31 shall be furnished on or before the 15th day of the 3rd month following the close of such fiscal year and except that returns for less than a full taxable year shall be furnished on or before the date applicable for federal income taxes under the internal revenue code, in such manner and form and setting forth such facts as the department deems necessary to enforce this chapter. Every corporation that is required to furnish a statement under this paragraph and that has income that is not taxable under this subchapter shall include with its statement a report that identifies each item of its nontaxable income. The statement shall be subscribed by the president, vice president, treasurer, assistant treasurer, chief accounting officer or any other officer duly authorized so to act. In the case of a return made for a corporation by a fiduciary, the fiduciary shall subscribe the return. The fact that an individual's name is subscribed on the return shall be prima facie evidence that the individual is authorized to subscribe the return on behalf of the corporation.

AB100-SA48, s. 1406c Section 1406c. 71.44 (1) (e) of the statutes is created to read:

AB100-SA48,33,8 71.44 (1) (e) A corporation that is a member of a commonly controlled group, as defined in s. 71.255 (1) (d), and engaged in a unitary business, as defined in s. 71.255 (1) (m), shall file a tax return under s. 71.255.".

AB100-SA48,33,9 10. Page 682, line 3: after that line insert:

AB100-SA48,33,10 " Section 1406mh. 71.46 (3) of the statutes is repealed.".

AB100-SA48,33,11 11. Page 689, line 15: after that line insert:

AB100-SA48,33,12 " Section 1428m. 71.48 of the statutes is amended to read:

AB100-SA48,33,15 71.48 Payments of estimated taxes. Sections Except as provided in s. 71.255 (11), ss. 71.29 and 71.84 (2) shall apply to insurers subject to taxation under this chapter.".

AB100-SA48,33,16 12. Page 689, line 25: after that line insert:

AB100-SA48,33,17 " Section 1430e. 71.64 (9) (b) (intro.) of the statutes is amended to read:

AB100-SA48,33,21 71.64 (9) (b) (intro.) The department shall from time to time adjust the withholding tables to reflect any changes in income tax rates, any applicable surtax, or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p) , (1q), and (2) resulting from statutory changes, except as follows:".

AB100-SA48,33,22 13. Page 690, line 6: delete "or (1p)" and substitute "or , (1p), or (1q)".

AB100-SA48,33,23 14. Page 695, line 14: after that line insert:

AB100-SA48,33,24 " Section 1432n. 71.84 (2) (a) of the statutes is amended to read:

AB100-SA48,34,11 71.84 (2) (a) Except as provided in s. 71.29 (7), in the case of any underpayment of estimated tax under s. 71.255, 71.29 or 71.48 there shall be added to the aggregate tax for the taxable year interest at the rate of 12% per year on the amount of the underpayment for the period of the underpayment. For corporations, except as provided in par. (b), "period of the underpayment" means the time period from the due date of the installment until either the 15th day of the 3rd month beginning after the end of the taxable year or the date of payment, whichever is earlier. If 90% of the tax shown on the return is not paid by the 15th day of the 3rd month following the close of the taxable year, the difference between that amount and the estimated taxes paid, along with any interest due, shall accrue delinquent interest under s. 71.91 (1) (a).".

AB100-SA48,34,12 15. Page 705, line 19: after that line insert:

AB100-SA48,34,13 " Section 1468m. 74.09 (3) (b) 6. of the statutes is amended to read:

AB100-SA48,34,16 74.09 (3) (b) 6. The amount of the credit credits under s. 79.10 (5) and (5m) allocable to the property for the previous year and the current year, and the percentage change between those years.".

AB100-SA48,34,17 16. Page 730, line 15: after that line insert:

AB100-SA48,34,18 " Section 1710b. 79.10 (1) (dm) of the statutes is amended to read:

AB100-SA48,34,22 79.10 (1) (dm) "Principal dwelling" means any dwelling that is used by the owner of the dwelling as a primary residence on January 1 of the year preceding the allocation of a credit credits under sub. (9) (bm) and (bn) and includes improvements that are classified, under ch. 70, as taxable real property or personal property.

AB100-SA48, s. 1710c Section 1710c. 79.10 (1m) of the statutes is amended to read:

AB100-SA48,35,2 79.10 (1m) (a) Each municipality shall notify the department of revenue of the total amount of credits allocated under sub. (9) (bm) and (bn).

AB100-SA48,35,5 (b) Counties and municipalities shall submit to the department of revenue all data related to the lottery and gaming credit and homeowner's tax credit that is requested by the department of revenue.

AB100-SA48, s. 1710d Section 1710d. 79.10 (2) of the statutes is amended to read:

AB100-SA48,35,14 79.10 (2) Notice to municipalities. On or before December 1 of the year preceding the distribution under sub. (7m) (a), the department of revenue shall notify the clerk of each town, village and city of the estimated fair market value, as determined under sub. (11), to be used to calculate the lottery and gaming credit under sub. (5) and the homeowner's tax credit under sub. (5m) and of the amount to be distributed to it under sub. (7m) (a) on the following 4th Monday in July. The anticipated receipt of such distribution shall not be taken into consideration in determining the tax rate of the municipality but shall be applied as tax credits.

AB100-SA48, s. 1710e Section 1710e. 79.10 (5m) of the statutes is created to read:

AB100-SA48,35,21 79.10 (5m) Homeowner's tax credit. (a) Subject to par. (b), each municipality shall receive, from the appropriation under s. 20.835 (3) (bm), an amount determined by multiplying the school tax rate by the estimated fair market value, determined under sub. (11), but not to exceed $60,000, of every principal dwelling that is located in the municipality and for which a claim for the credit under sub. (9) (bn) is made by the owner of the principal dwelling.

AB100-SA48,36,2 (b) The total amount of the credits that are paid each year from the appropriation under s. 20.835 (3) (bm) may not exceed the amount of tax revenue generated in the year preceding the distribution under sub. (7m) (a) by the operation of ss. 71.06 (1q) and (2) (i) and (j) and 71.255, plus the amount of tax revenue collected in that preceding year as a result of the maximum limit that may be claimed as a deduction under s. 71.26 (3) (e) 1.

AB100-SA48, s. 1710f Section 1710f. 79.10 (6m) (a) of the statutes is amended to read:

AB100-SA48,36,17 79.10 (6m) (a) Except as provided in pars. (b) and (c), if the department of administration or the department of revenue determines by October 1 of the year of any distribution under subs. (4) and, (5), and (5m) that there was an overpayment or underpayment made in that year's distribution by the department of administration to municipalities, as determined under subs. (4) and, (5), and (5m), because of an error by the department of administration, the department of revenue, or any municipality, the overpayment or underpayment shall be corrected as provided in this paragraph. Any overpayment shall be corrected by reducing the subsequent year's distribution, as determined under subs. (4) and, (5), and (5m), by an amount equal to the amount of the overpayment. Any underpayment shall be corrected by increasing the subsequent year's distribution, as determined under subs. (4) and, (5), and (5m), by an amount equal to the amount of the underpayment. Corrections shall be made in the distributions to all municipalities affected by the error. Corrections shall be without interest.

AB100-SA48, s. 1710g Section 1710g. 79.10 (7m) (c) of the statutes is created to read:

AB100-SA48,36,22 79.10 (7m) (c) Homeowner's tax credit. 1. The amount determined under sub. (5m) with respect to claims filed for which the town, village, or city has furnished notice under sub. (1m) by March 1 shall be distributed from the appropriation under s. 20.835 (3) (bm) by the department of administration on the 4th Monday in March.

AB100-SA48,37,4 2. The town, village, or city treasurer shall settle for the amounts distributed on the 4th Monday in March under this paragraph with each taxing jurisdiction within the taxation district or provide the amounts distributed to the appropriate county treasurer for settlement not later than April 15. Failure to settle timely under this subdivision subjects the town, village, or city treasurer to the penalties under s. 74.31. On or before August 20, the county treasurer shall settle with each taxing jurisdiction, including towns, villages, and cities except 1st class cities, in the county.

AB100-SA48, s. 1710h Section 1710h. 79.10 (9) (bn) of the statutes is created to read:

AB100-SA48,37,10 79.10 (9) (bn) Homeowner's tax credit. Except as provided under sub. (5m) (b) and in ss. 79.175 and 79.18, a homeowner's tax credit shall be allocated to every principal dwelling for which a credit is claimed under sub. (10) in an amount determined by multiplying the estimated fair market value of the principal dwelling, as determined under sub. (11), but not to exceed $60,000, by the school tax rate.

AB100-SA48, s. 1710i Section 1710i. 79.10 (9) (c) 1. of the statutes is amended to read:

AB100-SA48,37,15 79.10 (9) (c) 1. The lottery and gaming credit under par. (bm) and the homeowner's tax credit under par. (bn) shall reduce the property taxes otherwise payable on property that is eligible for that credit and if the property owner completes the information required under sub. (10) (a) or (b).

AB100-SA48, s. 1710j Section 1710j. 79.10 (10) (title) of the statutes is amended to read:

AB100-SA48,37,18 79.10 (10) (title) Claiming the lottery and gaming credit and the homeowner's tax credit.

AB100-SA48, s. 1710k Section 1710k. 79.10 (10) (a) of the statutes is amended to read:

AB100-SA48,38,9 79.10 (10) (a) Beginning with property taxes levied in 1999, the The owner of a principal dwelling may claim the credit credits under sub. (9) (bm) and (bn) by applying for the credit credits on a form prescribed by the department of revenue. A claimant shall attest that, as of the certification date, the claimant is an owner of property and that such property is used by the owner in the manner specified under sub. (1) (dm). The certification date is January 1 of the year in which the property taxes are levied. The claimant shall file the application for the lottery and gaming credit credits with the treasurer of the county in which the property is located or, if the property is located in a city that collects taxes under s. 74.87, with the treasurer of the city in which the property is located. Subject to review by the department of revenue, a treasurer who receives a completed application shall direct that the property described in the application be identified on the next tax roll as property for which the owner is entitled to receive a lottery and gaming credit credits. A claim that is made under this paragraph is valid for as long as the property is eligible for the credit credits under sub. (9) (bm) and (bn).

AB100-SA48, s. 1710L Section 1710L. 79.10 (10) (b) of the statutes is amended to read:

AB100-SA48,38,17 79.10 (10) (b) A person who becomes eligible for a credit credits under sub. (9) (bm) and (bn) may claim the credit credits by filing an application, on a form prescribed by the department of revenue, with the treasurer of the county in which the property is located or, if the property is located in a city that collects taxes under s. 74.87, with the treasurer of the city in which the property is located. Claims made under this paragraph are valid for as long as the property is eligible for the credit credits under sub. (9) (bm) and (bn).

AB100-SA48, s. 1710m Section 1710m. 79.10 (10) (bm) of the statutes is amended to read:

AB100-SA48,39,5 79.10 (10) (bm) 1. A person who is eligible for a credit credits under sub. (9) (bm) and (bn) but whose property tax bill does not reflect the credit credits may claim the credit credits by applying to the treasurer of the taxation district in which the property is located for the credit credits under par. (a) by January 31 following the issuance of the person's property tax bill. The treasurer shall compute the amount of the credit credits; subtract the amount of the credit credits from the person's property tax bill; notify the person of the reduced amount of the property taxes due; issue a refund to the person if the person has paid the property taxes in full; and enter the person's property on the next tax roll as property that qualifies for a lottery and gaming credit and a homeowner's tax credit. Claims made under this subdivision are valid for as long as the property is eligible for the credit credits under sub. (9) (bm) and (bn).

AB100-SA48,39,16 2. A person who may apply for a credit credits under subd. 1. but who does not timely apply for the credit credits under subd. 1. may apply to the department of revenue no later than October 1 following the issuance of the person's property tax bill. Subject to review by the department, the department shall compute the amount of the credit credits; issue a check to the person in the amount of the credit credits; and notify the treasurer of the county in which the person's property is located or the treasurer of the taxation district in which the person's property is located, if the taxation district collects taxes under s. 74.87. The treasurer shall enter the person's property on the next tax roll as property that qualifies for a lottery and gaming credit and a homeowner's tax credit. Claims made under this subdivision are valid for as long as the property is eligible for the credit credits under sub. (9) (bm) and (bn).

AB100-SA48, s. 1710n Section 1710n. 79.10 (10) (bn) of the statutes is amended to read:

AB100-SA48,40,2 79.10 (10) (bn) 1. If a person who owns and uses property as specified under sub. (1) (dm), as of the certification date under par. (a), transfers the property after the certification date, the transferee may apply to the treasurer of the county in which the property is located or, if the property is located in a city that collects taxes under s. 74.87, to the treasurer of the city in which the property is located for the credit credits under sub. (9) (bm) and (bn) on a form prescribed by the department of revenue. The transferee shall attest that, to the transferee's knowledge, the transferor used the property in the manner specified under sub. (1) (dm) as of the certification date under par. (a). A claim that is made under this subdivision is valid for as long as the property is eligible for the credit credits under sub. (9) (bm) and (bn).

AB100-SA48,40,10 2. A person who is eligible for a credit credits under subd. 1. but whose property tax bill does not reflect the credit credits may claim the credit credits by applying to the treasurer of the taxation district in which the property is located for the credit credits by January 31 following the issuance of the person's property tax bill. Claims made after January 31, but no later than October 1 following the issuance of the person's property tax bill, shall be made to the department of revenue. Paragraph (bm), as it applies to processing claims made under that paragraph, applies to processing claims made under this subdivision.

AB100-SA48, s. 1710p Section 1710p. 79.10 (10) (c) of the statutes is amended to read:

AB100-SA48,40,17 79.10 (10) (c) If a person who is certified under par. (a) to claim the credit credits under sub. (9) (bm) and (bn) becomes ineligible for the credit credits under sub. (9) (bm) and (bn), that person shall, within 30 days of becoming ineligible, notify the treasurer of the county in which the property is located or, if the property is located in a city that collects taxes under s. 74.87, the treasurer of the city in which the property is located.

AB100-SA48, s. 1710q Section 1710q. 79.10 (10) (e) 2. of the statutes is amended to read:

AB100-SA48,40,20 79.10 (10) (e) 2. The certification procedure includes a procedure that is similar in effect to the procedure described in par. pars. (bm) and (bn).

AB100-SA48, s. 1710r Section 1710r. 79.10 (10) (f) of the statutes is amended to read:

AB100-SA48,41,4 79.10 (10) (f) Each county and city that administers the credit credits under sub. (9) (bm) and (bn) shall implement a procedure to periodically verify the eligibility of properties for which a credit is claimed. In 2004, and every 5th year thereafter, each county and city that administers the credit credits under sub. (9) (bm) and (bn) shall file a report with the department of revenue, in the manner and at the time prescribed by the department of revenue, that describes the procedures that the county or city uses to verify the credits claimed under this subsection and evaluates the efficacy of such procedures.".

AB100-SA48,41,5 17. Page 990, line 6: after that line insert:

AB100-SA48,41,11 "(1kq) Homeowner's tax credit. An application for the lottery and gaming credit under section 79.10 (10), 2003 stats., shall be considered to be an application for the homeowner's tax credit under section 79.10 (10) of the statutes, as affected by this act, and any valid claim for the lottery and gaming credit under section 79.10 (10), 2003 stats., shall be considered to be a valid claim for the homeowner's tax credit under section 79.10 (10) of the statutes, as affected by this act.

AB100-SA48,41,19 (1mq) Report. Notwithstanding section 13.52 (5) and (6) of the statutes, the joint survey committee on tax exemptions shall prepare a report that, to provide funding for the homeowner's tax credit under section 79.10 (5) of the statutes, as affected by this act, recommends changes to the corporate income and franchise taxes imposed by this state, not including any increase in corporate income or franchise tax rates, and repealing certain sales and use tax exemptions that primarily affect corporations. The committee shall submit the report to the legislature no later than 60 days after the effective date of this subsection.".

AB100-SA48,41,20 18. Page 1037, line 5: after that line insert:

AB100-SA48,41,23 "(5gq) Combined reporting. The treatment of sections 71.25 (9) (a), 71.255, 71.26 (3) (x) and (4), 71.29 (2), 71.44 (1) (a) and (e), 71.46 (3), 71.48, and 71.84 (2) (a) of the statutes first applies to taxable years beginning on January 1, 2006.".

AB100-SA48,41,24 19. Page 1037, line 10: after that line insert:

AB100-SA48,42,4 "(6mq) Homeowner's tax credit. The treatment of sections 20.835 (3) (bm), 74.09 (3) (b) 6., and 79.10 (1) (dm), (1m), (2), (5m), (6m) (a), (7m) (c), (9) (bn) and (c) 1., and (10) (title), (a), (b), (bm), (bn), (c), (e) 2., and (f) of the statutes first applies to property taxes levied in 2005.".

AB100-SA48,42,5 20. Page 1038, line 6: after that line insert:

AB100-SA48,42,11 "(9mq) Compensation deduction. The treatment of section 71.26 (3) (e) 1. of the statutes first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31 the treatment of section 71.26 (3) (e) 1. of the statutes first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.".

AB100-SA48,42,12 (End)