AB133-ASA1,878,2 71.25 (9) (dr) 1. For taxable years beginning after December 31, 1999, receipts from a service are attributed to the state where the purchaser of the service received the benefit of the service. The benefit of a service is received in this state if any of the following applies:

AB133-ASA1,878,3 a. The service relates to real property that is located in this state.

AB133-ASA1,878,5 b. The service relates to tangible personal property that is located in this state at the time that the service is received.

AB133-ASA1,878,6 c. The service is provided to a person who is located in this state.

AB133-ASA1,878,7 d. The service is provided to a person doing business in this state.

AB133-ASA1,878,8 e. The service is performed at a location in this state.

AB133-ASA1,878,17 2. If the purchaser of a service receives the benefit of a service in more than one state, the receipts from the performance of the service are included in the numerator of the sales factor under par. (a) according to the portion of the service received in this state. If the state where a purchaser received the benefit of a service cannot be determined, the benefit of a service is received in the state where the purchaser, in the regular course of the purchaser's business, ordered the service. If the state where a purchaser ordered a service cannot be determined, the benefit of the service is received in the state where the purchaser, in the regular course of the purchaser's business, receives a bill for the service.

AB133-ASA1,878,21 3. If the taxpayer is not subject to income tax in the state in which the benefit of the service is received, the benefit of the service is received in this state to the extent that the taxpayer's employes or representatives performed services from a location in this state.

AB133-ASA1, s. 1736b Section 1736b. 71.25 (9) (ds) of the statutes is created to read:

AB133-ASA1,879,2 71.25 (9) (ds) 1. For taxable years beginning after December 31, 1999, the gate receipts from professional sporting events are attributed to the state in which the taxpayer's sports facility is located. Gate receipts include the taxpayer's in-state gate receipts and the taxpayer's share of out-of-state gate receipts.

AB133-ASA1,879,8 2. For taxable years beginning after December 31, 1999, radio and television receipts received by the taxpayer from a professional sports association contract with a communications network are attributed to this state in proportion to the number of events held in this state in which the taxpayer's team is a participant and that are related to the contract compared to the total number of events in which the taxpayer's team is a participant and that are related to the contract.

AB133-ASA1, s. 1736c Section 1736c. 71.25 (9) (dt) of the statutes is created to read:

AB133-ASA1,879,13 71.25 (9) (dt) 1. For taxable years beginning after December 31, 1999, the gross receipts from radio and television broadcasting, including advertising revenue, are attributed to this state in proportion to the audience in this state as compared to the total audience.

AB133-ASA1,879,16 2. For taxable years beginning after December 31, 1999, the gross receipts from newspapers and magazines, including advertising revenue, are attributed to this state in proportion to the circulation in this state as compared to the total circulation.

AB133-ASA1, s. 1736d Section 1736d. 71.25 (9) (dw) of the statutes is created to read:

AB133-ASA1,879,22 71.25 (9) (dw) 1. Except as provided in subds. 2. and 3., if a person doing business in this state and outside this state owns a business that is subject to apportionment under sub. (6) or s. 71.04 (4) and a business that is a subject to apportionment under sub. (10), the person shall apportion income as provided under sub. (6) or s. 71.04 (4).

AB133-ASA1,880,6 2. A person who has filed a tax return and who has reported income on the return as apportioned under subd. 1 may request permission from the department to use an alternative apportionment method in the next taxable year, if the person receives at least 50% of the person's total gross receipts in a taxable year from a business described under sub. (10) (c). If the department grants permission to a person to use an alternative apportionment method under this subdivision, the person may not use the alternative method, and shall apportion income under subd. 1., if the person receives less than 50% of the person's total gross receipts in a taxable year from a business described under sub. (10) (c).

AB133-ASA1,880,9 3. The department may require that a person who is subject to apportionment under this subsection use an alternative apportionment method to accurately reflect income that is attributable to this state.

AB133-ASA1, s. 1737 Section 1737. 71.25 (9) (e) (title) of the statutes is repealed.

AB133-ASA1, s. 1738 Section 1738. 71.25 (9) (f) (title) of the statutes is repealed.

AB133-ASA1, s. 1738g Section 1738g. 71.25 (9d) of the statutes is created to read:

AB133-ASA1,880,13 71.25 (9d) Financial organizations. (a) Definitions. In this subsection:

AB133-ASA1,880,15 1. "Billing address" means the address to which a taxpayer under this subsection sends a notice, statement or bill to the taxpayer's customer.

AB133-ASA1,880,16 2. "Credit card" includes a debit card and a travel and entertainment card.

AB133-ASA1,880,19 3. "Credit card reimbursement fee" means the fee that a taxpayer receives from a merchant's bank because a person to whom the taxpayer has issued a credit card has paid for merchandise or services sold by the merchant with the credit card.

AB133-ASA1,881,6 4. "Financial organization" means a bank; a savings bank; a bank holding company; a savings and loan association; a trust company; a credit union, except a credit union that is exempt from taxes under s. 71.26 (1) (a); a production credit association; or an agency or branch of a foreign depository; whether chartered under the laws of this state, another state or territory, the laws of the United States or the laws of a foreign county. "Financial organization" includes a corporation that derives at least 50% of its total gross income from finance leases, including direct finance leases and leverage leases as defined by rule, and a corporation that derives at least 50% of its total gross income from an activity that a financial organization performs, except that "financial organization" does not include an insurance company that is taxable under s. 71.43 or a real estate broker, securities dealer or broker-dealer that is taxable under s. 71.26.

AB133-ASA1,881,16 5. "Loan" means any extension of credit or creation of debt that results from direct negotiations between the taxpayer under this subsection and the taxpayer's customer; the purchase, in whole or in part, of an extension of credit; and participations, syndications and leases that are considered loans for federal income tax purposes. "Loan" does not include loans under section 595 of the Internal Revenue Code; futures or forward contracts; options; notional principal contracts; credit card receivables; purchased credit card relationships; noninterest bearing balances that are due from depository institutions; cash items in the process of collection; federal funds sold; securities; assets held in a trading account; and interest in any mortgage-backed or assets-backed security.

AB133-ASA1,881,19 6. "Merchant discount" means a fee or discount that is charged to a merchant for accepting a credit card as payment for merchandise or services that are sold to the credit card holder.

AB133-ASA1,881,21 7. "State" means a state of the United States, the District of Columbia, the commonwealth of Puerto Rico or a territory or possession of the United States.