SENATE AMENDMENT 49,
TO 2005 ASSEMBLY BILL 100
June 29, 2005 - Offered by Senator Robson.
AB100-SA49,1,11 At the locations indicated, amend the engrossed bill as follows:
AB100-SA49,1,2 21. Page 323, line 9: after that line insert:
AB100-SA49,1,3 3" Section 455n. 20.855 (4) (fn) of the statutes is created to read:
AB100-SA49,1,84 20.855 (4) (fn) Transfer to transportation fund; additional general fund tax
5revenues.
Beginning on April 1, 2006, and on each April 1 thereafter, to be
6transferred to the transportation fund, a sum sufficient in an amount equal to the
7amount to be paid into the transportation fund, as determined under s. 78.018 (2) and
8(3).".
AB100-SA49,1,9 92. Page 572, line 24: after that line insert:
AB100-SA49,1,10 10" Section 1292e. 71.06 (1p) (intro.) of the statutes is amended to read:
AB100-SA49,2,311 71.06 (1p) Fiduciaries, single individuals and heads of households; after 2000
12to 2005. (intro.) The tax to be assessed, levied, and collected upon the taxable incomes
13of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve

1funds, and single individuals and heads of households shall be computed at the
2following rates for taxable years beginning after December 31, 2000, and before
3January 1, 2006
:
AB100-SA49, s. 1292f 4Section 1292f. 71.06 (1q) of the statutes is created to read:
AB100-SA49,2,95 71.06 (1q) Fiduciaries, single individuals and heads of households; after
62005.
The tax to be assessed, levied, and collected upon the taxable incomes of all
7fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
8single individuals and heads of households shall be computed at the following rates
9for taxable years beginning after December 31, 2005:
AB100-SA49,2,1010 (a) On all taxable income from $0 to $7,500 , 4.6 percent.
AB100-SA49,2,1211 (b) On all taxable income exceeding $7,500 but not exceeding $15,000, 6.15
12percent.
AB100-SA49,2,1413 (c) On all taxable income exceeding $15,000 but not exceeding $112,500, 6.5
14percent.
AB100-SA49,2,1615 (d) On all taxable income exceeding $112,500 but not exceeding $1,000,000,
166.75 percent.
AB100-SA49,2,1717 (e) On all taxable income exceeding $1,000,000, 7.75 percent.
AB100-SA49, s. 1292g 18Section 1292g. 71.06 (2) (g) (intro.) of the statutes is amended to read:
AB100-SA49,2,2019 71.06 (2) (g) (intro.) For joint returns, for taxable years beginning after
20December 31, 2000, and before January 1, 2006:
AB100-SA49, s. 1292h 21Section 1292h. 71.06 (2) (h) (intro.) of the statutes is amended to read:
AB100-SA49,2,2322 71.06 (2) (h) (intro.) For married persons filing separately, for taxable years
23beginning after December 31, 2000, and before January 1, 2006:
AB100-SA49, s. 1292i 24Section 1292i. 71.06 (2) (i) of the statutes is created to read:
AB100-SA49,3,2
171.06 (2) (i) For joint returns, for taxable years beginning after
2December 31, 2005:
AB100-SA49,3,33 1. On all taxable income from $0 to $10,000, 4.6 percent.
AB100-SA49,3,54 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.15
5percent.
AB100-SA49,3,76 3. On all taxable income exceeding $20,000 but not exceeding $150,000, 6.5
7percent.
AB100-SA49,3,98 4. On all taxable income exceeding $150,000 but not exceeding $1,000,000, 6.75
9percent.
AB100-SA49,3,1010 5. On all taxable income exceeding $1,000,000, 7.75 percent.
AB100-SA49, s. 1292j 11Section 1292j. 71.06 (2) (j) of the statutes is created to read:
AB100-SA49,3,1312 71.06 (2) (j) For married persons filing separately, for taxable years beginning
13after December 31, 2005:
AB100-SA49,3,1414 1. On all taxable income from $0 to $5,000, 4.6 percent.
AB100-SA49,3,1615 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.15
16percent.
AB100-SA49,3,1817 3. On all taxable income exceeding $10,000 but not exceeding $75,000, 6.5
18percent.
AB100-SA49,3,2019 4. On all taxable income exceeding $75,000 but not exceeding $500,000, 6.75
20percent.
AB100-SA49,3,2121 5. On all taxable income exceeding $500,000, 7.75 percent.
AB100-SA49, s. 1292k 22Section 1292k. 71.06 (2e) of the statutes is renumbered 71.06 (2e) (a) and
23amended to read:
AB100-SA49,4,2424 71.06 (2e) Bracket indexing. (a) For taxable years beginning after
25December 31, 1998, and before January 1, 2000, the maximum dollar amount in

1each tax bracket, and the corresponding minimum dollar amount in the next bracket,
2under subs. (1m) and (2) (c) and (d), and for taxable years beginning after
3December 31, 1999, and before January 1, 2006, the maximum dollar amount in
4each tax bracket, and the corresponding minimum dollar amount in the next bracket,
5under subs. (1n), (1p), and (2) (e), (f), (g), and (h), and for taxable years beginning
6after December 31, 2006, the maximum dollar amount in each tax bracket, and the
7corresponding minimum dollar amount in the next bracket, under subs. (1q) and (2)
8(i) and (j),
shall be increased each year by a percentage equal to the percentage
9change between the U.S. consumer price index for all urban consumers, U.S. city
10average, for the month of August of the previous year and the U.S. consumer price
11index for all urban consumers, U.S. city average, for the month of August 1997, as
12determined by the federal department of labor, except that for taxable years
13beginning after December 31, 2000, and before January 1, 2002, the dollar amount
14in the top bracket under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall
15be increased by a percentage equal to the percentage change between the U.S.
16consumer price index for all urban consumers, U.S. city average, for the month of
17August of the previous year and the U.S. consumer price index for all urban
18consumers, U.S. city average, for the month of August 1999, as determined by the
19federal department of labor. Each amount that is revised under this subsection
20paragraph shall be rounded to the nearest multiple of $10 if the revised amount is
21not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount
22shall be increased to the next higher multiple of $10. The department of revenue
23shall annually adjust the changes in dollar amounts required under this subsection
24paragraph and incorporate the changes into the income tax forms and instructions.
AB100-SA49, s. 1292L 25Section 1292L. 71.06 (2e) (b) of the statutes is created to read:
AB100-SA49,5,14
171.06 (2e) (b) For taxable years beginning after December 31, 2004, and before
2January 1, 2006, the maximum dollar amount in each tax bracket, and the
3corresponding minimum dollar amount in the next bracket, under subs. (1q) (a), (b),
4(c), and (d) and (2) (i) 1., 2., 3., and 4. and (j) 1., 2., 3., and 4., shall be increased each
5year by a percentage equal to the percentage change between the U.S. consumer
6price index for all urban consumers, U.S. city average, for the month of August of the
7previous year and the U.S. consumer price index for all urban consumers, U.S. city
8average, for the month of August 1997, as determined by the federal department of
9labor. Each amount that is revised under this paragraph shall be rounded to the
10nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised
11amount is a multiple of $5, such an amount shall be increased to the next higher
12multiple of $10. The department of revenue shall annually adjust the changes in
13dollar amounts required under this paragraph and incorporate the changes into the
14income tax forms and instructions.
AB100-SA49, s. 1292m 15Section 1292m. 71.06 (2m) of the statutes is amended to read:
AB100-SA49,5,1916 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), or (2)
17changes during a taxable year, the taxpayer shall compute the tax for that taxable
18year by the methods applicable to the federal income tax under section 15 of the
19internal revenue code Internal Revenue Code.
AB100-SA49, s. 1292n 20Section 1292n. 71.06 (2s) (d) of the statutes is amended to read:
AB100-SA49,6,821 71.06 (2s) (d) For taxable years beginning after December 31, 2000, and before
22January 1, 2006,
with respect to nonresident individuals, including individuals
23changing their domicile into or from this state, the tax brackets under subs. (1p) and
24(2) (g) and (h) shall be multiplied by a fraction, the numerator of which is Wisconsin
25adjusted gross income and the denominator of which is federal adjusted gross

1income. In this paragraph, for married persons filing separately "adjusted gross
2income" means the separate adjusted gross income of each spouse, and for married
3persons filing jointly "adjusted gross income" means the total adjusted gross income
4of both spouses. If an individual and that individual's spouse are not both domiciled
5in this state during the entire taxable year, the tax brackets under subs. (1p) and (2)
6(g) and (h) on a joint return shall be multiplied by a fraction, the numerator of which
7is their joint Wisconsin adjusted gross income and the denominator of which is their
8joint federal adjusted gross income.
AB100-SA49, s. 1202o 9Section 1202o. 71.06 (2s) (e) of the statutes is created to read:
AB100-SA49,6,2210 71.06 (2s) (e) For taxable years beginning after December 31, 2005, with
11respect to nonresident individuals, including individuals changing their domicile
12into or from this state, the tax brackets under subs. (1q) and (2) (i) and (j) shall be
13multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income
14and the denominator of which is federal adjusted gross income. In this paragraph,
15for married persons filing separately "adjusted gross income" means the separate
16adjusted gross income of each spouse, and for married persons filing jointly "adjusted
17gross income" means the total adjusted gross income of both spouses. If an individual
18and that individual's spouse are not both domiciled in this state during the entire
19taxable year, the tax brackets under subs. (1q) and (2) (i) and (j) on a joint return shall
20be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted
21gross income and the denominator of which is their joint federal adjusted gross
22income.".
AB100-SA49,6,23 233. Page 588, line 3: after that line insert:
AB100-SA49,6,24 24" Section 1318e. 71.125 of the statutes is amended to read:
AB100-SA49,7,5
171.125 Imposition of tax. (1) Except as provided in sub. (2), the tax imposed
2by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q),
3and (2) shall apply to the Wisconsin taxable income of estates or trusts, except
4nuclear decommissioning trust or reserve funds, and that tax shall be paid by the
5fiduciary.
AB100-SA49,7,10 6(2) Each electing small business trust, as defined in section 1361 (e) (1) of the
7Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1), (1m),
8(1n) or, (1p), or (1q), whichever taxable year is applicable, on its income as computed
9under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12),
10(19), and (20).
AB100-SA49, s. 1318s 11Section 1318s. 71.17 (6) of the statutes is amended to read:
AB100-SA49,7,1512 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under
13section 685 of the Internal Revenue Code for federal income tax purposes, that
14election applies for purposes of this chapter and each trust shall compute its own tax
15and shall apply the rates under s. 71.06 (1), (1m), (1n) or , (1p), or (1q).".
AB100-SA49,7,16 164. Page 614, line 11: after that line insert:
AB100-SA49,7,17 17" Section 1343g. 71.25 (9) (a) of the statutes is amended to read:
AB100-SA49,8,418 71.25 (9) (a) The sales factor is a fraction, the numerator of which is the total
19sales of the taxpayer in this state during the tax period, and the denominator of
20which is the total sales of the taxpayer everywhere during the tax period. For sales
21of tangible personal property, the numerator of the sales factor is the sales of the
22taxpayer during the tax period under par. (b) 1. and 2. plus 50% of the sales of the
23taxpayer during the tax period under pars. (b) 2m. and 3. and (c). For purposes of
24determining the numerator of the sales factor for a member of a combined reporting

1group under s. 71.255 (7), "taxpayer" means the member of a combined reporting
2group, as defined in s. 71.255 (1) (c), that transferred title to tangible personal
3property or, for sales other than sales of tangible personal property, that made the
4sale.
".
AB100-SA49,8,5 55. Page 616, line 12: after that line insert:
AB100-SA49,8,6 6" Section 1349e. 71.255 of the statutes is created to read:
AB100-SA49,8,7 771.255 Combined reporting. (1) Definitions. In this section:
AB100-SA49,8,118 (a) "Brother-sister parent corporation" means a parent corporation that is a
9member of a commonly controlled group, if any members of the commonly controlled
10group are not connected to the parent corporation by stock ownership or interest
11ownership as described in par. (d).
AB100-SA49,8,1412 (b) "Combined report" means a form prescribed by the department that
13specifies the income of each taxpayer member of a commonly controlled group
14operating as a unitary business.
AB100-SA49,8,1615 (c) "Combined reporting group" means the members of a commonly controlled
16group that are included in a combined report under sub. (2).
AB100-SA49,8,1817 (d) "Commonly controlled group" means any of the following, but does not
18include an insurer that is exempt from taxation under s. 71.45 (1):
AB100-SA49,9,219 1. A parent corporation and any corporation or chain of corporations that are
20connected to the parent corporation by direct or indirect ownership by the parent
21corporation if the parent corporation owns stock representing more than 50 percent
22of the voting power of at least one of the connected corporations or if the parent
23corporation or any of the connected corporations own stock that cumulatively

1represents more than 50 percent of the voting power of each of the connected
2corporations.
AB100-SA49,9,53 2. Any 2 or more corporations if a common owner directly or indirectly owns
4stock representing more than 50 percent of the voting power of the corporations or
5the connected corporations.
AB100-SA49,9,96 3. A partnership or limited liability company if a parent corporation or any
7corporation connected to the parent corporation by common ownership directly or
8indirectly owns more than a 50 percent interest in the capital and profits of the
9partnership or limited liability company.
AB100-SA49,9,1110 4. Any 2 or more corporations if stock representing more than 50 percent of the
11voting power in each corporation is interest that cannot be separately transferred.
AB100-SA49,9,1612 5. Any 2 or more corporations if stock representing more than 50 percent of the
13voting power in each corporation is directly owned by, or for the benefit of, family
14members. In this subdivision, "family member" means an individual related by
15blood, marriage, or adoption within the 2nd degree of kinship as computed under s.
16852.03 (2), 1995 stats., or the spouse of such an individual.
AB100-SA49,9,2117 6. A corporation, partnership, or limited liability company if a parent
18corporation or any corporation connected to the parent corporation by common
19ownership does not hold more than a 50 percent ownership interest in the
20corporation, partnership, or limited liability company but effectively controls the
21corporation, partnership, or limited liability company.
AB100-SA49,9,2222 (e) "Corporation" has the meaning given in s. 71.22 (1) or 71.42 (1).
AB100-SA49,9,2323 (f) "Department" means the department of revenue.
AB100-SA49,10,3
1(g) "Designated agent" means the taxpayer member of a commonly controlled
2group that files a group return on behalf of the taxpayer members of a combined
3reporting group.
AB100-SA49,10,54 (h) "Group return" means a tax return filed on behalf of the taxpayer members
5of a combined reporting group.
AB100-SA49,10,86 (i) "Intercompany transaction" means a transaction between corporations,
7partnerships, or limited liability companies that become members of the same
8combined reporting group immediately after the transaction.
AB100-SA49,10,109 (im) "Partnership" means any entity considered a partnership under section
107701 of the Internal Revenue Code.
AB100-SA49,10,1311 (j) "Separate return" means a return filed by a corporation, regardless of
12whether the corporation is a member of a combined reporting group or is required
13to file a tax return under s. 71.24 or 71.44.
AB100-SA49,10,1614 (k) "Taxpayer member" means a corporation that is subject to tax under s. 71.23
15(1) or (2) or 71.43, that is a member of a combined reporting group, and that files a
16combined report under this section.
AB100-SA49,10,2217 (L) "Top-tier corporation" means a member of a commonly controlled group
18that is not connected with a parent corporation by stock ownership or interest
19ownership as described in par. (d), is a parent corporation, or is a brother-sister
20parent corporation, regardless of whether it is doing business in this state or deriving
21income from sources in this state, and regardless of whether its income and
22apportionment factors are excluded from a combined report filed under this section.
AB100-SA49,11,623 (m) "Unitary business" includes the business activities or operations of an
24entity that are of mutual benefit to, integrated with, or dependent upon or that
25contribute to activities of at least one other entity, including transactions that serve

1an operational function, as determined by the department. Two or more businesses
2are presumed to be a unitary business if the businesses have unity of ownership,
3operation, and use as indicated by centralized management or a centralized
4executive force; centralized purchasing, advertising, or accounting; intercorporate
5sales or leases; intercorporate services; intercorporate debts; intercorporate use of
6proprietary materials; interlocking directorates; or interlocking corporate officers.
AB100-SA49,11,15 7(2) Corporations required to use combined reporting. (a) Except as provided
8in par. (b), and subject to sub. (6), a corporation that is subject to the tax imposed
9under s. 71.23 (1) or (2) or 71.43, that is a member of a commonly controlled group,
10and that is engaged, in whole or in part, in a unitary business with one or more
11members of the commonly controlled group shall compute the corporation's income
12attributable to this state by using the income computation under s. 71.26 or 71.45,
13the apportionment formula under s. 71.25 (6) or 71.45, and the tax credits under s.
1471.28 or 71.47 of all of the following that are members of the commonly controlled
15group:
AB100-SA49,11,2016 1. Any corporation organized or incorporated under the laws of the United
17States, any state of the United States, the District of Columbia, the Commonwealth
18of Puerto Rico, any possession of the United States, or any political subdivision of the
19United States, including corporations under sections 931 to 936 of the Internal
20Revenue Code.
AB100-SA49,11,22212. Any domestic international sales corporation under sections 991 to 994 of the
22Internal Revenue Code.
AB100-SA49,11,24233. Any foreign sales corporation under sections 921 to 927 of the Internal
24Revenue Code.
AB100-SA49,12,2
14. Any export trade corporation under sections 970 and 971 of the Internal
2Revenue Code.
AB100-SA49,12,73 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-SA49,12,118 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-SA49,12,2212 (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-SA49,13,5 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-SA49,13,136 (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).
AB100-SA49,13,2414 (c) Except as provided under par. (d), the members of the commonly controlled
15group subject to an election under this subsection shall compute their income under
16sub. (2) (b) for 7 taxable years, beginning with the taxable year designated under par.
17(b). Thereafter, the members of the commonly controlled group shall compute their
18income under sub. (2) (b) for periods of 7 taxable years and until any top-tier
19corporation that is a member of the commonly controlled group notifies the
20department, in a manner prescribed by the department, before the last day of the last
21taxable year in any period of 7 taxable years that the top-tier corporation is
22terminating the election under this subsection. A termination under this paragraph
23takes effect on the first day of the first taxable year beginning after the top-tier
24corporation notifies the department under this paragraph.
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