SB45,863,1714
(e) "Intercompany transaction" means a transaction between corporations,
15partnerships, limited liability companies or tax-option corporations that become
16members of the same affiliated group that is engaged in a unitary business
17immediately after the transaction.
SB45,863,1918
(f) "Partnership" means any entity considered a partnership under section
197701 of the Internal Revenue Code.
SB45,864,320
(g) "Unitary business" means 2 or more businesses that have common
21ownership or are integrated with or dependent upon each other. Two or more
22businesses are presumed to be a unitary business if the businesses have centralized
23management or a centralized executive force; centralized purchasing, advertising or
24accounting; intercorporate sales or leases; intercorporate services; intercorporate
25debts; intercorporate use of proprietary materials; interlocking directorates or
1interlocking corporate officers; or if a business conducted in this state is owned by
2a person that conducts a business entirely outside of this state that is different from
3the business conducted in this state.
SB45,864,13
4(2) Corporations required to use combined reporting. A corporation that is
5subject to tax under s. 71.23 (1) or (2) or 71.43, that is a member of an affiliated group
6and that is engaged in a unitary business with one or more members of the affiliated
7group shall compute the corporation's income using the combined reporting method
8under this section. Any corporation, regardless of the country where the corporation
9is organized or incorporated or conducts business, and any tax-option corporation,
10if the department determines that combined reporting is necessary to accurately
11report the income of the tax-option corporation apportioned to this state, shall file
12a combined report if the corporation is a member of an affiliated group that is
13engaged in a unitary business.
SB45,865,2
14(3) Accounting period. For purposes of this section, the income under ss.
1571.26, 71.34 and 71.45, the apportionment factors under ss. 71.25 and 71.45 and the
16tax credits under ss. 71.28 and 71.47 of all corporations that are members of an
17affiliated group and that are engaged in a unitary business shall be determined by
18using the same accounting period. If the affiliated group that is engaged in a unitary
19business has a common parent corporation, the accounting period of the common
20parent corporation shall be used to determine the income, the apportionment factors
21and the tax credits of all the corporations that are members of the affiliated group
22that is engaged in a unitary business. If the affiliated group that is engaged in a
23unitary business has no common parent corporation, the income, the apportionment
24factors and the tax credits of the affiliated group that is engaged in a unitary business
1shall be determined using the accounting period of the member of the affiliated group
2that has the most significant operations on a recurring basis in this state.
SB45,865,12
3(4) Filing returns. (a)
Corporations with the same accounting period. 4Corporations that must file a return under this section and that have the same
5accounting period may file a combined report under par. (c) that reports the
6aggregate state franchise or state income tax liability of all of the members of the
7affiliated group that are engaged in a unitary business. Corporations that are
8required to file a combined report under this section may file separate returns
9reporting the respective apportionment of the corporation's state franchise or state
10income tax liability as determined under the combined reporting method, if each
11corporation filing a separate return pays its own apportionment of its state franchise
12or state income tax liability.
SB45,866,213
(b)
Corporations with different accounting periods. Corporations that are
14required to file a combined report and that have different accounting periods shall
15use the actual figures from the corporations' financial records to determine the
16proper income and income-related computations to convert to a common accounting
17period. Corporations that are required to file a combined report may use a
18proportional method to convert income to a common accounting period if the results
19of the proportional method do not materially misrepresent the income apportioned
20to this state. The apportionment factors under ss. 71.25 and 71.45 and the tax credits
21under ss. 71.28 and 71.47 shall be computed according to the same method used to
22determine the income under ss. 71.26, 71.34 and 71.45 for the common accounting
23period. If a corporation performs an interim closing of its financial records to
24determine the income attributable to the common accounting period, the actual
1figures from the interim closing shall be used to convert the apportionment factors
2to the common accounting period.
SB45,867,23
(c)
Designated agent. If corporations that are subject to this section file a
4combined report under par. (a), the parent corporation of the affiliated group shall
5be the sole designated agent for each member of the affiliated group including the
6parent corporation. The designated agent shall file the combined report under par.
7(a), shall file for any extensions under s. 71.24 (7) or 71.44 (3), shall file amended
8reports and claims for refund or credit, and shall send and receive all correspondence
9with the department regarding a combined report. Any notice the department sends
10to the designated agent is considered a notice sent to all members of the affiliated
11group. Any refund shall be paid to and in the name of the designated agent and shall
12discharge any liability of the state to any member of an affiliated group regarding
13the refund. The affiliated group filing a combined report under par. (a) shall pay all
14taxes, including estimated taxes, in the designated agent's name. The designated
15agent shall participate on behalf of the affiliated group in any investigation or
16hearing requested by the department regarding a combined report and shall produce
17all information requested by the department regarding a combined report. The
18designated agent may execute a power of attorney on behalf of the members of the
19affiliated group. The designated agent shall execute waivers, closing agreements
20and other documents regarding a report filed under par. (a) and any waiver,
21agreement or document executed by the designated agent shall be considered as
22executed by all members of the affiliated group. If the department acts in good faith
23with an affiliated group member that represents itself as the designated agent for
24the affiliated group but that affiliated group member is not the designated agent, any
25action taken by the department with that affiliated group member has the same
1effect as if that affiliated group member were the actual designated agent for the
2affiliated group.
SB45,867,63
(d)
Part-year members. If a corporation becomes a member of an affiliated
4group engaged in a unitary business or ceases to be a member of an affiliated group
5engaged in a unitary business after the beginning of a common accounting period,
6the corporation's income shall be apportioned to this state as follows:
SB45,867,157
1. If the corporation is required to file 2 short period federal returns for the
8common accounting period, the income for the short period that the corporation was
9a member of an affiliated group engaged in a unitary business shall be determined
10by using the combined reporting method and the corporation shall join in filing a
11combined report for that short period. The income for the remaining short period
12shall be by separate reporting under s. 71.25 or 71.45. If the corporation becomes a
13member of another affiliated group that is engaged in a unitary business in the
14remaining short period, the corporation's income shall be determined for the
15remaining short period by using the combined reporting method.
SB45,867,1716
2. If the corporation is not required to file federal short period returns, the
17corporation shall file a separate return. Income shall be determined as follows:
SB45,867,1918
a. By the combined reporting method for any period that the corporation was
19a member of an affiliated group that was engaged in a unitary business.
SB45,867,2220
b. By separate reporting under s. 71.25 or 71.45 for any period that the
21corporation was not a member of an affiliated group that was engaged in a unitary
22business.
SB45,868,223
(e)
Amended combined report. The election to file a combined report under this
24section applies to an amended combined report that includes the same corporations
1that joined in the filing of the original combined report. Under this section, an
2amended combined report shall be filed as follows:
SB45,868,113
1. If an election to file a combined report that is in effect for a taxable year is
4revoked for the taxable year because the affiliated group that filed the combined
5report is not a unitary business, as determined by the department, the designated
6agent for the affiliated group may not file an amended combined report. The
7designated agent and each corporation that joined in filing the combined report shall
8file a separate amended return. To compute the tax due on a separate amended
9return, a corporation that files a separate amended return shall consider all of the
10payments, credits or other amounts, including refunds, that the designated agent
11allocated to the corporation.
SB45,868,1612
2. If a change in tax liability under this section is the result of the removal of
13a corporation from an affiliated group because the corporation was not eligible to be
14a member of the affiliated group for the taxable year, as determined by the
15department, the designated agent shall file an amended combined report and the
16ineligible corporation shall file a separate amended return.
SB45,868,2217
3. If a corporation erroneously fails to join in the filing of a combined report,
18the designated agent shall file an amended combined report that includes the
19corporation. If a corporation that erroneously fails to join in the filing of a combined
20report has filed a separate return, the corporation shall file an amended separate
21return that shows no net income, overpayment or underpayment, and shows that the
22corporation has joined in the filing of a combined report.
SB45,868,24
23(5) Income computation under combined reporting. Under the combined
24reporting method, income attributable to this state shall be determined as follows:
SB45,869,5
1(a) Determine the net income of each corporation under s. 71.26, 71.34 (1) or
271.45, including a general or limited partner's share of income to the extent that the
3general or limited partner and the partnership in which the general or limited
4partner invests are engaged in a unitary business, regardless of the percentage of the
5general or limited partner's ownership in the partnership.
SB45,869,76
(b) Adjust each corporation's income, as determined under par. (a), as provided
7under s. 71.30.
SB45,869,238
(c) From the amount determined under par. (b), subtract intercompany
9transactions such that intercompany accounts of assets, liabilities, equities, income,
10costs or expenses are excluded from the determination of income to accurately reflect
11the income, the apportionment factors and the tax credits in a combined report that
12is filed under this section. Distributions of intercompany dividends that are paid
13from nonbusiness earnings or nonbusiness profits, or distributions of intercompany
14dividends that are paid from earnings or profits that are accumulated before the
15payer corporation becomes a member of an affiliated group that is engaged in a
16unitary business, may not be excluded from the income of the recipient corporation.
17An intercompany distribution that exceeds the payer corporation's earnings or
18profits or stock basis shall not be considered income from an intercompany sale of an
19asset and shall not be excluded as income from an intercompany transaction.
20Intercompany dividends that are paid from earnings or profits from a unitary
21business income shall be considered as paid first from current earnings or profits and
22then from accumulations from prior years in reverse order of accumulation. An
23intercompany transaction includes the following:
SB45,869,2524
1. Income from sales of inventory from one member of the affiliated group to
25another member of the affiliated group.
SB45,870,2
12. Gain or loss from sales of intangible assets from one member of the affiliated
2group to another member of the affiliated group.
SB45,870,43
3. Gain or loss on sales of fixed assets or capitalized intercompany charges from
4one member of the affiliated group to another member of the affiliated group.
SB45,870,75
4. Loans, advances, receivables and similar items that one member of the
6affiliated group owes to another member of the affiliated group, including interest
7income and interest expense related to these items.
SB45,870,98
5. Stock or other equity of one member of the affiliated group that is owned or
9controlled by another member of the affiliated group.
SB45,870,1110
6. Except as provided in par. (c) (intro.), intercompany dividends paid out of
11earnings or profits from a unitary business income.
SB45,870,1312
7. Annual rent paid by one member of the affiliated group to another member
13of the affiliated group.
SB45,870,1514
8. Management or service fees paid by one member of the affiliated group to
15another member of the affiliated group.
SB45,870,1716
9. Income or expenses allocated or charged by one member of the affiliated
17group to another member of the affiliated group.
SB45,870,2118
(d) From the amount determined under par. (c) for each corporation, subtract
19nonbusiness income, net of related expenses, and add nonbusiness losses, net of
20related expenses, to determine each corporation's apportionable net income or
21apportionable net loss.
SB45,870,2522
(e) Calculate the apportionment factors under sub. (6) and multiply each
23corporation's apportionable net income or apportionable net loss, as determined
24under par. (d), by the corporation's apportionment fraction as determined under s.
2571.25 (6).
SB45,871,3
1(f) To the amount determined under par. (e), add each corporation's
2nonbusiness income attributable to this state and subtract each corporation's
3nonbusiness losses attributable to this state.
SB45,871,84
(g) To the amount determined under par. (f), subtract each corporation's net
5business loss carry-forward under s. 71.26 (4) or 71.45 (4). A corporation may not
6carry forward a business loss from taxable years ending before January 1, 2000, if
7the corporation was not subject to this state's income or franchise tax for taxable
8years ending before January 1, 2000.
SB45,871,11
9(6) Apportionment factor computation under combined reporting. Under the
10combined reporting method, this state's apportionment factors are determined as
11follows:
SB45,871,1712
(a) Determine the numerator and the denominator of each corporation's
13apportionment factors as determined under s. 71.25 or 71.45, including a general or
14limited partner's share of the numerator and the denominator of the apportionment
15factors to the extent that the general or limited partner and the partnership in which
16the general or limited partner invests are engaged in a unitary business, regardless
17of the percentage of the general or limited partner's ownership in the partnership.
SB45,871,1918
(b) Subtract intercompany transactions under sub. (5) (c) from both the
19numerators and the denominators as determined under par. (b).
SB45,871,2120
(c) Add the denominators of the apportionment factors for each corporation, as
21determined under par. (b), to arrive at the combined denominators.
SB45,871,2422
(d) Compute each corporation's apportionment factors by dividing the
23corporation's numerator as determined under par. (b) by the combined denominator
24as determined under par. (c).
SB45,872,9
1(7) Net operating losses. For the first 2 taxable years that a combined report
2is filed under this section, the net operating loss for each member of an affiliated
3group that files a combined report is determined by adding each member's share of
4nonbusiness income to each member's share of business income and subtracting each
5member's share of nonbusiness loss from each member's share of business loss.
6Beginning with the 3rd taxable year that a combined report is filed under this
7section, if a member of an affiliated group that files a combined report has a positive
8net income as determined under sub. (5), the affiliated group shall only deduct the
9amount of the net operating loss carry-forward attributable to that member.
SB45,872,15
10(8) Estimated tax payments. (a) For the first 2 taxable years that a combined
11report is filed under this section, estimated taxes may be paid on a group basis or on
12a separate basis. The amount of any separate estimated taxes paid in the first 2
13taxable years that a combined report is filed shall be credited against the group's tax
14liability. The designated agent shall notify the department of any estimated taxes
15paid on a separate basis in the first 2 taxable years that a combined report is filed.
SB45,873,216
(b) If a combined report is filed for 2 consecutive taxable years, estimated taxes
17shall be paid on a group basis for each subsequent taxable year until such time as
18separate returns are filed by the corporations that were members of an affiliated
19group that filed combined reports under this section. For each taxable year in which
20combined estimated payments are required under this subsection, the department
21shall consider the affiliated group filing a combined report to be one taxpayer. If a
22corporation subject to this section files a separate return in a taxable year following
23a year in which the corporation joined in filing a combined report, the amount of any
24estimated tax payments made on a group basis for the previous year shall be credited
1against the tax liability of the corporation that files a separate return, as allocated
2by the designated agent with the department's approval.
SB45,873,73
(c) If an affiliated group pays estimated taxes on a group basis for a taxable year
4or for any part of a taxable year, and the members of the affiliated group file separate
5returns for the taxable year, the designated agent, with the department's approval,
6shall allocate the estimated tax payments among the members of the affiliated
7group.
SB45,873,118
(d) If estimated taxes are paid on a group basis for a taxable year but the group
9does not file a combined report for the taxable year and did not file a combined report
10for the previous taxable year, the estimated tax shall be credited to the corporation
11that made the estimated tax payment on the group's behalf.
SB45,873,14
12(9) Interest for underpayment of estimated tax. (a)
General. The amount
13of interest that is due for an underpayment of estimated taxes under sub. (8) shall
14be computed as follows:
SB45,873,1815
1. For the first year in which a combined report is filed, the amount of interest
16that is due for an underpayment of estimated taxes shall be determined by using the
17aggregate of the tax and income shown on the returns filled by the members of the
18group for the previous year.
SB45,873,2519
2. For estimated taxes paid under sub. (8) (c), the amount of interest that is due
20from a group member for an underpayment of estimated taxes paid by the group
21member shall be determined by using the group member's separate items from the
22combined report filed for the previous year and the group member's allocated share
23of the combined estimated payments for the current year. The designated agent shall
24report the group member's allocated share of the combined estimated payments for
25the current year to the department, in the manner prescribed by the department.
SB45,874,4
1(b)
Entering a group. For a corporation that becomes a member of an affiliated
2group during a common accounting period under sub. (3), the amount of interest that
3is due for an underpayment of estimated taxes shall be allocated to the corporation
4as follows:
SB45,874,85
1. If a corporation becomes a member of an affiliated group at the beginning
6of a common accounting period, the corporation shall include with the corresponding
7items on the combined report for the previous common accounting period the
8separate items shown on the corporation's return for the previous taxable year.
SB45,874,139
2. If a corporation is not a member of an affiliated group for an entire common
10accounting period, the corporation shall include with the corresponding items on the
11combined report for the current taxable year the corporation's separate items for that
12portion of the common accounting period that the corporation was a member of the
13affiliated group.
SB45,874,1814
3. To determine the separate items under subds. 1. and 2., if a corporation is
15a member of an affiliated group during a portion of a common accounting period in
16which the corporation becomes a member of another affiliated group, the
17corporation's separate items shall include the separate items that are attributed to
18the corporation by the designated agent of the first affiliated group.
SB45,874,2119
(c)
Leaving a group. For a corporation that leaves an affiliated group during
20a common accounting period under sub. (3), the amount of interest that is due for an
21underpayment of estimated taxes shall be allocated as follows:
SB45,875,222
1. The separate items attributed by the designated agent to the corporation for
23the common accounting period during which the corporation leaves the affiliated
24group shall be excluded from the corresponding items of the affiliated group for the
1current common accounting period and all the common accounting periods following
2the corporation's departure from the affiliated group.
SB45,875,63
2. A corporation that leaves an affiliated group shall consider the separate
4items attributed to the corporation by the designated agent of the affiliated group to
5determine the amount of interest that is due from the corporation for an
6underpayment of estimated taxes under sub. (8).
SB45,875,21
7(10) Assessment notice. If the department sends a notice of taxes that are
8owed by an affiliated group to the designated agent, the notice shall name each
9corporation that is a member of the affiliated group during any part of the period
10covered by the notice. The department's failure to name a member of the affiliated
11group on a notice under this subsection shall not invalidate the notice as to the
12unnamed member of the affiliated group. Any levy, lien or other proceeding to collect
13the amount of a tax assessment under this section shall name the corporation from
14which the department shall collect the assessment. If a corporation that joined in
15the filing of a combined report leaves the affiliated group, the department shall send
16the corporation a copy of any notice sent to the affiliated group under this subsection
17if the corporation notifies the department that the corporation is no longer a member
18of the affiliated group and if the corporation requests in writing that the department
19send notices under this subsection to the corporation. The department's failure to
20comply with a corporation's request to receive a notice does not affect the tax liability
21of the corporation.
SB45,876,2
22(11) Liability for tax, interest and penalty. If members of an affiliated group
23file a combined report, the members of the affiliated group shall be jointly and
24severally liable for any combined tax, interest or penalty. The liability of a member
25of an affiliated group for any combined tax, interest or penalty shall not be reduced
1by an agreement with another member of the affiliated group or by an agreement
2with another person.
SB45,876,8
3(12) Presumptions and burden of proof. An affiliated group shall be presumed
4to be engaged in a unitary business and all of the income of the unitary business shall
5be presumed to be apportionable business income under this section. A corporation,
6partnership, limited liability company or tax-option corporation has the burden of
7proving that it is not a member of an affiliated group that is subject to this section.
8The department shall promulgate rules to implement this section.
SB45, s. 1740
9Section
1740. 71.26 (1) (b) of the statutes is amended to read:
SB45,876,1310
71.26
(1) (b)
Political units. Income received by the United States, the state
11and all counties, cities, villages, towns, school districts, technical college districts,
12joint local water authorities created under s. 66.0735
, family care districts under s.
1346.2895 or other political units of this state.
SB45, s. 1741
14Section
1741. 71.26 (3) (L) of the statutes is amended to read:
SB45,877,615
71.26
(3) (L) Section 265 is excluded and replaced by the rule that any amount
16otherwise deductible under this chapter that is directly or indirectly related to
17income wholly exempt from taxes imposed by this chapter or to losses from the sale
18or other disposition of assets the gain from which would be exempt under this
19paragraph if the assets were sold or otherwise disposed of at a gain is not deductible.
20In this paragraph, "wholly exempt income", for corporations subject to franchise or
21income taxes, includes
amounts received from affiliated or subsidiary corporations
22for interest, dividends or capital gains that
, because of the degree of common
23ownership, control or management between the payor and payee, are not subject to
24taxes under this chapter. In this paragraph, "wholly exempt income", for
25corporations subject to income taxation under this chapter, also includes interest on
1obligations of the United States. In this paragraph, "wholly exempt income" does not
2include income excludable, not recognized, exempt or deductible under specific
3provisions of this chapter. If any expense or amount otherwise deductible is
4indirectly related both to wholly exempt income or loss and to other income or loss,
5a reasonable proportion of the expense or amount shall be allocated to each type of
6income or loss, in light of all the facts and circumstances.
SB45, s. 1742
7Section
1742. 71.28 (1dj) (am) 3. of the statutes is amended to read:
SB45,877,108
71.28
(1dj) (am) 3. Modify the rule for certification under section
51 (d) (16) (A)
9of the internal revenue code to allow certification within the
90-day period beginning
10with the first day of employment of the employe
by the claimant.
SB45, s. 1743
11Section
1743. 71.28 (1dx) (b) 4. of the statutes is amended to read:
SB45,877,1712
71.28
(1dx) (b) 4. The amount determined by multiplying the amount
13determined under s. 560.785 (1)
(b) (bm) by the number of full-time jobs retained,
14as provided in the rules under s. 560.785, excluding jobs for which a credit has been
15claimed under sub. (1dj), in
a an enterprise development zone
under s. 560.797 and
16filled by a member of a targeted group for which significant capital investment was
17made and by then subtracting the subsidies paid under s. 49.147 (3) (a) for those jobs.
SB45, s. 1744
18Section
1744. 71.28 (2) of the statutes is amended to read:
SB45,877,2219
71.28
(2) Farmland preservation credit
, farmland preservation acreage
20credit. The farmland preservation credit
and the farmland preservation acreage
21credit under subch. IX may be claimed against taxes otherwise due subject to the
22provisions, requirements and conditions of that subchapter.
SB45, s. 1745
23Section
1745. 71.28 (4) (a) of the statutes is amended to read:
SB45,878,1224
71.28
(4) (a)
Credit. Any corporation may credit against taxes otherwise due
25under this chapter an amount equal to 5% of the amount obtained by subtracting
1from the corporation's qualified research expenses, as defined in section
41 of the
2internal revenue code, except that "qualified research expenses" includes only
3expenses incurred by the claimant, incurred for research conducted in this state for
4the taxable year, except that a taxpayer may elect the alternative computation under
5section
41 (c) (4) of the Internal Revenue Code and that election applies until the
6department permits its revocation and except that "qualified research expenses"
7does not include compensation used in computing the credit under subs. (1dj) and
8(1dx), the corporation's base amount, as defined in section
41 (c) of the internal
9revenue code, except that gross receipts used in calculating the base amount means
10gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and 2.
and, 11(d)
, (dc), (dg), (dn) and (dr). Section
41 (h) of the internal revenue code does not apply
12to the credit under this paragraph.
SB45, s. 1746
13Section
1746. 71.28 (4) (am) 1. of the statutes is amended to read:
SB45,879,1214
71.28
(4) (am)
Development zone additional research credit. 1. In addition to
15the credit under par. (a), any corporation may credit against taxes otherwise due
16under this chapter an amount equal to 5% of the amount obtained by subtracting
17from the corporation's qualified research expenses, as defined in section
41 of the
18internal revenue code, except that "qualified research expenses" include only
19expenses incurred by the claimant in a development zone under subch. VI of ch. 560,
20except that a taxpayer may elect the alternative computation under section
41 (c) (4)
21of the Internal Revenue Code and that election applies until the department permits
22its revocation and except that "qualified research expenses" do not include
23compensation used in computing the credit under sub. (1dj) nor research expenses
24incurred before the claimant is certified for tax benefits under s. 560.765 (3), the
25corporation's base amount, as defined in section
41 (c) of the internal revenue code,
1in a development zone, except that gross receipts used in calculating the base amount
2means gross receipts from sales attributable to Wisconsin under s. 71.25 (9) (b) 1. and
32.
and, (d)
, (dc), (dg), (dn) and (dr) and research expenses used in calculating the base
4amount include research expenses incurred before the claimant is certified for tax
5benefits under s. 560.765 (3), in a development zone, if the claimant submits with the
6claimant's return a copy of the claimant's certification for tax benefits under s.
7560.765 (3) and a statement from the department of commerce verifying the
8claimant's qualified research expenses for research conducted exclusively in a
9development zone. The rules under s. 73.03 (35) apply to the credit under this
10subdivision. The rules under sub. (1di) (f) and (g) as they apply to the credit under
11that subsection apply to claims under this subdivision. Section
41 (h) of the internal
12revenue code does not apply to the credit under this subdivision.
SB45, s. 1747
13Section
1747. 71.29 (2) of the statutes is amended to read:
SB45,879,1614
71.29
(2) Who shall pay. Every Except as provided in s. 71.255 (8), a 15corporation subject to tax under s. 71.23 (1) or (2) and every virtually exempt entity
16subject to tax under s. 71.125 or 71.23 (1) or (2) shall pay an estimated tax.
SB45, s. 1748
17Section
1748. 71.30 (3) (f) of the statutes is amended to read:
SB45,879,2118
71.30
(3) (f) The total of farmers' drought property tax credit under s. 71.28
19(1fd), farmland preservation credit
and farmland preservation acreage credit under
20subch. IX, farmland tax relief credit under s. 71.28 (2m) and estimated tax payments
21under s. 71.29.
SB45, s. 1749
22Section
1749. 71.44 (1) (e) of the statutes is created to read:
SB45,879,2523
71.44
(1) (e) A corporation that is a member of an affiliated group, as defined
24in s. 71.255 (1) (a), and engaged in a unitary business, as defined in s. 71.255 (1) (g),
25shall file a tax return under s. 71.255.
SB45, s. 1750
1Section
1750. 71.45 (3) (intro.) of the statutes is amended to read:
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71.45
(3) Apportionment. (intro.)
With Except as provided in pars. (a) and (b),
3with respect to domestic insurers not engaged in the sale of life insurance but which,
4in the taxable year, have collected premiums written on subjects of insurance
5resident, located or to be performed outside this state, there shall be subtracted from
6the net income figure derived by application of sub. (2) (a) to arrive at Wisconsin
7income constituting the measure of the franchise tax an amount calculated by
8multiplying such adjusted federal taxable income by the arithmetic average of the
9following 2 percentages:
SB45, s. 1751
10Section
1751. 71.45 (3) (a) of the statutes is amended to read:
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71.45
(3) (a) The percentage of total premiums written on all property and risks
12other than life insurance, wherever located during the taxable year, as reflects
13premiums written on insurance, other than life insurance, where the subject of
14insurance was resident, located or to be performed outside this state.
For taxable
15years beginning after December 31, 1999, the premiums percentage under this
16paragraph is the only percentage applied to the apportionment calculations in this
17paragraph and in sub. (3m).
SB45, s. 1752
18Section
1752. 71.45 (3) (b) of the statutes is renumbered 71.45 (3) (b) 1. and
19amended to read:
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71.45
(3) (b) 1. The percentage of total payroll, exclusive of life insurance
21payroll, paid everywhere in the taxable year as reflects such compensation paid
22outside this state.
The payroll percentage under this paragraph does not apply to
23the apportionment calculations under this paragraph and under sub. (3m) for
24taxable years beginning after December 31, 1999.
SB45,881,9
12. Compensation is paid outside this state if the individual's service is
2performed entirely outside this state; or the individual's service is performed both
3within and without this state, but the service performed within is incidental to the
4individual's service without this state; or some service is performed without this
5state and the base of operations, or if there is no base of operations, the place from
6which the service is directed or controlled is without this state, or the base of
7operations or the place from which the service is directed or controlled is not in any
8state in which some part of the service is performed, but the individual's residence
9is outside this state.
SB45, s. 1753
10Section
1753. 71.45 (3m) of the statutes is amended to read:
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71.45
(3m) Arithmetic average. The Except as provided in pars. (a) and (b),
12the arithmetic average of the 2 percentages referred to in sub. (3) shall be applied to
13the net income figure arrived at by the successive application of sub. (2) (a) and (b)
14with respect to Wisconsin insurers to which sub. (2) (a) and (b) applies and which
15have collected premiums written upon insurance, other than life insurance, where
16the subject of such insurance was resident, located or to be performed outside this
17state, to arrive at Wisconsin income constituting the measure of the franchise tax.
SB45, s. 1754
18Section
1754. 71.46 (3) of the statutes is repealed.
SB45, s. 1755
19Section
1755. 71.47 (1dj) (am) 3. of the statutes is amended to read:
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71.47
(1dj) (am) 3. Modify the rule for certification under section
51 (d) (16) (A)
21of the internal revenue code to allow certification within the
90-day period beginning
22with the first day of employment of the employe
by the claimant.