SB334: Bill Text

LRB-3439/1

MPG&JK:all

2015 - 2016 LEGISLATURE

2015 Senate BILL 334

October 14, 2015 - Introduced by Senators Marklein, Gudex, Cowles, Shilling, L. Taylor, Vinehout and Lassa, cosponsored by Representatives Petryk, Loudenbeck, Allen, Brandtjen, Czaja, Doyle, Edming, Genrich, Kahl, Kitchens, Kleefisch, Krug, Murphy, Mursau, Nerison, Novak, Nygren, A. Ott, Petersen, Sargent, Steffen, Stuck, Tranel, Weatherston, Zepnick and Ripp. Referred to Committee on Judiciary and Public Safety.

SB334,1,7 An Act to renumber 71.23 (3); to renumber and amend 71.67 (6), 77.52 (7) and 77.53 (9); to amend 71.03 (2) (a) 2., 77.52 (12) and 323.12 (title); and to create 71.04 (7) (f) 17., 71.05 (1) (g), 71.23 (3) (bm), 71.25 (9) (f) 17., 71.25 (16), 71.26 (2) (a) 12., 71.64 (6) (c), 71.67 (6) (b), 77.52 (7) (b), 77.53 (9) (b), 77.53 (19) and 323.12 (5) of the statutes; relating to: exemptions from certain taxes and other requirements for work performed by persons from outside the state during a state of emergency declared by the governor.

Analysis by the Legislative Reference Bureau

This bill provides that a business or employee that is not a Wisconsin resident is exempt from certain licensing and other requirements for work performed in this state during a state of emergency declared by the governor. If a proper notice concerning the disaster relief work is given, such an out-of-state business or employee is exempt from all of the following with respect to the work:

1. Any applicable state or local government fee.

2. Any applicable state income, franchise, or withholding tax.

3. Any applicable state or local government license, certificate, registration, permit, or other credential or approval.

4. The use tax imposed on tangible personal property and services purchased outside of this state and brought into this state for disaster relief work.

The exemptions are available only for the work that is performed during a state of emergency declared by the governor or within ten days before or 60 days after that state of emergency. Under current law, a state of emergency generally lasts up to 60 days, but the legislature may extend that period by joint resolution.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

For further information see the state and local 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:

SB334,1 Section 1. 71.03 (2) (a) 2. of the statutes is amended to read:

SB334,2,7 71.03 (2) (a) 2. Every nonresident person and every person who changes domicile into or out of this state during the taxable year shall file a return if the person is unmarried and has gross income of $2,000 or more, or if the person is married and the combined gross income of the person and his or her spouse is $2,000 or more, except that a return is not required to be filed if all the income is exempt from income tax under s. 71.05 (1) (g).

SB334,2 Section 2. 71.04 (7) (f) 17. of the statutes is created to read:

SB334,2,10 71.04 (7) (f) 17. Gross receipts from sales of property or services as part of performing disaster relief work, as defined in s. 323.12 (5) (a) 3.

SB334,3 Section 3. 71.05 (1) (g) of the statutes is created to read:

SB334,2,15 71.05 (1) (g) Income from work performed during a declared state of emergency. Income of an out-of-state business, as defined in s. 323.12 (5) (a) 6., and an out-of-state employee, as defined in s. 323.12 (5) (a) 7., from disaster relief work, as defined under s. 323.12 (5) (a) 3.

SB334,4 Section 4. 71.23 (3) of the statutes is renumbered 71.23 (3) (am).

SB334,5 Section 5. 71.23 (3) (bm) of the statutes is created to read:

SB334,3,4 71.23 (3) (bm) Except as provided in s. 71.255 (5), an out-of-state business, as defined in s. 323.12 (5) (a) 6., may do business in this state without subjecting itself to the imposition of the income or franchise tax under subs. (1) and (2) if its only activity in this state is disaster relief work, as defined in s. 323.12 (5) (a) 3.

SB334,6 Section 6. 71.25 (9) (f) 17. of the statutes is created to read:

SB334,3,7 71.25 (9) (f) 17. Gross receipts from sales of property or services as part of performing disaster relief work, as defined in s. 323.12 (5) (a) 3.

SB334,7 Section 7. 71.25 (16) of the statutes is created to read:

SB334,3,19 71.25 (16) Disaster relief work. For purposes of the apportionment of any income under this section, the disaster relief work, as defined in s. 323.12 (5) (a) 3., of an out-of-state business, as defined in s. 323.12 (5) (a) 6., shall not increase the amount of income apportioned to this state. For purposes of sub. (7), any property brought temporarily into this state by an out-of-state business in connection with performing disaster relief work is not considered property located in this state. For purposes of sub. (8), compensation paid to out-of-state employees, as defined in s. 323.12 (5) (a) 7., who are performing disaster relief work is not considered compensation paid in this state. For purposes of sub. (9), gross receipts from the sale of property or services as part of performing any disaster relief work are not considered gross receipts from sales received in this state.

SB334,8 Section 8. 71.26 (2) (a) 12. of the statutes is created to read:

SB334,3,22 71.26 (2) (a) 12. Minus the income of an out-of-state business, as defined in s. 323.12 (5) (a) 6., from disaster relief work, as defined in s. 323.12 (5) (a) 3.

SB334,9 Section 9. 71.64 (6) (c) of the statutes is created to read:

SB334,4,3 71.64 (6) (c) No amount shall be withheld from wages paid to an out-of-state employee, as defined in s. 323.12 (5) (a) 7., for disaster relief work, as defined in s. 323.12 (5) (a) 3.

SB334,10 Section 10. 71.67 (6) of the statutes is renumbered 71.67 (6) (a) and amended to read:

SB334,4,8 71.67 (6) (a) Each Except as provided under par. (b), each employer who is required to withhold under this chapter shall obtain a valid certificate under s. 73.03 (50).

SB334,11 Section 11. 71.67 (6) (b) of the statutes is created to read:

SB334,4,13 71.67 (6) (b) An out-of-state business, as defined in s. 323.12 (5) (a) 6., whose only payments to employees are to out-of-state employees, as defined in s. 323.12 (5) (a) 7., for disaster relief work, as defined in s. 323.12 (5) (a) 3., is not required to obtain a certificate under s. 73.03 (50).

SB334,12 Section 12. 77.52 (7) of the statutes is renumbered 77.52 (7) (a) and amended to read:

SB334,5,4 77.52 (7) (a) Every Except as provided in par. (b), every person desiring to operate as a seller within this state who holds a valid certificate under s. 73.03 (50) shall file with the department an application for a permit for each place of operations. Every application for a permit shall be made upon a form prescribed by the department and shall set forth the name under which the applicant intends to operate, the location of the applicant's place of operations, and the other information that the department requires. Except as provided in sub. (7b), the application shall be signed by the owner if a sole proprietor; in the case of sellers other than sole proprietors, the application shall be signed by the person authorized to act on behalf of such sellers. A nonprofit organization that has a sales price taxable under s. 77.54 (7m) shall obtain a seller's permit and pay taxes under this subchapter on all taxable sales prices received after it is required to obtain that permit. If that organization becomes eligible later for the exemption under s. 77.54 (7m) except for its possession of a seller's permit, it may surrender that permit.

SB334,13 Section 13. 77.52 (7) (b) of the statutes is created to read:

SB334,5,10 77.52 (7) (b) An out-of-state business, as defined in s. 323.12 (5) (a) 6., performing disaster relief work, as defined in s. 323.12 (5) (a) 3., is not required to register with the department under par. (a) and is not required to obtain a certificate under s. 73.03 (50) for sales made during a disaster period, as defined in s. 323.12 (5) (a) 2.

SB334,14 Section 14. 77.52 (12) of the statutes is amended to read:

SB334,5,24 77.52 (12) A person who operates as a seller in this state without a permit or after a permit has been suspended or revoked or has expired, unless the person is not required to obtain a permit as provided under sub. (7) (b) or unless the person has a temporary permit under sub. (11), and each officer of any corporation, partnership member, limited liability company member, or other person authorized to act on behalf of a seller who so operates, is guilty of a misdemeanor. Except for a person who is registered in accordance with the agreement, as defined in s. 77.65 (2) (a), permits shall be held only by persons actively operating as sellers of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or taxable services. Any person not so operating shall forthwith surrender that person's permit to the department for cancellation. The department may revoke the permit of a person found not to be actively operating as a seller of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or taxable services.

SB334,15 Section 15. 77.53 (9) of the statutes is renumbered 77.53 (9) (a) and amended to read:

SB334,6,12 77.53 (9) (a) Every Except as provided in par. (b), every retailer selling tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable services for storage, use or other consumption in this state shall register with the department and obtain a certificate under s. 73.03 (50) and give the name and address of all agents operating in this state, the location of all distribution or sales houses or offices or other places of business in this state, the standard industrial code classification of each place of business in this state and the other information that the department requires. Any person who may register under this subsection may designate an agent, as defined in s. 77.524 (1) (ag), to register with the department under this subsection, in the manner prescribed by the department.

SB334,16 Section 16. 77.53 (9) (b) of the statutes is created to read:

SB334,6,18 77.53 (9) (b) An out-of-state business, as defined in s. 323.12 (5) (a) 6., performing disaster relief work, as defined in s. 323.12 (5) (a) 3., is not required to register with the department under par. (a) and is not required to obtain a certificate under s. 73.03 (50) for sales made during the disaster period, as defined in s. 323.12 (5) (a) 2.

SB334,17 Section 17. 77.53 (19) of the statutes is created to read:

SB334,6,24 77.53 (19) This section does not apply to the storage, use, or other consumption in this state of tangible personal property, property, or goods under s. 77.52 (1) (a), (c), or (d), or taxable services, purchased outside this state, as determined under s. 77.522, by an out-of-state business, as defined in s. 323.12 (5) (a) 6., and brought into this state and used solely for disaster relief work, as defined in s. 323.12 (5) (a) 3.