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2019 - 2020 LEGISLATURE
May 15, 2019 - Introduced by Senators Jacque,
Carpenter and L. Taylor,
cosponsored by Representatives
Horlacher, Sargent, Brooks, Edming,
Hutton, Magnafici, Plumer, Pronschinske, Quinn, Schraa, Spreitzer,
Tusler, Vruwink, Zimmerman and Skowronski. Referred to Committee on
Agriculture, Revenue and Financial Institutions.
SB213,1,9
1An Act to repeal 71.63 (6) (n) 1. and 2.;
to renumber and amend 71.63 (6) (n)
2(intro.);
to amend 71.05 (6) (b) 28. e., 71.05 (6) (b) 28. f., 71.05 (6) (b) 32. b., 71.05
3(6) (b) 32. c., 71.05 (6) (b) 33. b., 71.05 (6) (b) 33. c., 71.05 (6) (b) 35. c., 71.05 (6)
4(b) 35. d., 71.05 (6) (b) 36. c., 71.05 (6) (b) 36. d., 71.05 (6) (b) 37. c., 71.05 (6) (b)
537. d., 71.05 (6) (b) 38. c., 71.05 (6) (b) 38. d., 71.05 (6) (b) 39. c., 71.05 (6) (b) 39.
6d., 71.05 (6) (b) 40. c., 71.05 (6) (b) 40. d., 71.05 (6) (b) 41. c., 71.05 (6) (b) 41. d.,
771.05 (6) (b) 42. c., 71.05 (6) (b) 42. d. and 71.05 (6) (b) 43. f.; and
to create 71.05
8(1) (h) of the statutes;
relating to: an income tax exemption for cash tips paid
9to an employee.
Analysis by the Legislative Reference Bureau
This bill creates an income tax exemption for cash tips received by an employee
from the customers of the employee's employer.
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 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:
SB213,1
1Section
1. 71.05 (1) (h) of the statutes is created to read:
SB213,2,32
71.05
(1) (h)
Tips. Amounts received as cash tips by an employee from the
3customers of the employee's employer.
SB213,2
4Section
2. 71.05 (6) (b) 28. e. of the statutes is amended to read:
SB213,2,165
71.05
(6) (b) 28. e. For an individual who is a nonresident or part-year resident
6of this state, multiply the amount calculated under subd. 28. a., am., b., c. or d. by
7a fraction the numerator of which is the individual's wages, salary,
tips, unearned
8income
, and net earnings from a trade or business that are taxable by this state and
9the denominator of which is the individual's total wages, salary,
tips, unearned
10income
, and net earnings from a trade or business. In this subd. 28. e., for married
11persons filing separately “wages, salary,
tips, unearned income
, and net earnings
12from a trade or business" means the separate wages, salary,
tips, unearned income
, 13and net earnings from a trade or business of each spouse, and for married persons
14filing jointly “wages, salary,
tips, unearned income
, and net earnings from a trade or
15business" means the total wages, salary,
tips, unearned income
, and net earnings
16from a trade or business of both spouses.
SB213,3
17Section
3. 71.05 (6) (b) 28. f. of the statutes is amended to read:
SB213,2,2018
71.05
(6) (b) 28. f. Reduce the amount calculated under subd. 28. a., am., b., c.,
19d. or e. to the individual's aggregate wages, salary,
tips, unearned income
, and net
20earnings from a trade or business that are taxable by this state.
SB213,4
21Section
4. 71.05 (6) (b) 32. b. of the statutes is amended to read:
SB213,3,12
171.05
(6) (b) 32. b. For an individual who is a nonresident or part-year resident
2of this state, multiply the amount calculated under subd. 32. a. by a fraction the
3numerator of which is the individual's wages, salary,
tips, unearned income
, and net
4earnings from a trade or business that are taxable by this state and the denominator
5of which is the individual's total wages, salary,
tips, unearned income
, and net
6earnings from a trade or business. In this subd. 32. b., for married persons filing
7separately “wages, salary,
tips, unearned income
, and net earnings from a trade or
8business" means the separate wages, salary,
tips, unearned income
, and net earnings
9from a trade or business of each spouse, and for married persons filing jointly “wages,
10salary,
tips, unearned income
, and net earnings from a trade or business" means the
11total wages, salary,
tips, unearned income
, and net earnings from a trade or business
12of both spouses.
SB213,5
13Section
5. 71.05 (6) (b) 32. c. of the statutes is amended to read:
SB213,3,1614
71.05
(6) (b) 32. c. Reduce the amount calculated under subd. 32. a. or b. to the
15individual's aggregate wages, salary,
tips, unearned income
, and net earnings from
16a trade or business that are taxable by this state.
SB213,6
17Section
6. 71.05 (6) (b) 33. b. of the statutes is amended to read:
SB213,4,418
71.05
(6) (b) 33. b. For an individual who is a nonresident or part-year resident
19of this state, multiply the amount calculated under subd. 33. a. by a fraction the
20numerator of which is the individual's wages, salary,
tips, unearned income
, and net
21earnings from a trade or business that are taxable by this state and the denominator
22of which is the individual's total wages, salary,
tips, unearned income
, and net
23earnings from a trade or business. In this subd. 33. b., for married persons filing
24separately “wages, salary,
tips, unearned income
, and net earnings from a trade or
25business" means the separate wages, salary,
tips, unearned income
, and net earnings
1from a trade or business of each spouse, and for married persons filing jointly “wages,
2salary,
tips, unearned income
, and net earnings from a trade or business" means the
3total wages, salary,
tips, unearned income
, and net earnings from a trade or business
4of both spouses.
SB213,7
5Section
7. 71.05 (6) (b) 33. c. of the statutes is amended to read:
SB213,4,86
71.05
(6) (b) 33. c. Reduce the amount calculated under subd. 33. a. or b. to the
7individual's aggregate wages, salary,
tips, unearned income
, and net earnings from
8a trade or business that are taxable by this state.
SB213,8
9Section
8. 71.05 (6) (b) 35. c. of the statutes is amended to read:
SB213,4,2110
71.05
(6) (b) 35. c. For an individual who is a nonresident or part-year resident
11of this state, multiply the amount calculated under subd. 35. a. or b., by a fraction
12the numerator of which is the individual's wages, salary,
tips, unearned income, and
13net earnings from a trade or business that are taxable by this state and the
14denominator of which is the individual's total wages, salary,
tips, unearned income,
15and net earnings from a trade or business. In this subd. 35. c., for married persons
16filing separately “wages, salary,
tips, unearned income, and net earnings from a
17trade or business" means the separate wages, salary,
tips, unearned income, and net
18earnings from a trade or business of each spouse, and for married persons filing
19jointly “wages, salary,
tips, unearned income, and net earnings from a trade or
20business" means the total wages, salary,
tips, unearned income, and net earnings
21from a trade or business of both spouses.
SB213,9
22Section
9. 71.05 (6) (b) 35. d. of the statutes is amended to read:
SB213,4,2523
71.05
(6) (b) 35. d. Reduce the amount calculated under subd. 35. a., b., or c.
24to the individual's aggregate wages, salary,
tips, unearned income, and net earnings
25from a trade or business that are taxable by this state.
SB213,10
1Section
10. 71.05 (6) (b) 36. c. of the statutes is amended to read:
SB213,5,132
71.05
(6) (b) 36. c. For an individual who is a nonresident or part-year resident
3of this state, multiply the amount calculated under subd. 36. a. or b., by a fraction
4the numerator of which is the individual's wages, salary,
tips, unearned income, and
5net earnings from a trade or business that are taxable by this state and the
6denominator of which is the individual's total wages, salary,
tips, unearned income,
7and net earnings from a trade or business. In this subd. 36. c., for married persons
8filing separately “wages, salary,
tips, unearned income, and net earnings from a
9trade or business" means the separate wages, salary,
tips, unearned income, and net
10earnings from a trade or business of each spouse, and for married persons filing
11jointly “wages, salary,
tips, unearned income, and net earnings from a trade or
12business" means the total wages, salary,
tips, unearned income, and net earnings
13from a trade or business of both spouses.
SB213,11
14Section
11. 71.05 (6) (b) 36. d. of the statutes is amended to read:
SB213,5,1715
71.05
(6) (b) 36. d. Reduce the amount calculated under subd. 36. a., b., or c.
16to the individual's aggregate wages, salary,
tips, unearned income, and net earnings
17from a trade or business that are taxable by this state.
SB213,12
18Section
12. 71.05 (6) (b) 37. c. of the statutes is amended to read:
SB213,6,519
71.05
(6) (b) 37. c. For an individual who is a nonresident or part-year resident
20of this state, multiply the amount calculated under subd. 37. a. or b., by a fraction
21the numerator of which is the individual's wages, salary,
tips, unearned income, and
22net earnings from a trade or business that are taxable by this state and the
23denominator of which is the individual's total wages, salary,
tips, unearned income,
24and net earnings from a trade or business. In this subd. 37. c., for married persons
25filing separately “wages, salary,
tips, unearned income, and net earnings from a
1trade or business" means the separate wages, salary,
tips, unearned income, and net
2earnings from a trade or business of each spouse, and for married persons filing
3jointly “wages, salary,
tips, unearned income, and net earnings from a trade or
4business" means the total wages, salary,
tips, unearned income, and net earnings
5from a trade or business of both spouses.
SB213,13
6Section
13. 71.05 (6) (b) 37. d. of the statutes is amended to read:
SB213,6,97
71.05
(6) (b) 37. d. Reduce the amount calculated under subd. 37. a., b., or c.
8to the individual's aggregate wages, salary,
tips, unearned income, and net earnings
9from a trade or business that are taxable by this state.
SB213,14
10Section
14. 71.05 (6) (b) 38. c. of the statutes is amended to read:
SB213,6,2211
71.05
(6) (b) 38. c. For an individual who is a nonresident or part-year resident
12of this state, multiply the amount calculated under subd. 38. a. or b., by a fraction
13the numerator of which is the individual's wages, salary,
tips, unearned income, and
14net earnings from a trade or business that are taxable by this state and the
15denominator of which is the individual's total wages, salary,
tips, unearned income,
16and net earnings from a trade or business. In this subd. 38. c., for married persons
17filing separately “wages, salary,
tips, unearned income, and net earnings from a
18trade or business" means the separate wages, salary,
tips, unearned income, and net
19earnings from a trade or business of each spouse, and for married persons filing
20jointly “wages, salary,
tips, unearned income, and net earnings from a trade or
21business" means the total wages, salary,
tips, unearned income, and net earnings
22from a trade or business of both spouses.
SB213,15
23Section
15. 71.05 (6) (b) 38. d. of the statutes is amended to read:
SB213,7,3
171.05
(6) (b) 38. d. Reduce the amount calculated under subd. 38. a., b., or c.
2to the individual's aggregate wages, salary,
tips, unearned income, and net earnings
3from a trade or business that are taxable by this state.
SB213,16
4Section
16. 71.05 (6) (b) 39. c. of the statutes is amended to read:
SB213,7,165
71.05
(6) (b) 39. c. For an individual who is a nonresident or part-year resident
6of this state, multiply the amount calculated under subd. 39. a. or b., by a fraction
7the numerator of which is the individual's wages, salary,
tips, unearned income, and
8net earnings from a trade or business that are taxable by this state and the
9denominator of which is the individual's total wages, salary,
tips, unearned income,
10and net earnings from a trade or business. In this subd. 39. c., for married persons
11filing separately “wages, salary,
tips, unearned income, and net earnings from a
12trade or business" means the separate wages, salary,
tips, unearned income, and net
13earnings from a trade or business of each spouse, and for married persons filing
14jointly “wages, salary,
tips, unearned income, and net earnings from a trade or
15business" means the total wages, salary,
tips, unearned income, and net earnings
16from a trade or business of both spouses.
SB213,17
17Section
17. 71.05 (6) (b) 39. d. of the statutes is amended to read:
SB213,7,2018
71.05
(6) (b) 39. d. Reduce the amount calculated under subd. 39. a., b., or c.
19to the individual's aggregate wages, salary,
tips, unearned income, and net earnings
20from a trade or business that are taxable by this state.
SB213,18
21Section
18. 71.05 (6) (b) 40. c. of the statutes is amended to read:
SB213,8,822
71.05
(6) (b) 40. c. For an individual who is a nonresident or part-year resident
23of this state, multiply the amount calculated under subd. 40. a. or b., by a fraction
24the numerator of which is the individual's wages, salary,
tips, unearned income, and
25net earnings from a trade or business that are taxable by this state and the
1denominator of which is the individual's total wages, salary,
tips, unearned income,
2and net earnings from a trade or business. In this subd. 40. c., for married persons
3filing separately “wages, salary,
tips, unearned income, and net earnings from a
4trade or business" means the separate wages, salary,
tips, unearned income, and net
5earnings from a trade or business of each spouse, and for married persons filing
6jointly “wages, salary,
tips, unearned income, and net earnings from a trade or
7business" means the total wages, salary,
tips, unearned income, and net earnings
8from a trade or business of both spouses.
SB213,19
9Section
19. 71.05 (6) (b) 40. d. of the statutes is amended to read:
SB213,8,1210
71.05
(6) (b) 40. d. Reduce the amount calculated under subd. 40. a., b., or c.
11to the individual's aggregate wages, salary,
tips, unearned income, and net earnings
12from a trade or business that are taxable by this state.
SB213,20
13Section
20. 71.05 (6) (b) 41. c. of the statutes is amended to read:
SB213,8,2514
71.05
(6) (b) 41. c. For an individual who is a nonresident or part-year resident
15of this state, multiply the amount calculated under subd. 41. a. or b., by a fraction
16the numerator of which is the individual's wages, salary,
tips, unearned income, and
17net earnings from a trade or business that are taxable by this state and the
18denominator of which is the individual's total wages, salary,
tips, unearned income,
19and net earnings from a trade or business. In this subd. 41. c., for married persons
20filing separately “wages, salary,
tips, unearned income, and net earnings from a
21trade or business" means the separate wages, salary,
tips, unearned income, and net
22earnings from a trade or business of each spouse, and for married persons filing
23jointly “wages, salary,
tips, unearned income, and net earnings from a trade or
24business" means the total wages, salary,
tips, unearned income, and net earnings
25from a trade or business of both spouses.
SB213,21
1Section
21. 71.05 (6) (b) 41. d. of the statutes is amended to read:
SB213,9,42
71.05
(6) (b) 41. d. Reduce the amount calculated under subd. 41. a., b., or c.
3to the individual's aggregate wages, salary,
tips, unearned income, and net earnings
4from a trade or business that are taxable by this state.
SB213,22
5Section
22. 71.05 (6) (b) 42. c. of the statutes is amended to read:
SB213,9,176
71.05
(6) (b) 42. c. For an individual who is a nonresident or part-year resident
7of this state, multiply the amount calculated under subd. 42. a. or b., by a fraction
8the numerator of which is the individual's wages, salary,
tips, unearned income, and
9net earnings from a trade or business that are taxable by this state and the
10denominator of which is the individual's total wages, salary,
tips, unearned income,
11and net earnings from a trade or business. In this subd. 42. c., for married persons
12filing separately “wages, salary,
tips, unearned income, and net earnings from a
13trade or business" means the separate wages, salary,
tips, unearned income, and net
14earnings from a trade or business of each spouse, and for married persons filing
15jointly “wages, salary,
tips, unearned income, and net earnings from a trade or
16business" means the total wages, salary,
tips, unearned income, and net earnings
17from a trade or business of both spouses.
SB213,23
18Section
23. 71.05 (6) (b) 42. d. of the statutes is amended to read:
SB213,9,2119
71.05
(6) (b) 42. d. Reduce the amount calculated under subd. 42. a., b., or c.
20to the individual's aggregate wages, salary,
tips, unearned income, and net earnings
21from a trade or business that are taxable by this state.
SB213,24
22Section
24. 71.05 (6) (b) 43. f. of the statutes is amended to read:
SB213,9,2523
71.05
(6) (b) 43. f. An individual who is a nonresident or part-year resident of
24this state and who claims the subtraction under this subdivision shall multiply the
25amount calculated under subd. 43. a., b., c., or d. by a fraction the numerator of which
1is the individual's wages, salary,
tips, unearned income, and net earnings from a
2trade or business that are taxable by this state and the denominator of which is the
3individual's total wages, salary,
tips, unearned income, and net earnings from a trade
4or business. In this subd. 43. f., for married persons filing separately “
wages, salary,
5tips, unearned income, and net earnings from a trade or business" means the
6separate wages, salary,
tips, unearned income, and net earnings from a trade or
7business of each spouse, and for married persons filing jointly “wages, salary,
tips, 8unearned income, and net earnings from a trade or business" means the total wages,
9salary,
tips, unearned income, and net earnings from a trade or business of both
10spouses.
SB213,25
11Section
25. 71.63 (6) (n) (intro.) of the statutes is renumbered 71.63 (6) (n) and
12amended to read:
SB213,10,1313
71.63
(6) (n) In the form of cash tips paid to employees
if:.
SB213,26
14Section
26. 71.63 (6) (n) 1. and 2. of the statutes are repealed.
SB213,27
15Section
27.
Initial applicability.
SB213,10,1616
(1) This act first applies to taxable years beginning after December 31, 2018.
