2019 - 2020 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 754
February 5, 2020 - Offered by Representative Wittke.
1An Act to repeal
71.01 (6) (c), (d), (e), (f), (g), (h) and (i), 71.05 (1) (ae), 71.05 (6) 2
(b) 17. and 18., 71.05 (6) (b) 20., 36., 37., 39., 40. and 41., 71.22 (4) (c), (d), (e), 3
(f), (g), (h) and (i), 71.22 (4m) (c), (d), (e), (f), (g), (h) and (i), 71.26 (2) (b) 3., 4., 4
5., 6., 7., 8. and 9., 71.34 (1g) (c), (d), (e), (f), (g), (h) and (i), 71.42 (2) (c), (d), (e), 5
(f), (g), (h) and (i), 77.51 (13gm) (a) 1. and 2., 77.51 (13gm) (d) 1. and 77.51 (13gm) 6
(d) 3. and 4.; to renumber and amend
71.05 (6) (b) 4., 71.76 and 77.51 (13gm) 7
(a) (intro.); to amend
48.561 (3) (a) 3., 48.561 (3) (b), 59.25 (3) (i), 66.0602 (3) 8
(h) 2. a., 66.0602 (6) (a), 66.0602 (6) (b), 66.1105 (6m) (d) 4., 70.46 (4), 70.855 (4) 9
(b), 70.995 (8) (c) 1., 70.995 (8) (d), 70.995 (14) (b), 71.01 (6) (k) 3., 71.01 (6) (L) 10
1., 71.01 (6) (L) 3., 71.01 (6) (L) 4., 71.05 (1) (am), 71.05 (1) (an), 71.05 (6) (b) 19. 11
c., 71.05 (6) (b) 19. d., 71.07 (5) (a) 15., 71.07 (9m) (h), 71.22 (4) (k) 3., 71.22 (4) 12
(L) 1., 71.22 (4) (L) 3., 71.22 (4) (L) 4., 71.22 (4m) (k) 3., 71.22 (4m) (L) 1., 71.22 13
(4m) (L) 3., 71.22 (4m) (L) 4., 71.26 (2) (b) 10. d., 71.26 (2) (b) 11. d., 71.26 (2) (b)
12. a., 71.26 (2) (b) 12. d., 71.26 (2) (b) 12. e., 71.28 (6) (h), 71.34 (1g) (k) 3., 71.34 2
(1g) (L) 1., 71.34 (1g) (L) 3., 71.34 (1g) (L) 4., 71.42 (2) (k) 3., 71.42 (2) (L) 1., 71.42 3
(2) (L) 3., 71.42 (2) (L) 5., 71.47 (6) (h), 71.55 (10), 71.77 (7) (b), 71.83 (1) (a) 6., 4
73.0305, 73.09 (4) (c), 73.09 (5), 74.315 (1), 74.315 (2), 74.315 (3), 76.04 (1), 76.07 5
(1), 76.075, 76.13 (3), 76.28 (4) (b), 76.28 (11), 76.39 (4) (d), 76.48 (5), 77.51 6
(13gm) (b), 77.51 (13gm) (c), 77.51 (13gm) (d) 2., 77.51 (13gm) (d) 5., 77.52 (2m) 7
(b), 77.54 (6) (am) 2., 77.54 (9a) (f), 79.02 (1), 79.02 (2) (b), 79.02 (3) (a), 79.02 8
(3) (e), 79.035 (6), 79.035 (7) (b), 79.05 (1) (am) and 79.05 (2m); and to create
71.01 (6) (j) 3. m., 71.01 (6) (j) 3. n., 71.01 (6) (m), 71.01 (7g), 71.05 (6) (b) 4. a. 10
to c., 71.05 (6) (b) 19. cm., 71.05 (6) (b) 19. dm., 71.05 (6) (b) 54., 71.22 (4) (j) 3. 11
m., 71.22 (4) (j) 3. n., 71.22 (4) (m), 71.22 (4m) (j) 3. m., 71.22 (4m) (j) 3. n., 71.22 12
(4m) (m), 71.22 (5g), 71.26 (2) (b) 13., 71.26 (2) (b) 14., 71.34 (1g) (j) 3. m., 71.34 13
(1g) (j) 3. n., 71.34 (1g) (m), 71.34 (1u), 71.42 (2) (j) 3. m., 71.42 (2) (j) 3. n., 71.42 14
(2) (m), 71.42 (2p), 71.52 (1g), 71.76 (2), 74.315 (1m) and 77.61 (5) (b) 8m. of the 15
statutes; relating to: various changes to the laws administered and enforced
16by the Department of Revenue.
Analysis by the Legislative Reference Bureau
This bill makes changes to the laws administered and enforced by the
Department of Revenue.
Under current law, the state reduces the shared revenue payments to counties
and municipalities for various purposes, including for the collection of penalties and
the reimbursement for other amounts. However, current law is not consistent with
regard to which components of shared revenue are reduced for these purposes. This
bill provides that all such reductions are from the payment of all shared revenue
components that the counties and municipalities receive on the fourth Monday in
July and the third Monday in November.
Expenditure restraint payments
Under current law, counties and municipalities receive 15 percent of their
shared revenue payments on the fourth Monday in July and the remainder on the
third Monday in November, except that municipalities receive the entire amount of
their payment under the expenditure restraint program on the fourth Monday in
July. The bill allows municipalities to receive their entire expenditure restraint
before the fourth Monday in July, upon certification by DOR.
Under current law, the inflation factor used to compute a municipality's
expenditure restraint payment is a percentage equal to the average annual
percentage change in the U.S. consumer price index for all urban consumers, U.S.
city average, as determined by the U.S. Department of Labor, for the 12 months
ending on September 30. The bill modifies the consumer price index provision so that
it is for the 12 months ending on August 31.
Current law requires a taxation district clerk to annually submit to DOR a
listing of the taxes on property omitted from assessment in any of the previous two
years that are to be included in the next assessment. However, the clerk reports the
omitted taxes only if those taxes exceed $5,000. The bill modifies that $5,000
threshold so that the clerk reports the omitted taxes that are $250 or more for any
single description of property. The bill also provides that the clerk may not list an
omitted tax that was levied on property within a tax incremental district unless the
current value of the district is lower than the tax incremental base.
Current law requires a person who files an objection to the assessment of the
person's manufacturing property to pay a $45 fee. The bill increases the filing fee to
Current law imposes license fees instead of property taxes on certain public
utilities. The fees are based, generally, on the value of a utility's property. Utilities
that are subject to the fees include light, heat, and power companies, pipeline
companies, and railroad companies. Each such company, other than a railroad
company, must file a report with DOR on or before May 1 of each year. DOR
determines the value of the company's property on or before September 15. A
railroad company must file its report on or before April 15 and its value is determined
on or before August 1. The bill changes the filing and determination dates for a
railroad company so that those dates are the same as those for other public utilities.
The bill also decreases the interest rate paid on refunds of license fees paid by
public utilities from 9 percent to 3 percent.
Board of review
Current law requires that at least one member of the board of review attend
DOR training within the two-year period beginning on the date of the board's first
meeting. The bill requires all members of the board of review to complete the
training each year, except that only one member needs to attend training in-person
Current law requires a person applying for an assessor certification
examination to submit a $20 fee with the application. A person applying for a
renewal of an assessor certification pays a $20 recertification fee with the
application. The bill allows DOR to determine the amount of the fee for an assessor
certification examination on the basis of DOR's estimate of the actual cost to
administer and grade the examination, but the fee may not exceed $75. The bill also
allows DOR to determine the recertification fee.
Levy limit; joint fire departments
The property tax levy limit under current law does not apply to the amount that
a city, village, or town levies to pay for charges assessed by a joint fire department
if the current year increase in such charges is equal to or less than the percentage
change in the U.S. consumer price index for all urban consumers, U.S. city average,
as determined by the U.S. Department of Labor, for the 12 months ending on
September 30 of the year of the levy, plus 2 percent. The bill modifies the consumer
price index provision so that it is for the 12 months ending on August 31 of the year
of the levy.
Disability income subtraction
Current law allows an individual with less than $20,200 of federal adjusted
gross income to claim a disability income subtraction on the individual's state tax
return, if the individual is under 65 years of age and retired on disability, and, when
the individual retired, was permanently and totally disabled. For a married couple
filing a joint return, each spouse may claim the credit if they meet the criteria and
their combined income is less than $25,400. The bill replaces an obsolete reference
to the federal Internal Revenue Code with the language used to determine the
claimant's eligibility that existed under the obsolete reference.
Under current law, an individual who is under the age of 62 and who does not
have a disability must have earned income in order to claim the homestead credit.
However, current law does not define earned income for purposes of claiming the
credit. The bill defines “earned income” for purposes of claiming the homestead
credit as wages, salaries, tips, and other employee compensation that may be
included in federal adjusted gross income for the taxable year, plus the amount of net
earnings from self-employment.
Current law also requires individuals who wish to claim the homestead credit
to add certain disqualified losses to homestead income in order to determine
eligibility to claim the credit. However, the requirement does not apply to an
individual whose primary income is from farming and whose farming operation
generates less than $250,000 in the year to which the claim relates. The bill clarifies
that an individual's primary income is from farming if the individual's gross income
from farming for the year in which the claim relates is greater than 50 percent of the
individual's total gross income from all sources for that year.
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
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
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.
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
(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
(c) (3) of the Internal Revenue Code, but are not required to apply for or
obtain tax-exempt status from the IRS.
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.
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:
48.561 (3) (a) 3. of the statutes is amended to read:
(a) 3. Through a deduction of $20,101,300 from any state payment 3
due that county under s. 79.035, 79.04, or 79.08
as provided in par. (b).
48.561 (3) (b) of the statutes is amended to read:
(b) The department of administration shall collect the amount 6
specified in par. (a) 3. from a county having a population of 750,000 or more by 7
deducting all or part of that amount from any state payment due that county under 8
s. 79.035, 79.04, or 79.08 79.02 (1)
. The department of administration shall notify 9
the department of revenue, by September 15 of each year, of the amount to be 10
deducted from the state payments due under s. 79.035, 79.04, or 79.08 79.02 (1)
. The 11
department of administration shall credit all amounts collected under this
paragraph to the appropriation account under s. 20.437 (1) (kw) and shall notify the 2
county from which those amounts are collected of that collection. The department 3
may not expend any moneys from the appropriation account under s. 20.437 (1) (cx) 4
for providing services to children and families under s. 48.48 (17) until the amounts 5
in the appropriation account under s. 20.437 (1) (kw) are exhausted.
59.25 (3) (i) of the statutes is amended to read:
(i) Make annually, on the 3rd Monday of March, a certified statement, 8
and forward the statement to each municipal clerk in the county, showing the 9
amount of money paid from the county treasury during the year next preceding to 10
each municipal treasurer in the county. The statement shall specify the date of each 11
payment, 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.
66.0602 (3) (h) 2. a. of the statutes is amended to read:
(h) 2. a. The total charges assessed by the joint fire department for 18
the current year increase, relative to the total charges assessed by the joint fire 19
department for the previous year, by a percentage that is less than or equal to the 20
percentage change in the U.S. consumer price index for all urban consumers, U.S. 21
city average, as determined by the U.S. department of labor, for the 12 months 22
ending on September 30 August 31
of the year of the levy, plus 2 percent.
66.0602 (6) (a) of the statutes is amended to read:
(a) Reduce the amount of county and municipal aid payments the
to the political subdivision under s. 79.035 79.02 (1)
in the following year 3
by an amount equal to the amount of the penalized excess.
66.0602 (6) (b) of the statutes is amended to read:
(b) Ensure that the amount of any reductions in county and
payments under par. (a) lapses to the general fund.
66.1105 (6m) (d) 4. of the statutes is amended to read:
(d) 4. If an annual report is not timely filed under par. (c), the 9
department of revenue shall notify the city that the report is past due. If the city does 10
not file the report within 60 days of the date on the notice, except as provided in this 11
subdivision, the department shall charge the city a fee of $100 per day for each day 12
that the report is past due, up to a maximum penalty of $6,000 per report. If the city 13
does not pay within 30 days of issuance, the department of revenue shall reduce and 14
withhold 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.
70.46 (4) of the statutes is amended to read:
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 24
department of revenue stating whether the requirement under this subsection has 25
70.855 (4) (b) of the statutes is amended to read:
(b) If the department of revenue does not receive the fee imposed on 3
a municipality under par. (a) by March 31 of the year following the department's 4
determination under sub. (2) (b), the department shall reduce the distribution made 5
to the municipality under s. 79.02 (2) (b) (1)
by the amount of the fee and shall 6
transfer that amount to the appropriation under s. 20.566 (2) (ga).
70.995 (8) (c) 1. of the statutes is amended to read:
(c) 1. All objections to the amount, valuation, taxability, or change 9
from assessment under this section to assessment under s. 70.32 (1) of property shall 10
be first made in writing on a form prescribed by the department of revenue that 11
specifies that the objector shall set forth the reasons for the objection, the objector's 12
estimate of the correct assessment, and the basis under s. 70.32 (1) for the objector's 13
estimate of the correct assessment. An objection shall be filed with the state board 14
of assessors within the time prescribed in par. (b) 1. A $45 $200
fee shall be paid when 15
the objection is filed unless a fee has been paid in respect to the same piece of property 16
and that appeal has not been finally adjudicated. The objection is not filed until the 17
fee is paid. Neither the state board of assessors nor the tax appeals commission may 18
waive the requirement that objections be in writing. Persons who own land and 19
improvements to that land may object to the aggregate value of that land and 20
improvements to that land, but no person who owns land and improvements to that 21
land may object only to the valuation of that land or only to the valuation of 22
improvements to that land.
70.995 (8) (d) of the statutes is amended to read: