71.58(4)
(4) "Gross farm profits" means gross receipts, excluding rent, from agricultural use, as defined in
s. 91.01 (1) including the fair market value at the time of disposition of payments in kind for placing land in federal programs or payments from the federal dairy termination program under
7 USC 1446 (d), less the cost or other basis of livestock or other items purchased for resale which are sold or otherwise disposed of during the taxable year.
71.58(5)
(5) "Household" means an individual and his or her spouse and all minor dependents.
71.58(6)
(6) "Household income" means all of the income of the claimant and the claimant's spouse and the farm income, including wages, earned on the farm to which the credit applies of all minor dependents attributable to the taxable year while members of the household.
71.58(7)(a)
(a) For an individual, means income as defined under
s. 71.52 (6), plus nonfarm business losses, plus amounts under
s. 46.27, less net operating loss carry-forwards, less first-year depreciation allowances under section
179 of the internal revenue code and less the first $25,000 of depreciation expenses in respect to the farm claimed by all of the individuals in a household.
71.58(7)(b)
(b) For a corporate claimant, except a tax-option corporation, means the same as for an individual claimant except that net income plus any farm business loss carry-forward allowed under
s. 71.26 (4) shall be included instead of income under
s. 71.52 (6) and "income" of a corporate claimant shall include all household income of each of its corporate shareholders of record at the end of its taxable year, plus nonfarm business losses and depreciation expenses of the corporate claimant, except the first $25,000 of depreciation expenses in respect to the farm.
71.58(7)(c)
(c) For an estate or trust, means the same as "income" for an individual except that the net income of the estate or trust before subtracting any deductions claimed for income distributable to the estate's or trust's beneficiaries shall be included instead of Wisconsin adjusted gross income.
71.58(8)
(8) "Property taxes accrued" means property taxes, exclusive of special assessments, delinquent interest and charges for service, levied on the farmland and improvements owned by the claimant or any member of the claimant's household in any calendar year under
ch. 70, less the tax credit, if any, afforded in respect of the property by
s. 79.10. "Property taxes accrued" shall not exceed $6,000. If farmland is owned by a tax-option corporation, a limited liability company or by 2 or more persons or entities as joint tenants, tenants in common or partners or is marital property or survivorship marital property and one or more such persons, entities or owners is not a member of the claimant's household, "property taxes accrued" is that part of property taxes levied on the farmland, reduced by the tax credit under
s. 79.10, that reflects the ownership percentage of the claimant and the claimant's household. For purposes of this subsection, property taxes are "levied" when the tax roll is delivered to the local treasurer for collection. If farmland is sold during the calendar year of the levy the "property taxes accrued" for the seller is the amount of the tax levy, reduced by the tax credit under
s. 79.10, prorated to each in the closing agreement pertaining to the sale of the farmland, except that if the seller does not reimburse the buyer for any part of those property taxes there are no "property taxes accrued" for the seller, and the "property taxes accrued" for the buyer is the property taxes levied on the farmland, reduced by the tax credit under
s. 79.10, minus, if the seller reimburses the buyer for part of the property taxes, the amount prorated to the seller in the closing agreement. With the claim for credit under this subchapter, the seller shall submit a copy of the closing agreement and the buyer shall submit a copy of the closing agreement and a copy of the property tax bill.
71.59
71.59
Filing claims. 71.59(1)(1)
Eligibility and qualifications. 71.59(1)(a)(a) Subject to the limitations provided in this subchapter and
s. 71.80 (3) and
(3m), a claimant may claim as a credit against Wisconsin income or franchise taxes otherwise due, the amount derived under
s. 71.60. If the allowable amount of claim exceeds the income or franchise taxes otherwise due on or measured by the claimant's income or if there are no Wisconsin income or franchise taxes due on or measured by the claimant's income, the amount of the claim not used as an offset against income or franchise taxes shall be certified to the department of administration for payment to the claimant by check, share draft or other draft drawn on the general fund.
71.59(1)(b)
(b) Every claimant under this subchapter shall supply, at the request of the department, in support of the claim, all of the following:
71.59(1)(b)1.
1. A copy of the property tax bill relating to the farmland.
71.59(1)(b)2.
2. Certification by the claimant that all taxes owed by the claimant on the property for which the claim is made for the year before the year for which the claim is made have been paid.
71.59(1)(b)3.
3. A copy of the farmland preservation agreement or a certificate of the appropriate zoning authority, except that, if the claimant has obtained a certificate of the appropriate zoning authority to file a claim for a previous year and the claimant determines that the conditions described under
par. (d) that caused the authority to issue the previous certificate have not changed and are still applicable, the claimant may certify that such conditions have not changed and still apply and such a claimant is not required to submit a certificate of the zoning authority unless the department, in writing, requires the claimant to submit a certificate because the department determines that it needs a certificate to process the claim.
71.59(1)(b)4.
4. Certification by the claimant that each county land conservation committee with jurisdiction over the farmland has been notified that the claimant intends to submit a claim under this subchapter.
71.59(1)(c)
(c) A farmland preservation agreement submitted under
par. (b) 3. shall contain provisions specified under
s. 91.13 (8) including either a provision requiring farming operations to be conducted in substantial accordance with a soil and water conservation plan prepared under
s. 92.104 or a provision requiring farming operations to be conducted in compliance with reasonable soil and water conservation standards established under
s. 92.105.
71.59(1)(d)
(d) The certificate of the zoning authority submitted under
par. (b) 3. shall certify:
71.59(1)(d)1.
1. That the lands are within the boundaries of an agricultural zoning district which is part of an adopted ordinance meeting the standards of
subch. V of ch. 91 and certified under
s. 91.06.
71.59(1)(d)2.
2. That the ordinance has been approved, where necessary, by the board of the town within which the lands are situated, as required by
s. 59.69, and shall indicate the date of approval.
71.59(1)(d)3.
3. That each structure or improvement on the lands conforms to the requirements of the exclusive agricultural use ordinance.
71.59(1)(d)4.
4. The portion of the claimant's farmland which is within the area zoned for exclusive agricultural use.
71.59(1)(d)5.
5. That soil and water conservation standards applicable to the land are established and approved as required under
s. 92.105 (1) to
(3) and that no notice of noncompliance is in effect under
s. 92.105 (5) with respect to the claimant at the time the certificate is issued.
71.59(1m)
(1m) Permitted uses. The designation by the department of natural resources of any farmland in this state, for which a claim under this section may be filed, as part of the ice age trail, under
s. 23.17, is a permitted use under a farmland preservation agreement, or a certificate of a zoning authority, under
sub. (1) (b).
71.59(2)
(2) Ineligible claims. No credit shall be allowed under this subchapter:
71.59(2)(a)
(a) Unless a claim is filed with the department in conformity with the filing requirements in
s. 71.03 (6) and
(7) for a claimant filing under
subch. I, in conformity with the filing requirements in
s. 71.24 (1),
(1m) and
(7) for a claimant filing under
subch. IV and in conformity with the filing requirements in
s. 71.44 (1),
(1m) and
(3) for a claimant filing under
subch. VII.
71.59(2)(b)
(b) If a notice of noncompliance with an applicable soil and water conservation plan under
s. 92.104 is in effect with respect to the claimant at the time the claim is filed.
71.59(2)(c)
(c) If a notice of noncompliance with applicable soil and water conservation standards under
s. 92.105 is in effect with respect to the claimant at the time the claim is filed.
71.59(2)(d)
(d) For property taxes accrued on farmland zoned for exclusive agricultural use under an ordinance certified under
subch. V of ch. 91 which is granted a special exception or conditional use permit for a use which is not an agricultural use, as defined in
s. 91.01 (1).
71.59(2)(e)
(e) If the department determines that ownership of the farmland has been transferred to the claimant primarily for the purpose of maximizing benefits under this subchapter.
71.60(1)(1) Except as provided in
sub. (2), the amount of any claim filed in calendar years based upon property taxes accrued in the preceding calendar year shall be determined as follows:
71.60(1)(a)
(a) The amount of excessive property taxes shall be computed by subtracting from property taxes accrued the amount of 7% of the 2nd $5,000 of household income plus 9% of the 3rd $5,000 of household income plus 11% of the 4th $5,000 of household income plus 17% of the 5th $5,000 of household income plus 27% of the 6th $5,000 of household income plus 37% of household income in excess of $30,000. The maximum excessive property tax which can be utilized is $6,000.
71.60(1)(b)
(b) The credit allowed under this subchapter shall be limited to 90% of the first $2,000 of excessive property taxes plus 70% of the 2nd $2,000 of excessive property taxes plus 50% of the 3rd $2,000 of excessive property taxes. The maximum credit shall not exceed $4,200 for any claimant. The credit for any claimant shall be the greater of either the credit as calculated under this subchapter as it exists at the end of the year for which the claim is filed or as it existed on the date on which the farmland became subject to a current agreement under
subch. II or
III of ch. 91, using for such calculations household income and property taxes accrued of the year for which the claim is filed.
71.60(1)(c)1.1. If the farmland is located in a county which has a certified agricultural preservation plan under
subch. IV of ch. 91 at the close of the year for which credit is claimed and is in an area zoned by a county, city or village for exclusive agricultural use under
ch. 91 at the close of such year, the amount of the claim shall be that as specified in
par. (b).
71.60(1)(c)2.
2. If the farmland is subject to a transition area agreement under
subch. II of ch. 91 on July 1 of the year for which credit is claimed, or the claimant had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, and the farmland is located in a city or village which has a certified exclusive agricultural use zoning ordinance under
subch. V of ch. 91 in effect at the close of the year for which credit is claimed, or in a town which is subject to a certified county exclusive agricultural use zoning ordinance under
subch. V of ch. 91 in effect at the close of the year for which credit is claimed, the amount of the claim shall be that as specified in
par. (b).
71.60(1)(c)3.
3. If the claimant or any member of the claimant's household owns farmland which is ineligible for credit under
subd. 1. or
2. but was subject to a farmland preservation agreement under
subch. III of ch. 91 on July 1 of the year for which credit is claimed, or the owner had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, and if the owner has applied by the end of the year in which conversion under
s. 91.41 is first possible for conversion of the agreement to a transition area agreement under
subch. II of ch. 91, and the transition area agreement has subsequently been executed, and the farmland is located in a city or village which has a certified exclusive agricultural use zoning ordinance under
subch. V of ch. 91 in effect at the close of the year for which credit is claimed, or in a town which is subject to a certified county exclusive agricultural use zoning ordinance under
subch. V of ch. 91 in effect at the close of the year for which credit is claimed, the amount of the claim shall be that specified in
par. (b).
71.60(1)(c)4.
4. If the claimant or any member of the claimant's household owns farmland which is ineligible for credit under
subd. 1. or
2. but which is subject to a farmland preservation agreement or a transition area agreement under
subch. II of ch. 91 on July 1 of the year for which credit is claimed, or the owner had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, the amount of the claim shall be limited to 80% of that specified in
par. (b).
71.60(1)(c)5.
5. If the claimant or any member of the claimant's household owns farmland which is ineligible for credit under
subds. 1. to
4. but was subject to a farmland preservation agreement under
subch. III of ch. 91 on July 1 of the year for which credit is claimed, or the owner had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, and if the owner has applied by the end of the year in which conversion under
s. 91.41 is first possible for conversion of the agreement to an agreement under
subch. II of ch. 91, and the agreement under
subch. II of ch. 91 has subsequently been executed, the amount of the claim shall be limited to 80% of that specified in
par. (b).
71.60(1)(c)6.
6. If the farmland is located in an agricultural district under a certified county agricultural preservation plan under
subch. IV of ch. 91 at the close of the year for which credit is claimed, and is located in an area zoned for exclusive agricultural use under a certified town ordinance under
subch. V of ch. 91 at the close of such year, the amount of the claim shall be the amount specified in
par. (b).
71.60(1)(c)6m.
6m. If the farmland is located in an agricultural district under a certified county agricultural preservation plan under
subch. IV of ch. 91 at the close of the year for which credit is claimed, and is located in an area zoned for exclusive agricultural use under a certified county or town ordinance under
subch. V of ch. 91 for part of a year but not at the close of that year because the farmland became subject to a city or village extraterritorial zoning ordinance under
s. 62.23 (7a), the amount of the claim shall be equal to the amount that the claim would have been under this section if the farmland were subject to a certified county or town exclusive agricultural use ordinance at the close of the year.
71.60(1)(c)7.
7. If the farmland is located in an area zoned for exclusive agricultural use under a certified county, city or village ordinance under
subch. V of ch. 91 at the close of the year for which credit is claimed, but the county in which the farmland is located has not adopted an agricultural preservation plan under
subch. IV of ch. 91 by the close of such year, the amount of the claim shall be limited to 70% of that specified in
par. (b).
71.60(1)(c)8.
8. If the farmland is subject to a farmland preservation agreement under
subch. III of ch. 91 on July 1 of the year for which credit is claimed or the claimant had applied for such an agreement before July 1 of such year and the agreement has subsequently been executed, the amount of the claim shall be limited to 50% of that specified in
par. (b).
71.60(2)
(2) If the farmland is subject to a certified ordinance under
subch. V of ch. 91, or an agreement under
subch. II of ch. 91, in effect at the close of the year for which the credit is claimed, the amount of the claim is 10% of the property taxes accrued or the amount determined under
sub. (1), whichever is greater.
71.61
71.61
General provisions. 71.61(1)(1)
Department may apply credit against any tax liability. The amount of any claim otherwise payable under this subchapter may be applied by the department against any amount certified to the department under
s. 71.93 or
71.935 or may be credited under
s. 71.80 (3) or
(3m).
71.61(2)
(2) Credits are income. All amounts allowed as credits under this subchapter constitute income for income and franchise tax purposes and are reportable as such in the year of receipt.
71.61(3)
(3) Interest not allowed. No interest may be allowed on any payment made to a claimant under this subchapter.
71.61(3m)
(3m) Administration. The income tax provisions in this chapter relating to assessments, refunds, appeals and collection apply to the credit under this subchapter.
71.61(4)
(4) Penalties. Unless specifically provided in this subchapter, the penalties under
subch. XIII apply for failure to comply with this subchapter unless the context requires otherwise.
71.61(5)
(5) Table prepared by department. The department shall prepare a table under which claims under this subchapter shall be determined.
WITHHOLDING
71.63
71.63
Definitions. In this subchapter, unless the context clearly indicates otherwise:
71.63(1)
(1) "Department" means the department of revenue.
71.63(1m)
(1m) "Deposit" means mail or deliver funds to the department or, if the department prescribes another method of submitting or if the department of administration designates under
s. 34.05 another destination, use that other method or submit to that other destination.
71.63(2)
(2) "Employee" means a resident individual who performs or performed services for an employer anywhere or a nonresident individual who performs or performed such services within this state, and includes an officer, employee or elected official of the United States, a state, territory, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of these entities. The term includes an officer of a corporation, an entertainer and an entertainment corporation, but does not include a qualified real estate agent or a direct seller who is not treated as an employee under section
3508 of the Internal Revenue Code.
71.63(3)
(3) "Employer" means a person, partnership or limited liability company, whether subject to or exempt from taxation under this chapter, for whom an individual performs or performed any service as an employee of that person, partnership or company and includes a person, partnership or company that engages the services of an entertainer or an entertainment corporation, except that:
71.63(3)(a)
(a) If the person for whom the individual performs or performed the services does not have control of the payment of the wages for those services, "employer", except for purposes of
sub. (6), means the person having receipt, custody or control of the payment of those wages.
71.63(3)(b)
(b) If a resident person, including but not limited to a ticket agency or box office manager, has receipt, custody or control of the proceeds of an event taking place and the proceeds are paid to an entertainer or entertainment corporation or to any nonresident person who has engaged the services of an entertainer or entertainment corporation, "employer" means the resident person, firm or nonresident person having the receipt, custody or control of the proceeds.
71.63(3)(c)
(c) In regard to a single-owner entity that is disregarded as a separate entity under section
7701 of the Internal Revenue Code, the owner, not the entity, is an "employer".
71.63(3m)
(3m) "File" means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or the department of administration designates under
s. 34.05 another destination, use that other method or submit to that other destination.
71.63(3r)
(3r) "Furnish" means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.
71.63(4)
(4) "Income", "person" and all other terms not otherwise defined, have the same meaning as in the internal revenue code.
71.63(5)
(5) "Payroll period" means a period for which a payment of wages is ordinarily made to the employee by his or her employer, and the term "miscellaneous payroll period" means a payroll period other than a daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannual or annual payroll period.
71.63(5m)
(5m) "Remit" means mail or deliver funds to the department or, if the department prescribes another method of submitting or if the department of administration designates under
s. 34.05 another destination, use that other method or submit to that other destination.
71.63(6)
(6) "Wages" means all remuneration, other than fees paid to a public official, for services performed by an employee for an employer, including cash value of all remuneration paid in any medium other than cash and remuneration paid to an entertainer or entertainment corporation, minus the amount of remuneration not subject to tax under this chapter, but does not include remuneration paid:
71.63(6)(a)
(a) For active service as a member of the armed forces of the United States for any month during any part of which such member served in a combat zone during an induction period or was hospitalized as a result of wounds, disease or injury incurred while serving in a combat zone during an induction period, but this paragraph shall not apply for any month during any part of which there are no combatant activities in any combat zone and remuneration, for purposes of this paragraph, shall not include pensions and retirement pay.
71.63(6)(b)
(b) For agricultural labor, including all service performed:
71.63(6)(b)1.
1. On a farm, in the employ of any person, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training and management of livestock, bees, poultry and fur-bearing animals and wildlife;
71.63(6)(b)2.
2. In the employ of the owner or tenant or other operator of a farm, in connection with the operation, management, conservation, improvement or maintenance of such farm and its tools and equipment, or in salvaging timber or clearing land of brush and other debris left by a hurricane, if the major part of such service is performed on a farm;
71.63(6)(b)3.
3. In connection with the production or harvesting of crude gum, gum spirits of turpentine or gum rosin, in connection with the ginning of cotton, or in connection with the operation or maintenance of ditches, canals, reservoirs or waterways, not owned or operated for profit, used exclusively for supplying and storing water for farm purposes;
71.63(6)(b)4.
4. In the employ of the operator of a farm in handling, planting, drying, packaging, processing, freezing, grading, storing or delivering to storage or to market or to a carrier for transportation to market, in its unmanufactured state, any agricultural or horticultural commodity, but only if such operator produced more than one-half of the commodity with respect to which such service was performed, or in the employ of a group of operators of farms (other than a cooperative organization) in the performance of such services, but only if such operators produced all of the commodity with respect to which such service is performed, but the provisions of this subdivision shall not be deemed to be applicable with respect to service performed in connection with commercial canning or commercial freezing or in connection with any agricultural or horticultural commodity after its delivery to a terminal market for distribution or consumption;
71.63(6)(b)5.
5. On a farm operated for profit if such service is not in the course of the employer's trade or business;
71.63(6)(b)6.
6. In this paragraph, "farm" includes stock, dairy, poultry, fruit, fur-bearing animals and truck farms, plantations, ranches, nurseries, ranges, greenhouses, or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards.
71.63(6)(c)
(c) For domestic service in a private home, local college club or local chapter of a college fraternity or sorority.
71.63(6)(d)
(d) For service not in the course of the employer's trade or business performed in any calendar quarter by an employee, unless the cash remuneration paid for such service is $50 or more and such service is performed by an individual who is regularly employed by such employer to perform such service. An individual shall be deemed to be regularly employed by an employer during a calendar quarter only if on each of some 24 days during such quarter such individual performs, for such employer, for some portion of the day, service not in the course of the employer's trade or business, or such individual was regularly employed (as defined in this paragraph) by such employer in the performance of such service during the preceding calendar quarter.
71.63(6)(e)
(e) For services by a citizen or resident of the United States for a foreign government or an international organization.
71.63(6)(f)
(f) For services performed by a duly ordained, commissioned or licensed minister of a church in the exercise of his or her ministry or by a member of a religious order in the exercise of duties required by such order.
71.63(6)(g)
(g) For services performed by an individual under the age of 18 in the delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution.
71.63(6)(h)
(h) For services performed by an individual in, and at the time of, the sale of newspapers or magazines to ultimate consumers, under an arrangement under which the newspapers or magazines are to be sold by him or her at a fixed price, his or her compensation being based on the retention of the excess of such price over the amount at which newspapers or magazines are charged to him or her, whether or not he or she is guaranteed a minimum amount of compensation for such services, or is entitled to be credited with the unsold newspapers or magazines turned back.
71.63(6)(i)
(i) For services not in the course of the employer's trade or business to the extent paid in any medium other than cash.
71.63(6)(j)
(j) To, or on behalf of, an employee or his or her beneficiary from a trust created or organized in the United States and forming part of a stock bonus, pension or profit sharing plan of an employer for the exclusive benefit of his or her employees or their beneficiaries and which trust is exempt from taxation, unless such payment is made to an employee of the trust as remuneration for services rendered as such employee and not as a beneficiary of the trust.
