SB803: Bill Text

Note: This Section repeals a statute that is obsolete because it applies to taxable years that end before January 1, 2015.

SB803,91 Section 91 . 71.05 (6) (b) 45. (title) of the statutes is created to read:

SB803,17,12 71.05 (6) (b) 45. (title) `Related entities.'

SB803,92 Section 92 . 71.05 (6) (b) 46. (title) of the statutes is created to read:

SB803,17,14 71.05 (6) (b) 46. (title) `Related entities unable to offset amount.'

SB803,93 Section 93. 71.05 (6) (b) 47. of the statutes, as affected by 2019 Wisconsin Act 54, is repealed.

Note: This Section repeals a statute that is obsolete because it applies to taxable years that begin before January 1, 2014. Section 124 deletes a statute that is obsolete after the repeal of the statute in this Section.

SB803,94 Section 94. 71.05 (6) (b) 47m. of the statutes is repealed.

Note: This Section repeals a statute that is obsolete because it does not apply to taxable years that begin after December 31, 2014.

SB803,95 Section 95 . 71.05 (6) (b) 48. (title) of the statutes is created to read:

SB803,18,3 71.05 (6) (b) 48. (title) `Combat zone related death; basic, special, or incentive pay.'

SB803,96 Section 96. 71.05 (6) (b) 48m. (title) of the statutes is created to read:

SB803,18,5 71.05 (6) (b) 48m. (title) `Combat zone related death; other income.'

SB803,97 Section 97. 71.05 (6) (b) 49. (title) of the statutes is created to read:

SB803,18,7 71.05 (6) (b) 49. (title) `Private school tuition.'

SB803,98 Section 98. 71.05 (6) (b) 50. (title) of the statutes is created to read:

SB803,18,9 71.05 (6) (b) 50. (title) `Federal and Wisconsin basis difference.'

SB803,99 Section 99. 71.05 (6) (b) 51. (title) of the statutes is created to read:

SB803,18,11 71.05 (6) (b) 51. (title) `Physician or psychiatrist grant.'

SB803,100 Section 100. 71.05 (6) (b) 52. (title) of the statutes is created to read:

SB803,18,13 71.05 (6) (b) 52. (title) `ABLE account contribution.'

SB803,101 Section 101 . 71.05 (6) (b) 53. (title) of the statutes is created to read:

SB803,18,16 71.05 (6) (b) 53. (title) `Olympic, Paralympic, or Special Olympic medals and payments.'

SB803,102 Section 102. 71.05 (22) (f) 1. of the statutes is repealed.

SB803,103 Section 103. 71.05 (22) (f) 2. of the statutes is repealed.

SB803,104 Section 104. 71.05 (22) (f) 3. of the statutes is repealed.

SB803,105 Section 105 . 71.07 (5) (a) 15. of the statutes is amended to read:

SB803,19,3 71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance under section 213 of the Internal Revenue Code that is exempt from taxation under s. 71.05 (6) (b) 17. to 20. 19., 35., 36., 37., 38., 39., 40., 41., and 42. and the amount claimed as a deduction for a long-term care insurance policy under section 213 (d) (1) (D) of the Internal Revenue Code, as defined in section 7702B (b) of the Internal Revenue 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.

SB803,106 Section 106. 71.07 (6) (am) 1. of the statutes is amended to read:

SB803,20,7 71.07 (6) (am) 1. In this paragraph For purposes of subd. 1m., “earned income" means qualified earned income, as defined in section 221 (b) of the internal revenue code as amended to December 31, 1985, plus employee business expenses under section 62 (2) (B) to (D) of that code, allocable to Wisconsin under s. 71.04, plus amounts received by the individual for services performed in the employ of the individual's spouse minus the amount of disability income excluded under s. 71.05 (6) (b) 4. and minus any other amount not subject to tax under this chapter wages, salaries, or professional fees, and other amounts received as compensation for personal services actually rendered, but does not include that part of the compensation derived by the taxpayer for personal services rendered by him or her to a corporation which represents a distribution of earnings or profits rather than a reasonable allowance as compensation for the personal services actually rendered. In the case of a taxpayer engaged in a trade or business in which both personal services and capital are material income-producing factors, under federal regulations, a reasonable allowance as compensation for the personal services rendered by the taxpayer shall be considered as earned income. Earned income does not include any amount not included in gross income, received as a pension or annuity, paid or distributed out of an individual retirement plan (within the meaning of section 7701 (a) (37) of the Internal Revenue Code), received as deferred compensation, or received for services, not in the course of the employer's trade or business, or domestic service in a private home of the employer, performed by an individual in the employ of his or her spouse. Earned income is computed notwithstanding the fact that each spouse owns an undivided one-half interest in the whole of the marital property. A marital property agreement or unilateral statement under ch. 766 transferring income between spouses has no effect in computing earned income under this paragraph.

Note: This Section incorporates the text of the definition of “earned income” from the Internal Revenue Code.

SB803,107 Section 107. 71.07 (6) (am) 1m. of the statutes is created to read:

SB803,20,16 71.07 (6) (am) 1m. In this paragraph, “qualified earned income” means an amount equal to the excess of the earned income of the spouse for the taxable year, over an amount equal to the sum of the deductions described in paragraphs (1), (2) (B), (C), and (E), (6), (7), and (12) of section 62 (a) of the Internal Revenue Code to the extent such deductions are properly allocable to or chargeable against earned income, allocable to Wisconsin under s. 71.04, minus the amount of disability income excluded under s. 71.05 (6) (b) 4. and minus any other amount not subject to tax under 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.”

SB803,108 Section 108 . 71.07 (6) (am) 2. d. of the statutes is amended to read:

SB803,20,20 71.07 (6) (am) 2. d. For taxable years beginning after December 31, 2000, 3 percent of the qualified earned income of the spouse with the lower qualified earned income, but not more than $480.

SB803,109 Section 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.

SB803,110 Section 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.

SB803,111 Section 111 . 71.07 (9e) (ac) of the statutes is repealed.

SB803,112 Section 112 . 71.07 (9e) (ad) of the statutes is repealed.

SB803,113 Section 113 . 71.07 (9e) (af) of the statutes is repealed.

SB803,114 Section 114 . 71.07 (9e) (ah) of the statutes is repealed.

SB803,115 Section 115. 71.07 (9e) (aj) (intro.) of the statutes is amended to read:

SB803,21,11 71.07 (9e) (aj) (intro.) For taxable years beginning after December 31, 2010, an individual may credit against the tax imposed under s. 71.02 an amount equal to one of the following percentages of the federal basic earned income credit for which the person is eligible for the taxable year under section 32 (b) (1) (A) to (C) of the Internal Revenue Code:

Note: This Section changes an incorrect reference to the Internal Revenue Code.

SB803,116 Section 116 . 71.07 (9e) (ap) of the statutes is repealed.

SB803,117 Section 117 . 71.07 (9e) (at) of the statutes is repealed.

SB803,118 Section 118 . 71.07 (9e) (g) 2. of the statutes is amended to read:

SB803,22,2 71.07 (9e) (g) 2. The advance payment amount that an individual's employer shall add to the individual's paycheck, as described in subd. 1., shall be equal to a percentage of the amount that the individual's employer adds to the individual's paycheck as an advance earned income tax credit payment under federal law. The percentage shall be the same percentage as is specified in par. (af), based on the number of qualifying children that the individual has 4 percent if the individual has one qualifying child, 14 percent if the individual has 2 qualifying children, or 43 percent 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.

SB803,119 Section 119. 71.10 (4) (b) of the statutes is repealed.

SB803,120 Section 120. 71.10 (4) (j) of the statutes is amended to read:

SB803,22,6 71.10 (4) (j) Any amount computed under s. 71.83 (1) (a) 6., (c), (ce), (cf), and (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.

SB803,121 Section 121. 71.15 (2) of the statutes is repealed.

SB803,122 Section 122. 71.22 (11) of the statutes is amended to read:

SB803,22,14 71.22 (11) Except as provided in s. 71.45 (2), “Wisconsin net income", for corporations engaged in business wholly within this state, means net income and, for corporations engaged in business both within and outside this state, means the amount assigned to this state under s. 71.25 (6), (10) (c) or (13) or by a separate accounting or allocation, if allowed under s. 71.25 (6), or by another method approved under s. 71.25 (11), or (12) or (14).

SB803,123 Section 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.

SB803,124 Section 124 . 71.26 (2) (a) 10. of the statutes is repealed.

SB803,125 Section 125. 71.66 (2) (c) of the statutes is repealed.

SB803,126 Section 126. 71.66 (2) (d) of the statutes is repealed.

SB803,127 Section 127 . 71.85 (3) of the statutes is repealed.

SB803,128 Section 128. 73.06 (1) of the statutes is amended to read:

SB803,23,16 73.06 (1) The department of revenue, through its supervisors of equalization, shall have complete supervision and direction of the work of the local assessors. It shall annually, or more often if deemed necessary at a time which in its judgment is best calculated to obtain the ends sought, call a meeting of all local assessors for conference and instruction relative to their duties in the valuation and assessment of property. The department of revenue may also call a similar meeting of local clerks and other officials for conference and instruction relative to their duties in the valuation and assessment of property. Each official upon notice by mail from the supervisor shall attend the meeting, and an official other than a local assessor shall receive travel expenses from his or her residence to the meeting site and return and the compensation and mileage that the board establishes, but not less than $5 per day and 6 cents per mile; except that in counties having a population of 750,000 or more, no compensation, travel expense or mileage shall be allowed. This compensation shall be paid out of the treasury of the county in which the local official resides upon the certificate of the supervisor of equalization showing attendance and travel, 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.

SB803,129 Section 129. 76.02 (1) of the statutes is amended to read:

SB803,23,23 76.02 (1) “Air carrier company" means any person engaged in the business of transportation in aircraft of persons or property for hire on regularly scheduled flights, except an air carrier company whose property is exempt from taxation under s. 70.11 (42) (b). In this subsection, “aircraft" means a completely equipped operating unit, including spare flight equipment, used as a means of conveyance in air commerce.

SB803,130 Section 130. 76.02 (4m) of the statutes is created to read:

SB803,24,2 76.02 (4m) “Hub facility” means any of the following:

SB803,24,7 (a) A facility at an airport from which an air carrier company operated at least 45 common carrier departing flights each weekday in the prior year and from which it transported passengers to at least 15 nonstop destinations, as defined by rule by the department, or transported cargo to nonstop destinations, as defined by rule by the department.

SB803,24,11 (b) An airport or any combination of airports in this state from which an air carrier company cumulatively operated at least 20 common carrier departing flights each weekday in the prior year, if the air carrier company's headquarters, as defined by rule by the department, is in this state.

SB803,131 Section 131 . 76.025 (5) of the statutes is created to read:

SB803,24,15 76.025 (5) Property owned by an air carrier company that operates a hub facility in this state is exempt from taxation under this subchapter if the property is used in the operation of the air carrier company.

SB803,132 Section 132 . 76.04 (3) of the statutes is created to read:

SB803,24,20 76.04 (3) An air carrier company claiming the hub facility exemption under s. 76.025 (5) shall annually file with the department, on a form prescribed by the department, a request for the exemption no later than March 1. A request is timely filed 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.

SB803,133 Section 133 . 76.31 of the statutes is amended to read:

SB803,25,7 76.31 Determination of ad valorem tax receipts for hub facility exemptions. By July 1, 2004, and every Annually, no later than July 1 thereafter, the department shall determine the total amount of the tax imposed under subch. I of ch. 76 this subchapter that was paid by each air carrier company, as defined in s. 70.11 (42) (a) 1., whose property is exempt from taxation under s. 70.11 (42) (b) 76.025 (5) for the most recent taxable year that the air carrier company paid the tax imposed under subch. I of ch. 76 this subchapter. The total amount determined under this section shall be transferred under s. 20.855 (4) (fm) to the transportation fund.

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.

SB803,134 Section 134. 77.54 (20n) (b) of the statutes is amended to read:

SB803,25,17 77.54 (20n) (b) The sales price from the sale of and the storage, use, or other consumption of food and food ingredients, except soft drinks, sold by hospitals, sanatoriums, nursing homes, retirement homes, and community-based residential facilities, as defined in s. 50.01 (1g), and any facility certified or licensed under ch. 48, including prepared food that is sold to the elderly or handicapped disabled by persons providing mobile meals on wheels. In this paragraph, “retirement home" means a nonprofit residential facility where 3 or more unrelated adults or their spouses have their principal residence and where support services, including meals from 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.

SB803,135 Section 135. 77.94 (1) of the statutes is amended to read:

SB803,26,2 77.94 (1) Except as provided in sub. (2), the The surcharge imposed under s. 77.93 is an amount equal to the amount calculated by multiplying gross tax liability for the taxable year of the corporation by 3 percent, or in the case of a tax-option corporation an amount equal to the amount calculated by multiplying net income under s. 71.34 by 0.2 percent, up to a maximum of $9,800, or $25, whichever is greater.

SB803,136 Section 136. 77.94 (2) of the statutes is repealed.