AB40: Bill Text

AB40,718,18 71.613 (3) (f) (intro.) The maximum amount of the credits that may be claimed under this section in any fiscal year is $27,007,200 is an amount specified under this paragraph. If the total amount of eligible claims exceed this amount, the excess claims shall be paid in the next succeeding fiscal year to ensure that the limit specified in this paragraph is not exceeded. The maximum amount of the credits that may be claimed under this section in any fiscal year is one of the following:

AB40,1436 Section 1436. 71.613 (3) (f) 1. of the statutes is created to read:

AB40,718,20 71.613 (3) (f) 1. For a fiscal year before the 2013-14 fiscal year, $27,007,200.

AB40,1437 Section 1437. 71.613 (3) (f) 2. of the statutes is created to read:

AB40,718,23 71.613 (3) (f) 2. For the 2013-14 fiscal year, and for every succeeding fiscal year, $25,304,300.

AB40,1438 Section 1438. 71.64 (9) (b) (intro.) of the statutes is amended to read:

AB40,719,4 71.64 (9) (b) (intro.) The department shall from time to time adjust the withholding tables to reflect any changes in income tax rates, any applicable surtax or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p) , (1q), and (2) resulting from statutory changes, except as follows:

AB40,1439 Section 1439. 71.67 (5) (a) of the statutes is amended to read:

AB40,719,11 71.67 (5) (a) Wager winnings. A person holding a license to sponsor and manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n) or , (1p), or (1q) if the amount of the payment is more than $1,000.

AB40,1440 Section 1440. 71.67 (5m) of the statutes is amended to read:

AB40,719,19 71.67 (5m) Withholding from payments to purchase assignment of lottery prize. A person that purchases an assignment of a lottery prize shall withhold from the amount of any payment made to purchase the assignment the amount that is determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n) or , (1p), or (1q). Subsection (5) (b), (c) and (d), as it applies to the amounts withheld under sub. (5) (a), applies to the amount withheld under this subsection.

AB40,1441 Section 1441. 71.83 (1) (a) 11. of the statutes is created to read:

AB40,719,24 71.83 (1) (a) 11. `Negligently filed claims.' A person who negligently files an incorrect claim for refund of tax, or credits, under this chapter is subject to a penalty of 25 percent of the difference between the amount claimed and the amount that should have been claimed.

AB40,1442 Section 1442. 71.83 (1) (b) 7. of the statutes is created to read:

AB40,720,4 71.83 (1) (b) 7. `Fraudulently filed claims.' A person who fraudulently files an incorrect claim for refund of tax, or credits, under this chapter is subject to a penalty of 100 percent of the difference between the amount claimed and the amount that should have been claimed.

AB40,1443 Section 1443. 71.83 (2) (b) 1. of the statutes is amended to read:

AB40,720,14 71.83 (2) (b) 1. `False income tax return; fraud.' Any person, other than a corporation or limited liability company, who renders a false or fraudulent income tax return with intent to defeat or evade any assessment required by this chapter, or to obtain a refund or credit with fraudulent intent, is guilty of a Class H felony and may be assessed the cost of prosecution. In this subdivision, "return" includes a separate return filed by a spouse with respect to a taxable year for which a joint return is filed under s. 71.03 (2) (g) to (L) after the filing of that separate return, and a joint return filed by the spouses with respect to a taxable year for which a separate return is filed under s. 71.03 (2) (m) after the filing of that joint return.

AB40,1444 Section 1444. 71.83 (5) of the statutes is created to read:

AB40,720,17 71.83 (5) Ineligibility to claim certain credits. (a) Definitions. In this subsection:

AB40,720,19 1. "Credit" means the earned income tax credit under s. 71.07 (9e) or the homestead credit under subch. VIII.

AB40,720,22 2. "Fraudulent claim" means a claim for a credit, filed by an individual, that is false or excessive and filed with fraudulent intent, as determined by the department.

AB40,720,25 3. "Reckless claim" means a claim for a credit, filed by an individual, that is improper, due to reckless or intentional disregard of the provisions in this chapter or of rules and regulations of the department, as determined by the department.

AB40,721,4 (b) Disallowance period. 1. An individual who files a fraudulent claim may not file a claim for a credit for 10 successive taxable years, beginning with the taxable year that begins immediately after the taxable year for which the department determined that the individual filed a fraudulent claim.

AB40,721,8 2. An individual who files a reckless claim may not file a claim for a credit for 2 successive taxable years, beginning with the taxable year that begins immediately after the taxable year for which the department determined that the individual filed a reckless claim.

AB40,721,12 (c) Reinstatement. After the period described under par. (b) during which an individual may not file a claim for a credit, he or she may file a claim for a credit, subject to any requirements that the department may impose on the individual to demonstrate that he or she is eligible to claim the credit.

AB40,1445 Section 1445. 71.91 (6) (a) 1. of the statutes is renumbered 71.91 (6) (a) 1g.

AB40,1446 Section 1446. 71.91 (6) (a) 1d. of the statutes is created to read:

AB40,721,17 71.91 (6) (a) 1d. "Continuous levy" means a levy that is in effect from the date on which it is served on a 3rd party until the liability out of which the levy arose is satisfied or until the levy is released, whichever occurs first.

AB40,1447 Section 1447. 71.91 (6) (a) 2n. of the statutes is created to read:

AB40,721,20 71.91 (6) (a) 2n. "Noncontinuous levy" means a levy that is in effect on the date on which it is served on a 3rd party.

AB40,1448 Section 1448. 71.91 (6) (b) of the statutes is amended to read:

AB40,722,7 71.91 (6) (b) Powers of levy and distraint. If any person who is liable for any tax administered by the department neglects or refuses to pay that tax within 10 days after that tax becomes delinquent, the department may collect that tax and the expenses of the levy by levy upon, and sale of, any property belonging to that person or any property on which there is a lien as provided by sub. (4) in respect to that delinquent tax. Whenever any property that has been levied upon under this section is not sufficient to satisfy the claim of the department, the department may levy upon any other property liable to levy of the person against whom that claim exists until the taxes and expenses of the levy are fully paid. A levy imposed under this paragraph may be continuous or noncontinuous, except that a levy on commissions, wages, or salaries is continuous until the liability out of which it arose is satisfied.

AB40,1449 Section 1449. 71.91 (6) (f) 1. of the statutes is amended to read:

AB40,722,19 71.91 (6) (f) 1. As soon as practicable after obtaining property, the department shall notify, in writing the manner prescribed by the department, the owner of any real or personal property, and, at the possessor's request, the possessor of any personal property, obtained by the department under this subsection. That notice may be left at the person's usual place of residence or business. If the owner cannot be located or has no dwelling or place of business in this state, or if the property is obtained as a result of a continuous levy on commissions, wages or salaries, the department may mail a notice to the owner's last-known address. That notice shall specify the sum demanded and shall contain, in the case of personal property, an account of the property obtained and, in the case of real property, a description with reasonable certainty of the property seized.

AB40,1450 Section 1450. 71.91 (6) (f) 2. of the statutes is amended to read:

AB40,723,3 71.91 (6) (f) 2. As soon as practicable after obtaining property, the department shall notify the owner in the manner prescribed under subd. 1. and shall cause a notice of the sale to be published in a newspaper published or generally circulated within the county where the property was obtained. If there is no newspaper published or generally circulated in that county, the department shall post that notice at the city, town or village hall nearest the place where the property was obtained and in at least 2 other public places. That notice shall specify the property to be sold and the time, place, manner and conditions of the sale.

AB40,1451 Section 1451. 71.93 (3) (a) of the statutes is renumbered 71.93 (3) (a) (intro.) and amended to read:

AB40,723,10 71.93 (3) (a) (intro.) The department of revenue shall setoff any debt or other amount owed to the department, regardless of the origin of the debt or of the amount, its nature or its date. If after the setoff there remains a refund in excess of $10, the department shall set off the remaining refund against certified debts of other state agencies. entities in the following order:

AB40,723,18 (am) If more than one certified debt exists for any debtor for the same type of debt specified under par. (a) 1. to 9., the refund shall be first set off against the earliest debt certified, except that no child support or spousal support obligation submitted by an agency of another state may be set off until all debts owed to and certified by state agencies of this state have been set off. When all debts have been satisfied, any remaining refund shall be refunded to the debtor by the department. Any legal action contesting a setoff under this paragraph shall be brought against the state agency entity that certified the debt under sub. (2).

AB40,1452 Section 1452. 71.93 (3) (a) 1. to 9. of the statutes are created to read:

AB40,723,21 71.93 (3) (a) 1. Wisconsin child support debt certified by the department of children and families under sub. (2).

AB40,723,24 2. State agency debt collected pursuant to an agreement under sub. (8) and debt owed to the courts, the legislature, or an authority, as defined in s. 16.41 (4), collected pursuant to an agreement under sub. (8).

AB40,724,2 3. Debt owed to local units of government collected pursuant to an agreement under sub. (8).

AB40,724,4 4. Debt certified under sub. (2), other than child support debt certified by the department of children and families.

AB40,724,6 5. Child support or spousal support obligations submitted by an agency of another state.

AB40,724,7 6. Debt certified under s. 71.935 (2).

AB40,724,9 7. Federal tax obligations collected pursuant to an agreement under s. 73.03 (52) (a).

AB40,724,10 8. Tribal obligations collected pursuant to an agreement under s. 73.03 (52n).

AB40,724,12 9. Tax obligations of other states collected pursuant to an agreement under s. 73.03 (52m).

AB40,1453 Section 1453. 71.93 (8) (b) 6. of the statutes is amended to read:

AB40,724,19 71.93 (8) (b) 6. If the debtor owes debt to the department and to other entities, payments shall first apply to debts owed to the department, then to the state agencies, the courts, the legislature, and authorities, as defined in s. 16.41 (4), in the order in which the debts were referred to the department, and then to local units of government in the order in which the debts were referred to the department other entities in the order determined under sub. (3) (a).

AB40,1454 Section 1454. 73.03 (27) of the statutes is amended to read:

AB40,725,2 73.03 (27) To With regard to taxes and fees administered by the department, to write off from the records of the department income, franchise, sales, use, withholding, motor fuel, gift, beverage and cigarette tax, fee, and economic development surcharge liabilities, following a determination by the secretary of revenue that they are not collectible. Taxes written off under this subsection remain legal obligations.

AB40,1455 Section 1455. 73.03 (52) (a) of the statutes is amended to read:

AB40,725,9 73.03 (52) (a) To enter into agreements with the Internal Revenue Service that provide for offsetting state tax refunds against federal tax obligations; and to charge a fee up to $25 per transaction for such offsets; and offsetting federal tax refunds against state tax obligations, and collecting the offset cost from the debtor, if the agreements provide that setoffs under ss. 71.93 and 71.935 occur before the setoffs under those agreements.

AB40,1456 Section 1456. 73.03 (52m) of the statutes is amended to read:

AB40,725,15 73.03 (52m) To enter into agreements with other states that provide for offsetting state tax refunds against tax and nontax obligations of other states and offsetting tax refunds of other states against state tax and nontax obligations, if the agreements provide that setoffs under ss. 71.93 and 71.935 occur before the setoffs under those agreements.

AB40,1457 Section 1457. 73.03 (63) of the statutes is amended to read:

AB40,726,2 73.03 (63) Notwithstanding the amount limitations specified under s. 71.07 (5d) (c) 1. and s. 238.15 (3) (d) or s. 560.205 (3) (d), 2009 stats., or s. 238.15 (3) (d), in consultation with the department of commerce or the Wisconsin Economic Development Corporation, to carry forward to subsequent taxable years unclaimed credit amounts of the early stage seed investment credits under ss. 71.07 (5b), 71.28 (5b), 71.47 (5b), and 76.638 and the angel investment credit under s. 71.07 (5d). Annually, no later than July 1, the department of commerce or the Wisconsin Economic Development Corporation shall submit to the department of revenue its recommendations for the carry forward of credit amounts as provided under this subsection.

AB40,1458 Section 1458. 73.03 (66) of the statutes is repealed.

AB40,1459 Section 1459. 73.03 (69) of the statutes is created to read:

AB40,726,8 73.03 (69) (a) To, effective on January 1, 2014, implement a program to register businesses for purposes of s. 71.05 (25) and (26). A business shall register electronically with the department each year for which the business desires registration.

AB40,726,11 (b) A business may register under this subsection if, in the business's taxable year ending immediately before the date of the businesses registration, all of the following apply:

AB40,726,14 1. The business has at least 2 full-time employees and the amount of payroll compensation paid by the business in this state is equal to at least 50 percent of the amount of all payroll compensation paid by the business.

AB40,726,17 2. The value of real and tangible personal property owned or rented and used by the business in this state is equal to at least 50 percent of the value of all real and tangible personal property owned or rented and used by the business.

AB40,726,18 (c) The department may adopt rules for the administration of this subsection.

AB40,726,21 (d) For each year beginning after December 31, 2013, the department shall compile a list of businesses registered under this subsection and shall make the list available to the public at the department's Internet site.

AB40,1460 Section 1460. 73.03 (70) of the statutes is created to read:

AB40,727,6 73.03 (70) In conjunction with the department of workforce development, to submit to the joint committee on finance, no later than June 30 of each year, a report describing the impact of the tax credits under ss. 71.07 (6n), 71.28 (6n), and 71.47 (6n) on unemployed veterans in this state. The report shall also specify the number and type of businesses that have claimed the credits under ss. 71.07 (6n), 71.28 (6n), and 71.47 (6n). Within 14 working days after the submittal date of the report, the cochairpersons of the committee shall notify the department of workforce development and the department of revenue that the committee has scheduled a meeting for the purpose of reviewing the report.

AB40,1461 Section 1461. 73.0301 (1) (d) 6. of the statutes is amended to read:

AB40,727,11 73.0301 (1) (d) 6. A license or certificate of registration issued by the department of financial institutions, or a division of it, under ss. 138.09, 138.12, 138.14, 202.12 to 202.14, 202.22, 217.06, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, 224.725, 224.93 or under subch. IV of ch. 551.

AB40,1462 Section 1462. 73.0301 (1) (d) 6m. of the statutes is created to read:

AB40,727,13 73.0301 (1) (d) 6m. A certificate or registration issued under 168.23 (3).

AB40,1463 Section 1463. 73.0301 (1) (e) of the statutes is amended to read:

AB40,727,22 73.0301 (1) (e) "Licensing department" means the department of administration; the department of agriculture, trade and consumer protection; the board of commissioners of public lands; the department of children and families; the government accountability board; the department of financial institutions; the department of health services; the department of natural resources; the department of public instruction; the department of safety and professional services; the department of workforce development; the office of the commissioner of insurance; or the department of transportation.

AB40,1464 Section 1464. 73.16 (1) (a) of the statutes is repealed.

AB40,1465 Section 1465. 73.16 (1) (ab) of the statutes is created to read:

AB40,727,25 73.16 (1) (ab) "Combined group" has the meaning given in s. 71.255 (1) (a).

AB40,1466 Section 1466. 73.16 (3) of the statutes is created to read:

AB40,728,6 73.16 (3) Relying on past audits. (a) A person who is subject to a determination by the department, including all other members of that person's combined group for purposes of determining the tax due under s. 71.23 for taxable years beginning after December 31, 2008, shall not be liable for any amount that the department asserts that the person owes if all of the following conditions are satisfied:

AB40,728,10 1. The liability asserted by the department is the result of a tax issue during the period associated with a prior determination for which the person is subject to and the tax issue is the same as the tax issue during the period associated with the current determination.

AB40,728,16 2. A department employee who was involved in the prior determination identified or reviewed the tax issue before completing the prior determination, as shown by any schedules, exhibits, audit reports, documents, or other written evidence pertaining to the determination, and the schedules, exhibits, reports, documents and other written evidence show that the department did not adjust the person's treatment of the tax issue.

AB40,728,18 3. The liability asserted by the department as described under subd. 1. was not asserted in the prior determination.

AB40,729,2 (b) This subsection does not apply to any period associated with a determination, if the period begins after the promulgation of a rule, dissemination of written guidance to the public or to the person who is subject to the determination, the effective date of a statute, or the date on which a tax appeals commission or court decision becomes final and conclusive and if the rule, guidance, statute, or decision imposes the liability as a result of the tax issue described in par. (a) 1. This subsection does not apply to any period associated with a determination if the taxpayer did not give the department employee adequate and accurate information or if the issue is settled by a written agreement between the department and the taxpayer.

AB40,1467 Section 1467. 76.14 of the statutes is amended to read:

AB40,729,23 76.14 Remedies for nonpayment of taxes. All taxes levied under this subchapter upon the property of any company defined in s. 76.02, which are not paid at the time provided by law, shall thereupon become delinquent and bear interest at the rate of 1.5% per month until actually paid. Upon a showing by the department under s. 73.16 (4), the failure of any such company to pay the taxes and interest so required of the company within 60 days after the entry of final judgment dismissing in whole or in part any action of the company to restrain or set aside a tax, or the failure of the company within 60 days after the entry of final judgment in favor of the state for the taxes and interest to pay the judgment shall be cause for forfeiture of all the rights, privileges and franchises granted by special charter or obtained under general laws, by or under which the company is organized and its business is operated. The attorney general upon the showing by the department under s. 73.16 (4) shall proceed by action to have forfeiture of such rights, privileges and franchises of the company duly declared. Any such company, at any time before the final judgment for forfeiture of such rights, privileges and franchises is rendered, may be permitted, absent a showing by the department under s. 73.16 (4), to pay the taxes, interest and the costs of the action upon special application to the court in which the action is pending upon such terms as the court directs. Section 71.91, as it applies to the collection of delinquent taxes under ch. 71, applies to the collection of delinquent taxes under this subchapter.

AB40,1468 Section 1468. 76.636 (1) (d) of the statutes is amended to read:

AB40,730,7 76.636 (1) (d) "Full-time job" means a regular, nonseasonal, full-time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays, and for which the individual receives pay that is equal to at least 150 percent of the federal minimum wage and receives benefits that are not required by federal or state law. "Full-time job" does not include initial training before an employment position begins has the meaning given in s. 238.30 (2m).

AB40,1469 Section 1469. 76.636 (1) (e) 3. of the statutes is amended to read: