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:
SB738,1
1Section 1. 60.85 (2) (b) 7. of the statutes is repealed.
SB738,2 2Section 2 . 60.85 (2) (c) of the statutes is amended to read:
SB738,4,73 60.85 (2) (c) Except as provided in par. (b) 7., no No town may exercise any
4power under this subsection within the extraterritorial zoning jurisdiction of a city
5or village, as that term is defined in s. 62.23 (7a) (a), unless the city's or village's
6governing body adopts a resolution which approves the town's exercise of power
7under this subsection within such an extraterritorial zoning jurisdiction.
SB738,3 8Section 3 . 60.85 (3) (h) 4. of the statutes is amended to read:
SB738,4,139 60.85 (3) (h) 4. Declares the district to be either an agricultural project district,
10forestry project district, manufacturing project district, or tourism project district,
11and identifies the North American Industry Classification System industry number
12of each activity under each project for which project costs are to be expended; or
13declares the district to be a project described in sub. (2) (b) 7
.
SB738,4 14Section 4 . 60.85 (3) (h) 5. a. of the statutes is amended to read:
SB738,4,1715 60.85 (3) (h) 5. a. That not less than 75 percent, by area, of the real property
16within the district is to be used for projects of a single one of the project types listed
17under sub. (2) (b) 1. to 4. or 7. and in accordance with the declaration under subd. 4.
SB738,5 18Section 5 . 60.85 (3) (h) 5. c. of the statutes is amended to read:
SB738,4,2119 60.85 (3) (h) 5. c. That the project costs of the district are limited to those
20specified under sub. (2) (b) and relate directly to a project described in sub. (2) (b)
217. or to
promoting agriculture, forestry, manufacturing, or tourism development.
SB738,6 22Section 6 . 60.85 (5) (e) of the statutes is repealed.
SB738,7 23Section 7 . 66.1105 (2) (f) 1. (intro.) of the statutes is amended to read:
SB738,5,1624 66.1105 (2) (f) 1. (intro.) “Project costs" mean any expenditures made or
25estimated to be made or monetary obligations incurred or estimated to be incurred

1by the city which are listed in a project plan as costs of public works or improvements
2within a tax incremental district or, to the extent provided in this subd. 1. (intro.) or
3subds. 1. k., 1. m., and 1. n., or sub. (20) (c), without the district, plus any incidental
4costs, diminished by any income, special assessments, or other revenues, including
5user fees or charges, other than tax increments, received or reasonably expected to
6be received by the city in connection with the implementation of the plan. For any
7tax incremental district for which a project plan is approved on or after July 31, 1981,
8only a proportionate share of the costs permitted under this subdivision may be
9included as project costs to the extent that they benefit the tax incremental district,
10except that expenditures made or estimated to be made or monetary obligations
11incurred or estimated to be incurred by a 1st class city, to fund parking facilities
12ancillary to and within one mile from public entertainment facilities, including a
13sports and entertainment arena, shall be considered to benefit any tax incremental
14district located in whole or in part within a one-mile radius of such parking facilities.
15To the extent the costs benefit the municipality outside the tax incremental district,
16a proportionate share of the cost is not a project cost. “Project costs" include:
SB738,8 17Section 8 . 66.1105 (2) (f) 1. m. of the statutes is repealed.
SB738,9 18Section 9 . 66.1105 (2) (f) 1. n. of the statutes is amended to read:
SB738,5,2219 66.1105 (2) (f) 1. n. With regard to a tax incremental district that is located
20anywhere other than a city to which sub. (6) (d) applies, and subject
Subject to sub.
21(4m) (d), project costs incurred for territory that is located within a one-half mile
22radius of the district's boundaries and within the city that created the district.
SB738,10 23Section 10. 66.1105 (2) (j) of the statutes is amended to read:
SB738,6,324 66.1105 (2) (j) “Tax incremental base" means the aggregate value, as equalized
25by the department of revenue, of all taxable property located within a tax

1incremental district on the date as of which the district is created, determined as
2provided in sub. (5) (b). The base of districts created before October 1, 1980, does not
3include the value of property exempted under s. 70.111 (17)
.
SB738,11 4Section 11. 66.1105 (4) (a) of the statutes is amended to read:
SB738,6,145 66.1105 (4) (a) Holding of a public hearing by the planning commission at
6which interested parties are afforded a reasonable opportunity to express their views
7on the proposed creation of a tax incremental district and the proposed boundaries
8of the district. Notice of the hearing shall be published as a class 2 notice, under ch.
9985. Before publication, a copy of the notice shall be sent by first class mail to the
10chief executive officer or administrator of all local governmental entities having the
11power to levy taxes on property located within the proposed district and to the school
12board of any school district which includes property located within the proposed
13district. For a county with no chief executive officer or administrator, notice shall be
14sent to the county board chairperson.
SB738,12 15Section 12. 66.1105 (4) (e) of the statutes is amended to read:
SB738,7,516 66.1105 (4) (e) At least 14 days before adopting a resolution under par. (gm),
17holding of a public hearing by the planning commission at which interested parties
18are afforded a reasonable opportunity to express their views on the proposed project
19plan. The hearing may be held in conjunction with the hearing provided for in par.
20(a). If the city anticipates that the proposed project plan's project costs may include
21cash grants made by the city to owners, lessees, or developers of land that is located
22within the tax incremental district, the hearing notice shall contain a statement to
23that effect. Notice of the hearing shall be published as a class 2 notice, under ch. 985.
24The notice shall include a statement advising that a copy of the proposed project plan
25will be provided on request. Before publication, a copy of the notice shall be sent by

11st class mail
to the chief executive officer or administrator of all local governmental
2entities having the power to levy taxes on property within the district and to the
3school board of any school district which includes property located within the
4proposed district. For a county with no chief executive officer or administrator, notice
5shall be sent to the county board chairperson.
SB738,13 6Section 13. 66.1105 (4) (h) 1. of the statutes is amended to read:
SB738,7,237 66.1105 (4) (h) 1. Subject to subds. 2., 4., 5., and 6., the planning commission
8may, by resolution, adopt an amendment to a project plan. The amendment is subject
9to approval by the local legislative body and approval requires the same findings as
10provided in par. (g) and, if the amendment adds territory to a district under subd. 2.,
11approval also requires the same findings as provided in par. (gm) 4. c. Any
12amendment to a project plan is also subject to review by a joint review board, acting
13under sub. (4m). Adoption of an amendment to a project plan shall be preceded by
14a public hearing held by the plan commission at which interested parties shall be
15afforded a reasonable opportunity to express their views on the amendment. Notice
16of the hearing shall be published as a class 1 notice, under ch. 985. The notice shall
17include a statement of the purpose and cost of the amendment and shall advise that
18a copy of the amendment will be provided on request. Before publication, a copy of
19the notice shall be sent by 1st class mail to the chief executive officer or administrator
20of all local governmental entities having the power to levy taxes on property within
21the district and to the school board of any school district which includes property
22located within the proposed district. For a county with no chief executive officer or
23administrator, this notice shall be sent to the county board chairperson.
SB738,14 24Section 14. 66.1105 (4) (h) 2. of the statutes, as affected by 2023 Wisconsin Act
258
, is amended to read:
SB738,8,9
166.1105 (4) (h) 2. Except as provided in subds. 4., 5., 7., 9., 10., and 11., the
2planning commission may adopt an amendment to a project plan under subd. 1. to
3modify the district's boundaries, not more than 4 times during the district's
4existence, by subtracting territory from the district in a way that does not remove
5contiguity from the district or by adding territory to the district that is contiguous
6to the district and that is served by public works or improvements that were created
7as part of the district's project plan. A single amendment to a project plan that both
8adds and subtracts territory shall be counted under this subdivision as one
9amendment of a project plan.
SB738,15 10Section 15. 66.1105 (4) (h) 4. of the statutes is repealed.
SB738,16 11Section 16. 66.1105 (4e) (b) 1. of the statutes is amended to read:
SB738,9,212 66.1105 (4e) (b) 1. Adoption of a resolution under par. (a) 1. shall be preceded
13by a public hearing held by the common council at which interested parties shall be
14afforded a reasonable opportunity to express their views on the proposed designation
15of a distressed, or severely distressed, tax incremental district. Notice of the hearing
16shall be published as a class 2 notice under ch. 985. The notice shall describe the
17resolution and shall advise that a copy of the resolution will be provided on request.
18The notice shall also explain that the life of a distressed tax incremental district may
19be extended, that it may receive excess tax increments from a donor district, and that
20the life of the donor district may be extended to provide such increments. Before
21publication, a copy of the notice shall be sent by 1st class mail to the chief executive
22officer or administrator of all local governmental entities having the power to levy
23taxes on property within the district and to the school board of any school district that
24includes property located within the proposed district. For a county with no chief

1executive officer or administrator, this notice shall be sent to the county board
2chairperson.
SB738,17 3Section 17. 66.1105 (5) (bf) of the statutes is repealed.
SB738,18 4Section 18. 66.1105 (5) (bj) of the statutes is repealed.
SB738,19 5Section 19. 66.1105 (5) (c) 1. of the statutes is amended to read:
SB738,9,246 66.1105 (5) (c) 1. For a tax incremental district created before March 3, 2016,
7if the city adopts an amendment to the original project plan for any district which
8subtracts territory from the district or which includes additional project costs at least
9part of which will be incurred after the period specified in sub. (6) (am) 1., the tax
10incremental base for the district shall be redetermined, if sub. (4) (h) 2., 4., or 5.
11applies to the amended project plan, either by subtracting from the tax incremental
12base the value of the taxable property and the value of real property owned by the
13city, other than property described under s. 66.1105 (5) (bm), 2013 stats. that is
14subtracted from the existing district or by adding to the tax incremental base the
15value of the taxable property and the value of real property owned by the city, other
16than property described in s. 66.1105 (5) (bm), 2013 stats., that is added to the
17existing district under sub. (4) (h) 2., 4., or 5. or, if sub. (4) (h) 2., 4., or 5. does not apply
18to the amended project plan, under s. 66.1105 (5) (b), 2013 stats., as of the January
191 next preceding the effective date of the amendment if the amendment becomes
20effective between January 2 and September 30, as of the next subsequent January
211 if the amendment becomes effective between October 1 and December 31 and if the
22effective date of the amendment is January 1 of any year, the redetermination shall
23be made on that date. With regard to a district to which territory has been added,
24the tax incremental base as redetermined under this paragraph is effective for the

1purposes of this section only if it exceeds the original tax incremental base
2determined under s. 66.1105 (5) (b), 2013 stats.
SB738,20 3Section 20. 66.1105 (5) (ce) 1. of the statutes is amended to read:
SB738,10,204 66.1105 (5) (ce) 1. For a tax incremental district created before March 3, 2016,
5if the city adopts an amendment, to which sub. (4) (h) 2., 4., or 5. applies, the tax
6incremental base for the district shall be redetermined, either by subtracting from
7the tax incremental base the value of the taxable property and the value of real
8property owned by the city, other than property described under s. 66.1105 (5) (bm),
92013, stats., that is subtracted from the existing district or by adding to the tax
10incremental base the value of the taxable property and the value of real property
11owned by the city, other than property described in s. 66.1105 (5) (bm), 2013, stats.,
12that is added to the existing district under sub. (4) (h) 2., 4., or 5., as of the January
131 next preceding the effective date of the amendment if the amendment becomes
14effective between January 2 and September 30, as of the next subsequent January
151 if the amendment becomes effective between October 1 and December 31 and if the
16effective date of the amendment is January 1 of any year, the redetermination shall
17be made on that date. With regard to a district to which territory has been added,
18the tax incremental base as redetermined under this paragraph is effective for the
19purposes of this section only if it exceeds the original tax incremental base
20determined under s. 66.1105 (5) (b), 2013 stats.
SB738,21 21Section 21. 66.1105 (6) (a) 5. of the statutes is repealed.
SB738,22 22Section 22. 66.1105 (6) (a) 9. of the statutes is repealed.
SB738,23 23Section 23 . 66.1105 (6) (am) 2. c. of the statutes is repealed.
SB738,24 24Section 24 . 66.1105 (6) (am) 2. d. of the statutes is repealed.
SB738,25 25Section 25 . 66.1105 (6) (am) 2. e. of the statutes is repealed.
SB738,26
1Section 26. 66.1105 (6) (am) 2. f. of the statutes is repealed.
SB738,27 2Section 27. 66.1105 (6) (d) 1m. of the statutes is amended to read:
SB738,11,73 66.1105 (6) (d) 1m. After December 31, 2016, subd. 1. applies only to Tax
4Incremental District Number One,
Tax Incremental District Number Four, and Tax
5Incremental District Number Five in the City of Kenosha, and no increments may
6be allocated under that subdivision, after December 31, 2016, unless the allocation
7is approved by the joint review board.
SB738,28 8Section 28. 66.1105 (6) (dm) of the statutes is repealed.
SB738,29 9Section 29. 66.1105 (6) (e) 1. b. of the statutes is amended to read:
SB738,11,1210 66.1105 (6) (e) 1. b. Except as provided in subd. 1. e., the The donor tax
11incremental district and the recipient tax incremental district have been created
12before October 1, 1995.
SB738,30 13Section 30. 66.1105 (6) (e) 1. e. of the statutes is repealed.
SB738,31 14Section 31. 66.1105 (7) (ak) 2. of the statutes is amended to read:
SB738,11,1915 66.1105 (7) (ak) 2. Except as provided in par. (am) 4., for a district that is
16created after September 30, 1995, and before October 1, 2004, and that is not subject
17to subd. 1., 4., or 5., 23 years after the district was created, and , except as provided
18in subd. 3.,
for a district that is created before October 1, 1995, 27 years after the
19district is created.
SB738,32 20Section 32. 66.1105 (7) (ak) 3. of the statutes is repealed.
SB738,33 21Section 33. 66.1105 (7) (ar) of the statutes is repealed.
SB738,34 22Section 34. 66.1105 (7) (at) of the statutes is repealed.
SB738,35 23Section 35 . 66.1105 (18) (c) 2. of the statutes is amended to read:
SB738,12,3
166.1105 (18) (c) 2. Notwithstanding the provisions under sub. (2) (f) 1. k., m.,
2and n., a multijurisdictional tax incremental district may not incur project costs for
3any area that is outside of the district's boundaries.
SB738,36 4Section 36. 66.1105 (19) of the statutes is repealed.
SB738,37 5Section 37. 70.47 (8) (d) of the statutes is amended to read:
SB738,12,96 70.47 (8) (d) It may and upon request of the assessor or the objector shall compel
7the attendance of witnesses, except objectors who may testify by telephone, and the
8production of all books, inventories, appraisals, documents and other data which
9may throw light upon the value of property.
SB738,38 10Section 38. 70.48 of the statutes is amended to read:
SB738,13,5 1170.48 Assessor to attend board of review. The assessor or the assessor's
12authorized representative shall attend without order or subpoena all hearings before
13the board of review and under oath submit to examination and fully disclose to the
14board such information as the assessor may have touching the assessment and any
15other matters pertinent to the inquiry being made. All part-time assessors shall
16receive the same compensation for such attendance as is allowed to the members of
17the board but no county assessor or member of a county assessor's staff shall receive
18any compensation other than that person's regular salary for attendance at a board
19of review. The clerk shall make all corrections to the assessment roll ordered by the
20board of review, including all changes in the valuation of real property. When any
21valuation of real property is changed, the clerk shall enter the valuation fixed by the
22board in red ink in the proper class above the figures of the assessor, and the figures
23of the assessor shall be crossed out with red ink
and enter a note of the valuation of
24the assessor and the change to that valuation made by the board
. The clerk shall also
25enter upon the assessment roll, in the proper place, the names of all persons found

1liable to taxation on personal property by the board of review, setting opposite such
2names respectively the aggregate valuation of such property as determined by the
3assessor, after deducting exemptions and making such corrections as the board has
4ordered. All changes in valuation of personal property made by the board of review
5shall be made in the same manner as changes in real estate.
SB738,39 6Section 39 . 71.05 (6) (a) 15. of the statutes is amended to read:
SB738,13,127 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm),
8(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5i), (5j),
9(5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership, limited
10liability company, or tax-option corporation that has added that amount to the
11partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or
1271.34 (1k) (g).
SB738,40 13Section 40. 71.07 (5e) of the statutes is repealed.
SB738,41 14Section 41. 71.07 (6) (am) 1. of the statutes is amended to read:
SB738,14,1915 71.07 (6) (am) 1. In this paragraph For purposes of subd. 1m., “earned income"
16means qualified earned income, as defined in section 221 (b) of the internal revenue
17code as amended to December 31, 1985, plus employee business expenses under
18section 62 (2) (B) to (D) of that code, allocable to Wisconsin under s. 71.04, plus
19amounts received by the individual for services performed in the employ of the
20individual's spouse minus the amount of disability income excluded under s. 71.05
21(6) (b) 4. and minus any other amount not subject to tax under this chapter
wages,
22salaries, or professional fees, amounts received for services performed by an
23individual in the employ of his or her spouse, and other amounts received as
24compensation for personal services actually rendered, but does not include that part
25of the compensation derived by the taxpayer for personal services rendered by him

1or her to a corporation which represents a distribution of earnings or profits rather
2than a reasonable allowance as compensation for the personal services actually
3rendered. In the case of a taxpayer engaged in a trade or business in which both
4personal services and capital are material income-producing factors, under federal
5regulations, a reasonable allowance as compensation for the personal services
6rendered by the taxpayer shall be considered as earned income. Earned income
7includes gains, other than any gain which is treated under any provision of chapter
826 of the Internal Revenue Code as gain from the sale or exchange of a capital asset,
9and includes net earnings derived from the sale or disposition of, the transfer of any
10interest in, or the licensing of the use of property, other than goodwill, by an
11individual whose personal efforts created such property. Earned income does not
12include any amount not included in gross income, received as a pension or annuity,
13paid or distributed out of an individual retirement plan, within the meaning of
14section 7701 (a) (37) of the Internal Revenue Code, or received as deferred
15compensation
. Earned income is computed notwithstanding the fact that each
16spouse owns an undivided one-half interest in the whole of the marital property. A
17marital property agreement or unilateral statement under ch. 766 transferring
18income between spouses has no effect in computing earned income under this
19paragraph.
SB738,42 20Section 42. 71.07 (6) (am) 1m. of the statutes is created to read:
SB738,15,321 71.07 (6) (am) 1m. In this paragraph, “qualified earned income” means an
22amount equal to the excess of the earned income of the spouse for the taxable year,
23over an amount equal to the sum of the deductions described in paragraphs (1), (2)
24(B), (C), and (E), (6), (7), and (12) of section 62 (a) of the Internal Revenue Code to the
25extent such deductions are properly allocable to or chargeable against earned

1income, allocable to Wisconsin under s. 71.04, minus the amount of disability income
2excluded under s. 71.05 (6) (b) 4. and minus any other amount not subject to tax
3under this chapter.
SB738,43 4Section 43 . 71.07 (6) (am) 2. d. of the statutes is amended to read:
SB738,15,75 71.07 (6) (am) 2. d. For taxable years beginning after December 31, 2000, 3
6percent of the qualified earned income of the spouse with the lower qualified earned
7income, but not more than $480.
SB738,44 8Section 44 . 71.08 (1) (intro.) of the statutes is amended to read:
SB738,15,179 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married
10couple filing jointly, trust, or estate under s. 71.02, not considering the credits under
11ss. 71.07 (1), (2dx), (2dy), (3m), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (5b), (5d),
12(5e), (5i), (5j), (5n), (6), (6e), (8b), (9e), (9m), and (9r), 71.28 (1dx), (1dy), (2m), (3), (3n),
13(3t), (3w), (3wm), and (3y), 71.47 (1dx), (1dy), (2m), (3), (3n), (3t), (3w), and (3y), 71.57
14to 71.61, and 71.613 and subch. VIII and payments to other states under s. 71.07 (7),
15is less than the tax under this section, there is imposed on that natural person,
16married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an
17alternative minimum tax computed as follows:
SB738,45 18Section 45 . 71.10 (4) (gy) of the statutes is repealed.
SB738,46 19Section 46. 71.21 (4) (a) of the statutes is amended to read:
SB738,15,2320 71.21 (4) (a) The amount of the credits computed by a partnership under s.
2171.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
22(5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to partners
23shall be added to the partnership's income.
SB738,47 24Section 47 . 71.26 (2) (a) 4. of the statutes is amended to read:
SB738,16,6
171.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
2(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5e), (5g), (5i), (5j), (5k), (5r),
3(5rm), (6n), and (10) and not passed through by a partnership, limited liability
4company, or tax-option corporation that has added that amount to the partnership's,
5limited liability company's, or tax-option corporation's income under s. 71.21 (4) or
671.34 (1k) (g).
SB738,48 7Section 48. 71.28 (5e) of the statutes is repealed.
SB738,49 8Section 49 . 71.30 (3) (es) of the statutes is repealed.
SB738,50 9Section 50 . 71.34 (1k) (g) of the statutes is amended to read:
SB738,16,1310 71.34 (1k) (g) An addition shall be made for credits computed by a tax-option
11corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
12(3wm), (3y), (4), (5), (5e), (5g), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed
13through to shareholders.
SB738,51 14Section 51 . 71.45 (2) (a) 10. of the statutes is amended to read:
SB738,16,2115 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
16computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5e), (5g), (5i),
17(5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership, limited
18liability company, or tax-option corporation that has added that amount to the
19partnership's, limited liability company's, or tax-option corporation's income under
20s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit computed under s. 71.47 (3), (3t),
21(4), (4m), and (5).
SB738,52 22Section 52. 71.47 (5e) of the statutes is repealed.
SB738,53 23Section 53 . 71.49 (1) (es) of the statutes is repealed.
SB738,54 24Section 54 . 77.51 (5m) of the statutes is repealed.
SB738,55 25Section 55. 77.52 (13) of the statutes is amended to read:
SB738,17,12
177.52 (13) For the purpose of the proper administration of this section and to
2prevent evasion of the sales tax it shall be presumed that all receipts are subject to
3the tax until the contrary is established. The burden of proving that a sale of tangible
4personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services
5is not a taxable sale at retail is upon the person who makes the sale unless that
6person takes from the purchaser an electronic or a paper certificate, in a manner
7prescribed by the department, to the effect that the property, item, good, or service
8is purchased for resale or is otherwise exempt, except that no certificate is required
9for the sale of tangible personal property, or items, property, or goods under sub. (1)
10(b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10),
11(11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46),
12(51), (52), (64), (66), and (67).
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