LRB-1406/1
JK:jld:md
2011 - 2012 LEGISLATURE
July 25, 2011 - Introduced by Representatives Bies, Ballweg, Brooks, Endsley,
Petrowski, Spanbauer and Meyer, cosponsored by Senators Kedzie, Olsen,
Holperin and Schultz. Referred to Committee on Tourism, Recreation and
State Properties.
AB205,1,4
1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45
2(2) (a) 10. and 77.92 (4); and
to create 71.07 (5n), 71.10 (4) (cr), 71.28 (5n), 71.30
3(3) (dn), 71.47 (5n) and 71.49 (1) (dn) of the statutes;
relating to: a tax credit
4for hospitality business advertising.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit equal to 10 percent of the
amount that a taxpayer spends in the taxable year on advertising outside of this state
to promote the taxpayer's hospitality business located in this state. If the credit
claimed by a taxpayer exceeds the taxpayer's tax liability, the state will not issue a
refund check, but the taxpayer may carry forward any remaining credit to
subsequent taxable years.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB205, s. 1
5Section
1. 71.05 (6) (a) 15. of the statutes is amended to read:
AB205,2,46
71.05
(6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
7(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
1(3rm), (3rn), (3s), (3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k),
(5n), (5r), (5rm), and (8r) and
2not passed through by a partnership, limited liability company, or tax-option
3corporation that has added that amount to the partnership's, company's, or
4tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).
AB205, s. 2
5Section
2. 71.07 (5n) of the statutes is created to read:
AB205,2,76
71.07
(5n) Hospitality business advertising credit. (a)
Definitions. In this
7subsection:
AB205,2,88
1. "Claimant" means a person who files a claim under this subsection.
AB205,2,129
2. "Hospitality business" means a hospitality business located in this state,
10including a business that is classified in the standard industrial classification
11manual, 1987 edition, published by the U.S. office of management and budget, under
12any of the following industry numbers:
AB205,2,1313
a. 5812 — Eating places.
AB205,2,1414
b. 5813 — Drinking places.
AB205,2,1515
c. 7011 — Hotels and motels.
AB205,2,1616
d. 7032 — Sporting and recreational camps.
AB205,2,1717
e. 7033 — Recreational vehicle parks and campsites.
AB205,2,1818
f. 7922 — Theatrical producers and miscellaneous theatrical services.
AB205,2,2019
g. 7929 — Bands, orchestras, actors, and other entertainers and entertainment
20groups.
AB205,2,2121
h. 7948 — Racing, including track operation.
AB205,2,2222
i. 7992 — Public golf courses.
AB205,2,2323
j. 7996 — Amusement parks.
AB205,2,2424
k. 7997 — Membership sports and recreation clubs.
AB205,2,2525
L. 7999 — Amusement and recreational services, not elsewhere classified.
AB205,3,5
1(b)
Filing claims. Subject to the limitations provided in this subsection, a
2claimant may claim as a credit against the tax imposed under s. 71.02, up to the
3amount of the tax, an amount equal to 10 percent of the amount the claimant spent
4in the taxable year on advertising outside of this state to promote the claimant's
5hospitality business.
AB205,3,136
(c)
Limitations. Partnerships, limited liability companies, and tax-option
7corporations may not claim the credit under this subsection, but the eligibility for,
8and the amount of, the credit are based on their payment of amounts under par. (b).
9A partnership, limited liability company, or tax-option corporation shall compute
10the amount of credit that each of its partners, members, or shareholders may claim
11and shall provide that information to each of them. Partners, members of limited
12liability companies, and shareholders of tax-option corporations may claim the
13credit in proportion to their ownership interests.
AB205,3,1514
(d)
Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
15s. 71.28 (4), applies to the credit under this subsection.
AB205, s. 3
16Section
3. 71.10 (4) (cr) of the statutes is created to read:
AB205,3,1717
71.10
(4) (cr) Hospitality business advertising credit under s. 71.07 (5n).
AB205, s. 4
18Section
4. 71.21 (4) of the statutes is amended to read:
AB205,3,2219
71.21
(4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
20(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s),
21(3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k),
(5n), (5r), (5rm), and (8r) and passed
22through to partners shall be added to the partnership's income.
AB205,4,7
171.26
(2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
2(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r),
3(3rm), (3rn), (3t), (3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k),
(5n), (5r), (5rm), (8r), and
4(9s) and not passed through by a partnership, limited liability company, or
5tax-option corporation that has added that amount to the partnership's, limited
6liability company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k)
7(g).
AB205, s. 6
8Section
6. 71.28 (5n) of the statutes is created to read:
AB205,4,109
71.28
(5n) Hospitality business advertising credit. (a)
Definitions. In this
10subsection:
AB205,4,1111
1. "Claimant" means a person who files a claim under this subsection.
AB205,4,1512
2. "Hospitality business" means a hospitality business located in this state,
13including a business that is classified in the standard industrial classification
14manual, 1987 edition, published by the U.S. office of management and budget, under
15any of the following industry numbers:
AB205,4,1616
a. 5812 — Eating places.
AB205,4,1717
b. 5813 — Drinking places.
AB205,4,1818
c. 7011 — Hotels and motels.
AB205,4,1919
d. 7032 — Sporting and recreational camps.
AB205,4,2020
e. 7033 — Recreational vehicle parks and campsites.
AB205,4,2121
f. 7922 — Theatrical producers and miscellaneous theatrical services.
AB205,4,2322
g. 7929 — Bands, orchestras, actors, and other entertainers and entertainment
23groups.
AB205,4,2424
h. 7948 — Racing, including track operation.
