AB68: Bill Text

AB68,1225 Section 1225 . 70.03 (1) of the statutes is amended to read:

AB68,833,21 70.03 (1) In chs. 70 to 76, 78, and 79, “real property," “real estate," and “land" include not only the land itself but all buildings and , fixtures, improvements thereon, and all fixtures and, leases, rights , and privileges appertaining thereto, including assets that cannot be taxed separately as real property, but are inextricably intertwined with the real property, enable the real property to achieve its highest and best use, and are transferable to future owners, except as provided in sub. (2) and except that for the purpose of time-share property, as defined in s. 707.02 (32), real property does not include recurrent exclusive use and occupancy on a periodic basis or other rights, including, but not limited to, membership rights, vacation services, and club memberships. In this subsection, “lease” means a right in real estate that is related primarily to the property and not to the labor, skill, or business acumen of the property owner or tenant. In this subsection, “highest and best use” has the meaning given in s. 70.32 (1).

AB68,1226 Section 1226. 70.11 (4) (a) 1m. of the statutes is created to read:

AB68,834,2 70.11 (4) (a) 1m. Property owned and used exclusively by a community health center that receives a federal grant under 42 USC 254b, is exempt from federal income taxation under section 501 (c) (3) of the Internal Revenue Code, and annually treats at least 30,000 patients, but not exceeding 25 acres of land necessary for location and convenience of buildings while such property is not used for profit.

AB68,1227 Section 1227 . 70.32 (1) of the statutes is amended to read:

AB68,834,23 70.32 (1) Real property shall be valued by the assessor in the manner specified in the Wisconsin property assessment manual provided under s. 73.03 (2a) at its highest and best use from actual view or from the best information that the assessor can practicably obtain, at the full value which could ordinarily be obtained therefor at private sale. In determining the value, the assessor shall consider recent arm's-length sales of the property to be assessed if according to professionally acceptable appraisal practices those sales conform to recent arm's-length sales of reasonably comparable property; recent arm's-length sales of reasonably comparable property; and all factors that, according to professionally acceptable appraisal practices, affect the value of the property to be assessed. In this subsection, “arm's-length sale" means a sale between a willing buyer and willing seller, neither being under compulsion to buy or sell and each being familiar with the attributes of the property sold. In this subsection, “highest and best use" means the specific current use of the property or a higher use for which the property may be used as of the current assessment date, if the property is marketable for that use and the use is legally permissible, physically possible, not highly speculative, and financially feasible and provides the highest net return. When the current use of a property is the highest and best use of that property, value in the current use equals full market value. In this subsection, “legally permissible” does not include a conditional use that has not been granted as of the assessment date.

AB68,1228 Section 1228 . 70.32 (1b) of the statutes is created to read:

AB68,835,13 70.32 (1b) In determining the value of real property under sub. (1), the assessor may consider, as part of the valuation under sub. (1), any lease provisions and actual rent pertaining to a property and affecting its value, including the lease provisions and rent associated with a sale and leaseback of the property, if all such lease provisions and rent are the result of an arm's-length transaction involving persons who are not related in any of the ways specified under section 267 (b) of the Internal Revenue Code for the year of the transaction. The assessor shall reconcile the results of such consideration with the professionally acceptable appraisal practices regarding reasonably comparable sales, the cost approach, and other methods specified in the Wisconsin property assessment manual provided under s. 73.03 (2a). In this subsection, an “arm's-length transaction" means an agreement between willing parties, neither being under compulsion to act and each being familiar with the attributes of the property.

AB68,1229 Section 1229 . 70.32 (1d) of the statutes is created to read:

AB68,835,17 70.32 (1d) (a) To determine the value of property using generally accepted appraisal methods, the assessor shall consider all of the following as comparable to the property being assessed:

AB68,835,19 1. Sales or rentals of properties exhibiting the same or a similar highest and best use with placement in the same real estate market segment.

AB68,835,24 2. Sales or rentals of properties that are similar to the property being assessed with regard to age, condition, use, type of construction, location, design, physical features, and economic characteristics, including similarities in occupancy and the potential to generate rental income. For purposes of this subdivision, such properties may be found locally, regionally, or nationally.

AB68,836,2 (b) For purposes of par. (a), a property is not comparable if any of the following applies:

AB68,836,6 1. At or before the time of sale, the seller places any deed restriction on the property that changes the highest and best use of the property, or prohibits competition, so that it no longer qualifies as a comparable property under par. (a) 1. or 2. and the property being assessed lacks such a restriction.

AB68,836,11 2. The property is dark property and the property being assessed is not dark property. In this subdivision, “dark property” means property that is vacant or unoccupied beyond the normal period for property in the same real estate market segment. For purposes of this subdivision, what is considered vacant or unoccupied beyond the normal period may vary depending on the property location.

AB68,836,13 (c) For purposes of par. (a), “highest and best use" has the meaning given in s. 70.32 (1).

AB68,836,19 (d) For purposes of par. (a), “real estate market segment” means a pool of potential buyers and sellers that typically buy or sell properties similar to the property being assessed, including potential buyers who are investors or owner-occupants. For purposes of this paragraph, and depending on the type of property being assessed, the pool of potential buyers and sellers may be found locally, regionally, nationally, or internationally.

AB68,1230 Section 1230. 70.995 (14) (b) of the statutes is amended to read:

AB68,837,2 70.995 (14) (b) If the department of revenue does not receive the fee imposed on a municipality imposes a fee under par. (a) by March 31 of each year on a municipality, the department shall reduce the a distribution made to the municipality under s. 79.02 (2) (b) 79.02 (1) in the following year by the amount of the fee. Any amount that is not able to be deducted from a distribution under s. 79.02 (1) shall be directly imposed upon the municipality.

AB68,1231 Section 1231 . 71.03 (2) (d) (title) of the statutes is amended to read:

AB68,837,4 71.03 (2) (d) (title) Husband and wife Spouses joint filing.

AB68,1232 Section 1232 . 71.03 (2) (d) 1. of the statutes is amended to read:

AB68,837,8 71.03 (2) (d) 1. Except as provided in subds. 2. and 3. and par. (e), a husband and a wife spouses may file a joint return for income tax purposes even though one of the spouses has no gross income or no deductions.

AB68,1233 Section 1233 . 71.03 (2) (d) 2. of the statutes is amended to read:

AB68,837,13 71.03 (2) (d) 2. No joint return may be filed if either the husband or wife spouse at any time during the taxable year is a nonresident alien, unless an election is in effect for the taxable year under section 6013 (g) or (h) of the internal revenue code Internal Revenue Code.

AB68,1234 Section 1234 . 71.03 (2) (d) 3. of the statutes is amended to read:

AB68,837,21 71.03 (2) (d) 3. No joint return may be filed if the husband and wife spouses have different taxable years, except that if their taxable years begin on the same day and end on different days because of the death of either or both the joint return may be filed with respect to the taxable year of each unless the surviving spouse remarries before the close of his or her taxable year or unless the taxable year of either spouse is a fractional part of a year under section 443 (a) (1) of the internal revenue code Internal Revenue Code.

AB68,1235 Section 1235 . 71.03 (2) (g) of the statutes is amended to read:

AB68,838,12 71.03 (2) (g) Joint return following separate return. Except as provided in par. (i), if an individual has filed a separate return for a taxable year for which a joint return could have been filed by the individual and the individual's spouse under par. (d) or (e) and the time prescribed by law for timely filing the return for that taxable year has expired, the individual and the individual's spouse may file a joint return for that taxable year. A joint return filed by the husband and wife spouses under this paragraph is their return for that taxable year, and all payments, credits, refunds or other repayments made or allowed with respect to the separate return of each spouse for that taxable year shall be taken into account in determining the extent to which the tax based upon the joint return has been paid. If a joint return is filed under this paragraph, any election, other than the election to file a separate return, made by either spouse in that spouse's separate return for that taxable year with respect to the treatment of any income, deduction or credit of that spouse may not be changed in the filing of the joint return if that election would have been irrevocable if the joint return had not been filed.

AB68,1236 Section 1236 . 71.03 (2) (m) 2. of the statutes is amended to read:

AB68,838,17 71.03 (2) (m) 2. If a husband and wife spouses change from a joint return to separate returns within the time prescribed in subd. 1., the tax paid on the joint return shall be allocated between them in proportion to the tax liability shown on each separate return.

AB68,1237 Section 1237 . 71.03 (4) (a) of the statutes is amended to read:

AB68,839,3 71.03 (4) (a) Natural persons whose total income is not in excess of $10,000 and consists entirely of wages subject to withholding for Wisconsin tax purposes and not more than $200 total of dividends, interest and other wages not subject to Wisconsin withholding, and who have elected the Wisconsin standard deduction and have not claimed either the credit for homestead property tax relief or deductions for expenses incurred in earning such income, shall, at their election, not be required to record on their income tax returns the amount of the tax imposed on their Wisconsin taxable income. Married persons shall be permitted this election only if the joint income of the husband and wife spouses does not exceed $10,000, if both report their incomes on the same joint income tax return form, and if both make this election.

AB68,1238 Section 1238. 71.05 (6) (a) 26. a. of the statutes is amended to read:

AB68,839,10 71.05 (6) (a) 26. a. To the extent that the receipt of such amounts by the owner or beneficiary of the account results in a penalty as provided in 26 USC 529 (c) (6), any amount that was not used for qualified higher education expenses, as that term is defined in 26 USC 529 (e) (3), and was contributed to the account after December 31, 2013, except that this subd. 26. a. applies only to amounts for which a subtraction was made under par. (b) 32.

AB68,1239 Section 1239 . 71.05 (6) (a) 28. of the statutes is amended to read:

AB68,839,14 71.05 (6) (a) 28. Upon the termination of an account as described under s. 16.643 or 224.55, any amount in the account that is returned to an account owner's estate.

AB68,1240 Section 1240 . 71.05 (6) (a) 30. of the statutes is created to read:

AB68,839,17 71.05 (6) (a) 30. For an account holder, as defined in s. 71.10 (10) (a) 1., or an account holder's estate:

AB68,839,18 a. Any amount distributed under s. 71.10 (10) (d) 2. or 3.

AB68,839,23 b. Any amount withdrawn from the account created under s. 71.10 (10) (b) 1. for any reason other than payment or reimbursement of eligible costs, as defined in s. 71.10 (10) (a) 4., except that this subd. 30. b. does not apply to the transfer of funds to another account as described in s. 71.10 (10) (c) 4. or to the disbursement of funds pursuant to a filing for bankruptcy protection under 11 USC 101 et seq.

AB68,1241 Section 1241. 71.05 (6) (b) 9. of the statutes is renumbered 71.05 (6) (b) 9. (intro.) and amended to read:

AB68,840,17 71.05 (6) (b) 9. (intro.) On assets held more than one year and on all assets acquired from a decedent, 30 percent of the capital gain as computed under the internal revenue code Internal Revenue Code, not including capital gains for which the federal tax treatment is determined under section 406 of P.L. 99-514; not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason; and not including amounts treated as capital gain for federal income tax purposes from the sale or exchange of a lottery prize. For purposes of this subdivision, the capital gains and capital losses for all assets shall be netted before application of the percentage. For taxable years beginning after December 31, 2020, no subtraction may be made under this subdivision by an individual whose federal adjusted gross income in the taxable year exceeds the applicable threshold amount, except that an individual whose federal adjusted gross income, less 30 percent of the capital gains otherwise eligible for subtraction under this subdivision, is below the applicable threshold amount may make the subtraction reduced by the amount that the individual's federal adjusted gross income exceeds the applicable threshold amount. In this subdivision, “applicable threshold amount” means:

AB68,1242 Section 1242. 71.05 (6) (b) 9. a. of the statutes is created to read:

AB68,840,20 71.05 (6) (b) 9. a. For an estate, a trust, a single individual, or an individual who files as a head of household, $400,000.

AB68,1243 Section 1243. 71.05 (6) (b) 9. b. of the statutes is created to read:

AB68,840,22 71.05 (6) (b) 9. b. For a married couple who files a joint return, $533,000.

AB68,1244 Section 1244. 71.05 (6) (b) 9. c. of the statutes is created to read:

AB68,840,25 71.05 (6) (b) 9. c. For a married individual who files a separate return, $266,500.

AB68,1245 Section 1245. 71.05 (6) (b) 17. of the statutes is repealed.

AB68,1246 Section 1246. 71.05 (6) (b) 18. of the statutes is repealed.

AB68,1247 Section 1247 . 71.05 (6) (b) 19. c. of the statutes is amended to read:

AB68,841,9 71.05 (6) (b) 19. c. For taxable years beginning before January 1, 2021, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person's net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total net earnings from a trade or business.

AB68,1248 Section 1248 . 71.05 (6) (b) 19. cm. of the statutes is created to read:

AB68,841,23 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2020, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person's wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subd. 19. cm., for married persons filing separately, “ wages, salary, tips, unearned income, and net earnings from a trade or business" means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly, “wages, salary, tips, unearned income, and net earnings from a trade or business" means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

AB68,1249 Section 1249 . 71.05 (6) (b) 19. d. of the statutes is amended to read:

AB68,842,3 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2021, reduce the amount calculated under subd. 19. b. or c. to the person's aggregate net earnings from a trade or business that are taxable by this state.

AB68,1250 Section 1250 . 71.05 (6) (b) 19. dm. of the statutes is created to read:

AB68,842,8 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020, reduce the amount calculated under subd. 19.b. or cm. to the person's aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.

AB68,1251 Section 1251 . 71.05 (6) (b) 20. of the statutes is repealed.

AB68,1252 Section 1252. 71.05 (6) (b) 28. (intro.) of the statutes is amended to read:

AB68,842,18 71.05 (6) (b) 28. (intro.) An amount paid by a claimant for tuition expenses and mandatory student fees for a student who is the claimant or who is the claimant's child and the claimant's dependent, as defined under section 152 of the Internal Revenue Code, to attend any university, college, technical college or a school approved under s. 440.52, that is located in Wisconsin or to attend a public vocational school or public institution of higher education in Minnesota under the Minnesota-Wisconsin a reciprocity agreement under s. 36.27 (2r) or 39.47, calculated as follows:

AB68,1253 Section 1253. 71.05 (6) (b) 34. of the statutes is amended to read:

AB68,843,2 71.05 (6) (b) 34. Any amount of basic, special, and incentive pay income or compensation, as those terms are used in 37 USC chapters 3 and 5, received from the federal government by a person who is a member of a reserve component of the U.S. armed forces, after being called into active federal service under the provisions of 10 USC 12302 (a) or, 10 USC 12304, or 10 USC 12304b, or into special state service authorized by the federal department of defense under 32 USC 502 (f), that is paid to the person for a period of time during which the person is on active duty.

AB68,1254 Section 1254. 71.05 (6) (b) 34m. of the statutes is created to read:

AB68,843,9 71.05 (6) (b) 34m. For taxable years beginning after December 31, 2020, any amount of pay, as described in s. 321.35, received from this state by a person who is a member of the Wisconsin national guard after being called into state active duty under s. 321.39 that is paid to the person for the period of time during which the person is on state active duty, to the extent that the income is not subtracted under subd. 34.

AB68,1255 Section 1255 . 71.05 (6) (b) 36. of the statutes is repealed.

AB68,1256 Section 1256 . 71.05 (6) (b) 37. of the statutes is repealed.

AB68,1257 Section 1257 . 71.05 (6) (b) 39. of the statutes is repealed.

AB68,1258 Section 1258 . 71.05 (6) (b) 40. of the statutes is repealed.

AB68,1259 Section 1259 . 71.05 (6) (b) 41. of the statutes is repealed.

AB68,1260 Section 1260. 71.05 (6) (b) 43. d. of the statutes is amended to read:

AB68,843,18 71.05 (6) (b) 43. d. For taxable years beginning after December 31, 2013, and before January 1, 2021, up to $3,000 if the claimant has one qualified individual and up to $6,000 if the claimant has more than one qualified individual.

AB68,1261 Section 1261. 71.05 (6) (b) 49. a. of the statutes is amended to read:

AB68,843,25 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and the limitations specified in subd. 49. h. to j. for taxable years beginning after December 31, 2013, and subject to the limitation in subd. 49. k. for taxable years beginning after December 31, 2017, and subject to the limitation in subd. 49. m. for taxable years beginning after December 31, 2020, tuition expenses that are paid by a claimant for tuition for a pupil to attend an eligible institution.

AB68,1262 Section 1262. 71.05 (6) (b) 49. m. of the statutes is created to read:

AB68,844,6 71.05 (6) (b) 49. m. For taxable years beginning after December 31, 2020, no modification may be made under this subdivision unless the adjusted gross income of the claimant is less than $100,000 if the claimant is filing as single or head of household, $150,000 if the claimant is married and filing jointly, or $75,000 if the claimant is married and filing separately.

AB68,1263 Section 1263 . 71.05 (6) (b) 54. of the statutes is created to read:

AB68,844,12 71.05 (6) (b) 54. For taxable years beginning after December 31, 2020, the amount of a national service educational award disbursed under 42 USC 12604 during the taxable year for the benefit of an individual. No modification may be claimed under this subdivision for an amount that is subtracted under subd. 28. or deducted under 26 USC 221.

AB68,1264 Section 1264 . 71.05 (6) (b) 55. of the statutes is created to read:

AB68,844,21 71.05 (6) (b) 55. For each account an account holder, as defined in s. 71.10 (10) (a) 1., creates under s. 71.10 (10) (b) 1. and, subject to s. 71.10 (10) (d), the amount deposited, limited to $5,000, by the account holder into the account during the taxable year and any interest, dividends, and other gains that accrue in the account and are redeposited into it. If the account holder is married and files a joint return, the $5,000 limitation shall be increased to $10,000. The subtraction under this subdivision does not apply to the transfer of funds from another account as described in s. 71.10 (10) (c) 4.

AB68,1265 Section 1265. 71.05 (8) (a) of the statutes is amended to read:

AB68,845,4 71.05 (8) (a) The carry back of losses to reduce income of prior years may be permitted for 2 taxable years. There shall be added any amount deducted as a federal net operating loss carry-back or carry-over and there shall be subtracted for the first taxable year for which the subtraction may be made any Wisconsin net operating loss carry-back or carry-forward allowable under par. (b) in an amount not in excess of the Wisconsin taxable income computed before the deduction of the Wisconsin net operating loss carry-back or carry-forward.

AB68,1266 Section 1266. 71.05 (8) (b) 1. of the statutes is renumbered 71.05 (8) (b) and amended to read:

AB68,845,21 71.05 (8) (b) Except as provided in s. 71.80 (25), a Wisconsin net operating loss may be carried back against Wisconsin taxable income of the previous 2 years and then carried forward against Wisconsin taxable incomes of the next 20 taxable years, if the taxpayer was subject to taxation under this chapter in the taxable year in which the loss was incurred, to the extent not offset against other income of the year of loss and to the extent not offset against Wisconsin modified taxable income of the 2 years preceding the loss and of any year between the loss year and the taxable year for which the loss carry-forward is claimed. In this paragraph, “Wisconsin modified taxable income" means Wisconsin taxable income with the following exceptions: a net operating loss deduction or offset for the loss year or any taxable year before or thereafter is not allowed, the deduction for long-term capital gains under subs. (6) (b) 9. and 9m., (25), and (25m) is not allowed, the amount deductible for losses from sales or exchanges of capital assets may not exceed the amount includable in income for gains from sales or exchanges of capital assets and “Wisconsin modified taxable income" may not be less than zero.

AB68,1267 Section 1267. 71.05 (8) (b) 2. of the statutes is repealed.

AB68,1268 Section 1268. 71.05 (8) (c) of the statutes is repealed.

AB68,1269 Section 1269 . 71.05 (22) (a) (title) of the statutes is amended to read:

AB68,846,2 71.05 (22) (a) (title) Election of deductions; husband and wife spousal deductions.