SB436,148,1816
2. "Computers" means computer hardware, educational software and related
17educational materials for use in the claimant's home by a pupil and not used in a
18trade or business.
SB436,148,1919
3. "Department" means the department of revenue.
SB436,149,520
4. "Educational expenses" means amounts paid for tutoring for a pupil; for
21tuition costs at a technical college or institution of higher education, the credit for
22which satisfies high school graduation requirements; for a pupil's fees at summer
23courses; for computers, rental fees for musical instruments, school uniforms required
24by an eligible institution, instructional materials and school supplies related to the
25pupil's curricular activities and attendance at an eligible institution, but not
1including supplies and instructional materials that are used in the teaching of
2religious tenets, doctrines or worship; for fees paid on behalf of a pupil to an eligible
3institution, but not including fees for food; and for transportation costs paid to others
4related to the pupil's attendance at an eligible institution. "Educational expenses"
5does not include costs for out-of-state class trips or student exchange programs.
SB436,149,126
5. "Eligible institution" means a public school, as specified in s. 115.01 (1); a
7private school, as defined in s. 115.001 (3r), that is accredited by the North Central
8Association of Colleges and Schools, the Independent Schools Association of the
9Central States or the Wisconsin Nonpublic School Accrediting Association and that
10fulfills the requirements under subch. II of ch. 111 and
42 USC 2000d; or a
11home-based private educational program, as defined in s. 115.001 (3g), that meets
12all of the criteria under s. 118.165 (1).
SB436,149,1313
6. "Income" means federal adjusted gross income.
SB436,149,1514
7. "Licensed teacher" means a person who holds a license or permit to teach
15issued by the department of public instruction.
SB436,149,1816
8. "Pupil" means an individual who is enrolled in kindergarten or grades 1 to
1712 at an eligible institution and who is a dependent of the claimant under section
151 18(c) of the Internal Revenue Code.
SB436,149,2219
9. "Summer courses" means courses conducted outside of the school term, as
20defined in s. 115.001 (12), that are provided by a licensed teacher, in subjects that are
21part of the regular school curriculum or are in the fine arts, dramatic arts or foreign
22languages or are academic in nature.
SB436,150,323
10. "Tutoring" means supplemental instruction, special needs classes or
24after-school enrichment, conducted outside of the regular school day and provided
25by a licensed teacher, in subjects that are part of the regular school curriculum, but
1not including supplemental instruction, special needs classes or after-school
2enrichment in subjects involving the teaching of religious tenets, doctrines or
3worship.
SB436,150,114
(b)
Filing claims. Subject to the limitations provided in this subsection, a
5claimant may claim as a credit against the tax imposed under s. 71.02 an amount
6equal to any amounts paid for educational expenses in the year to which the claim
7relates. If the allowable amount of the claim exceeds the income taxes otherwise due
8on the claimant's income, the amount of the claim not used as an offset against those
9taxes shall be certified by the department to the department of administration for
10payment to the claimant by check, share draft or other draft from the appropriation
11under s. 20.835 (2) (e).
SB436,150,1412
(c)
Limitations. 1. Except as provided in subd. 3., the maximum credit that may
13be claimed under this subsection by a claimant, per pupil, is $1,000 in each year to
14which the claim relates.
SB436,150,1715
2. Except as provided in subd. 3., the maximum credit that may be claimed
16under this subsection by a claimant for all pupils is $2,000 in each year to which the
17claim relates.
SB436,150,2018
3. If a married couple files separately, except for a spouse who files as head of
19household, each spouse may claim up to 50% of the amounts specified in subds. 1. and
202.
SB436,151,321
4. If a part-year resident or a nonresident of this state files a claim under this
22subsection, the maximum credit amounts in subds. 1. and 2. shall be multiplied by
23a fraction, the numerator of which is the individual's and his or her spouse's
24Wisconsin adjusted gross income and the denominator of which is the individual's
25and his or her spouse's federal adjusted gross income. In this subd. 4., for married
1persons filing separately "adjusted gross income" means the separate adjusted gross
2income of each spouse, and for married persons filing jointly "adjusted gross income
3means the total adjusted gross income of both spouses.
SB436,151,54
5. No credit may be allowed under this subsection unless it is claimed within
5the time period under s. 71.75 (2).
SB436,151,86
6. No credit may be allowed under this subsection for a taxable year covering
7a period of less than 12 months, except for a taxable year closed by reason of the death
8of the taxpayer.
SB436,151,119
7. Of the amount that is paid for computers, the maximum annual amount that
10may be used in calculating educational expenses in the year to which the claim
11relates is $500 per claimant.
SB436,151,1312
8. No credit may be claimed under this subsection if the claimant's income
13exceeds one of the following:
SB436,151,1714
a. If the claimant is married and files jointly, $30,000 in the year to which the
15claim relates if he or she has one pupil. The income specified in this subd. 8. a. shall
16increase by $5,000 for each additional pupil of the claimant, up to a maximum of
17$60,000 in the year to which the claim relates.
SB436,151,2118
b. If the claimant is married and files separately, $15,000 in the year to which
19the claim relates if he or she has one pupil. The income specified in this subd. 8. b.
20shall increase by $2,500 for each additional pupil of the claimant, up to a maximum
21of $30,000 in the year to which the claim relates.
SB436,151,2522
c. If the claimant is single or married and filing as head of household, $25,000
23in the year to which the claim relates if he or she has one pupil. The income specified
24in this subd. 8. c. shall increase by $5,000 for each additional pupil of the claimant,
25up to a maximum of $55,000 in the year to which the claim relates.
SB436,152,2
19. No credit may be claimed under this subsection for educational expenses
2related to an eligible institution that is not located in Wisconsin.
SB436,152,73
(d)
Administration. The department of revenue may enforce the credit under
4this subsection and may take any action, conduct any proceeding and proceed as it
5is authorized in respect to taxes under this chapter. The income tax provisions in this
6chapter relating to assessments, refunds, appeals, collection, interest and penalties
7apply to the credit under this subsection.
SB436,152,1810
71.08
(1) Imposition. (intro.) If the tax imposed on a natural person, married
11couple filing jointly, trust or estate under s. 71.02, not considering the credits under
12ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (6)
, (8m) 13and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd) and (2m) and 71.47
14(1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd) and (2m) and subchs. VIII and IX
15and payments to other states under s. 71.07 (7), is less than the tax under this
16section, there is imposed on that natural person, married couple filing jointly, trust
17or estate, instead of the tax under s. 71.02, an alternative minimum tax computed
18as follows:
SB436, s. 287
19Section
287. 71.10 (4) (i) of the statutes is amended to read:
SB436,152,2520
71.10
(4) (i) The total of claim of right credit under s. 71.07 (1), farmland
21preservation credit under subch. IX, homestead credit under subch. VIII, farmland
22tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s.
2371.07 (2fd),
educational expenses credit under s. 71.07 (8m), earned income tax credit
24under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under
25subch. X.
SB436,153,73
71.125
(2) Each electing small business trust, as defined in section
1361 (e) (1)
4of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1)
5or under s. 71.06 (1m), whichever taxable year is applicable, on its
Wisconsin taxable 6income
as computed under section 641 of the Internal Revenue Code, as modified by
7s. 71.05 (6) to (12), (19) and (20).
SB436, s. 289
8Section
289. 71.17 (6) of the statutes is created to read:
SB436,153,129
71.17
(6) Funeral trusts. If a qualified funeral trust makes the election under
10section
685 of the Internal Revenue Code for federal income tax purposes, that
11election applies for purposes of this chapter and each trust shall compute its own tax
12and shall apply the rates under s. 71.06 (1m).
SB436,154,1415
71.22
(4) (m) Except as provided in sub. (4m) and ss. 71.26 (2) (b) and (3), 71.34
16(1g) and 71.42 (2), "Internal Revenue Code", for taxable years that begin after
17December 31, 1997, means the federal Internal Revenue Code as amended to
18December 31,
1996 1997, excluding sections 103, 104 and 110 of P.L.
102-227,
19sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66 and sections
201123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L.
104-188, and as amended by the
21provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and
22as indirectly affected in the provisions applicable to this subchapter by P.L.
99-514,
23P.L.
100-203, P.L.
100-647 excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2),
24821 (b) (2) and 823 (c) (2) of P.L.
99-514 and section 1008 (g) (5) of P.L.
100-647, P.L.
25101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
1excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
2103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
3103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
104-7, P.L.
104-188,
4excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L.
104-188, P.L.
5104-191 , P.L.
104-193 and the provisions of, P.L.
105-33 and P.L.
105-34 that take
6effect before January 1, 1998. The Internal Revenue Code applies for Wisconsin
7purposes at the same time as for federal purposes. Amendments to the federal
8Internal Revenue Code enacted after December 31,
1996
1997, do not apply to this
9paragraph with respect to taxable years beginning after December 31, 1997
, except
10that changes to the Internal Revenue Code made by P.L. 105-33 and P.L. 105-34 that
11take effect before January 1, 1998, and changes that indirectly affect the provisions
12applicable to this subchapter made by P.L. 105-33 and P.L. 105-34 that take effect
13before January 1, 1998, apply for Wisconsin purposes at the same time as for federal
14purposes.
SB436,155,1417
71.22
(4m) (k) For taxable years that begin after December 31, 1997, "Internal
18Revenue Code", for corporations that are subject to a tax on unrelated business
19income under s. 71.26 (1) (a), means the federal Internal Revenue Code as amended
20to December 31,
1996 1997, excluding sections 103, 104 and 110 of P.L.
102-227,
21sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, and sections
221123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L.
104-188, and as amended by the
23provisions of P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and
24as indirectly affected in the provisions applicable to this subchapter by P.L.
99-514,
25P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239,
1P.L.
101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
2102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d),
313174 and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
4104-7, P.L.
104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d)
5of P.L.
104-188, P.L.
104-191 , P.L.
104-193 and the provisions of, P.L.
105-33 and
6P.L.
105-34 that take effect before January 1, 1998. The Internal Revenue Code
7applies for Wisconsin purposes at the same time as for federal purposes.
8Amendments to the Internal Revenue Code enacted after December 31,
1996 1997,
9do not apply to this paragraph with respect to taxable years beginning after
10December 31, 1997
, except that changes to the Internal Revenue Code made by P.L.
11105-33 and P.L. 105-34 that take effect before January 1, 1998, and changes that
12indirectly affect the provisions applicable to this subchapter made by P.L. 105-33
13and P.L. 105-34 that take effect before January 1, 1998, apply for Wisconsin
14purposes at the same time as for federal purposes.
SB436,157,2517
71.26
(2) (b) 13. For taxable years that begin after December 31, 1997, for a
18corporation, conduit or common law trust which qualifies as a regulated investment
19company, real estate mortgage investment conduit, real estate investment trust or
20financial asset securitization investment trust under the Internal Revenue Code as
21amended to December 31,
1996 1997, excluding sections 103, 104 and 110 of P.L.
22102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66 and
23sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L.
104-188
, and as
24amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before
25January 1, 1998, and as indirectly affected in the provisions applicable to this
1subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140,
2P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104
3and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections
413113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
5103-337, P.L.
103-465, P.L.
104-7, P.L.
104-188, excluding sections 1123 (b), 1202
6(c), 1204 (f), 1311 and 1605 (d) of P.L.
104-188, P.L.
104-191 , P.L.
104-193 and the
7provisions of, P.L.
105-33 and P.L.
105-34 that take effect before January 1, 1998,
8"net income" means the federal regulated investment company taxable income,
9federal real estate mortgage investment conduit taxable income, federal real estate
10investment trust or financial asset securitization investment trust taxable income
11of the corporation, conduit or trust as determined under the Internal Revenue Code
12as amended to December 31,
1996 1997, excluding sections 103, 104 and 110 of P.L.
13102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66 and
14sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L.
104-188
, and as
15amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before
16January 1,1998, and as indirectly affected in the provisions applicable to this
17subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140,
18P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104
19and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections
2013113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
21103-337, P.L.
103-465, P.L.
104-7, P.L.
104-188, excluding sections 1123 (b), 1202
22(c), 1204 (f), 1311 and 1605 (d) of P.L.
104-188, P.L.
104-191 , P.L.
104-193 and the
23provisions of, P.L.
105-33 and P.L.
105-34 that take effect before January 1, 1998,
24except that property that, under s. 71.02 (1) (c) 8. to 11., 1985 stats., is required to
25be depreciated for taxable years 1983 to 1986 under the Internal Revenue Code as
1amended to December 31, 1980, shall continue to be depreciated under the Internal
2Revenue Code as amended to December 31, 1980, and except that the appropriate
3amount shall be added or subtracted to reflect differences between the depreciation
4or adjusted basis for federal income tax purposes and the depreciation or adjusted
5basis under this chapter of any property disposed of during the taxable year. The
6Internal Revenue Code as amended to December 31,
1996
1997, excluding sections
7103, 104 and 110 of P.L.
102-227, sections 13113, 13150 (d), 13171 (d), 13174 and
813203 (d) of P.L.
103-66, and sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d)
9of P.L.
104-188, and as amended by the provisions of P.L. 105-33 and P.L. 105-34
10that take effect before January 1, 1998, and as indirectly affected in the provisions
11applicable to this subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
12101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227,
13excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
14103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
15103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
104-7, P.L.
104-188,
16excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L.
104-188, P.L.
17104-191 , P.L.
104-193 and the provisions of, P.L.105-33 and P.L.
105-34 that take
18effect before January 1, 1998, applies for Wisconsin purposes at the same time as for
19federal purposes. Amendments to the Internal Revenue Code enacted after
20December 31,
1996 1997, do not apply to this subdivision with respect to taxable
21years that begin after December 31, 1997
, except that changes to the Internal
22Revenue Code made by P.L. 105-33 and P.L. 105-34 that take effect before January
231, 1998, and changes that indirectly affect the provisions applicable to this
24subchapter made by P.L. 105-33 and P.L. 105-34 that take effect before January 1,
251998, apply for Wisconsin purposes at the same time as for federal purposes.
SB436,158,153
71.26
(3) (y) A corporation may compute amortization and depreciation under
4either the federal internal revenue code as amended to December 31,
1996, for
5property placed in service before August 6, 1997, or as amended to August 5, 1997,
6for property placed in service on August 6, 1997, or thereafter
1997, or the federal
7internal revenue code in effect for the taxable year for which the return is filed,
8except that property first placed in service by the taxpayer on or after January 1,
91983, but before January 1, 1987, that, under s. 71.04 (15) (b) and (br), 1985 stats.,
10is required to be depreciated under the internal revenue code as amended to
11December 31, 1980, and property first placed in service in taxable year 1981 or
12thereafter but before January 1, 1987, that, under s. 71.04 (15) (bm), 1985 stats., is
13required to be depreciated under the internal revenue code as amended to December
1431, 1980, shall continue to be depreciated under the internal revenue code as
15amended to December 31, 1980.
SB436,159,1818
71.34
(1g) (m) "Internal Revenue Code" for tax-option corporations, for taxable
19years that begin after December 31, 1997, means the federal Internal Revenue Code
20as amended to December 31,
1996 1997, excluding sections 103, 104 and 110 of P.L.
21102-227, sections 13113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66 and
22sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d) of P.L.
104-188
, and as
23amended by the provisions of P.L. 105-33 and P.L. 105-34 that take effect before
24January 1, 1998, and as indirectly affected in the provisions applicable to this
25subchapter by P.L.
99-514, P.L.
100-203, P.L.
100-647 excluding sections 803 (d) (2)
1(B), 805 (d) (2), 812 (c) (2), 821 (b) (2) and 823 (c) (2) of P.L.
99-514 and section 1008
2(g) (5) of P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
101-179, P.L.
101-239, P.L.
3101-508, P.L.
102-227, excluding sections 103, 104 and 110 of P.L.
102-227, P.L.
4102-318, P.L.
102-486, P.L.
103-66, excluding sections 13113, 13150 (d), 13171 (d),
513174 and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
103-337, P.L.
103-465, P.L.
6104-7, P.L.
104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311 and 1605 (d)
7of P.L.
104-188, P.L.
104-191 , P.L.
104-193 and the provisions of, P.L.
105-33 and
8P.L.
105-34 that take effect before January 1, 1998, except that section 1366 (f)
9(relating to pass-through of items to shareholders) is modified by substituting the
10tax under s. 71.35 for the taxes under sections 1374 and 1375. The Internal Revenue
11Code applies for Wisconsin purposes at the same time as for federal purposes.
12Amendments to the federal Internal Revenue Code enacted after December 31,
1996 131997, do not apply to this paragraph with respect to taxable years beginning after
14December 31, 1997
, except that changes to the Internal Revenue Code made by P.L.
15105-33 and P.L. 105-34 that take effect before January 1, 1998, and changes that
16indirectly affect the provisions applicable to this subchapter made by P.L. 105-33
17and P.L. 105-34 that take effect before January 1, 1998, apply for Wisconsin
18purposes at the same time as for federal purposes.
SB436,160,2321
71.365
(1m) Tax-option corporations; depreciation. A tax-option corporation
22may compute amortization and depreciation under either the federal internal
23revenue code as amended to December 31,
1996, for property placed in service before
24August 6, 1997, or as amended to August 5, 1997, for property placed in service on
25August 6, 1997, or thereafter 1997, or the federal internal revenue code in effect for
1the taxable year for which the return is filed, except that property first placed in
2service by the taxpayer on or after January 1, 1983, but before January 1, 1987, that,
3under s. 71.04 (15) (b) and (br), 1985 stats., is required to be depreciated under the
4internal revenue code as amended to December 31, 1980, and property first placed
5in service in taxable year 1981 or thereafter but before January 1, 1987, that, under
6s. 71.04 (15) (bm), 1985 stats., is required to be depreciated under the internal
7revenue code as amended to December 31, 1980, shall continue to be depreciated
8under the internal revenue code as amended to December 31, 1980. Any difference
9between the adjusted basis for federal income tax purposes and the adjusted basis
10under this chapter shall be taken into account in determining net income or loss in
11the year or years for which the gain or loss is reportable under this chapter. If that
12property was placed in service by the taxpayer during taxable year 1986 and
13thereafter but before the property is used in the production of income subject to
14taxation under this chapter, the property's adjusted basis and the depreciation or
15other deduction schedule are not required to be changed from the amount allowable
16on the owner's federal income tax returns for any year because the property is used
17in the production of income subject to taxation under this chapter. If that property
18was acquired in a transaction in taxable year 1986 or thereafter in which the
19adjusted basis of the property in the hands of the transferee is the same as the
20adjusted basis of the property in the hands of the transferor, the Wisconsin adjusted
21basis of that property on the date of transfer is the adjusted basis allowable under
22the internal revenue code as defined for Wisconsin purposes for the property in the
23hands of the transferor.
SB436,161,23
171.42
(2) (L) For taxable years that begin after December 31, 1997, "Internal
2Revenue Code" means the federal Internal Revenue Code as amended to December
331,
1996 1997, excluding sections 103, 104 and 110 of P.L.
102-227, sections 13113,
413150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66 and sections 1123 (b), 1202
5(c), 1204 (f), 1311 and 1605 (d) of P.L.
104-188, and as amended by the provisions of
6P.L. 105-33 and P.L. 105-34 that take effect before January 1, 1998, and as indirectly
7affected by P.L.
99-514, P.L.
100-203, P.L.
100-647, P.L.
101-73, P.L.
101-140, P.L.
8101-179, P.L.
101-239, P.L.
101-508, P.L.
102-227, excluding sections 103, 104 and
9110 of P.L.
102-227, P.L.
102-318, P.L.
102-486, P.L.
103-66, excluding sections
1013113, 13150 (d), 13171 (d), 13174 and 13203 (d) of P.L.
103-66, P.L.
103-296, P.L.
11103-337, P.L.
103-465, P.L.
104-7, P.L.
104-188, excluding sections 1123 (b), 1202
12(c) 1204 (f), 1311 and 1605 (d) of P.L.
104-188, P.L.
104-191 , P.L.
104-193 and the
13provisions of, P.L.
105-33 and P.L.
105-34 that take effect before January 1, 1998,
14except that "Internal Revenue Code" does not include section 847 of the federal
15Internal Revenue Code. The Internal Revenue Code applies for Wisconsin purposes
16at the same time as for federal purposes. Amendments to the federal Internal
17Revenue Code enacted after December 31,
1996 1997, do not apply to this paragraph
18with respect to taxable years beginning after December 31, 1997
, except that changes
19to the Internal Revenue Code made by P.L. 105-33 and P.L. 105-34 that take effect
20before January 1, 1998, and changes that indirectly affect the provisions applicable
21to this subchapter made by P.L. 105-33 and P.L. 105-34 that take effect before
22January 1, 1998, apply for Wisconsin purposes at the same time as for federal
23purposes.
SB436,162,14
171.45
(2) (a) 13. By adding or subtracting, as appropriate, the difference
2between the depreciation deduction under the federal internal revenue code as
3amended to December 31,
1996, for property placed in service before August 6, 1997,
4or as amended to August 5, 1997, for property placed in service on August 6, 1997,
5or thereafter 1997 and the depreciation deduction under the federal internal revenue
6code in effect for the taxable year for which the return is filed, so as to reflect the fact
7that the insurer may choose between these 2 deductions, except that property first
8placed in service by the taxpayer on or after January 1, 1983, but before January 1,
91987, that, under s. 71.04 (15) (b) and (br), 1985 stats., is required to be depreciated
10under the internal revenue code as amended to December 31, 1980, and property first
11placed in service in taxable year 1981 or thereafter but before January 1, 1987, that,
12under s. 71.04 (15) (bm), 1985 stats., is required to be depreciated under the internal
13revenue code as amended to December 31, 1980, shall continue to be depreciated
14under the internal revenue code as amended to December 31, 1980.
SB436, s. 298
15Section
298. 71.78 (4) (o) of the statutes is repealed and recreated to read:
SB436,162,1816
71.78
(4) (o) A licensing department or the supreme court, if the supreme court
17agrees, for the purpose of denial, nonrenewal, discontinuation and revocation of a
18license based on tax delinquency under s. 73.0301.
SB436, s. 299
19Section
299. 71.83 (3) of the statutes is amended to read:
SB436,163,820
71.83
(3) Late filing fees. If any person required under this chapter to file an
21income or franchise tax return fails to file a return within the time prescribed by law,
22or as extended under s. 71.03 (7), 71.24 (7) or 71.44 (3), unless the return is filed under
23such an extension but the person fails to file a copy of the extension that is granted
24by or requested of the internal revenue service, the department shall add to the tax
25of the person $30 in the case of corporations and in the case of persons other than
1corporations $2 when the total normal income tax of the person is less than $10, $3
2when the tax is $10 or more but less than $20, $5 when the tax is $20 or more, except
3that $30 shall be added to the tax if the return is 60 or more days late. If no tax is
4assessed against any such person the amount of this fee shall be collected as income
5or franchise taxes are collected.
If any person who is required under s. 71.65 (3) to
6file a withholding report and deposit withheld taxes fails timely to do so; unless the
7person so required dies or the failure is due to a reasonable cause and not due to
8neglect; the department of revenue shall add $30 to the amount due.
SB436, s. 300
9Section
300. 71.91 (8) (title) of the statutes is repealed.
SB436, s. 301
10Section
301. 71.91 (8) of the statutes is renumbered 73.0301 (5) (a) and
11amended to read:
SB436,164,412
73.0301
(5) (a) The department of revenue shall conduct a hearing requested
13by a
credential holder under s. 440.08 (4) (b) 2.
license holder or applicant for a license
14or license renewal or continuation under sub. (2) (b) 1. b. or by an applicant for
15certification or recertification or a certificate holder under s. 73.09 (7m) (b) to review
16a certification
or determination of tax delinquency that is the basis of a denial
by the
17department of regulation and licensing under s. 440.08 (4) (b) 1. of an application for
18the renewal of a credential or revocation of a license in accordance with this section
19or of a certificate, certification or recertification under s. 73.09 (7m). A hearing under
20this
subsection paragraph is limited to questions of mistaken identity of the
21credential license or certificate holder
or applicant and
of prior payment of the
22delinquent taxes for which the department of revenue certified
or determined the
23credential license or certificate holder
or applicant is liable. At a hearing under this
24subsection paragraph, any statement filed by the department of revenue
or, the
25licensing department
of regulation and licensing or the supreme court, if the
1supreme court agrees, may be admitted into evidence and is prima facie evidence of
2the facts that it contains.
Notwithstanding ch. 227, a person entitled to a hearing
3under this paragraph is not entitled to any other notice, hearing or review, except as
4provided in sub. (2) (b) 2.
SB436, s. 302
5Section
302. 71.92 (2) of the statutes is amended to read:
SB436,164,186
71.92
(2) Any taxpayer who is unable to pay the full amount of his or her
7delinquent income or franchise taxes, costs, penalties and interest may apply to the
8department of revenue to pay such taxes, costs, penalties and interest in
9instalments. Such application shall contain a statement of the reasons such taxes,
10costs, penalties and interest cannot be paid in full and shall set forth the plan of
11instalment payments proposed by the taxpayer. Upon approval of such plan by the
12department and the payment of instalments in accordance therewith collection
13proceedings with respect to such taxes, costs, penalties and interest shall be
14withheld; but on failure of the taxpayer to make any instalment payment, the
15department shall proceed to collect the unpaid portion of such taxes, costs, penalties
16and interest in the manner provided by law.
The department of revenue may require
17taxpayers who make instalment payments under this subsection to do so by
18electronic funds transfer.
SB436, s. 303
19Section
303. 73.03 (27) (intro.) of the statutes is renumbered 73.03 (27) and
20amended to read:
SB436,164,2521
73.03
(27) To write off from the records of the department income, franchise,
22sales, use, withholding, motor fuel, gift, beverage and cigarette tax and recycling
23surcharge liabilities, following a determination by the secretary of revenue that they
24are not collectible
, as hereinafter provided:. Taxes written off under this subsection
25remain legal obligations.
SB436, s. 304
1Section
304. 73.03 (27) (a) to (e) of the statutes are repealed.
SB436, s. 305
2Section
305. 73.03 (28g) of the statutes is repealed.
SB436, s. 306
3Section
306. 73.03 (52) of the statutes is created to read:
SB436,165,74
73.03
(52) To enter into agreements with the internal revenue service that
5provide for offsetting state tax refunds against federal tax obligations and offsetting
6federal tax refunds against state tax obligations, if the agreements provide that
7setoffs under ss. 71.93 and 71.935 occur before the setoffs under those agreements.
SB436, s. 307
8Section
307. 73.0301 of the statutes is created to read:
SB436,165,10
973.0301 License denial, nonrenewal, discontinuation and revocation
10based on tax delinquency. (1) Definitions. In this section:
SB436,165,1211
(a) "Credential" has the meaning given in s. 440.01 (2) (a), but does not include
12a registration as an inactive licensee under s. 452.12 (6) (b).
SB436,165,1513
(b) "Credentialing board" means a board, examining board or affiliated
14credentialing board in the department of regulation and licensing that grants a
15credential.
SB436,165,1616
(d) "License" means any of the following:
SB436,165,1717
1. An approval specified in s. 29.09 (11m).
SB436,165,1918
2. A license issued by the department of health and family services under s.
1948.66 (1) to a day care center, as required by s. 48.65.
SB436,165,2320
3. A license, certificate of approval, provisional license, conditional license,
21certification, certification card, registration or approval specified in s. 49.45 (2) (a)
2211., 50.35, 50.49 (6) (a) or (10), 51.038, 51.04, 51.42 (7) (b) 11., 51.421 (3) (a), 51.45
23(8), 146.40 (3) or (3m), 250.05 (5), 254.176, 254.20 (3) or 343.305 (6) (a).
SB436,165,2424
4. A license, registration or registration certificate specified in s. 93.13 (1).
SB436,165,2525
5. A license, as defined in s. 101.02 (20) (a).
SB436,166,3
16. A license or certificate of registration issued by the department of financial
2institutions, or a division of it, under s. 138.09, 138.12, 217.06, 218.01, 218.02,
3218.04, 218.05 or 224.72 or under subch. III of ch. 551.
SB436,166,74
7. A license described in s. 218.01 (2) (d) 1. and 8., a license described in s. 218.01
5(2) (d) 2., 3. or 5., a license issued under s. 218.22, 218.32, 343.61 or 343.62 or, if the
6licensor is the department of transportation, a license issued under s. 218.11 or
7218.12.
SB436,166,88
8. A license, registration or certification specified in s. 299.07 (1) (a).
SB436,166,99
9. A credential.
SB436,166,1010
10. A license or permit granted by the department of public instruction.
SB436,166,1111
11. A license to practice law.
SB436,166,1312
12. A license issued under s. 628.04, 632.68 (2) or (4) or 633.14 or a temporary
13license issued under s. 628.09.
SB436,166,1514
13. A license issued by the ethics board under s. 13.63 (1) or a registration
15statement filed with the ethics board under s. 13.64 (1).
SB436,166,2116
(e) "Licensing department" means the department of agriculture, trade and
17consumer protection; the department of commerce; the ethics board; the department
18of financial institutions; the department of health and family services; the
19department of natural resources; the department of public instruction; the
20department of regulation and licensing; the office of the commissioner of insurance;
21or the department of transportation.
SB436,166,2522
(f) "Nondelinquency certificate" means a certificate that the department of
23revenue issues to a person and that states that the person is not delinquent in the
24payment of taxes, including penalties, interest, fees and costs, under ch. 71, 72, 76,
2577, 78, 125 or 139.
SB436,167,5
1(2) Duties and powers of licensing departments. (a) Each licensing
2department and the supreme court, if the supreme court agrees, shall enter into a
3memorandum of understanding with the department of revenue under sub. (4) (a)
4that requires the licensing department or supreme court to do all of the following
5after March 31, 1998:
SB436,167,96
1. Request the department of revenue to certify whether an applicant for a
7license or license renewal or continuation is liable for delinquent taxes. With respect
8to an applicant for a license granted by a credentialing board, the department of
9regulation and licensing shall make a request under this subdivision.
SB436,167,1310
2. Request the department of revenue to certify whether a license holder is
11liable for delinquent taxes. With respect to a holder of a license granted by a
12credentialing board, the department of regulation and licensing shall make a request
13under this subdivision.
SB436,167,1514
(b) Each licensing department and the supreme court, if the supreme court
15agrees, shall do all of the following:
SB436,167,2316
1. a. If, after a request is made under par. (a) 1. or 2., the department of revenue
17certifies that the license holder or applicant for a license or license renewal or
18continuation is liable for delinquent taxes, revoke the license or deny the application
19for the license or license renewal or continuation. A revocation or denial under this
20subd. 1. a. is not subject to administrative review or, except as provided in subd. 2.,
21judicial review. With respect to a license granted by a credentialing board, the
22department of regulation and licensing shall make a revocation or denial under this
23subd. 1. a.
SB436,168,624
b. Mail a notice of revocation or denial under subd. 1. a. to the license holder
25or applicant. The notice shall include a statement of the facts that warrant the
1revocation or denial and a statement that the license holder or applicant may, within
230 days after the date on which the notice of denial or revocation is mailed, file a
3written request with the department of revenue to have the certification of tax
4delinquency on which the revocation or denial is based reviewed at a hearing under
5sub. (5) (a). With respect to a license granted by a credentialing board, the
6department of regulation and licensing shall mail a notice under this subd. 1. b.
SB436,168,147
2. If notified by the department of revenue that the department of revenue has
8affirmed a certification of tax delinquency after a hearing under sub. (5) (a), affirm
9a revocation or denial under subd. 1. a. A license holder or applicant may seek
10judicial review under ss. 227.52 to 227.60, except that the review shall be in the
11circuit court for Dane County, of an affirmation of a revocation or denial under this
12subdivision. With respect to a license granted by a credentialing board, the
13department of regulation and licensing shall make an affirmation under this
14subdivision.