AB100: Bill Text Engrossed

AB100-engrossed,1081,17 71.02 (1) 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 on all net incomes of individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds subject to the tax under s. 71.23 (2), by every natural person residing within the state or by his or her personal representative in case of death, and trusts administered within the state; by every nonresident natural person and trust of this state, upon such income as is derived from property located or business transacted within the state including, but not limited by enumeration, income derived from a limited partner's distributive share of partnership income, income derived from a limited liability company member's distributive share of limited liability company income, the state lottery under ch. 565, any multistate multijurisdictional lottery under ch. 565 if the winning lottery ticket or lottery share was purchased from a retailer, as defined in s. 565.01 (6), located in this state or from the department and pari-mutuel wager winnings or purses under ch. 562, and also by every nonresident natural person upon such income as is derived from the performance of personal services within the state, except as exempted under s. 71.05 (1) to (3). Every natural person domiciled in the state shall be deemed to be residing within the state for the purposes of determining liability for income taxes and surtaxes. A single-owner entity that is disregarded as a separate entity under section 7701 of the Internal Revenue Code is disregarded as a separate entity under this chapter, and its owner is subject to the tax on the entity's income.

AB100-engrossed, s. 2258 Section 2258. 71.04 (1) (a) of the statutes is amended to read:

AB100-engrossed,1082,20 71.04 (1) (a) All income or loss of resident individuals and resident estates and trusts shall follow the residence of the individual, estate or trust. Income or loss of nonresident individuals and nonresident estates and trusts from business, not requiring apportionment under sub. (4), (10) or (11), shall follow the situs of the business from which derived. All items of income, loss and deductions of nonresident individuals and nonresident estates and trusts derived from a tax-option corporation not requiring apportionment under sub. (9) shall follow the situs of the business of the corporation from which derived. Income or loss of nonresident individuals and nonresident estates and trusts derived from rentals and royalties from real estate or tangible personal property, or from the operation of any farm, mine or quarry, or from the sale of real property or tangible personal property shall follow the situs of the property from which derived. Income from personal services of nonresident individuals, including income from professions, shall follow the situs of the services. A nonresident limited partner's distributive share of partnership income shall follow the situs of the business. A nonresident limited liability company member's distributive share of limited liability company income shall follow the situs of the business. Income of nonresident individuals, estates and trusts from the state lottery under ch. 565 is taxable by this state. Income of nonresident individuals, estates and trusts from any multistate multijurisdictional lottery under ch. 565 is taxable by this state, but only if the winning lottery ticket or lottery share was purchased from a retailer, as defined in s. 565.01 (6), located in this state or from the department. Income of nonresident individuals, nonresident trusts and nonresident estates from pari-mutuel winnings or purses under ch. 562 is taxable by this state. All other income or loss of nonresident individuals and nonresident estates and trusts, including income or loss derived from land contracts, mortgages, stocks, bonds and securities or from the sale of similar intangible personal property, shall follow the residence of such persons, except as provided in par. (b) and sub. (9).

AB100-engrossed, s. 2260m Section 2260m. 71.05 (6) (intro.) of the statutes is amended to read:

AB100-engrossed,1082,23 71.05 (6) Modifications and transitional adjustments. (intro.) Some of the modifications referred to in s. 71.01 (13), and (14) and (15) are:

AB100-engrossed, s. 2260t Section 2260t. 71.05 (6) (a) 10. of the statutes is amended to read:

AB100-engrossed,1083,21 71.05 (6) (a) 10. For the taxable year, for a person who is not "actively engaged in farming", as that term is used in 7 CFR 1497.201, combined net losses, exclusive of net gains from the sale or exchange of capital or business assets and exclusive of net profits, from businesses, from rents, from partnerships, from limited liability companies, from S corporations, from estates or from trusts, under section 165 of the internal revenue code, except losses allowable under sections 1211 and 1231 of the internal revenue code, otherwise includable in calculating Wisconsin income if those losses are incurred in the operation of a farming business, as defined in section 464 (e) 1. of the internal revenue code to the extent that those combined net losses exceed $20,000 if nonfarm Wisconsin adjusted gross income exceeds $55,000 but does not exceed $75,000, exceed $17,500 if nonfarm Wisconsin adjusted gross income exceeds $75,000 but does not exceed $100,000, exceed $15,000 if nonfarm Wisconsin adjusted gross income exceeds $100,000 but does not exceed $150,000, exceed $12,500 if nonfarm Wisconsin adjusted gross income exceeds $150,000 but does not exceed $200,000, exceed $10,000 if nonfarm Wisconsin adjusted gross income exceeds $200,000 but does not exceed $250,000, exceed $7,500 if nonfarm Wisconsin adjusted gross income exceeds $250,000 but does not exceed $300,000, exceed $5,000 if nonfarm Wisconsin adjusted gross income exceeds $300,000 but does not exceed $400,000 $600,000 and exceed $0 if nonfarm adjusted gross income exceeds $400,000 $600,000, except that the amounts applicable to married persons filing separately are 50% of the amounts specified in this subdivision.

AB100-engrossed, s. 2261 Section 2261. 71.05 (6) (a) 15. of the statutes is amended to read:

AB100-engrossed,1084,2 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de), (2di), (2dj), (2dL), (2dr) and, (2ds) , (2dx) and (3s) and not passed through by a partnership, limited liability company or tax-option corporation that has added that amount to the partnership's, company's or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).

AB100-engrossed, s. 2261am Section 2261am. 71.05 (6) (a) 19. of the statutes is repealed.

AB100-engrossed, s. 2261ao Section 2261ao. 71.05 (6) (a) 20. of the statutes is created to read:

AB100-engrossed,1084,7 71.05 (6) (a) 20. The amount of any excess distribution, as that term is used in section 1291 (b) of the Internal Revenue Code, from a passive foreign investment company.

AB100-engrossed, s. 2261b Section 2261b. 71.05 (6) (b) 24. of the statutes is repealed.

AB100-engrossed, s. 2261c Section 2261c. 71.05 (6) (b) 25. of the statutes is created to read:

AB100-engrossed,1084,17 71.05 (6) (b) 25. All gains that are not excluded from taxation under subd. 9., on business assets or on assets used in farming, including shares in a corporation or trust that meets the standards under s. 182.001 (1), or both, held more than one year, that are sold or otherwise disposed of to persons who are related to the seller or transferor by blood, marriage or adoption within the 3rd degree of kinship as that term is used in s. 852.03 (2), as computed under the Internal Revenue Code, not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason.

AB100-engrossed, s. 2261d Section 2261d. 71.05 (6) (b) 26. of the statutes is created to read:

AB100-engrossed,1084,21 71.05 (6) (b) 26. For taxable years beginning on or after January 1, 1998, an amount paid by a person for a long-term care insurance policy for the person and his or her spouse, calculated as follows:

AB100-engrossed,1085,5 a. One hundred percent of the amount paid by the person for a long-term care insurance policy. In this subdivision, "long-term care insurance policy" means a disability insurance policy or certificate advertised, marketed, offered or designed primarily to provide coverage for care that is provided in the insured person's home or in institutional and community-based settings and that is convalescent or custodial care or care for a chronic condition or terminal illness; the term does not include a medicare supplement policy or medicare replacement policy or a continuing care contract, as defined in s. 647.01 (2). "Long-term care insurance policy" applies to a policy that covers the person and his or her spouse.

AB100-engrossed,1085,8 b. From the amount calculated under subd. 26. a., subtract the amounts deducted from gross income for a long-term care insurance policy in the calculation of federal adjusted gross income.

AB100-engrossed,1085,13 c. For a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 26. b. by multiplying the amount by a fraction the numerator of which is the person's wages, unearned income and net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total wages, unearned income and net earnings from a trade or business.

AB100-engrossed,1085,16 d. Reduce the amount calculated under subd. 26. b. or c. to the person's aggregate wages, unearned income and net earnings from a trade or business that are taxable by this state.

AB100-engrossed, s. 2261e Section 2261e. 71.06 (1) (intro.) of the statutes is amended to read:

AB100-engrossed,1086,2 71.06 (1) (title) Fiduciaries, single individuals and heads of households; 1986 to 1997. (intro.) The tax to be assessed, levied and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals for taxable years beginning on or after August 1, 1986, and before January 1, 1994, and upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households for taxable years beginning on or after January 1, 1994 December 31, 1993, and before January 1, 1998, shall be computed at the following rates:

AB100-engrossed, s. 2261ee Section 2261ee. 71.06 (1m) of the statutes is created to read:

AB100-engrossed,1086,7 71.06 (1m) Fiduciaries, single individuals and heads of households; after 1997. The tax to be assessed, levied and collected upon the taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and single individuals and heads of households shall be computed at the following rates:

AB100-engrossed,1086,9 (a) For taxable years beginning after December 31, 1997, and before January 1, 1999:

AB100-engrossed,1086,10 1. On all taxable income from $0 to $7,500, 4.85%.

AB100-engrossed,1086,11 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 6.48%.

AB100-engrossed,1086,12 3. On all taxable income exceeding $15,000, 6.87%.

AB100-engrossed,1086,14 (b) For taxable years beginning after December 31, 1998, and before January 1, 2000:

AB100-engrossed,1086,15 1. On all taxable income from $0 to $7,500, 4.80%.

AB100-engrossed,1086,16 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 6.42%.

AB100-engrossed,1086,17 3. On all taxable income exceeding $15,000, 6.79%.

AB100-engrossed,1086,19 (c) For taxable years beginning after December 31, 1999, and before January 1, 2001:

AB100-engrossed,1086,20 1. On all taxable income from $0 to $7,500, 4.75%.

AB100-engrossed,1086,21 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 6.35%.

AB100-engrossed,1086,22 3. On all taxable income exceeding $15,000, 6.72%.

AB100-engrossed,1086,24 (d) For taxable years beginning after December 31, 2000, and before January 1, 2002:

AB100-engrossed,1086,25 1. On all taxable income from $0 to $7,500, 4.70%.

AB100-engrossed,1087,1 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 6.29%.

AB100-engrossed,1087,2 3. On all taxable income exceeding $15,000, 6.65%.

AB100-engrossed,1087,3 (e) For taxable years beginning after December 31, 2001:

AB100-engrossed,1087,4 1. On all taxable income from $0 to $7,500, 4.66%.

AB100-engrossed,1087,5 2. On all taxable income exceeding $7,500 but not exceeding $15,000, 6.22%.

AB100-engrossed,1087,6 3. On all taxable income exceeding $15,000, 6.58%.

AB100-engrossed, s. 2261eg Section 2261eg. 71.06 (2) (intro.) of the statutes is amended to read:

AB100-engrossed,1087,11 71.06 (2) Married persons. (intro.) The tax to be assessed, levied and collected upon the taxable incomes of all married persons for calendar year 1987 and corresponding fiscal years and for calendar and fiscal years thereafter shall be computed at the following rates:

AB100-engrossed, s. 2261ei Section 2261ei. 71.06 (2) (a) (intro.) of the statutes is amended to read:

AB100-engrossed,1087,14 71.06 (2) (a) (intro.) For joint returns, for taxable years beginning after July 31, 1986, and before January 1, 1998:

AB100-engrossed, s. 2261ek Section 2261ek. 71.06 (2) (b) (intro.) of the statutes is amended to read:

AB100-engrossed,1087,17 71.06 (2) (b) (intro.) For married persons filing separately, for taxable years beginning after July 31, 1986, and before January 1, 1998:

AB100-engrossed, s. 2261eL Section 2261eL. 71.06 (2) (c) of the statutes is created to read:

AB100-engrossed,1087,19 71.06 (2) (c) For joint returns:

AB100-engrossed,1087,21 1. For taxable years beginning after December 31, 1997, and before January 1, 1999:

AB100-engrossed,1087,22 a. On all taxable income from $0 to $10,000, 4.85%.

AB100-engrossed,1087,23 b. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.48%.

AB100-engrossed,1087,24 c. On all taxable income exceeding $20,000, 6.87%.

AB100-engrossed,1088,2 2. For taxable years beginning after December 31, 1998, and before January 1, 2000:

AB100-engrossed,1088,3 a. On all taxable income from $0 to $10,000, 4.80%.

AB100-engrossed,1088,4 b. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.42%.

AB100-engrossed,1088,5 c. On all taxable income exceeding $20,000, 6.79%.

AB100-engrossed,1088,7 3. For taxable years beginning after December 31, 1999, and before January 1, 2001:

AB100-engrossed,1088,8 a. On all taxable income from $0 to $10,000, 4.75%.

AB100-engrossed,1088,9 b. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.35%.

AB100-engrossed,1088,10 c. On all taxable income exceeding $20,000, 6.72%.

AB100-engrossed,1088,12 4. For taxable years beginning after December 31, 2000, and before January 1, 2002:

AB100-engrossed,1088,13 a. On all taxable income from $0 to $10,000, 4.70%.

AB100-engrossed,1088,14 b. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.29%.

AB100-engrossed,1088,15 c. On all taxable income exceeding $20,000, 6.65%.

AB100-engrossed,1088,16 5. For taxable years beginning after December 31, 2001:

AB100-engrossed,1088,17 a. On all taxable income from $0 to $10,000, 4.66%.

AB100-engrossed,1088,18 b. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.22%.

AB100-engrossed,1088,19 c. On all taxable income exceeding $20,000, 6.58%.

AB100-engrossed, s. 2261em Section 2261em. 71.06 (2) (d) of the statutes is created to read:

AB100-engrossed,1088,21 71.06 (2) (d) For married persons filing separately:

AB100-engrossed,1088,23 1. For taxable years beginning after December 31, 1997, and before January 1, 1999:

AB100-engrossed,1088,24 a. On all taxable income from $0 to $5,000, 4.85%.

AB100-engrossed,1088,25 b. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.48%.

AB100-engrossed,1089,1 c. On all taxable income exceeding $10,000, 6.87%.

AB100-engrossed,1089,3 2. For taxable years beginning after December 31, 1998, and before January 1, 2000:

AB100-engrossed,1089,4 a. On all taxable income from $0 to $5,000, 4.80%.

AB100-engrossed,1089,5 b. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.42%.

AB100-engrossed,1089,6 c. On all taxable income exceeding $10,000, 6.79%.

AB100-engrossed,1089,8 3. For taxable years beginning after December 31, 1999, and before January 1, 2001:

AB100-engrossed,1089,9 a. On all taxable income from $0 to $5,000, 4.75%.

AB100-engrossed,1089,10 b. On all taxable income exceeding $5,000 but not exceeding $10,000, 6.35%.

AB100-engrossed,1089,11 c. On all taxable income exceeding $10,000, 6.72%.

AB100-engrossed,1089,13 4. For taxable years beginning after December 31, 2000, and before January 1, 2002:

AB100-engrossed,1089,14 a. On all taxable income from $0 to $5,000, 4.70%.