SB1: Bill Text

SB1,14,9 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r), or (2) changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section 15 of the Internal Revenue Code.

SB1,37 Section 37 . 71.06 (2m) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB1,14,15 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r), or (2) changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section 15 of the Internal Revenue Code.

SB1,38 Section 38. 71.06 (2s) (d) of the statutes is amended to read:

SB1,15,4 71.06 (2s) (d) For taxable years beginning after December 31, 2000, and before January 1, 2023, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1p), (1q), and (2) (g), (h), (i), and (j) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “ adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1p), (1q), and (2) (g), (h), (i), and (j) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

SB1,39 Section 39 . 71.06 (2s) (d) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB1,15,20 71.06 (2s) (d) For taxable years beginning after December 31, 2000, and before January 1, 2023, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1p), (1q), and (2) (g), and (h), (i), and (j) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1p), (1q), and (2) (g), and (h), (i), and (j) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

SB1,40 Section 40. 71.06 (2s) (e) of the statutes is created to read:

SB1,16,9 71.06 (2s) (e) For taxable years beginning after December 31, 2022, and before January 1, 2024, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1r) (a) and (2) (k) and (km) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “ adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1r) (a) and (2) (k) and (km) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

SB1,41 Section 41 . 71.06 (2s) (e) of the statutes, as created by 2023 Wisconsin Act .... (this act), is repealed.

SB1,42 Section 42. 71.06 (2s) (f) of the statutes is created to read:

SB1,16,25 71.06 (2s) (f) For taxable years beginning after December 31, 2023, and before January 1, 2025, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1r) (b) and (2) (L) and (Lm) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “ adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1r) (b) and (2) (L) and (Lm) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

SB1,43 Section 43 . 71.06 (2s) (f) of the statutes, as created by 2023 Wisconsin Act .... (this act), is repealed.

SB1,44 Section 44. 71.06 (2s) (g) of the statutes is created to read:

SB1,17,16 71.06 (2s) (g) For taxable years beginning after December 31, 2024, and before January 1, 2026, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1r) (c) and (2) (m) and (mm) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “ adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1r) (c) and (2) (m) and (mm) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

SB1,45 Section 45 . 71.06 (2s) (g) of the statutes, as created by 2023 Wisconsin Act .... (this act), is repealed.

SB1,46 Section 46. 71.125 (1) of the statutes is amended to read:

SB1,17,23 71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall apply to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.

SB1,47 Section 47 . 71.125 (1) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB1,18,4 71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall apply to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.

SB1,48 Section 48. 71.125 (2) of the statutes is amended to read:

SB1,18,10 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1) of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r), whichever taxable year is applicable, on its income as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12), (19) and (20).

SB1,49 Section 49 . 71.125 (2) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB1,18,17 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1) of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1), (1m), (1n), (1p), (1q), or (1r), whichever taxable year is applicable, on its income as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12), (19) and (20).

SB1,50 Section 50. 71.17 (6) of the statutes is amended to read:

SB1,18,22 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under section 685 of the Internal Revenue Code for federal income tax purposes, that election applies for purposes of this chapter and each trust shall compute its own tax and shall apply the rates under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r).

SB1,51 Section 51 . 71.17 (6) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB1,19,4 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under section 685 of the Internal Revenue Code for federal income tax purposes, that election applies for purposes of this chapter and each trust shall compute its own tax and shall apply the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), or (1r).

SB1,52 Section 52. 71.64 (9) (b) (intro.) of the statutes is amended to read:

SB1,19,9 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), (1r), and (2) resulting from statutory changes, except as follows:

SB1,53 Section 53 . 71.64 (9) (b) (intro.) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB1,19,15 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), (1r), and (2) resulting from statutory changes, except as follows:

SB1,54 Section 54. 71.67 (5) (a) of the statutes is amended to read:

SB1,19,22 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), (1p), or (1q), or (1r) if the amount of the payment is more than $1,000.

SB1,55 Section 55 . 71.67 (5) (a) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB1,20,6 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), (1p), (1q), or (1r) if the amount of the payment is more than $1,000.

SB1,56 Section 56. 71.67 (5m) of the statutes is amended to read:

SB1,20,14 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), (1p), or (1q), or (1r). 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.

SB1,57 Section 57 . 71.67 (5m) of the statutes, as affected by 2023 Wisconsin Act .... (this act), is amended to read:

SB1,20,23 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), (1p), (1q), or (1r). 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.

SB1,58 Section 58 . 73.03 (71) of the statutes is repealed.

SB1,59 Section 59. 73.03 (71) (c) 2. of the statutes is amended to read:

SB1,21,8 73.03 (71) (c) 2. No later than October 20, 2020, the secretary of revenue shall certify and report the determinations made under pars. (a) 2. and (b) 2. to the secretary of the department of administration, the governor, the joint committee on finance, and the legislative audit bureau and specify with that certification and report that the new tax rates take effect for the taxable year beginning after December 31, 2019, and before January 1, 2021, and for each taxable year thereafter beginning after December 31, 2020, and before January 1, 2023, subject to par. (d) 2.

SB1,60 Section 60. 73.03 (71) (d) 2. of the statutes is amended to read:

SB1,21,19 73.03 (71) (d) 2. The legislative audit bureau shall review the determinations reported under par. (c) 2. and report its findings to the joint legislative audit committee and the joint committee on finance no later than November 1, 2020. If the legislative audit bureau's review of the determinations reported under par. (c) 2. results in a different calculation of the tax rates than that made under par. (b) 2., the joint committee on finance shall determine which tax rates to apply to the taxable year beginning after December 31, 2019, and before January 1, 2021, and to each taxable year thereafter beginning after December 31, 2020, and before January 1, 2023, and report its determination to the governor, the secretary of administration, and the secretary of revenue no later than November 10, 2020.

SB1,61 Section 61. Nonstatutory provisions.

SB1,21,25 (1) Withholding table adjustments for 2024. No later than October 1, 2023, the department of revenue shall update the individual income tax withholding tables under s. 71.64 (9) to reflect the tax rates, brackets, and sliding scale standard deduction that are in effect for taxable year 2024. The adjustments made under this subsection to the withholding tables shall take effect on January 1, 2024.

SB1,22,5 (2) Withholding table adjustments for 2025. No later than October 1, 2024, the department of revenue shall update the individual income tax withholding tables under s. 71.64 (9) to reflect the tax rates, brackets, and sliding scale standard deduction that are in effect for taxable year 2025. The adjustments made under this subsection to the withholding tables shall take effect on January 1, 2025.

SB1,22,10 (3) Withholding table adjustments for 2026. No later than October 1, 2025, the department of revenue shall update the individual income tax withholding tables under s. 71.64 (9) to reflect the tax rate and sliding scale standard deduction that is in effect for taxable year 2026. The adjustments made under this subsection to the withholding tables shall take effect on January 1, 2026.

SB1,62 Section 62. Effective dates. This act takes effect on the day after publication, except as follows:

SB1,22,18 (1) The treatment of ss. 71.06 (1q) (by Section 2 ), (2) (i) (by Section 10 ) and (j) (by Section 12 ), (2e) (a) (by Section 27 ) and (b) (by Section 29 ), (2m) (by Section 37 ), and (2s) (d) (by Section 39 ), 71.125 (1) (by Section 47 ) and (2) (by Section 49 ), 71.17 (6) (by Section 51 ), 71.64 (9) (b) (intro.) (by Section 53), 71.67 (5) (a) (by Section 55 ) and (5m) (by Section 57 ), and 73.03 (71) (by Section 58 ) takes effect on January 1, 2029.

SB1,22,21 (2) The treatment of s. 71.06 (1r) (a) (by Section 5 ), (2) (k) (by Section 14 ) and (km) (by Section 16 ), (2e) (be) (by Section 31 ), and (2s) (e) (by Section 41 ) takes effect on January 1, 2030.

SB1,22,24 (3) The treatment of s. 71.06 (1r) (b) (by Section 6 ), (2) (L) (by Section 18 ) and (Lm) (by Section 20 ), (2e) (bm) (by Section 33 ), and (2s) (f) (by Section 43 ) takes effect on January 1, 2031.

SB1,23,3 (4) The treatment of s. 71.06 (1r) (title) (by Section 3), (c) (by Section 7), and (d) (by Section 8 ), (2) (m) (by Section 22 ) and (mm) (by Section 24 ), (2e) (bs) (by Section 35), and (2s) (g) (by Section 45 ) takes effect on January 1, 2032.

SB1,23,4 (End)