AB75: Bill Text

AB75,1042,17 (2) Filing claims. Subject to the limitations under this section and ss. 560.701 to 560.706, for taxable years beginning after December 31, 2008, a claimant may claim as a credit against the fees due under s. 76.60, 76.63, 76.65, 76.66, or 76.67 the amount authorized for the claimant under s. 560.703.

AB75,1042,21 (3) Limitations. No credit may be allowed under this section unless the insurer includes with the insurer's annual return under s. 76.64 a copy of the claimant's certification under s. 560.701 (2) and a copy of the claimant's notice of eligibility to receive tax benefits under s. 560.703 (3).

AB75,1043,6 (4) Administration. If an insurer's certification is revoked under s. 560.705, or if an insurer becomes ineligible for tax benefits under s. 560.702, the insurer may not claim credits under this section for the taxable year that includes the day on which the certification is revoked; the taxable year that includes the day on which the insurer becomes ineligible for tax benefits; or succeeding taxable years and the insurer may not carry over unused credits from previous years to offset the fees imposed under ss. 76.60, 76.63, 76.65, 76.66, or 76.67 for the taxable year that includes the day on which certification is revoked; the taxable year that includes the day on which the insurer becomes ineligible for tax benefits; or succeeding taxable years.

AB75, s. 1826 Section 1826. 76.638 of the statutes is created to read:

AB75,1043,10 76.638 Early stage seed investment credit. (1) Definitions. In this section, "fund manager" means an investment fund manager certified under s. 560.205 (2).

AB75,1043,15 (2) Filing claims. For taxable years beginning after December 31, 2008, subject to the limitations provided under this subsection and s. 560.205, an insurer may claim as a credit against the fees imposed under s. 76.60, 76.63, 76.65, 76.66, or 76.67, 25 percent of the insurer's investment paid to a fund manager that the fund manager invests in a business certified under s. 560.205 (1).

AB75,1043,18 (3) Investment basis. The Wisconsin adjusted basis of any investment for which a credit is claimed under sub. (2) shall be reduced by the amount of the credit that is offset against the fees imposed under s. 76.60, 76.63, 76.65, 76.66, or 76.67.

AB75,1043,24 (4) Carry-forward. If the credit under sub. (2) is not entirely offset against the fees under s. 76.60, 76.63, 76.65, 76.66, or 76.67 otherwise due, the unused balance may be carried forward and credited against those fees for the following 15 years to the extent that it is not offset by those fees otherwise due in all the years between the year in which the expense was made and the year in which the carry-forward credit is claimed.

AB75, s. 1827 Section 1827. 76.67 (2) of the statutes is amended to read:

AB75,1044,10 76.67 (2) If any domestic insurer is licensed to transact insurance business in another state, this state may not require similar insurers domiciled in that other state to pay taxes greater in the aggregate than the aggregate amount of taxes that a domestic insurer is required to pay to that other state for the same year less the credits under ss. 76.635, 76.636, 76.637, 76.638, and 76.655, except that the amount imposed shall not be less than the total of the amounts due under ss. 76.65 (2) and 601.93 and, if the insurer is subject to s. 76.60, 0.375% of its gross premiums, as calculated under s. 76.62, less offsets allowed under s. 646.51 (7) or under ss. 76.635, 76.636, 76.637, 76.638, and 76.655 against that total, and except that the amount imposed shall not be less than the amount due under s. 601.93.

AB75, s. 1828 Section 1828. 76.81 of the statutes is amended to read:

AB75,1044,22 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. ss. 70.11 (27m), (39), and (39m) and 70.111 (27), 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). 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).

AB75, s. 1829 Section 1829. Chapter 77 (title) of the statutes is amended to read:

AB75,1045,11 CHAPTER 77 TAXATION OF FOREST CROPLANDS; REAL ESTATE TRANSFER FEES; SALES AND USE TAXES; COUNTY, transit authority, AND SPECIAL DISTRICT SALES AND USE TAXES; MANAGED FOREST LAND; RECYCLING SURCHARGE; LOCAL FOOD AND BEVERAGE TAX; LOCAL RENTAL CAR TAX; Premier resort area taxes; state rental vehicle fee; dry cleaning fees; regional transit authority fee;

AB75,1045,12 oil company Profits tax

AB75, s. 1830 Section 1830. 77.25 (8n) of the statutes is created to read:

AB75,1045,15 77.25 (8n) Between an individual and his or her domestic partner under ch. 770.

AB75, s. 1831 Section 1831. 77.51 (7m) (a) 3. of the statutes is created to read:

AB75,1045,24 77.51 (7m) (a) 3. Conveying work in progress directly from one manufacturing process to another in the same plant; testing or inspecting, throughout the manufacturing process, the new article of tangible personal property that is being manufactured; storing work in progress in the same plant where the manufacturing occurs; assembling finished units of tangible personal property; and packaging a new article of tangible personal property, if the manufacturer, or another person on the manufacturer's behalf, performs the packaging and if the packaging becomes part of the new article as it is customarily offered for sale by the manufacturer.

AB75, s. 1832 Section 1832. 77.51 (7m) (b) of the statutes is created to read:

AB75,1046,3 77.51 (7m) (b) "Manufacturing" does not include storing raw materials or finished units of tangible personal property, research or development, delivery to or from the plant, or repairing or maintaining plant facilities.

AB75, s. 1833 Section 1833. 77.51 (10) of the statutes is amended to read:

AB75,1046,13 77.51 (10) "Person" includes any natural person, firm, partnership, limited liability company, joint venture, joint stock company, association, public or private corporation, the United States, the state, including any unit or division of the state, any county, city, village, town, municipal utility, municipal power district or other governmental unit, cooperative, unincorporated cooperative association, estate, trust, receiver, personal representative, any other fiduciary, and any representative appointed by order of any court or otherwise acting on behalf of others. "Person" also includes the owner of a single-owner entity that is disregarded as a separate entity under ch. 71.

AB75, s. 1834 Section 1834. 77.51 (10m) of the statutes is created to read:

AB75,1046,18 77.51 (10m) For purposes of sub. (7m), "plant" means a parcel of property or adjoining parcels of property, including parcels that are separated only by a public road, and the buildings, machinery, and equipment that are located on the parcel, that are owned by or leased to the manufacturer.

AB75, s. 1835 Section 1835. 77.51 (10n) of the statutes is created to read:

AB75,1046,21 77.51 (10n) For purposes of sub. (7m), "plant inventory" does not include unsevered mineral deposits.

AB75, s. 1836 Section 1836. 77.51 (13g) (c) of the statutes is created to read:

AB75,1047,4 77.51 (13g) (c) Any person who has an affiliate in this state, if the person is related to the affiliate and if the affiliate uses facilities or employees in this state to advertise, promote, or facilitate the establishment of or market for sales of items by the related person to purchasers in this state or for providing services to the related person's purchasers in this state, including accepting returns of purchases or resolving customer complaints. For purposes of this paragraph, 2 persons are related if any of the following apply:

AB75,1047,9 1. One person, or each person, is a corporation and one person and any person related to that person in a manner that would require a stock attribution from the corporation to the person or from the person to the corporation under section 318 of the Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent of the corporation's outstanding stock value.

AB75,1047,13 2. One person, or each person, is a partnership, estate, or trust and any partner or beneficiary; and the partnership, estate, or trust and its partners or beneficiaries; own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital, stock, or value of the other person or both persons.

AB75,1047,17 3. An individual stockholder and the members of the stockholder's family, as defined in section 318 of the Internal Revenue Code, owns directly, indirectly, beneficially, or constructively, in the aggregate, at least 50 percent of both persons' outstanding stock value.

AB75, s. 1837 Section 1837. 77.52 (2) (a) 2. a. of the statutes is amended to read:

AB75,1048,2 77.52 (2) (a) 2. a. Except as provided in subd. 2. b. and c., the sale of admissions to amusement, athletic, entertainment or recreational events or places except county fairs, the sale, rental or use of regular bingo cards, extra regular cards, special bingo cards and the sale of bingo supplies to players and the furnishing, for dues, fees or other considerations, the privilege of access to clubs or the privilege of having access to or the use of amusement, entertainment, athletic or recreational devices or facilities, including the sale or furnishing of use of recreational facilities on a periodic basis or other recreational rights, including but not limited to membership rights, vacation services and club memberships.

AB75, s. 1838 Section 1838. 77.52 (2) (a) 2. c. of the statutes is created to read:

AB75,1048,6 77.52 (2) (a) 2. c. Taxable sales do not include the sale of admissions by a nonprofit organization to participate in any sports activity in which more than 50 percent of the participants are 19 years old or younger.

AB75, s. 1839 Section 1839. 77.52 (2) (a) 8m. of the statutes is created to read:

AB75,1048,12 77.52 (2) (a) 8m. The towing and hauling of motor vehicles by a tow truck, as defined in s. 340.01 (67n), unless at the time of towing or hauling a sale in this state of the motor vehicle to the purchaser would be exempt from the taxes imposed under this subchapter, not including the exempt sale of a motor vehicle to a nonresident under s. 77.54 (5) (a) and nontaxable sales described under s. 77.51 (14r).

AB75, s. 1840 Section 1840. 77.52 (2) (ag) 39. (intro.) of the statutes is amended to read:

AB75,1048,20 77.52 (2) (ag) 39. (intro.) Equipment in offices, business facilities, schools, and hospitals but not in residential facilities including personal residences, apartments, long-term care facilities, as defined under s. 16.009 (1) (em), state institutions, as defined under s. 101.123 (1) (i) prisons, mental health institutes, as defined in s. 51.01 (12), centers for the developmentally disabled, as defined in s. 51.01 (3), Type 1 juvenile correctional facilities, as defined in s. 938.02 (19), or similar facilities including, by way of illustration but not of limitation, all of the following:

AB75, s. 1841 Section 1841. 77.53 (16m) of the statutes is created to read:

AB75,1049,3 77.53 (16m) If the purchase, rental, or lease of tangible personal property or service subject to the tax imposed by this section occurred on tribal lands and was subject to a sales tax by a federally recognized American Indian tribe or band in this state, the amount of sales tax paid to the tribe or band shall be applied as a credit against and deducted from the tax, to the extent thereof, imposed by this section. In this subsection "sales tax" includes a use or excise tax imposed on the use of tangible personal property or taxable service by the tribe or band.

AB75, s. 1842 Section 1842. 77.54 (2) of the statutes is amended to read:

AB75,1049,12 77.54 (2) The gross receipts from sales of and the storage, use or other consumption of tangible personal property becoming that is used exclusively and directly by a manufacturer in manufacturing an article of tangible personal property that is destined for sale and that becomes an ingredient or component part of an the article of tangible personal property destined for sale or which is consumed or destroyed or loses its identity in the manufacture manufacturing the article of tangible personal property in any form destined for sale, except as provided in sub. (30) (a) 6.

AB75, s. 1843 Section 1843. 77.54 (2m) of the statutes is amended to read:

AB75,1049,23 77.54 (2m) The gross receipts from the sales of and the storage, use or other consumption of tangible personal property or services that are used exclusively and directly by a manufacturer in manufacturing shoppers guides, newspapers, or periodicals and that become an ingredient or component of shoppers guides, newspapers, or periodicals or that are consumed or lose their identity in the manufacture of shoppers guides, newspapers, or periodicals, whether or not the shoppers guides, newspapers, or periodicals are transferred without charge to the recipient. In this subsection, "shoppers guides", ," "newspapers," and "periodicals" have the meanings under sub. (15). The exemption under this subdivision does not apply to advertising supplements that are not newspapers.

AB75, s. 1844 Section 1844. 77.54 (6m) (intro.) of the statutes is renumbered 77.51 (7m) (a) (intro.) and amended to read:

AB75,1050,8 77.51 (7m) (a) (intro.) For purposes of sub. (6) (a) "manufacturing" is "Manufacturing" means the production by machinery of a new article of tangible personal property with a different form, use, and name from existing materials, by a process popularly regarded as manufacturing, and that begins with conveying raw materials and supplies from plant inventory to the place where work is performed in the same plant and ends with conveying finished units of tangible personal property to the point of first storage in the same plant. "Manufacturing" includes but is not limited to:

AB75, s. 1845 Section 1845. 77.54 (6m) (a) of the statutes is renumbered 77.51 (7m) (a) 1.

AB75, s. 1846 Section 1846. 77.54 (6m) (b) of the statutes is renumbered 77.51 (7m) (a) 2. and amended to read:

AB75,1050,15 77.51 (7m) (a) 2. Ore dressing, including the mechanical preparation, by crushing and other processes, and the concentration, by flotation and other processes, of ore, and beneficiation, including but not limited to the preparation of ore for smelting.

AB75, s. 1847 Section 1847. 77.54 (9a) (a) of the statutes is amended to read:

AB75,1050,20 77.54 (9a) (a) This state or any agency thereof, the University of Wisconsin Hospitals and Clinics Authority, the Wisconsin Aerospace Authority, the Health Insurance Risk-Sharing Plan Authority, the Wisconsin Quality Home Care Authority, and the Fox River Navigational System Authority.

AB75, s. 1848 Section 1848. 77.54 (9a) (ed) of the statutes is created to read:

AB75,1050,23 77.54 (9a) (ed) Any federally recognized American Indian tribe or band in this state.

AB75, s. 1849 Section 1849. 77.54 (9a) (er) of the statutes is created to read:

AB75,1050,25 77.54 (9a) (er) Any transit authority created under s. 66.1039.

AB75, s. 1850 Section 1850. 77.54 (44) of the statutes is amended to read:

AB75,1051,3 77.54 (44) The gross receipts from the collection of low-income assistance fees that are charged under s. 16.957 196.3746 (4) (a) or (5) (a).

AB75, s. 1851 Section 1851. 77.54 (50) of the statutes is created to read:

AB75,1051,5 77.54 (50) (a) In this subsection:

AB75,1051,12 1. "Biotechnology" means the application of biotechnologies, including recombinant deoxyribonucleic acid techniques, biochemistry, molecular and cellular biology, genetics, genetic engineering, biological cell fusion, and other bioprocesses, that use living organisms or parts of an organism to produce or modify products to improve plants or animals or improve animal health, develop microorganisms for specific uses, identify targets for small molecule pharmaceutical development, or transform biological systems into useful processes and products.

AB75,1051,13 2. "Machinery" has the meaning given in s. 70.11 (27) (a) 2.

AB75,1051,14 3. "Manufacturing" has the meaning given in sub. (6m).

AB75,1051,15 4. "Primarily" means more than 50 percent.

AB75,1051,17 5. "Qualified research" means qualified research as defined under section 41 (d) (1) of the Internal Revenue Code.

AB75,1051,18 6. "Used exclusively" has the meaning given in sub. (3) (b) 3.

AB75,1051,20 (b) The gross receipts from the sale of and the storage, use, or other consumption of all of the following:

AB75,1051,24 1. Machinery and equipment, including attachments, parts, and accessories, that are sold to persons who are engaged primarily in manufacturing or biotechnology in this state and are used exclusively and directly in qualified research.

AB75,1052,4 2. Tangible personal property that is sold to persons who are engaged primarily in manufacturing or biotechnology in this state, if the tangible personal property is consumed or destroyed or loses its identity while being used exclusively and directly in qualified research.

AB75, s. 1852 Section 1852. 77.58 (3) (a) of the statutes is amended to read:

AB75,1052,22 77.58 (3) (a) For purposes of the sales tax a return shall be filed by every seller. For purposes of the use tax a return shall be filed by every retailer engaged in business in this state and by every person purchasing tangible personal property or services, the storage, use or other consumption of which is subject to the use tax, who has not paid the use tax due to a retailer required to collect the tax. If a qualified subchapter S subsidiary is not regarded as a separate entity under ch. 71, the owner of that subsidiary shall elect to either include the information for that subsidiary on the owner's return. Returns shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath or file a separate electronic return for that entity. If a single-owner entity is disregarded as a separate entity under ch. 71, the owner shall elect to either include the information from the entity on the owner's return or file a separate electronic return for that entity. If an owner that owns more than one entity that is disregarded as a separate entity under ch. 71 elects to file a separate return for one of its disregarded entities, the owner shall file separate returns for all of its disregarded entities. Returns filed under this paragraph shall be signed by the person required to file the return or by a duly authorized agent but need not be verified by oath.

AB75, s. 1853 Section 1853. 77.61 (11) of the statutes is amended to read:

AB75,1053,6 77.61 (11) Any city, village or town clerk or other official whose duty it is to issue licenses or permits to engage in a business involving the sale at retail of tangible personal property subject to tax under this subchapter, or the furnishing of services so subject to tax, shall, before issuing such license or permit, require proof that the person to whom such license or permit is to be issued is the holder of a seller's permit or use tax registration certificate as required by this subchapter or has been informed by an employee of the department that the department will issue a seller's permit or use tax registration certificate to that person.

AB75, s. 1854 Section 1854. 77.61 (16) of the statutes is created to read:

AB75,1053,11 77.61 (16) A person who fails to produce records or documents, as provided under s. 73.03 (9), that support amounts or other information shown on a return required under s. 77.58 may be subject to any of the following, as determined by the department:

AB75,1053,13 (a) The disallowance of deductions, credits, or exemptions to which the requested records relate.

AB75,1053,16 (b) A penalty for each violation of this subsection that is equal to the greater of $500 or 25 percent of the amount of any adjustment by the department that results from the person's failure to produce the records.

AB75, s. 1855 Section 1855. 77.61 (16m) of the statutes is created to read:

AB75,1053,19 77.61 (16m) A single-owner entity that is disregarded as a separate entity under ch. 71 is disregarded as a separate entity for purposes of this subchapter.

AB75, s. 1856 Section 1856. Subchapter V (title) of chapter 77 [precedes 77.70] of the statutes is amended to read:

AB75,1053,22 Chapter 77

AB75,1054,2 SUBCHAPTER V COUNTY, transit authority, AND SPECIAL DISTRICT SALES AND USE TAXES

AB75, s. 1857 Section 1857. 77.705 of the statutes is amended to read:

AB75,1054,14 77.705 Adoption by resolution; baseball park district. A local professional baseball park district created under subch. III of ch. 229, by resolution under s. 229.68 (15), may impose a sales tax and a use tax under this subchapter at a rate of no more than 0.1% of the gross receipts or sales price. Those taxes may be imposed only in their entirety. The resolution shall be effective on the first day of the first month that begins at least 30 days after the adoption of the resolution. Any moneys transferred from the appropriation account under s. 20.566 (1) (gd) to the appropriation account under s. 20.835 (4) (gb) shall be used exclusively to retire the district's debt. Any moneys received under s. 341.14 (6r) (b) 13. b. and credited to the appropriation account under s. 20.835 (4) (gb) shall be used exclusively to retire the district's debt.

AB75, s. 1858 Section 1858. 77.708 of the statutes is created to read:

AB75,1054,21 77.708 Adoption by resolution; transit authority. (1) A transit authority created under s. 66.1039, by resolution under s. 66.1039 (4) (s), may impose a sales tax and a use tax under this subchapter at a rate not to exceed 0.5 percent of the gross receipts or sales price. Those taxes may be imposed only in their entirety. The resolution shall be effective on the first day of the first calendar quarter that begins at least 120 days after the adoption of the resolution.

AB75,1055,2 (2) Retailers and the department of revenue may not collect a tax under sub. (1) for any transit authority created under s. 66.1039 after the calendar quarter during which the transit authority adopts a repeal resolution under s. 66.1039 (4) (s), except that the department of revenue may collect from retailers taxes that accrued before such calendar quarter and fees, interest, and penalties that relate to those taxes.