SB59: Bill Text

SB59,969 Section 969. 71.47 (6) (cn) (intro.) of the statutes is amended to read:

SB59,646,13 71.47 (6) (cn) (intro.) For taxable years beginning after December 31, 2014, and before January 1, 2019, the Wisconsin Economic Development Corporation shall certify a person to claim a credit under par. (a) 3. if all of the following apply:

SB59,970 Section 970. 71.47 (6) (e) of the statutes is renumbered 71.47 (6) (e) 1.

SB59,971 Section 971. 71.47 (6) (e) 2. of the statutes is created to read:

SB59,646,19 71.47 (6) (e) 2. No credit may be claimed under par. (a) 3. for taxable years beginning after December 31, 2018. Credits under par. (a) 3. for taxable years that begin before January 1, 2019, may be carried forward to taxable years that begin after December 31, 2018.

SB59,972 Section 972 . 71.49 (1) (f) of the statutes is amended to read:

SB59,647,5 71.49 (1) (f) The total of farmland preservation credit under subch. IX, farmland tax relief credit under s. 71.47 (2m), dairy manufacturing facility investment credit under s. 71.47 (3p), jobs credit under s. 71.47 (3q), meat processing facility investment credit under s. 71.47 (3r), woody biomass harvesting and processing credit under s. 71.47 (3rm), food processing plant and food warehouse investment credit under s. 71.47 (3rn), enterprise zone jobs credit under s. 71.47 (3w), business development credit under s. 71.47 (3y), research credit under s. 71.47 (4) (k) 1. and 1m., film production services credit under s. 71.47 (5f), film production company investment credit under s. 71.47 (5h), beginning farmer and farm asset owner tax credit under s. 71.47 (8r), and estimated tax payments under s. 71.48.

SB59,973 Section 973. 71.52 (6) of the statutes is amended to read:

SB59,648,20 71.52 (6) “Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s. 46.27, 2017 stats.), cash benefits paid by counties under s. 59.53 (21), the gross amount of any pension or annuity (including railroad retirement benefits, all payments received under the federal social security act and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment insurance, the gross amount of “loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code, contributions to Keogh plans, net operating loss carry-backs and carry-forwards, capital loss carry-forwards, and disqualified losses deducted in determining Wisconsin adjusted gross income shall be added to “income". “ Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code. Amounts not included in adjusted gross income but added to “income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter. A marital property agreement or unilateral statement under ch. 766 has no effect in computing “income" for a person whose homestead is not the same as the homestead of that person's spouse.

SB59,974 Section 974 . 71.54 (1) (g) (intro.) of the statutes is amended to read:

SB59,648,25 71.54 (1) (g) 2012 and thereafter to 2019. (intro.) The amount of any claim for calendar years beginning before January 1, 2020, filed in 2012 and thereafter and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

SB59,975 Section 975. 71.54 (1) (h) of the statutes is created to read:

SB59,649,5 71.54 (1) (h) 2020 and thereafter. Subject to sub. (2m), the amount of any claim for calendar years beginning after December 31, 2019, filed in 2020 and thereafter, and based on property taxes accrued or rent constituting property taxes accrued during the previous year is limited as follows:

SB59,649,8 1. If the household income was $8,060 or less in the year to which the claim relates, the claim is limited to 80 percent of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's homestead.

SB59,649,13 2. If the household income was more than $8,060 in the year to which the claim relates, the claim is limited to 80 percent of the amount by which the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's homestead exceeds 6.655 percent of the household income exceeding $8,060.

SB59,649,15 3. No credit may be allowed if the household income of a claimant exceeds $30,000.

SB59,649,17 4. Notwithstanding the time limitations described in par. (g) (intro.), the provisions of par. (g) 4., 5., 6., and 7. apply to claims filed under this paragraph.

SB59,976 Section 976 . 71.54 (2) (b) 4. of the statutes is amended to read:

SB59,649,20 71.54 (2) (b) 4. In calendar years 2011 or any subsequent calendar year to 2019, $1,460.

SB59,977 Section 977 . 71.54 (2) (b) 5. of the statutes is created to read:

SB59,649,23 71.54 (2) (b) 5. Subject to sub. (2m), in calendar year 2020 or any subsequent calendar year, $1,460.

SB59,978 Section 978 . 71.54 (2m) of the statutes is amended to read:

SB59,650,18 71.54 (2m) Indexing for inflation; 2010 2020 and thereafter. (a) For calendar years beginning after December 31, 2009, and before January 1, 2011 2019, the dollar amounts of the threshold income under sub. (1) (f) (h) 1. and 2., the maximum household income under sub. (1) (f) (h) 3. and the maximum property taxes under sub. (2) (b) 3. 5. shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the 12-month average of the U.S. consumer price index for the month of August of the year before the previous year through the month of July of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the 12-month average of the U.S. consumer price index for August 2007 2017 through July 2008 2018, as determined by the federal department of labor, except that the adjustment may occur only if the percentage is a positive number. Each amount that is revised under this paragraph shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this paragraph and incorporate the changes into the income tax forms and instructions.

SB59,650,24 (b) The department of revenue shall annually adjust the slope under sub. (1) (f) (h) 2. such that, as a claimant's income increases from the threshold income as calculated under par. (a), to an amount that exceeds the maximum household income as calculated under par. (a), the credit that may be claimed is reduced to $0 and the department of revenue shall incorporate the changes into the income tax forms and instructions.

SB59,979 Section 979. 71.54 (2m) (c) of the statutes is created to read:

SB59,651,4 71.54 (2m) (c) Notwithstanding the indexing provisions under par. (a), the dollar amount of maximum household income under sub. (1) (h) 3. may not be indexed for a claim filed for calendar years beginning after December 31, 2019, and before January 1, 2021.

SB59,980 Section 980. 71.58 (7) (a) of the statutes is amended to read:

SB59,651,10 71.58 (7) (a) For an individual, means income as defined under s. 71.52 (6), plus nonfarm business losses, plus amounts under s. 46.27, 2017 stats., less net operating loss carry-forwards, less first-year depreciation allowances under section 179 of the internal revenue code and less the first $25,000 of depreciation expenses in respect to the farm claimed by all of the individuals in a household.

SB59,981 Section 981. 71.78 (4) (m) of the statutes is amended to read:

SB59,651,15 71.78 (4) (m) The chief executive officer of the Wisconsin Economic Development Corporation and employees of the corporation to the extent necessary to administer the development zone program economic development programs under subch. II of ch. 238.

SB59,982 Section 982. 71.78 (5) of the statutes is amended to read:

SB59,651,21 71.78 (5) Agreement with department. Copies of returns and claims specified in sub. (1) and related schedules, exhibits, writings or audit reports shall not be furnished to the persons listed under sub. (4), except persons under sub. (4) (e), (k), (n), (o) and (q) or under an agreement between the department of revenue and another agency of government or the Wisconsin Economic Development Corporation.

SB59,983 Section 983. 71.80 (25) (a) of the statutes is renumbered 71.80 (25), and 71.80 (25) (title), as renumbered, is amended to read:

SB59,651,25 71.80 (25) (title) Net operating and business loss carry-forward and carry-back.

SB59,984 Section 984. 71.80 (25) (b) of the statutes is repealed.

SB59,985 Section 985 . 71.83 (1) (ch) of the statutes is created to read:

SB59,652,9 71.83 (1) (ch) First-time home buyers savings account withdrawals. If an account holder, as defined under s. 71.10 (10) (a) 1., or an account holder's estate is required to add any amount to federal adjusted gross income under s. 71.05 (6) (a) 29., the account holder or the account holder's estate shall also pay an amount equal to 10 percent of the amount that was added to income under s. 71.05 (6) (a) 29. The department of revenue shall assess, levy, and collect the penalty under this paragraph as it assesses, levies, and collects taxes under this chapter.

SB59,986 Section 986. 71.93 (title) of the statutes is amended to read:

SB59,652,12 71.93 (title) Setoffs for other state agencies and debt collection for state agencies, municipalities, and counties.

SB59,987 Section 987. 71.93 (1) (a) 3. of the statutes is repealed.

SB59,988 Section 988. 71.93 (1) (a) 4. of the statutes is repealed.

SB59,989 Section 989. 71.93 (1) (a) 5. of the statutes is repealed.

SB59,990 Section 990. 71.93 (1) (a) 6. of the statutes is repealed.

SB59,991 Section 991 . 71.93 (1) (a) 7m. of the statutes is repealed.

SB59,992 Section 992. 71.93 (1) (a) 8. of the statutes is repealed.

SB59,993 Section 993. 71.93 (1) (a) 9. of the statutes is created to read:

SB59,652,23 71.93 (1) (a) 9. A delinquent child support or spousal support obligation that is certified under s. 49.855 and is owed to, or may be recovered by the department of children and families on behalf of, a custodial parent, former spouse, or other person.

SB59,994 Section 994. 71.93 (1) (a) 10. of the statutes is created to read:

SB59,653,3 71.93 (1) (a) 10. Restitution owed pursuant to an order or judgment under s. 973.09 (3) (b) or 973.20 (1r) that may be owed to, paid to, or recovered by the victim, the department of corrections, a court, or a clerk of court.

SB59,995 Section 995. 71.93 (1) (b) of the statutes is amended to read:

SB59,653,7 71.93 (1) (b) “Debtor" means any person owing a debt to a state agency and any person who owes a delinquent child support or spousal support obligation to an agency of another state.

SB59,996 Section 996. 71.93 (1) (d) 3. of the statutes is created to read:

SB59,653,10 71.93 (1) (d) 3. A lottery prize equal to at least $600 that exceeds a debtor's Wisconsin tax liability or other liability owed to the department.

SB59,997 Section 997. 71.93 (1) (d) 4. of the statutes is created to read:

SB59,653,14 71.93 (1) (d) 4. Compensation or payment owed to a lottery retailer under ch. 565, whether owed by statute, rule, or contract, that exceeds a debtor's Wisconsin tax liability or liability owed to the department.

SB59,998 Section 998. 71.93 (1) (e) of the statutes is renumbered 71.93 (1) (e) (intro.) and amended to read:

SB59,653,18 71.93 (1) (e) (intro.) “State agency" has the meaning set forth under s. 20.001 (1). means any of the following:

SB59,999 Section 999. 71.93 (1) (e) 1. of the statutes is created to read:

SB59,653,21 71.93 (1) (e) 1. An office, department, or independent agency in the executive branch of the Wisconsin state government, the legislature, or the courts.

SB59,1000 Section 1000. 71.93 (1) (e) 2. of the statutes is created to read:

SB59,653,23 71.93 (1) (e) 2. The State of Wisconsin.

SB59,1001 Section 1001. 71.93 (2) (title) of the statutes is amended to read:

SB59,653,25 71.93 (2) (title) Certification of state agency debts.

SB59,1002 Section 1002. 71.93 (2) of the statutes is renumbered 71.93 (2) (a) and amended to read:

SB59,654,11 71.93 (2) (a) A state agency may certify to the department any properly identified debt exceeding $20 so that the department may set off the amount of the debt against a refund to the debtor or so that the department of administration may reduce a disbursement to the debtor by the amount of the debt. At least 30 days prior to certification each debtor shall be sent a notice by the state agency of its intent to certify the debt to the department for setoff or reduction and of the debtor's right of appeal. At the time of certification, the certifying state agency shall furnish the social security number or operator's license number of individual debtors and the federal employer identification number of other debtors.

SB59,1003 Section 1003. 71.93 (2) (b) of the statutes is created to read:

SB59,654,20 71.93 (2) (b) A state agency wishing to certify a debt to the department shall enter into a written agreement with the department prior to any certification under par. (a). A certification of debt by a state agency, or changes to a certification, shall be in a manner and form prescribed by the department. The secretary of revenue shall be the final authority in the resolution of an interagency dispute regarding the certification of a debt. If a refund or disbursement is adjusted after a setoff or reduction, the department may readjust any erroneous settlement with the certifying state agency.

SB59,1004 Section 1004. 71.93 (3) (title) of the statutes is repealed and recreated to read:

SB59,654,22 71.93 (3) (title) Setoff.

SB59,1005 Section 1005. 71.93 (3) (a) (intro.) of the statutes is amended to read:

SB59,655,5 71.93 (3) (a) (intro.) The department of revenue shall setoff set off any debt or other amount owed to the department, regardless of the origin of the debt or of the amount, its nature or its date. The department's setoff shall include the use of unclaimed property owed to the debtor under s. 177.24, against a refund owed to the debtor. If after the setoff there remains a refund in excess of $10, the department shall set off the remaining refund against certified debts of other entities in the following order:

SB59,1006 Section 1006 . 71.93 (3) (a) 1. of the statutes is amended to read:

SB59,655,8 71.93 (3) (a) 1. Debt under s. 49.855 (1), certified by the department of children and families under sub. (2) (a).

SB59,1007 Section 1007. 71.93 (3) (a) 1m. of the statutes is amended to read:

SB59,655,11 71.93 (3) (a) 1m. Debt certified Restitution under s. 973.20 (10) (b) sub. (1) (a) 10. that is certified by the department of corrections, a court, or a clerk of court.

SB59,1008 Section 1008. 71.93 (3) (a) 3. of the statutes is amended to read:

SB59,655,14 71.93 (3) (a) 3. Debt under s. 71.935 owed to local units of government a municipality or county and collected pursuant to an agreement under sub. (8).

SB59,1009 Section 1009 . 71.93 (3) (a) 4. of the statutes is amended to read:

SB59,655,17 71.93 (3) (a) 4. Debt certified under sub. (2) (a), other than child support debt certified by the department of children and families.

SB59,1010 Section 1010. 71.93 (3) (a) 7. of the statutes is amended to read:

SB59,655,20 71.93 (3) (a) 7. Federal tax obligations collected pursuant to an agreement under s. 73.03 (52) (a) or (b).

SB59,1011 Section 1011 . 71.93 (3) (b) of the statutes is amended to read:

SB59,656,9 71.93 (3) (b) The department shall provide the information obtained under sub. (2) (a) to the department of administration. Before reducing any disbursement as provided under this paragraph, the department of administration shall contact the department to verify whether a certified debt that is the basis of the reduction has been collected by other means. If the certified debt remains uncollected, the department of administration shall reduce the disbursement by the amount of the debtor's certified debt under sub. (2) (a), notify the department of such reduction and disbursement, and remit the amount of the reduction to the department in the manner prescribed by the department. If more than one certified debt exists for any debtor, the disbursement shall be reduced first by any debts certified under s. 73.12 then by the earliest debt certified. Any legal action contesting a reduction under this paragraph shall be brought against the state agency that certified the debt under sub. (2) (a).

SB59,1012 Section 1012. 71.93 (3) (d) of the statutes is created to read:

SB59,656,15 71.93 (3) (d) The department may provide, upon request by a state agency, a report that details each active debt subject to this section of the state agency, including the ending balance. The department may provide a weekly report to a state agency of amounts collected and payments through electronic funds transfer or state account system general ledger transfer.

SB59,1013 Section 1013. 71.93 (4) of the statutes is repealed.

SB59,1014 Section 1014. 71.93 (5) of the statutes is renumbered 71.93 (3) (e) and amended to read:

SB59,657,2 71.93 (3) (e) Debtor charged for costs. Each debtor shall be charged for administration expenses a collection fee, and the amounts charged shall be credited to the department's appropriation under s. 20.566 (1) (h). The department may set off amounts charged to the debtor under this subsection against any refund owed to the debtor, in the manner provided in sub. (3). Annually on or before November 1, the department shall review its costs incurred during the previous fiscal year in administering state agency setoffs and reductions and shall adjust its subsequent charges to each debtor to reflect that experience.