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Please see http://docs.legis.wisconsin.gov for the production version.
Final audit determinations
Under current law, a taxpayer who receives a final audit determination from
DOR has 90 days to report to DOR any changes or corrections related to that
determination. The bill increases the time for providing that report to 180 days.
Historic rehabilitation credit
The bill modifies the procedure for transferring the historic rehabilitation tax
credit so that the person transferring the credit may file a claim for more than one
taxable year.
Internal Revenue Code
The bill adopts for state income and franchise tax purposes various provisions
of the federal Internal Revenue Code.
Medical care insurance subtraction
The bill eliminates obsolete provisions related to the medical care insurance
subtraction for self-employed persons.
Payments from a retirement plan
Under current law, payments or distributions of $5,000 or less received each
year by an individual from a qualified retirement plan is exempt from income tax if
the individual is at least 65 years of age and has income of less than $15,000 if single
or filing a tax return as head of household or less than $30,000 if married. The bill
changes the exemption to a subtraction that the taxpayer can choose not to claim if
not claiming the subtraction would result in the taxpayer receiving a greater
homestead credit.
Sales tax
Property transferred with services
Current law provides that persons providing landscaping, printing,
fabricating, processing, or photographic services or performing services to tangible
personal property may purchase for resale, without paying the sales tax, items that
the person will transfer to a customer in conjunction with providing a service that
is subject to the sales tax. The bill provides that the exemption applies regardless
of whether the service is taxable.
Nonprofit organizations
The bill modifies the sales and use tax exemption for churches, religious
organizations, and certain nonprofit organizations to conform with DOR's current
practice with regard to the administration of the exemption. The bill provides that
the exemption applies to organizations that are exempt from federal taxation under
section 501 (c) (3) of the Internal Revenue Code and have received a determination
letter for the Internal Revenue Service. The bill also provides that the exemption
applies to churches and religious organizations that meet the requirements of
section 501 (c) (3) of the Internal Revenue Code, but are not required to apply for or
obtain tax-exempt status from the IRS.

Out-of-state retailer
Under current law, an out-of-state retailer that has annual gross sales into this
state in excess of $100,000 or 200 or more annual separate sales transactions into
this state must register with DOR and collect the sales tax on those sales and
transactions. The determination of the annual gross sales and transactions is based
on the retailer's taxable year for federal income tax purposes.
Under the bill, an out-of-state retailer that has annual gross sales into this
state in excess of $100,000 in the previous or current calendar year must register
with DOR and collect the sales tax on those sales.
Disclosure to state auditor
The bill allows the state auditor and Legislative Audit Bureau to examine sales
and use tax returns and related documents to the extent necessary for the bureau
to carry out its duties.
Other
Payments from counties to towns
Under current law, during the period beginning on the third Monday of March
and ending ten days after the annual town meeting, a county treasurer may not pay
to a town treasurer any money that belongs to the town and that is in the hands of
the county treasurer except upon a written order of the town board. The bill
eliminates this restriction.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB754-ASA1,1 1Section 1. 48.561 (3) (a) 3. of the statutes is amended to read:
AB754-ASA1,6,32 48.561 (3) (a) 3. Through a deduction of $20,101,300 from any state payment
3due that county under s. 79.035, 79.04, or 79.08 79.02 (1), as provided in par. (b).
AB754-ASA1,2 4Section 2. 48.561 (3) (b) of the statutes is amended to read:
AB754-ASA1,7,55 48.561 (3) (b) The department of administration shall collect the amount
6specified in par. (a) 3. from a county having a population of 750,000 or more by
7deducting all or part of that amount from any state payment due that county under
8s. 79.035, 79.04, or 79.08 79.02 (1). The department of administration shall notify
9the department of revenue, by September 15 of each year, of the amount to be
10deducted from the state payments due under s. 79.035, 79.04, or 79.08 79.02 (1). The
11department of administration shall credit all amounts collected under this

1paragraph to the appropriation account under s. 20.437 (1) (kw) and shall notify the
2county from which those amounts are collected of that collection. The department
3may not expend any moneys from the appropriation account under s. 20.437 (1) (cx)
4for providing services to children and families under s. 48.48 (17) until the amounts
5in the appropriation account under s. 20.437 (1) (kw) are exhausted.
AB754-ASA1,3 6Section 3 . 59.25 (3) (i) of the statutes is amended to read:
AB754-ASA1,7,157 59.25 (3) (i) Make annually, on the 3rd Monday of March, a certified statement,
8and forward the statement to each municipal clerk in the county, showing the
9amount of money paid from the county treasury during the year next preceding to
10each municipal treasurer in the county. The statement shall specify the date of each
11payment, the amount thereof and the account upon which the payment was made.
12It shall be unlawful for any county treasurer to pay to the treasurer of any town any
13money in the hands of the county treasurer belonging to the town from the 3rd
14Monday of March until 10 days after the annual town meeting except upon the
15written order of the town board.
AB754-ASA1,4 16Section 4 . 66.0602 (3) (h) 2. a. of the statutes is amended to read:
AB754-ASA1,7,2217 66.0602 (3) (h) 2. a. The total charges assessed by the joint fire department for
18the current year increase, relative to the total charges assessed by the joint fire
19department for the previous year, by a percentage that is less than or equal to the
20percentage change in the U.S. consumer price index for all urban consumers, U.S.
21city average, as determined by the U.S. department of labor, for the 12 months
22ending on September 30 August 31 of the year of the levy, plus 2 percent.
AB754-ASA1,5 23Section 5. 66.0602 (6) (a) of the statutes is amended to read:
AB754-ASA1,8,3
166.0602 (6) (a) Reduce the amount of county and municipal aid payments the
2payment
to the political subdivision under s. 79.035 79.02 (1) in the following year
3by an amount equal to the amount of the penalized excess.
AB754-ASA1,6 4Section 6. 66.0602 (6) (b) of the statutes is amended to read:
AB754-ASA1,8,65 66.0602 (6) (b) Ensure that the amount of any reductions in county and
6municipal aid
payments under par. (a) lapses to the general fund.
AB754-ASA1,7 7Section 7. 66.1105 (6m) (d) 4. of the statutes is amended to read:
AB754-ASA1,8,158 66.1105 (6m) (d) 4. If an annual report is not timely filed under par. (c), the
9department of revenue shall notify the city that the report is past due. If the city does
10not file the report within 60 days of the date on the notice, except as provided in this
11subdivision, the department shall charge the city a fee of $100 per day for each day
12that the report is past due, up to a maximum penalty of $6,000 per report. If the city
13does not pay within 30 days of issuance, the department of revenue shall reduce and
14withhold the amount of the shared revenue payments to the city under subch. I of
15ch. 79
s. 79.02 (1), in the following year, by an amount equal to the unpaid penalty.
AB754-ASA1,8 16Section 8. 70.46 (4) of the statutes is amended to read:
AB754-ASA1,8,2517 70.46 (4) No board of review may be constituted unless it includes at least one
18voting member who, within 2 years of the board's first meeting, has attended
all
19members complete in each year
a training session under s. 73.03 (55) and unless that
20member is the municipality's chief executive officer or that officer's designee
. All but
21one member of the board may satisfy the training requirement under this subsection
22by participating in the training electronically. At least one member shall attend
23training in-person each year
. The municipal clerk shall provide an affidavit to the
24department of revenue stating whether the requirement under this subsection has
25been fulfilled.
AB754-ASA1,9
1Section 9. 70.855 (4) (b) of the statutes is amended to read:
AB754-ASA1,9,62 70.855 (4) (b) If the department of revenue does not receive the fee imposed on
3a municipality under par. (a) by March 31 of the year following the department's
4determination under sub. (2) (b), the department shall reduce the distribution made
5to the municipality under s. 79.02 (2) (b) (1) by the amount of the fee and shall
6transfer that amount to the appropriation under s. 20.566 (2) (ga).
AB754-ASA1,10 7Section 10. 70.995 (8) (c) 1. of the statutes is amended to read:
AB754-ASA1,9,228 70.995 (8) (c) 1. All objections to the amount, valuation, taxability, or change
9from assessment under this section to assessment under s. 70.32 (1) of property shall
10be first made in writing on a form prescribed by the department of revenue that
11specifies that the objector shall set forth the reasons for the objection, the objector's
12estimate of the correct assessment, and the basis under s. 70.32 (1) for the objector's
13estimate of the correct assessment. An objection shall be filed with the state board
14of assessors within the time prescribed in par. (b) 1. A $45 $200 fee shall be paid when
15the objection is filed unless a fee has been paid in respect to the same piece of property
16and that appeal has not been finally adjudicated. The objection is not filed until the
17fee is paid. Neither the state board of assessors nor the tax appeals commission may
18waive the requirement that objections be in writing. Persons who own land and
19improvements to that land may object to the aggregate value of that land and
20improvements to that land, but no person who owns land and improvements to that
21land may object only to the valuation of that land or only to the valuation of
22improvements to that land.
AB754-ASA1,11 23Section 11. 70.995 (8) (d) of the statutes is amended to read:
AB754-ASA1,9,2524 70.995 (8) (d) A municipality may file an objection with the state board of
25assessors to the amount, valuation, or taxability under this section or to the change

1from assessment under this section to assessment under s. 70.32 (1) of a specific
2property having a situs in the municipality, whether or not the owner of the specific
3property in question has filed an objection. Objection shall be made on a form
4prescribed by the department and filed with the board within the time prescribed in
5par. (b) 1. If the person assessed files an objection and the municipality affected does
6not file an objection, the municipality affected may file an appeal to that objection
7within 15 days after the person's objection is filed. A $45 $200 filing fee shall be paid
8when the objection is filed unless a fee has been paid in respect to the same piece of
9property and that appeal has not been finally adjudicated. The objection is not filed
10until the fee is paid. The board shall forthwith notify the person assessed of the
11objection filed by the municipality.
AB754-ASA1,12 12Section 12 . 70.995 (14) (b) of the statutes is amended to read:
AB754-ASA1,10,1613 70.995 (14) (b) If the department of revenue does not receive the fee imposed
14on a municipality under par. (a) by March 31 of each year, the department shall
15reduce the distribution made to the municipality under s. 79.02 (2) (b) (1) by the
16amount of the fee.
AB754-ASA1,13 17Section 13 . 71.01 (6) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.
AB754-ASA1,14 18Section 14 . 71.01 (6) (j) 3. m. of the statutes is created to read:
AB754-ASA1,10,2019 71.01 (6) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q) and 104 (a) of division
20U of P.L. 115-141.
AB754-ASA1,15 21Section 15 . 71.01 (6) (j) 3. n. of the statutes is created to read:
AB754-ASA1,10,2322 71.01 (6) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b)
23of division O of P.L. 116-94.
AB754-ASA1,16 24Section 16 . 71.01 (6) (k) 3. of the statutes is amended to read:
AB754-ASA1,11,6
171.01 (6) (k) 3. For purposes of this paragraph, “ Internal Revenue Code" does
2not include amendments to the federal Internal Revenue Code enacted after
3December 31, 2016, except that “Internal Revenue Code” includes sections 11024,
411025, and 13543 of P.L. 115-97, sections 40307 and 40413 of P.L. 115-123, and
5section 102 of division M and sections 110, 111, and 116 (b) of division O of P.L.
6116-94
.
AB754-ASA1,17 7Section 17 . 71.01 (6) (L) 1. of the statutes is amended to read:
AB754-ASA1,11,128 71.01 (6) (L) 1. For taxable years beginning after December 31, 2017, and
9before January 1, 2020,
for individuals and fiduciaries, except fiduciaries of nuclear
10decommissioning trust or reserve funds, “Internal Revenue Code" means the federal
11Internal Revenue Code as amended to December 31, 2017, except as provided in
12subds. 2. and 3. and s. 71.98 and subject to subd. 4.
AB754-ASA1,18 13Section 18 . 71.01 (6) (L) 3. of the statutes is amended to read:
AB754-ASA1,11,2014 71.01 (6) (L) 3. For purposes of this paragraph, “Internal Revenue Code" does
15not include amendments to the federal Internal Revenue Code enacted after
16December 31, 2017, except that “Internal Revenue Code” includes sections 40307
17and 40413 of P.L. 115-123; section 1203 of P.L. 116-25; section 102 of division M,
18sections 108, 110, 111, 115, 116 (a) and (b), 204, 206, 302, and 601 of division O, section
191302 of division P, and sections 131, 202 (d), 204 (c), 205, and 301 of division Q of P.L.
20116-94, and section 2 (b) of P.L. 116-98
.
AB754-ASA1,19 21Section 19 . 71.01 (6) (L) 4. of the statutes is amended to read:
AB754-ASA1,12,222 71.01 (6) (L) 4. For purposes of this paragraph, the provisions of federal public
23laws that directly or indirectly affect the Internal Revenue Code, as defined in this
24paragraph, apply for Wisconsin purposes at the same time as for federal purposes,
25except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207,

113306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97
2first apply for taxable years beginning after December 31, 2017
.
AB754-ASA1,20 3Section 20 . 71.01 (6) (m) of the statutes is created to read:
AB754-ASA1,12,84 71.01 (6) (m) 1. For taxable years beginning after December 31, 2019, for
5individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or
6reserve funds, “Internal Revenue Code” means the federal Internal Revenue Code
7as amended to December 31, 2019, except as provided in subds. 2. and 3. and s. 71.98
8and subject to subd. 4.
AB754-ASA1,13,69 2. For purposes of this paragraph, “Internal Revenue Code” does not include
10the following provisions of federal public laws for taxable years beginning after
11December 31, 2019: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L.
12106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L.
13109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
14P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
15110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section
1615351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections
17312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251,
181501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L.
19111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L.
20111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and
21411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division
22P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to
23171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012,
2413201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601,
2513801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215,

114221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305,
240306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141;
3sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13),
4(17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L.
5115-141; and section 301 of division O and sections 101, 102, 103, 104, 114, 115, 116,
6117, 118, 130, 132, and 145 of division Q of P.L. 116-94.
AB754-ASA1,13,87 3. For purposes of this paragraph, “Internal Revenue Code” does not include
8amendments to the federal Internal Revenue Code enacted after December 31, 2019.
AB754-ASA1,13,169 4. For purposes of this paragraph, the provisions of federal public laws that
10directly or indirectly affect the Internal Revenue Code, as defined in this paragraph,
11apply for Wisconsin purposes at the same time as for federal purposes, except that
12changes made by section 13516 of P.L. 115-97, sections 20101, 20102, 20104, 20201,
1340201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41115, and 41116
14of P.L. 115-123, section 101 (a), (b), and (h) of division U of P.L. 115-141, section 1122
15of P.L. 116-92, sections 201, 202, and 204 (a) and (b) of division Q of P.L. 116-94, and
16section 2 of P.L. 116-98 apply for taxable years beginning after December 31, 2019.
AB754-ASA1,21 17Section 21 . 71.01 (7g) of the statutes is created to read:
AB754-ASA1,13,1918 71.01 (7g) For purposes of s. 71.01 (6) (b), 2013 stats., “Internal Revenue Code"
19includes section 109 of division U of P.L. 115-141.
AB754-ASA1,22 20Section 22 . 71.05 (1) (ae) of the statutes is repealed.
AB754-ASA1,23 21Section 23 . 71.05 (1) (am) of the statutes is amended to read:
AB754-ASA1,13,2422 71.05 (1) (am) Military retirement systems. All retirement payments received
23from the U.S. military employee retirement system, to the extent that such payments
24are not exempt under par. (a) or (ae) or sub. (6) (b) 54.
AB754-ASA1,24 25Section 24 . 71.05 (1) (an) of the statutes is amended to read:
AB754-ASA1,14,5
171.05 (1) (an) Uniformed services retirement benefits. All retirement payments
2received from the U.S. government that relate to service with the coast guard, the
3commissioned corps of the national oceanic and atmospheric administration, or the
4commissioned corps of the public health service, to the extent that such payments are
5not exempt under par. (a), (ae), or (am) or sub. (6) (b) 54.
AB754-ASA1,25 6Section 25 . 71.05 (6) (b) 4. of the statutes is renumbered 71.05 (6) (b) 4. (intro.)
7and amended to read:
AB754-ASA1,15,48 71.05 (6) (b) 4. (intro.) Disability payments other than disability payments that
9are paid from a retirement plan, the payments from which are exempt under sub.
10subs. (1) (ae), (am), and (an) and (6) (b) 54., if the individual either is single or is
11married and files a joint return, to the extent those payments are excludable under
12section 105 (d) of the Internal Revenue Code as it existed immediately prior to its
13repeal in 1983 by section 122 (b) of P.L. 98-21, except that if an individual is divorced
14during the taxable year that individual may subtract an amount only if that person
15is disabled and the amount that may be subtracted then is $100 for each week that
16payments are received or the amount of disability pay reported as income, whichever
17is less. If the exclusion under this subdivision is claimed on a joint return and only
18one of the spouses is disabled, the maximum exclusion is $100 for each week that
19payments are received or the amount of disability pay reported as income, whichever
20is less.
and is under 65 years of age before the close of the taxable year to which the
21subtraction relates, retired on disability, and, when the individual retired, was
22permanently and totally disabled. In this subdivision, “permanently and totally
23disabled" means an individual who is unable to engage in any substantial gainful
24activity by reason of any medically determinable physical or mental impairment
25which can be expected to result in death or which has lasted or can be expected to last

1for a continuous period of not less than 12 months. An individual shall not be
2considered permanently and totally disabled for purposes of this subdivision unless
3proof is furnished in such form and manner, and at such times, as prescribed by the
4department. The exclusion under this subdivision shall be determined as follows:
AB754-ASA1,26 5Section 26 . 71.05 (6) (b) 4. a. to c. of the statutes are created to read:
AB754-ASA1,15,96 71.05 (6) (b) 4. a. If the individual is single and the individual's federal adjusted
7gross income in the year to which the subtraction relates is less than $20,200, the
8maximum subtraction is $100 for each week that payments are received or the
9amount of disability pay reported as income, whichever is less.
AB754-ASA1,15,1410 b. If the individual is married and filing a joint return and the couple's federal
11adjusted gross income in the year to which the subtraction relates is less than
12$20,200, or $25,400 if both spouses are disabled, the maximum subtraction is $100
13for each week that payments are received, per spouse if both spouses are disabled,
14or the amount of disability pay reported as income, whichever is less.
AB754-ASA1,15,1915 c. If the federal adjusted gross income of the individual, or individuals if filing
16a joint return, for the taxable year, determined without regard to this subd. 4.,
17exceeds $15,000, the amount subtracted under this subd. 4. for the taxable year shall
18be reduced by an amount equal to the excess of the federal adjusted gross income over
19$15,000.
AB754-ASA1,27 20Section 27 . 71.05 (6) (b) 17. and 18. of the statutes are repealed.
AB754-ASA1,28 21Section 28 . 71.05 (6) (b) 19. c. of the statutes is amended to read:
AB754-ASA1,16,222 71.05 (6) (b) 19. c. For taxable years beginning before January 1, 2020, for a
23person who is a nonresident or a part-year resident of this state, modify the amount
24calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
25of which is the person's net earnings from a trade or business that are taxable by this

1state and the denominator of which is the person's total net earnings from a trade
2or business.
AB754-ASA1,29 3Section 29 . 71.05 (6) (b) 19. cm. of the statutes is created to read:
AB754-ASA1,16,164 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2019, for
5a person who is a nonresident or a part-year resident of this state, modify the amount
6calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
7of which is the person's wages, salary, tips, unearned income, and net earnings from
8a trade or business that are taxable by this state and the denominator of which is the
9person's total wages, salary, tips, unearned income, and net earnings from a trade
10or business. In this subd. 19. cm., for married persons filing separately “ wages,
11salary, tips, unearned income, and net earnings from a trade or business" means the
12separate wages, salary, tips, unearned income, and net earnings from a trade or
13business of each spouse, and for married persons filing jointly “wages, salary, tips,
14unearned income, and net earnings from a trade or business" means the total wages,
15salary, tips, unearned income, and net earnings from a trade or business of both
16spouses.
AB754-ASA1,30 17Section 30 . 71.05 (6) (b) 19. d. of the statutes is amended to read:
AB754-ASA1,16,2018 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2020,
19reduce
the amount calculated under subd. 19. b. or c. to the person's aggregate net
20earnings from a trade or business that are taxable by this state.
AB754-ASA1,31 21Section 31 . 71.05 (6) (b) 19. dm. of the statutes is created to read:
AB754-ASA1,16,2522 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2019,
23reduce the amount calculated under subd. 19.b. or cm. to the person's aggregate
24wages, salary, tips, unearned income, and net earnings from a trade or business that
25are taxable by this state.
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