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Please see http://docs.legis.wisconsin.gov for the production version.
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.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.

For further information see the state and local 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:
AB754,1 1Section 1. 48.561 (3) (a) 3. of the statutes is amended to read:
AB754,6,32 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).
AB754,2 4Section 2. 48.561 (3) (b) of the statutes is amended to read:
AB754,6,165 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
12paragraph to the appropriation account under s. 20.437 (1) (kw) and shall notify the
13county from which those amounts are collected of that collection. The department
14may not expend any moneys from the appropriation account under s. 20.437 (1) (cx)
15for providing services to children and families under s. 48.48 (17) until the amounts
16in the appropriation account under s. 20.437 (1) (kw) are exhausted.
AB754,3 17Section 3 . 59.25 (3) (i) of the statutes is amended to read:
AB754,7,518 59.25 (3) (i) Make annually, on the 3rd Monday of March, a certified statement,
19and forward the statement to each municipal clerk in the county, showing the
20amount of money paid from the county treasury during the year next preceding to
21each municipal treasurer in the county. The statement shall specify the date of each

1payment, the amount thereof and the account upon which the payment was made.
2It shall be unlawful for any county treasurer to pay to the treasurer of any town any
3money in the hands of the county treasurer belonging to the town from the 3rd
4Monday of March until 10 days after the annual town meeting except upon the
5written order of the town board.
AB754,4 6Section 4 . 66.0602 (3) (h) 2. a. of the statutes is amended to read:
AB754,7,127 66.0602 (3) (h) 2. a. The total charges assessed by the joint fire department for
8the current year increase, relative to the total charges assessed by the joint fire
9department for the previous year, by a percentage that is less than or equal to the
10percentage change in the U.S. consumer price index for all urban consumers, U.S.
11city average, as determined by the U.S. department of labor, for the 12 months
12ending on September 30 August 31 of the year of the levy, plus 2 percent.
AB754,5 13Section 5. 66.0602 (6) (a) of the statutes is amended to read:
AB754,7,1614 66.0602 (6) (a) Reduce the amount of county and municipal aid payments the
15payment
to the political subdivision under s. 79.035 79.02 (1) in the following year
16by an amount equal to the amount of the penalized excess.
AB754,6 17Section 6. 66.0602 (6) (b) of the statutes is amended to read:
AB754,7,1918 66.0602 (6) (b) Ensure that the amount of any reductions in county and
19municipal aid
payments under par. (a) lapses to the general fund.
AB754,7 20Section 7. 66.1105 (6m) (d) 4. of the statutes is amended to read:
AB754,8,321 66.1105 (6m) (d) 4. If an annual report is not timely filed under par. (c), the
22department of revenue shall notify the city that the report is past due. If the city does
23not file the report within 60 days of the date on the notice, except as provided in this
24subdivision, the department shall charge the city a fee of $100 per day for each day
25that the report is past due, up to a maximum penalty of $6,000 per report. If the city

1does not pay within 30 days of issuance, the department of revenue shall reduce and
2withhold the amount of the shared revenue payments to the city under subch. I of
3ch. 79
s. 79.02 (1), in the following year, by an amount equal to the unpaid penalty.
AB754,8 4Section 8. 70.46 (4) of the statutes is amended to read:
AB754,8,135 70.46 (4) No board of review may be constituted unless it includes at least one
6voting member who, within 2 years of the board's first meeting, has attended
all
7members complete in each year
a training session under s. 73.03 (55) and unless that
8member is the municipality's chief executive officer or that officer's designee
. All but
9one member of the board may satisfy the training requirement under this subsection
10by participating in the training online. At least one member shall attend training
11in-person each year
. The municipal clerk shall provide an affidavit to the
12department of revenue stating whether the requirement under this subsection has
13been fulfilled.
AB754,9 14Section 9. 70.855 (4) (b) of the statutes is amended to read:
AB754,8,1915 70.855 (4) (b) If the department of revenue does not receive the fee imposed on
16a municipality under par. (a) by March 31 of the year following the department's
17determination under sub. (2) (b), the department shall reduce the distribution made
18to the municipality under s. 79.02 (2) (b) (1) by the amount of the fee and shall
19transfer that amount to the appropriation under s. 20.566 (2) (ga).
AB754,10 20Section 10. 70.995 (8) (c) 1. of the statutes is amended to read:
AB754,9,1021 70.995 (8) (c) 1. All objections to the amount, valuation, taxability, or change
22from assessment under this section to assessment under s. 70.32 (1) of property shall
23be first made in writing on a form prescribed by the department of revenue that
24specifies that the objector shall set forth the reasons for the objection, the objector's
25estimate of the correct assessment, and the basis under s. 70.32 (1) for the objector's

1estimate of the correct assessment. An objection shall be filed with the state board
2of assessors within the time prescribed in par. (b) 1. A $45 $200 fee shall be paid when
3the objection is filed unless a fee has been paid in respect to the same piece of property
4and that appeal has not been finally adjudicated. The objection is not filed until the
5fee is paid. Neither the state board of assessors nor the tax appeals commission may
6waive the requirement that objections be in writing. Persons who own land and
7improvements to that land may object to the aggregate value of that land and
8improvements to that land, but no person who owns land and improvements to that
9land may object only to the valuation of that land or only to the valuation of
10improvements to that land.
AB754,11 11Section 11. 70.995 (8) (d) of the statutes is amended to read:
AB754,9,2412 70.995 (8) (d) A municipality may file an objection with the state board of
13assessors to the amount, valuation, or taxability under this section or to the change
14from assessment under this section to assessment under s. 70.32 (1) of a specific
15property having a situs in the municipality, whether or not the owner of the specific
16property in question has filed an objection. Objection shall be made on a form
17prescribed by the department and filed with the board within the time prescribed in
18par. (b) 1. If the person assessed files an objection and the municipality affected does
19not file an objection, the municipality affected may file an appeal to that objection
20within 15 days after the person's objection is filed. A $45 $200 filing fee shall be paid
21when the objection is filed unless a fee has been paid in respect to the same piece of
22property and that appeal has not been finally adjudicated. The objection is not filed
23until the fee is paid. The board shall forthwith notify the person assessed of the
24objection filed by the municipality.
AB754,12 25Section 12 . 70.995 (14) (b) of the statutes is amended to read:
AB754,10,4
170.995 (14) (b) If the department of revenue does not receive the fee imposed
2on a municipality under par. (a) by March 31 of each year, the department shall
3reduce the distribution made to the municipality under s. 79.02 (2) (b) (1) by the
4amount of the fee.
AB754,13 5Section 13. 71.04 (1) (a) of the statutes is amended to read:
AB754,11,256 71.04 (1) (a) All income or loss of resident individuals and resident estates and
7trusts shall follow the residence of the individual, estate or trust. Income or loss of
8nonresident individuals and nonresident estates and trusts from business, not
9requiring apportionment under sub. (4), (10) or (11), shall follow the situs of the
10business from which derived, except that all income that is realized from the sale of
11or purchase and subsequent sale or redemption of lottery prizes if the winning tickets
12were originally bought in this state shall be allocated to this state. All items of
13income, loss and deductions of nonresident individuals and nonresident estates and
14trusts derived from a tax-option corporation not requiring apportionment under
15sub. (9) shall follow the situs of the business of the corporation from which derived,
16except that all income that is realized from the sale of or purchase and subsequent
17sale or redemption of lottery prizes if the winning tickets were originally bought in
18this state shall be allocated to this state. Income or loss of nonresident individuals
19and nonresident estates and trusts derived from rentals and royalties from real
20estate or tangible personal property, or from the operation of any farm, mine or
21quarry, or from the sale of real property or tangible personal property shall follow the
22situs of the property from which derived. Income from personal services of
23nonresident individuals, including income from professions, shall follow the situs of
24the services. A nonresident limited partner's distributive share of partnership
25income shall follow the situs of the business, except that all income that is realized

1from the sale of or purchase and subsequent sale or redemption of lottery prizes if
2the winning tickets were originally bought in this state shall be allocated to this
3state. A nonresident limited liability company member's distributive share of
4limited liability company income shall follow the situs of the business, except that
5all income that is realized from the sale of or purchase and subsequent sale or
6redemption of lottery prizes if the winning tickets were originally bought in this state
7shall be allocated to this state. Income of nonresident individuals, estates and trusts
8from the state lottery under ch. 565 is taxable by this state. Income of nonresident
9individuals, estates and trusts from any multijurisdictional lottery under ch. 565 is
10taxable by this state, but only if the winning lottery ticket or lottery share was
11purchased from a retailer, as defined in s. 565.01 (6), located in this state or from the
12department. Income of nonresident individuals, nonresident trusts and nonresident
13estates from pari-mutuel winnings or purses under ch. 562 is taxable by this state.
14Income of nonresident individuals, estates and trusts from winnings from a casino
15or bingo hall that is located in this state and that is operated by a Native American
16tribe or band shall follow the situs of the casino or bingo hall. Income derived by a
17nonresident individual from a covenant not to compete is taxable by this state to the
18extent that the covenant was based on a Wisconsin-based activity. All other income
19or loss of nonresident individuals and nonresident estates and trusts, including
20income or loss derived from land contracts, mortgages, stocks, bonds and securities
21or from the sale of similar intangible personal property, shall follow the residence of
22such persons, except as provided in par. (b) and sub. (9), except that all income that
23is realized from the sale of or purchase and subsequent sale or redemption of lottery
24prizes if the winning tickets were originally bought in this state shall be allocated
25to this state
.
AB754,14
1Section 14. 71.04 (1) (b) (intro.) of the statutes is amended to read:
AB754,12,32 71.04 (1) (b) (intro.) For Except as provided in par. (c), for purposes of
3determining the situs of income under this section:
AB754,15 4Section 15. 71.04 (1) (c) of the statutes is created to read:
AB754,12,65 71.04 (1) (c) Except as provided in subs. (4), (9), and (9m), the situs of income
6or loss of nonresident individuals and nonresident estates and trusts is as follows:
AB754,12,87 1. Except as provided in subds. 3. and 4., income from services performed by
8nonresident individuals shall follow the situs of the services.
AB754,12,139 2. Income or loss from business, not requiring apportionment under sub. (4),
10(10), or (11), shall follow the situs of the business from which derived, except that all
11income that is realized from the sale of or purchase and subsequent sale or
12redemption of lottery prizes if the winning tickets were originally bought in this state
13shall be allocated to this state.
AB754,12,1914 3. All items of income, loss, and deductions derived from a tax-option
15corporation not requiring apportionment under sub. (9) shall follow the situs of the
16business of the corporation from which derived, except that all income that is realized
17from the sale of or purchase and subsequent sale or redemption of lottery prizes if
18the winning tickets were originally bought in this state shall be allocated to this
19state.
AB754,12,2520 4. All items of income, loss, and deductions derived from a partnership or
21limited liability company not requiring apportionment under sub. (9m) shall follow
22the situs of the business of the partnership or limited liability company from which
23derived, except that all income that is realized from the sale of or purchase and
24subsequent sale or redemption of lottery prizes if the winning tickets were originally
25bought in this state shall be allocated to this state.
AB754,13,4
15. Income or loss derived from rentals and royalties from real estate or tangible
2personal property, or from the operation of any farm, mine or quarry, or from the sale
3of real property or tangible personal property shall follow the situs of the property
4from which derived.
AB754,13,85 6. Income from the state lottery under ch. 565 is taxable to this state. Income
6from any multijurisdictional lottery under ch. 565 is taxable by this state, but only
7if the winning lottery ticket or lottery share was purchased from a retailer, as defined
8in s. 565.01 (6), located in this state or from the department.
AB754,13,109 7. Income from pari-mutuel winnings or purses under ch. 562 is taxable by this
10state.
AB754,13,1311 8. Income from winnings from a casino or bingo hall that is located in this state
12and that is operated by a Native American tribe or band shall follow the situs of the
13casino or bingo hall.
AB754,13,1614 9. Income derived by a nonresident individual from a covenant not to compete
15is taxable by this state to the extent that the covenant was based on a
16Wisconsin-based activity.
AB754,13,2317 10. All other income or loss of nonresident individuals and nonresident estates
18and trusts, including income or loss derived from land contracts, mortgages, stocks,
19bonds, and securities or from the sale of similar intangible personal property, shall
20follow the residence of such persons, except as provided in par. (b) and subs. (9) and
21(9m), except that all income that is realized from the sale of or purchase and
22subsequent sale or redemption of lottery prizes if the winning tickets were originally
23bought in this state shall be allocated to this state.
AB754,16 24Section 16. 71.04 (3) (b) of the statutes is amended to read:
AB754,14,7
171.04 (3) (b) Part-year residents, nonresidents. All partners or members who
2are residents of this state for less than a full taxable year or who are nonresidents
3shall compute taxes for that year on their share of partnership or limited liability
4company income or loss under this chapter for the part of the taxable year during
5which they are nonresidents by recognizing their proportionate share of all items of
6income, loss or deduction attributable to a business in, services performed in, or
7rental of property in,
this state.
AB754,17 8Section 17. 71.04 (4) (intro.) of the statutes is amended to read:
AB754,14,259 71.04 (4) Nonresident allocation and apportionment formula. (intro.)
10Nonresident individuals and nonresident estates and trusts engaged in business
11within and without the state shall be taxed only on such income as is derived from
12business transacted and property located within the state. The amount of such
13income attributable to Wisconsin may be determined by an allocation and separate
14accounting thereof, when the business of such nonresident individual or nonresident
15estate or trust within the state is not an integral part of a unitary business, but the
16department of revenue may permit an allocation and separate accounting in any case
17in which it is satisfied that the use of such method will properly reflect the income
18taxable by this state. In all cases in which allocation and separate accounting is not
19permissible, the determination shall be made in the following manner: for all
20businesses except air carriers, financial organizations, telecommunications
21companies, pipeline companies, public utilities, railroads, and car line companies
22there shall first be deducted from the total net income of the taxpayer the part thereof
23(less related expenses, if any) that follows the situs of the property or the residence
24of the recipient. The remaining
, the net income shall be apportioned to this state by
25use of the following:
AB754,18
1Section 18. 71.04 (9) of the statutes is amended to read:
AB754,15,182 71.04 (9) Nonresident income from multistate tax-option corporation.
3Nonresident individuals and nonresident estates and trusts deriving income from a
4tax-option corporation which is engaged in business within and without this state
5shall be taxed only on the income of the corporation derived from business transacted
6and property located in this state as computed under the apportionment formula
7under subs. (4) and (4m)
and losses and other items of the corporation deductible by
8such shareholders shall be limited to their proportionate share of the Wisconsin loss
9or other item as computed under the apportionment formula under subs. (4) and
10(4m)
, except that all income that is realized from the sale of or purchase and
11subsequent sale or redemption of lottery prizes if the winning tickets were originally
12bought in this state shall be allocated to this state. For purposes of this subsection,
13all intangible income of tax-option corporations , including intangible income,
14passed through to shareholders is business income that follows the situs of the
15business as computed under the apportionment formula under subs. (4) and (4m),
16except that all income that is realized from the sale of or purchase and subsequent
17sale or redemption of lottery prizes if the winning tickets were originally bought in
18this state shall be allocated to this state.
AB754,19 19Section 19. 71.04 (9m) of the statutes is created to read:
AB754,16,1320 71.04 (9m) Nonresident income from multistate partnership and limited
21liability company
. Nonresident individuals and nonresident estates and trusts
22deriving income from a partnership or limited liability company which is engaged in
23business within and without this state shall be taxed only on the income of the
24partnership or limited liability company derived from business transacted and
25property located in this state as computed under the apportionment formula under

1subs. (4) and (4m) and losses and other items of the partnership or limited liability
2company deductible by such partners and members shall be limited to their
3proportionate share of the Wisconsin loss or other item as computed under the
4apportionment formula under subs. (4) and (4m), except that all income that is
5realized from the sale of or purchase and subsequent sale or redemption of lottery
6prizes if the winning tickets were originally bought in this state shall be allocated
7to this state. For purposes of this subsection, all partnership or limited liability
8company income, including intangible income, passed through to partners and
9members is presumed business income that follows the situs of the business as
10computed under the apportionment formula under subs. (4) and (4m), except that all
11income that is realized from the sale of or purchase and subsequent sale or
12redemption of lottery prizes if the winning tickets were originally bought in this state
13shall be allocated to this state.
AB754,20 14Section 20 . 71.05 (6) (b) 4. of the statutes is amended to read:
AB754,17,1015 71.05 (6) (b) 4. Disability payments other than disability payments that are
16paid from a retirement plan, the payments from which are exempt under sub. (1) (ae),
17(am), and (an), if the individual either is single or is married and files a joint return,
18to the extent those payments are excludable under section 105 (d) of the Internal
19Revenue Code as it existed immediately prior to its repeal in 1983 by section 122 (b)
20of P.L. 98-21, except that if
is at least 65 years of age before the close of the taxable
21year to which the subtraction relates, retired on disability, and, when the individual
22retired, was permanently and totally disabled. If
an individual is divorced during
23the taxable year that individual may subtract an amount only if that person is
24disabled and the amount that may be subtracted then is $100 for each week that
25payments are received or the amount of disability pay reported as income, whichever

1is less. If the exclusion under this subdivision is claimed on a joint return and only
2one of the spouses is disabled, the maximum exclusion is $100 for each week that
3payments are received or the amount of disability pay reported as income, whichever
4is less. In this subdivision, “permanently and totally disabled" means an individual
5who is unable to engage in any substantial gainful activity by reason of any medically
6determinable physical or mental impairment that can be expected to result in death
7or that has lasted or can be expected to last for a continuous period of not less than
812 months. An individual shall not be considered permanently and totally disabled
9for purposes of this subdivision unless proof is furnished in such form and manner,
10and at such times, as prescribed by the department.
AB754,21 11Section 21. 71.07 (9m) (h) of the statutes is amended to read:
AB754,17,2312 71.07 (9m) (h) Any person, including a nonprofit entity described in section 501
13(c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under
14par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes
15imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
16transfer, and submits with the notification a copy of the transfer documents, and the
17department certifies ownership of the credit with each transfer. The transferor may
18file a claim for more than one taxable year on a form prescribed by the department
19to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer
20request. The transferee may first use the credit to offset tax in the taxable year of
21the transferor in which the transfer occurs and may use the credit only to offset tax
22in taxable years otherwise allowed to be claimed and carried forward by the original
23claimant.
AB754,22 24Section 22. 71.25 (6) (intro.) of the statutes is amended to read:
AB754,18,17
171.25 (6) Allocation and separate accounting and apportionment formula.
2(intro.) Corporations engaged in business within and without the state shall be taxed
3only on such income as is derived from business transacted and property located
4within the state. The amount of such income attributable to Wisconsin may be
5determined by an allocation and separate accounting thereof, when the business of
6such corporation within the state is not an integral part of a unitary business, but
7the department of revenue may permit an allocation and separate accounting in any
8case in which it is satisfied that the use of such method will properly reflect the
9income taxable by this state. In all cases in which allocation and separate accounting
10is not permissible, the determination shall be made in the following manner: for all
11businesses except air carriers, financial organizations, telecommunications
12companies, pipeline companies, public utilities, railroads, car line companies and
13corporations or associations that are subject to a tax on unrelated business income
14under s. 71.26 (1) (a) there shall first be deducted from the total net income of the
15taxpayer the part thereof (less related expenses, if any) that follows the situs of the
16property or the residence of the recipient. The remaining
, the net income shall be
17apportioned to this state by use of the following:
AB754,23 18Section 23. 71.28 (6) (h) of the statutes is amended to read:
AB754,19,519 71.28 (6) (h) Any person, including a nonprofit entity described in section 501
20(c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under
21par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes
22imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
23transfer, and submits with the notification a copy of the transfer documents, and the
24department certifies ownership of the credit with each transfer. The transferor may
25file a claim for more than one taxable year on a form prescribed by the department

1to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer
2request. The transferee may first use the credit to offset tax in the taxable year of the
3transferor in which the transfer occurs, and may use the credit only to offset tax in
4taxable years otherwise allowed to be claimed and carried forward by the original
5claimant.
AB754,24 6Section 24. 71.47 (6) (h) of the statutes is amended to read:
AB754,19,187 71.47 (6) (h) Any person, including a nonprofit entity described in section 501
8(c) (3) of the Internal Revenue Code, may sell or otherwise transfer the credit under
9par. (a) 2m. or 3., in whole or in part, to another person who is subject to the taxes
10imposed under s. 71.02, 71.23, or 71.43, if the person notifies the department of the
11transfer, and submits with the notification a copy of the transfer documents, and the
12department certifies ownership of the credit with each transfer. The transferor may
13file a claim for more than one taxable year on a form prescribed by the department
14to compute all years of the credit under par. (a) 2m. or 3., at the time of the transfer
15request. The transferee may first use the credit to offset tax in the taxable year of the
16transferor in which the transfer occurs, and may use the credit only to offset tax in
17taxable years otherwise allowed to be claimed and carried forward by the original
18claimant.
AB754,25 19Section 25. 71.52 (1g) of the statutes is created to read:
AB754,20,320 71.52 (1g) “Earned income” means wages, salaries, tips, and other employee
21compensation that may be included in federal adjusted gross income for the taxable
22year, plus the amount of the claimant's net earnings from self-employment for the
23taxable year determined with regard to the deduction allowed to the taxpayer by
24section 164 (f) of the Internal Revenue Code. For purposes of this subsection, a
25claimant's earned income is computed without regard to any marital property laws

1and a claimant may elect to treat amounts excluded from federal adjusted gross
2income as earned income, as provided under section 112 of the Internal Revenue
3Code. “Earned income” does not include the following:
AB754,20,44 (a) Any amount received as a pension or annuity.
AB754,20,55(b) Any amount to which section 871 (a) of the Internal Revenue Code applies.
AB754,20,76 (c) Any amount received for services provided by an individual while the
7individual is an inmate at a penal institution.
AB754,20,128 (d) Any amount received for service performed in work activities under
9paragraphs (4) or (7) of section 407 (d) of the Social Security Act to which the claimant
10is assigned under any state program under part A of title IV of the Social Security
11Act. This paragraph applies only to amounts subsidized under any such state
12program.
AB754,26 13Section 26. 71.55 (10) of the statutes is amended to read:
AB754,20,2214 71.55 (10) Farmers. Notwithstanding the provision in s. 71.52 (6) that requires
15the addition of certain disqualified losses to income, such an addition may not be
16made by a claimant who is a farmer whose primary income is from farming and
17whose farming generates less than $250,000 in gross receipts from the operation of
18farm premises in the year to which the claim relates. For purposes of this subsection,
19a claimant's primary income is from farming if the claimant's gross income from
20farming for the year to which the claim relates is greater than 50 percent of the
21claimant's total gross income from all sources for the year to which the claim relates.
22In this subsection, “gross income” has the meaning given in s. 71.03 (1).
AB754,27 23Section 27. 71.738 (3c) of the statutes is created to read:
AB754,21,3
171.738 (3c) “Pass-through entity" means a partnership, a limited liability
2company, a tax-option corporation, an estate, or a trust that is treated as a
3pass-through entity for federal income tax purposes.
AB754,28 4Section 28. 71.738 (3d) of the statutes is created to read:
AB754,21,85 71.738 (3d) “Pass-through item" means a tax-option item under s. 71.34 (3)
6or an item of income, gain, loss, deduction, credit, or any other item that originates
7with a pass-through entity and is required to be reported by one or more
8pass-through members under this chapter.
AB754,29 9Section 29. 71.738 (3f) of the statutes is created to read:
AB754,21,1410 71.738 (3f) “Pass-through member" means a person who is a partner in a
11partnership, shareholder in a tax-option corporation, beneficiary of an estate or a
12trust, or any other person whose tax liability under this chapter is determined in
13whole or in part by taking into account the person's share of pass-through items,
14directly or indirectly, from a pass-through entity.
AB754,30 15Section 30. 71.738 (3g) of the statutes is created to read:
AB754,21,1616 71.738 (3g) “Person” includes a pass-through entity,
AB754,31 17Section 31. 71.738 (5b) of the statutes is created to read:
AB754,21,1818 71.738 (5b) “Taxpayer” includes a pass-through entity,
AB754,32 19Section 32. 71.745 of the statutes is created to read:
AB754,22,2 2071.745 Pass-through entity audits, additional assessments and
21refunds at the entity level. (1)
Audit assessments and refunds. Except as
22provided in s. 71.80 (27), the department may audit and assess tax to a pass-through
23entity on income otherwise reportable by the pass-through members at the highest
24tax rate applicable under this chapter. The department may issue a refund to a

1pass-through entity when the audit results in an overpayment of tax originally paid
2by the entity.
AB754,22,7 3(2) Adjustment of credits. Except as provided in s. 71.80 (27), the department
4may correct the credit computation of a pass-through entity resulting from a
5department audit under this subchapter at the pass-through entity level, and may
6apply the credit adjustment to an assessment or refund issued to the pass-through
7entity.
AB754,22,13 8(3) Adjustments to the pass-through entity are attributable to the
9members.
Except when an election under s. 71.21 (6) (a) or 71.365 (4m) (a) is made,
10any adjustments to income, gain, loss, deduction, or credit made to the pass-through
11entity under this section are attributable to each pass-through member in a manner
12that is consistent with the treatment of such income, gain, loss, deduction, or credit
13to the pass-through entity.
AB754,22,20 14(4) Liability may be assessed to more than one person. If for any reason a
15pass-through entity fails to timely make any report or payment required under this
16subchapter, the department may assess the pass-through members for any liability
17resulting from an audit under this subchapter. If for any reason a pass-through
18member fails to timely make any report or payment required under this subchapter,
19the department may assess the pass-through entity for any liability resulting from
20an audit under this subchapter.
AB754,33 21Section 33. 71.75 (11) of the statutes is created to read:
AB754,22,2322 71.75 (11) The department shall not issue a refund to a pass-through entity
23except when the claim is for overpayment of tax originally paid by the entity.
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