AB881,103
18Section
103. 71.05 (22) (f) 2. of the statutes is repealed.
AB881,104
19Section
104. 71.05 (22) (f) 3. of the statutes is repealed.
AB881,105
20Section 105
. 71.07 (5) (a) 15. of the statutes is amended to read:
AB881,19,321
71.07
(5) (a) 15. The amount claimed as a deduction for medical care insurance
22under section
213 of the Internal Revenue Code that is exempt from taxation under
23s. 71.05 (6) (b)
17. to 20. 19., 35.,
36., 37., 38.,
39., 40., 41., and 42. and the amount
1claimed as a deduction for a long-term care insurance policy under section
213 (d)
2(1) (D) of the Internal Revenue Code, as defined in section
7702B (b) of the Internal
3Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 26.
Note: This Section deletes cross-references to statutes that are repealed by this
bill.
AB881,106
4Section
106. 71.07 (6) (am) 1. of the statutes is amended to read:
AB881,20,75
71.07
(6) (am) 1.
In this paragraph For purposes of subd. 1m., “earned income"
6means
qualified earned income, as defined in section 221 (b) of the internal revenue
7code as amended to December 31, 1985, plus employee business expenses under
8section 62 (2) (B) to (D) of that code, allocable to Wisconsin under s. 71.04, plus
9amounts received by the individual for services performed in the employ of the
10individual's spouse minus the amount of disability income excluded under s. 71.05
11(6) (b) 4. and minus any other amount not subject to tax under this chapter wages,
12salaries, or professional fees, and other amounts received as compensation for
13personal services actually rendered, but does not include that part of the
14compensation derived by the taxpayer for personal services rendered by him or her
15to a corporation which represents a distribution of earnings or profits rather than a
16reasonable allowance as compensation for the personal services actually rendered.
17In the case of a taxpayer engaged in a trade or business in which both personal
18services and capital are material income-producing factors, under federal
19regulations, a reasonable allowance as compensation for the personal services
20rendered by the taxpayer shall be considered as earned income. Earned income does
21not include any amount not included in gross income, received as a pension or
22annuity, paid or distributed out of an individual retirement plan (within the meaning
23of section 7701 (a) (37) of the Internal Revenue Code), received as deferred
1compensation, or received for services, not in the course of the employer's trade or
2business, or domestic service in a private home of the employer, performed by an
3individual in the employ of his or her spouse. Earned income is computed
4notwithstanding the fact that each spouse owns an undivided one-half interest in
5the whole of the marital property. A marital property agreement or unilateral
6statement under ch. 766 transferring income between spouses has no effect in
7computing earned income under this paragraph.
Note: This Section incorporates the text of the definition of “earned income” from
the Internal Revenue Code.
AB881,107
8Section
107. 71.07 (6) (am) 1m. of the statutes is created to read:
AB881,20,169
71.07
(6) (am) 1m. In this paragraph, “qualified earned income” means an
10amount equal to the excess of the earned income of the spouse for the taxable year,
11over an amount equal to the sum of the deductions described in paragraphs (1), (2)
12(B), (C), and (E), (6), (7), and (12) of section
62 (a) of the Internal Revenue Code to the
13extent such deductions are properly allocable to or chargeable against earned
14income, allocable to Wisconsin under s. 71.04, minus the amount of disability income
15excluded under s. 71.05 (6) (b) 4. and minus any other amount not subject to tax
16under this chapter.
Note: This Section incorporates the text of the definition of “qualified earned
income” from the Internal Revenue Code. Because this Section defines “qualified earned
income” separately from “earned income,” Section 108 also replaces the phrase “earned
income” with “qualified earned income.”
AB881,108
17Section
108
. 71.07 (6) (am) 2. d. of the statutes is amended to read:
AB881,20,2018
71.07
(6) (am) 2. d. For taxable years beginning after December 31, 2000, 3
19percent of the
qualified earned income of the spouse with the lower
qualified earned
20income, but not more than $480.
AB881,109
21Section
109. 71.07 (8) of the statutes is repealed.
Note: This Section repeals a personal exemption credit that does not apply for
taxable years that begin after December 31, 1999. Sections 103, 104, 105, 120, 122, 126,
and 127 repeal statutes that cross-reference the personal exemption credit and are
obsolete.
AB881,110
1Section 110
. 71.07 (9e) (a) of the statutes is repealed.
Note: Sections 110 to 114
, 116, and 117 repeal statutes that are obsolete because
they apply to taxable years that begin before January 1, 1994, 1995, 1996, or 2011.
AB881,111
2Section 111
. 71.07 (9e) (ac) of the statutes is repealed.
AB881,112
3Section 112
. 71.07 (9e) (ad) of the statutes is repealed.
AB881,113
4Section 113
. 71.07 (9e) (af) of the statutes is repealed.
AB881,114
5Section 114
. 71.07 (9e) (ah) of the statutes is repealed.
AB881,115
6Section
115. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:
AB881,21,117
71.07
(9e) (aj) (intro.) For taxable years beginning after December 31, 2010, an
8individual may credit against the tax imposed under s. 71.02 an amount equal to one
9of the following percentages of the federal basic earned income credit for which the
10person is eligible for the taxable year under section 32
(b) (1) (A) to (C) of the Internal
11Revenue Code:
Note: This Section changes an incorrect reference to the Internal Revenue Code.
AB881,116
12Section 116
. 71.07 (9e) (ap) of the statutes is repealed.
AB881,117
13Section 117
. 71.07 (9e) (at) of the statutes is repealed.
AB881,118
14Section 118
. 71.07 (9e) (g) 2. of the statutes is amended to read:
AB881,22,215
71.07
(9e) (g) 2. The advance payment amount that an individual's employer
16shall add to the individual's paycheck, as described in subd. 1., shall be equal to a
17percentage of the amount that the individual's employer adds to the individual's
18paycheck as an advance earned income tax credit payment under federal law. The
19percentage shall be
the same percentage as is specified in par. (af), based on the
20number of qualifying children that the individual has 4 percent if the individual has
1one qualifying child, 14 percent if the individual has 2 qualifying children, or 43
2percent if the individual has 3 or more qualifying children.
Note: This Section incorporates the contents of s. 71.07 (9e) (af), 2017 Stats.,
because the latter statute was repealed by Section 113.
AB881,119
3Section
119. 71.10 (4) (b) of the statutes is repealed.
AB881,120
4Section
120. 71.10 (4) (j) of the statutes is amended to read:
AB881,22,65
71.10
(4) (j) Any amount computed under s. 71.83 (1)
(a) 6., (c)
, (ce), (cf), and
6(d).
Note: This Section adds, for purposes of the computation order, penalties relating
to retirement plans, health savings account withdrawals, inconsistent estate basis
reporting, and sale of certain assets or assets used in farming.
AB881,121
7Section
121. 71.15 (2) of the statutes is repealed.
AB881,122
8Section
122. 71.22 (11) of the statutes is amended to read:
AB881,22,149
71.22
(11) Except as provided in s. 71.45 (2), “Wisconsin net income", for
10corporations engaged in business wholly within this state, means net income and,
11for corporations engaged in business both within and outside this state, means the
12amount assigned to this state under s. 71.25 (6), (10) (c) or (13) or by a separate
13accounting or allocation, if allowed under s. 71.25 (6), or by another method approved
14under s. 71.25 (11)
, or (12)
or (14).
AB881,123
15Section
123. 71.25 (14) of the statutes is repealed.
Note: This Section repeals the alternative allocation method for corporations,
which was available upon request on or before January 1, 2000.
Section 123 deletes a
cross-reference to this method.
AB881,124
16Section 124
. 71.26 (2) (a) 10. of the statutes is repealed.
AB881,125
17Section
125. 71.66 (2) (c) of the statutes is repealed.
AB881,126
18Section
126. 71.66 (2) (d) of the statutes is repealed.
AB881,127
19Section 127
. 71.85 (3) of the statutes is repealed.
AB881,128
20Section
128. 73.06 (1) of the statutes is amended to read:
AB881,23,16
173.06
(1) The department of revenue, through its supervisors of equalization,
2shall have complete supervision and direction of the work of the local assessors. It
3shall annually, or more often if deemed necessary at a time which in its judgment is
4best calculated to obtain the ends sought, call a meeting of all local assessors for
5conference and instruction relative to their duties in the valuation and assessment
6of property. The department of revenue may also call a similar meeting of local clerks
7and other officials for conference and instruction relative to their duties in the
8valuation and assessment of property. Each official upon notice by mail from the
9supervisor shall attend the meeting, and
an official other than a local assessor shall
10receive travel expenses from his or her residence to the meeting site and return and
11the compensation and mileage that the board establishes, but not less than $5 per
12day and 6 cents per mile; except that in counties having a population of 750,000 or
13more, no compensation, travel expense or mileage shall be allowed. This
14compensation shall be paid out of the treasury of the county in which the local official
15resides upon the certificate of the supervisor of equalization showing attendance and
16travel, as certificates of witnesses and jurors are paid.
Note: This Section makes a local assessor ineligible for per diem and mileage
reimbursement for attending training held by the Department of Revenue.
AB881,129
17Section
129. 76.02 (1) of the statutes is amended to read:
AB881,23,2318
76.02
(1) “Air carrier company" means any person engaged in the business of
19transportation in aircraft of persons or property for hire on regularly scheduled
20flights
, except an air carrier company whose property is exempt from taxation under
21s. 70.11 (42) (b). In this subsection, “aircraft" means a completely equipped operating
22unit, including spare flight equipment, used as a means of conveyance in air
23commerce.
AB881,130
1Section
130. 76.02 (4m) of the statutes is created to read:
AB881,24,22
76.02
(4m) “Hub facility” means any of the following:
AB881,24,73
(a) A facility at an airport from which an air carrier company operated at least
445 common carrier departing flights each weekday in the prior year and from which
5it transported passengers to at least 15 nonstop destinations, as defined by rule by
6the department, or transported cargo to nonstop destinations, as defined by rule by
7the department.
AB881,24,118
(b) An airport or any combination of airports in this state from which an air
9carrier company cumulatively operated at least 20 common carrier departing flights
10each weekday in the prior year, if the air carrier company's headquarters, as defined
11by rule by the department, is in this state.
AB881,131
12Section
131
. 76.025 (5) of the statutes is created to read:
AB881,24,1513
76.025
(5) Property owned by an air carrier company that operates a hub
14facility in this state is exempt from taxation under this subchapter if the property
15is used in the operation of the air carrier company.
AB881,132
16Section
132
. 76.04 (3) of the statutes is created to read:
AB881,24,2017
76.04
(3) An air carrier company claiming the hub facility exemption under s.
1876.025 (5) shall annually file with the department, on a form prescribed by the
19department, a request for the exemption no later than March 1. A request is timely
20filed under this subsection if received by the department no later than March 1.
Note: Section 132 requires an air carrier company that claims the hub facility
exemption to file an annual request for the exemption no later than March 1. The request
is filed with the department of revenue.
AB881,133
21Section
133
. 76.31 of the statutes is amended to read:
AB881,25,7
2276.31 Determination of ad valorem tax receipts for hub facility
23exemptions. By July 1, 2004, and every
Annually, no later than July 1
thereafter,
1the department shall determine the total amount of the tax imposed under
subch.
2I of ch. 76 this subchapter that was paid by each air carrier company
, as defined in
3s. 70.11 (42) (a) 1., whose property is exempt from taxation under s.
70.11 (42) (b)
476.025 (5) for the most recent taxable year that the air carrier company paid the tax
5imposed under
subch. I of ch. 76 this subchapter. The total amount determined
6under this section shall be transferred under s. 20.855 (4) (fm) to the transportation
7fund.
Note: Sections 133 and 137 change cross-references to the hub facility exemption
to reflect the transfer of the exemption from ch. 70, Stats., to ch. 76, Stats. Section 133
also makes other technical changes.
AB881,134
8Section
134. 77.54 (20n) (b) of the statutes is amended to read:
AB881,25,179
77.54
(20n) (b) The sales price from the sale of and the storage, use, or other
10consumption of food and food ingredients, except soft drinks, sold by hospitals,
11sanatoriums, nursing homes, retirement homes, and community-based residential
12facilities, as defined in s. 50.01 (1g), and any facility certified or licensed under ch.
1348, including prepared food that is sold to the elderly or
handicapped disabled by
14persons providing mobile meals on wheels. In this paragraph, “retirement home"
15means a nonprofit residential facility where 3 or more unrelated adults or their
16spouses have their principal residence and where support services, including meals
17from a common kitchen, are available to residents.
Note: This Section replaces the term “handicapped” with “disabled” in a sales tax
exemption for food sold to the elderly or disabled.
AB881,135
18Section
135. 77.94 (1) of the statutes is amended to read:
AB881,26,219
77.94
(1) Except as provided in sub. (2), the The surcharge imposed under s.
2077.93 is an amount equal to the amount calculated by multiplying gross tax liability
21for the taxable year of the corporation by 3 percent, or in the case of a tax-option
22corporation an amount equal to the amount calculated by multiplying net income
1under s. 71.34 by 0.2 percent, up to a maximum of $9,800, or $25, whichever is
2greater.
AB881,136
3Section
136. 77.94 (2) of the statutes is repealed.
Note: This Section repeals an economic development surcharge computation.
Section 136 deletes a cross-reference to this computation.
AB881,137
4Section
137
. 78.55 (1) of the statutes is amended to read:
AB881,26,65
78.55
(1) “Air carrier company" has the meaning given in s.
70.11 (42) (a) 1. 676.02 (1).
AB881,138
7Section
138. 120.135 of the statutes is repealed.
Note: This Section repeals a statute relating to capital improvement funds for
schools. Section 139 deletes a cross-reference to this statute. Section 140 repeals a
statute that is obsolete after the repeal of the statute in this
Section.
AB881,139
8Section
139
. 121.07 (6) (a) (intro.) of the statutes is amended to read:
AB881,26,199
121.07
(6) (a) (intro.) “Shared cost" is the sum of the net cost of the general fund
10and the net cost of the debt service fund, except that “shared cost" excludes any costs,
11including attorney fees, incurred by a school district as a result of its participation
12in a lawsuit commenced against the state, beginning with such costs incurred in the
13fiscal year in which the lawsuit is commenced, excludes any expenditures from
a
14capital improvement fund created under s. 120.135 or a capital improvement trust
15fund created under s. 120.137, excludes any debt service costs associated with an
16environmental remediation project under s. 67.05 (7) (er), and excludes the costs of
17transporting those transfer pupils for whom the school district operating under ch.
18119 does not receive intradistrict transfer aid under s. 121.85 (6) as a result of s.
19121.85 (6) (am). In this paragraph:
AB881,140
20Section
140
. 121.91 (4) (h) of the statutes is repealed.
AB881,141
21Section
141. 227.53 (1) (b) 1. of the statutes is amended to read:
AB881,27,3
1227.53
(1) (b) 1. The tax appeals commission, the department of revenue
,
2except that if the petitioner is the department of revenue, the prevailing parties
3before the tax appeals commission shall be the named respondents.
Note: This Section provides that, in a petition for review of a Tax Appeals
Commission decision, the prevailing parties before the commission are the named
respondents if the petitioner is the Department of Revenue.
AB881,142
4Section
142.
Initial applicability.
AB881,27,75
(1)
Hub facility exemption. The treatment of ss. 70.11 (42), 76.02 (1) and (4m),
676.025 (5), 76.04 (3), 76.31, and 78.55 (1) first applies to the property tax assessments
7as of January 1, 2020.
AB881,27,128
(2) R
epealing obsolete references and updating references. The treatment
9of ss. 71.05 (22) (f) 1., 2., and 3., 71.07 (6) (am) 1., 1m., and 2. d., (8), and (9e) (a), (ac),
10(ad), (af), (ah), (aj) (intro.), (ap), (at), and (g) 2., 71.10 (4) (b) and (j), 71.15 (2), 71.22
11(11), 71.25 (14), 71.66 (2) (c) and (d), and 77.94 (1) and (2) first applies to taxable years
12beginning after December 31, 2018.
AB881,28,213
(3)
Adding titles and repealing obsolete additions and subtractions. The
14treatment of ss. 71.05 (6) (a) 1. (title), 2. (title), 3. (title), 4., 5. (title), 6. (title), 7., 8.
15(title), 9., 10. (title), 12. (title), 13. (title), 14. (title), 15. (title), 16. (title), 17., 18. (title),
1620. (title), 21., 22., 23. (title), 24. (title), 25. (title), 26. (title), 27. (title), 28. (title), and
1729. (title) and (b) 1. (title), 2. (title), 3. (title), 3m. (title), 4. (title), 5. (title), 6. (title),
188. (title), 9. (title), 9m. (title), 10. (title), 12. (title), 13., 14., 17., 18., 19. (title), 20., 21.
19(title), 22. (title), 23. (title), 25. (title), 26. (title), 28. (title), 29. (title), 30. (title), 31.
20(title), 32. (title), 32m. (title), 33. (title), 34. (title), 35. (title), 36., 37., 38. (title), 39.,
2140., 41., 42. (title), 43. (title), 44., 45. (title), 46. (title), 47., 47m., 48. (title), 48m.
22(title), 49. (title), 50. (title), 51. (title), 52. (title), and 53. (title) and 71.07 (5) (a) 15.,
171.26 (2) (a) 10., and 71.85 (3) first applies to taxable years beginning on January 1,
22019.
AB881,143
3Section
143.
Effective dates. This act takes effect on the day after
4publication, except as follows:
AB881,28,65
(1)
Reimbursement for training. The treatment of s. 73.06 (1) takes effect on
6January 1 of the year following the year in which this subsection takes effect.