Amendment SA1-SSA1-SB40

SB40-SSA1-SA1,119,9 3. File any amended combined reports and claims for refund or credit.

SB40-SSA1-SA1,119,11 4. Send and receive all correspondence with the department regarding the combined report.

SB40-SSA1-SA1,119,15 5. Remit all taxes, including estimated taxes, to the department. For purposes of computing interest on late payments, all payments remitted are considered to be made on a proportionate basis by all taxpayer members of the combined group, unless otherwise specified by the designated agent.

SB40-SSA1-SA1,119,20 6. Participate on behalf of the combined group members in any investigation or hearing requested by the department regarding a combined report, produce all information requested by the department regarding the combined report, and file any appeal related to a combined report. Any appeal filed by the designated agent is considered filed by all members of the combined group.

SB40-SSA1-SA1,119,24 7. Execute any waiver, closing agreement, power of attorney, or other document regarding the combined report filed under sub. (1) (b). Any waiver, agreement, or document executed by the designated agent is considered executed by all members of the combined group.

SB40-SSA1-SA1,120,3 8. Receive notices regarding the combined report. Any such notice the department sends to the designated agent is considered sent to all taxpayer members of the combined group.

SB40-SSA1-SA1,120,6 9. Receive refunds regarding the combined report. Any such refund shall be paid to and in the name of the designated agent and shall discharge any liability of the state to any member of the combined group regarding the refund.

SB40-SSA1-SA1,120,11 (c) The department may relieve the designated agent from any of the duties described in par. (b) to the extent that the duties relate to income, expense, or loss that is not includable in the business income of the combined group under sub. (4). Unless the department provides for such relief by rule, a designated agent shall obtain written approval from the department to be relieved of any such duties.

SB40-SSA1-SA1,120,22 (8) Taxable year of the combined group. (a) Except as provided in par. (b), the combined group's taxable year is the designated agent's taxable year. If a member's taxable year is different from the combined group's taxable year, the designated agent may elect to determine the portion of each member's income to be included in the combined report either from a separate income statement from each member that is prepared by the member's books and records for the months that are included in the combined group's taxable year or by including in the combined report all of the income of each member for the year that ends during the combined group's taxable year. Any election made under this paragraph remains in effect for subsequent years unless the designated agent submits a request to the department to change the election and the department approves in writing.

SB40-SSA1-SA1,120,25 (b) If 2 or more members of a combined group file a federal consolidated return, the combined group's taxable year is the taxable year that corresponds to the federal consolidated return.

SB40-SSA1-SA1,121,7 (9) Part-year members of a combined group. If a corporation becomes a member of a combined group, or ceases to be a member of a combined group, after the beginning of the combined group's taxable year, the corporation's income shall be determined as provided under subs. (3), (4), and (5) for that portion of the year in which the corporation was a member of the combined group, and the income shall be included in the combined report. The income for the remaining short period shall be reported on a separate return or separate combined report.

SB40-SSA1-SA1,121,12 (10) Presumptions and burden of proof. A commonly controlled group is presumed to be engaged in a unitary business and all of the income of the unitary business is presumed to be apportionable business income under this section. A corporation has the burden of proving that it is not a member of a combined group that is subject to this section.".

SB40-SSA1-SA1,121,13 360. Page 923, line 2: after that line insert:

SB40-SSA1-SA1,121,14 " Section 2021p. 71.26 (1) (be) of the statutes is amended to read:

SB40-SSA1-SA1,121,18 71.26 (1) (be) Certain authorities. Income of the University of Wisconsin Hospitals and Clinics Authority, of the Health Insurance Risk-Sharing Plan Authority, and of the Healthy Wisconsin Authority, of the Fox River Navigational System Authority, and of the Wisconsin Aerospace Authority.".

SB40-SSA1-SA1,121,19 361. Page 923, line 2: after that line insert:

SB40-SSA1-SA1,121,20 " Section 2021e. 71.26 (1) (g) of the statutes is created to read:

SB40-SSA1-SA1,121,23 71.26 (1) (g) For taxable years beginning after December 31, 2006, the amount of any incentive payment received by an individual under s. 23.33 (5r) in the taxable year to which the claim relates.".

SB40-SSA1-SA1,122,2 362. Page 923, line 22: delete the material beginning with that line and ending on page 962, line 14, and substitute:

SB40-SSA1-SA1,122,3 " Section 2023d. 71.26 (2) (b) of the statutes is repealed and recreated to read:

SB40-SSA1-SA1,122,6 71.26 (2) (b) Regulated investment companies, real estate investment trusts, and real estate mortgage investment conduits. 1. In this paragraph, except as provided in subds. 2. to 4., "net income" means one of the following:

SB40-SSA1-SA1,122,9 a. That part of the federal regulated investment company income that is subject to federal tax as provided in sections 851 and 852 of the Internal Revenue Code, including federal undistributed net capital gain.

SB40-SSA1-SA1,122,16 b. That part of the federal real estate investment trust income that is subject to federal tax as provided in sections 856 and 857 of the Internal Revenue Code, including federal undistributed net capital gain, federal net income from foreclosure property, and federal net income derived from prohibited transactions. The treatment of certain wholly owned subsidiaries under section 856 (i) of the Internal Revenue Code shall apply in computing the net income of a real estate investment trust.

SB40-SSA1-SA1,122,20 c. That part of the federal real estate mortgage investment conduit income that is subject to federal tax, including federal net income derived from prohibited transactions under section 860F of the Internal Revenue Code and federal net income from foreclosure property under section 860G of the Internal Revenue Code.

SB40-SSA1-SA1,122,24 2. Property that, under s. 71.02 (1) (c) 8. to 11., 1985 stats., is required to be depreciated for taxable years 1983 to 1986 under the Internal Revenue Code as amended to December 31, 1980, shall continue to be depreciated under the Internal Revenue Code as amended to December 31, 1980.

SB40-SSA1-SA1,123,6 3. With regard to federal regulated investment company income, federal real estate investment trust income, and federal real estate mortgage investment conduit income, the appropriate amount shall be added or subtracted to reflect differences between the depreciation or adjusted basis for federal income tax purposes and the depreciation or adjusted basis under this chapter of any property disposed of during the taxable year.

SB40-SSA1-SA1,123,10 4. The dividend paid deduction otherwise allowed by federal law in computing net income of a real estate investment trust that is subject to federal income tax shall be added back in computing the tax imposed under this chapter unless the real estate investment trust is a qualified real estate investment trust.

SB40-SSA1-SA1,123,14 5. The dividend paid deduction otherwise allowed by federal law in computing net income of a regulated investment company that is subject to federal income tax shall be added back in computing the tax imposed under this chapter unless the regulated investment company is a qualified regulated investment company.".

SB40-SSA1-SA1,123,15 363. Page 962, line 18: after that line insert:

SB40-SSA1-SA1,123,16 " Section 2032d. 71.26 (3) (x) of the statutes is amended to read:

SB40-SSA1-SA1,123,20 71.26 (3) (x) Sections 1501 to 1505, 1551, 1552, 1563 and 1564 (relating to consolidated returns) are excluded, except as provided under section 1502 of the U.S. treasury regulations as it relates to deferred gain or loss from an intercompany transaction under s. 71.255 (4) (a) 6.".

SB40-SSA1-SA1,123,21 364. Page 968, line 19: delete lines 19 to 22.

SB40-SSA1-SA1,123,22 365. Page 1008, line 17: after that line insert:

SB40-SSA1-SA1,123,23 " Section 2086k. 71.43 (1) of the statutes is amended to read:

SB40-SSA1-SA1,124,11 71.43 (1) Income tax. For the purpose of raising revenue for the state and the counties, cities, villages and towns, there shall be assessed, levied, collected and paid a tax as provided under this chapter on all Wisconsin net incomes of corporations that are not subject to the franchise tax under sub. (2) and that own property within this state; that derive income from sources within this state or from activities that are attributable to this state; or whose business within this state during the taxable year, except as provided under s. 71.23 (3), consists exclusively of foreign commerce, interstate commerce, or both, or that buy or sell lottery prizes if the winning tickets were originally bought in this state; except as exempted under ss. 71.26 (1) and 71.45 (1) (a). This section shall not be construed to prevent or affect the correction of errors or omissions in the assessments of income for former years under s. 71.74 (1) and (2).

SB40-SSA1-SA1, s. 2086L Section 2086L. 71.43 (2) of the statutes is amended to read:

SB40-SSA1-SA1,125,8 71.43 (2) Franchise tax on corporations. For the privilege of exercising its franchise, buying or selling lottery prizes if the winning tickets were originally bought in this state or doing business in this state in a corporate capacity, except as provided under s. 71.23 (3), every domestic or foreign corporation, except corporations specified in ss. 71.26 (1) and 71.45 (1) (a), shall annually pay a franchise tax according to or measured by its entire Wisconsin net income of the preceding taxable year at the rates set forth in s. 71.46 (2). In addition, except as provided in ss. 71.23 (3), 71.26 (1) and 71.45 (1) (a), a corporation that ceases doing business in this state shall pay a special franchise tax according to or measured by its entire Wisconsin net income for the taxable year during which the corporation ceases doing business in this state at the rate under s. 71.46 (2). Every corporation organized under the laws of this state shall be deemed to be residing within this state for the purposes of this franchise tax. All provisions of this chapter and ch. 73 relating to income taxation of corporations shall apply to franchise taxes imposed under this subsection, unless the context requires otherwise. The tax imposed by this subsection on insurance companies subject to taxation under this chapter shall be based on Wisconsin net income computed under s. 71.45, and no other provision of this chapter relating to computation of taxable income for other corporations shall apply to such insurance companies. All other provisions of this chapter shall apply to insurance companies subject to taxation under this chapter unless the context clearly requires otherwise.".

SB40-SSA1-SA1,125,9 366. Page 1009, line 9: after that line insert:

SB40-SSA1-SA1,125,11 " Section 2087e. 71.45 (1) of the statutes is renumbered 71.45 (1) (intro.) and amended to read:

SB40-SSA1-SA1,125,13 71.45 (1) Exempt and excludable income. (intro.) There shall be exempt from taxation under this subchapter income as follows:

SB40-SSA1-SA1,126,7 (a) Income of insurers exempt from federal income taxation pursuant to section 501 (c) (15) of the internal revenue code, town mutuals organized under or subject to ch. 612, foreign insurers, and domestic insurers engaged exclusively in life insurance business, domestic insurers insuring against financial loss by reason of nonpayment of principal, interest and other sums agreed to be paid under the terms of any note or bond or other evidence of indebtedness secured by a mortgage, deed of trust or other instrument constituting a lien or charge on real estate and corporations organized under ch. 185, but not including income of cooperative sickness care associations organized under s. 185.981, or of a service insurance corporation organized under ch. 613, that is derived from a health maintenance organization as defined in s. 609.01 (2) or a limited service health organization as defined in s. 609.01 (3), or operating under subch. I of ch. 616 which are bona fide cooperatives operated without pecuniary profit to any shareholder or member, or operated on a cooperative plan pursuant to which they determine and distribute their proceeds in substantial compliance with s. 185.45. This subsection paragraph does not apply to income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state.

SB40-SSA1-SA1, s. 2087g Section 2087g. 71.45 (1) (b) of the statutes is created to read:

SB40-SSA1-SA1,126,11 71.45 (1) (b) For taxable years beginning after December 31, 2006, the amount of any incentive payment received by an individual under s. 23.33 (5r) in the taxable year to which the claim relates.".

SB40-SSA1-SA1,126,12 367. Page 1015, line 17: delete lines 17 to 20.

SB40-SSA1-SA1,126,13 368. Page 1039, line 24: after that line insert:

SB40-SSA1-SA1,126,14 " Section 2143. 73.01 (4) (b) of the statutes is amended to read:

SB40-SSA1-SA1,127,2 73.01 (4) (b) Any matter required to be heard by the commission may be heard by any member of the commission or its a hearing examiner and reported to the commission, and hearings of matters pending before it shall be assigned to members of the commission or its the hearing examiner by the chairperson. Cases other than small claims cases shall be decided by the full commission, except that if one or more members of the commission are unavailable, cases other than small claims cases shall be decided by the member or members assigned by the chairperson prior to the hearing. If the parties have agreed to an oral decision, the member or members conducting the hearing may render an oral decision. Hearings shall be open to the public and all proceedings shall be conducted in accordance with rules of practice and procedure prescribed by the commission. Small claims cases shall be decided by one commissioner assigned by the chairperson prior to the hearing.".

SB40-SSA1-SA1,127,3 369. Page 1040, line 10: after that line insert:

SB40-SSA1-SA1,127,4 " Section 2144. 73.01 (4m) (b) of the statutes is amended to read:

SB40-SSA1-SA1,127,9 73.01 (4m) (b) No member of the commission, including the chairperson, or its a hearing examiner may receive any salary unless he or she first executes an affidavit at the end of each salary period stating that he or she has complied with the deadlines in par. (a). The affidavit shall be presented to and filed with every official who certifies, in whole or in part, the salary.

SB40-SSA1-SA1, s. 2145 Section 2145. 73.01 (4m) (c) of the statutes is amended to read:

SB40-SSA1-SA1,127,14 73.01 (4m) (c) If a member of the commission, including the chairperson, or its a hearing examiner is unable to comply with the deadline under par. (a), that person shall so certify in the record, and the period is then extended for one additional period not to exceed 90 days.".

SB40-SSA1-SA1,127,15 370. Page 1045, line 17: delete lines 17 to 25.

SB40-SSA1-SA1,127,16 371. Page 1046, line 5: after that line insert:

SB40-SSA1-SA1,127,17 " Section 2155c. 73.0301 (1) (d) 3m. of the statutes is amended to read:

SB40-SSA1-SA1,127,20 73.0301 (1) (d) 3m. A license or certificate issued by the department of workforce development under s. 102.17 (1) (c), 103.275 (2) (b), 103.34 (3) (c), 103.91 (1), 103.92 (3), 104.07 (1) or (2), or 105.13 (1).".

SB40-SSA1-SA1,127,21 372. Page 1047, line 12: after that line insert:

SB40-SSA1-SA1,127,22 " Section 2160d. 74.35 (2m) of the statutes is amended to read:

SB40-SSA1-SA1,128,2 74.35 (2m) Exclusive procedure. A claim that property is exempt, other than a claim that property is exempt under s. 70.11 (21) (a) or (27), may be made only in an action under this section. Such a claim may not be made by means of an action under s. 74.33 or an action for a declaratory judgment under s. 806.04.

SB40-SSA1-SA1, s. 2160f Section 2160f. 74.35 (5) (d) of the statutes is amended to read:

SB40-SSA1-SA1,128,6 74.35 (5) (d) No claim may be made under this section based on the contention that the tax was unlawful because the property is exempt from taxation under s. 70.11 (21) (a) or (27).

SB40-SSA1-SA1, s. 2160h Section 2160h. 76.025 (1) of the statutes is amended to read:

SB40-SSA1-SA1,128,19 76.025 (1) The property taxable under s. 76.13 shall include all franchises, and all real and personal property of the company used or employed in the operation of its business, excluding property that is exempt from the property tax under s. 70.11 (39) and (39m), such motor vehicles as are exempt under s. 70.112 (5) and treatment plant and pollution abatement equipment exempt under s. 70.11 (21) (a). The taxable property shall include all title and interest of the company referred to in such property as owner, lessee or otherwise, and in case any portion of the property is jointly used by 2 or more companies, the unit assessment shall include and cover a proportionate share of that portion of the property jointly used so that the assessments of the property of all companies having any rights, title or interest of any kind or nature whatsoever in any such property jointly used shall, in the aggregate, include only one total full value of such property.".

SB40-SSA1-SA1,128,20 373. Page 1051, line 12: after that line insert:

SB40-SSA1-SA1,128,21 " Section 2166d. 76.81 of the statutes is amended to read:

SB40-SSA1-SA1,129,8 76.81 Imposition. There is imposed a tax on the real property of, and the tangible personal property of, every telephone company, excluding property that is exempt from the property tax under s. 70.11 (39) and (39m), motor vehicles that are exempt under s. 70.112 (5), property that is used less than 50% in the operation of a telephone company, as provided under s. 70.112 (4) (b), and treatment plant and pollution abatement equipment that is exempt under s. 70.11 (21) (a). Except as provided in s. 76.815, the rate for the tax imposed on each description of real property and on each item of tangible personal property is the net rate for the prior year for the tax under ch. 70 in the taxing jurisdictions where the description or item is located. The real and tangible personal property of a telephone company shall be assessed as provided under s. 70.112 (4) (b).".

SB40-SSA1-SA1,129,9 374. Page 1062, line 21: after that line insert:

SB40-SSA1-SA1,129,10 " Section 2199m. 77.51 (4) (c) 1. of the statutes is amended to read:

SB40-SSA1-SA1,129,15 77.51 (4) (c) 1. All receipts, cash, credits, and property except as provided in par. (b) 3., including credits for which a person's books and records show that the transaction created, with regard to the transferee, an obligation to pay a certain amount of money or an increase in accounts payable or, with regard to the transferor, a right to receive a certain amount of money or an increase in accounts receivable.".

SB40-SSA1-SA1,129,17 375. Page 1062, line 22: after "statutes" insert ", as affected by 2007 Wisconsin Act .... (this act),".

SB40-SSA1-SA1,129,18 376. Page 1073, line 6: delete lines 6 to 11 and substitute:

SB40-SSA1-SA1,129,19 " Section 2224ac. 77.51 (12) (a) of the statutes is amended to read:

SB40-SSA1-SA1,130,3 77.51 (12) (a) Any transfer of title, possession, ownership, enjoyment, or use by: cash or credit transaction, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatever of tangible personal property for a consideration, including any transaction for which a person's books and records show the transaction created, with regard to the transferee, an obligation to pay a certain amount of money or an increase in accounts payable or, with regard to the transferor, a right to receive a certain amount of money or an increase in accounts receivable;

SB40-SSA1-SA1, s. 2224ae Section 2224ae. 77.51 (12) (a) of the statutes, as affected by 2007 Wisconsin Act ... (this act), is repealed and recreated to read:

SB40-SSA1-SA1,130,14 77.51 (12) (a) Any transfer of title, possession, ownership, enjoyment, or use by: cash or credit transaction, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatever of tangible personal property, items or property under s. 77.52 (1) (b) or (c), specified digital goods, or additional digital goods for a consideration, including any transaction for which a person's books and records show the transaction created, with regard to the transferee, an obligation to pay a certain amount of money or an increase in accounts payable or, with regard to the transferor, a right to receive a certain amount of money or an increase in accounts receivable;".

SB40-SSA1-SA1,130,15 377. Page 1079, line 19: after that line insert:

SB40-SSA1-SA1,130,16 " Section 2237d. 77.51 (13) (p) of the statutes is created to read:

SB40-SSA1-SA1,130,18 77.51 (13) (p) All persons described in this subsection regardless of all of the following:

SB40-SSA1-SA1,130,19 1. Whether the transaction is mercantile in nature.

SB40-SSA1-SA1,130,20 2. Whether the seller sells smaller quantities from inventory.

SB40-SSA1-SA1,130,21 3. Whether the seller makes or intends to make a profit on the sale.

SB40-SSA1-SA1,130,23 4. Whether the seller or the buyer receives a benefit the seller or buyer bargained for.

SB40-SSA1-SA1,130,24 5. The percentage of the seller's total sales that the sale represents.

SB40-SSA1-SA1,131,2 6. Any activities other than those described in pars. (a) to (o) in which the seller is engaged.".

SB40-SSA1-SA1,131,3 378. Page 1082, line 25: after that line insert:

SB40-SSA1-SA1,131,4 " Section 2253d. 77.51 (14) (m) of the statutes is created to read:

SB40-SSA1-SA1,131,8 77.51 (14) (m) A transaction for which a person's books and records show the transaction created, with regard to the transferee, an obligation to pay a certain amount of money or an increase in accounts payable or, with regard to the transferor, a right to receive a certain amount of money or an increase in accounts receivable.

SB40-SSA1-SA1, s. 2253e Section 2253e. 77.51 (14) (n) of the statutes is created to read:

SB40-SSA1-SA1,131,11 77.51 (14) (n) All activities described in this subsection regardless of all of the following: