Amendment AA1-SB70

SB70-AA1,564,7 3. Annually, an account holder shall submit to the department with his or her income tax return, on forms prepared by the department, information regarding the account created under par. (b) 1. The information submitted shall include all of the following:

SB70-AA1,564,9 a. A list of transactions in the account during the taxable year to which the return relates, including the beginning and ending balances of the account.

SB70-AA1,564,10 b. The 1099 form issued by the financial institution that relates to the account.

SB70-AA1,564,12 c. A list of eligible costs, and other costs, for which funds from the account were withdrawn during the taxable year to which the return relates.

SB70-AA1,564,17 4. An account holder may withdraw funds from an account created under par. (b) 1. with no penalty due under s. 71.83 (1) (ch) and no responsibility to make an addition under s. 71.05 (6) (a) 30. if he or she immediately transfers the funds to a different financial institution and deposits the funds into an account created under par. (b) 1. at that financial institution.

SB70-AA1,564,20 (d) Limitations on accounts, dissolution. 1. An account holder may not claim a subtraction under s. 71.05 (6) (b) 57. for more than a total of $50,000 of deposits into any account created under par. (b) 1. for each beneficiary.

SB70-AA1,564,23 2. An account holder shall dissolve an account created under par. (b) 1. no later than 120 months after it is created. The financial institution shall distribute any funds in the account at dissolution to the account holder.

SB70-AA1,565,3 3. If an account holder dies while funds remain in an account created under par. (b) 1., the account shall be dissolved and the financial institution shall distribute the funds to the account holder's estate.

SB70-AA1,565,4 (e) Department responsibilities. The department shall:

SB70-AA1,565,7 1. Prepare and distribute any forms that an account holder is required to submit under par. (c) 3. and any other forms necessary to administer this subsection and the adjustments to income under s. 71.05 (6) (a) 30. and (b) 57.

SB70-AA1,565,9 2. Prepare and distribute to financial institutions and potential home buyers informational materials about the accounts described in this subsection.

SB70-AA1,1237 Section 1237. 71.83 (1) (ch) of the statutes is created to read:

SB70-AA1,565,17 71.83 (1) (ch) First-time home buyer 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) 30., the account holder or the account holder's estate shall also pay an amount equal to 10 percent of the amount that is added to income under s. 71.05 (6) (a) 30. The department of revenue shall assess, levy, and collect the penalty under this paragraph as it assesses, levies, and collects taxes under this chapter.

SB70-AA1,9337 Section 9337. Initial applicability; Revenue.

SB70-AA1,565,21 (6s) First-time home buyer savings account. The treatment of ss. 71.05 (6) (a) 30. and (b) 57., 71.10 (4) (k) and (10), and 71.83 (1) (ch) first applies to taxable years beginning on January 1, 2023.”.

SB70-AA1,565,22 209. Page 374, line 11: after that line insert:

SB70-AA1,565,23 “ Section 1. 71.98 (1) (c) of the statutes is created to read:

SB70-AA1,566,2 71.98 (1) (c) Consolidated Appropriations Act of 2023. For taxable years beginning after December 31, 2022, division T of P.L. 117-328.”.

SB70-AA1,566,3 210. Page 374, line 11: after that line insert:

SB70-AA1,566,4 “ Section 1238. 71.07 (8b) (a) 5. of the statutes is amended to read:

SB70-AA1,566,9 71.07 (8b) (a) 5. “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this subdivision, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

SB70-AA1,1239 Section 1239. 71.07 (8b) (a) 7. of the statutes is amended to read:

SB70-AA1,566,20 71.07 (8b) (a) 7. “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

SB70-AA1,1240 Section 1240. 71.28 (8b) (a) 5. of the statutes is amended to read:

SB70-AA1,567,2 71.28 (8b) (a) 5. “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this subdivision, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

SB70-AA1,1241 Section 1241. 71.28 (8b) (a) 7. of the statutes is amended to read:

SB70-AA1,567,13 71.28 (8b) (a) 7. “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

SB70-AA1,1242 Section 1242. 71.47 (8b) (a) 5. of the statutes is amended to read:

SB70-AA1,567,19 71.47 (8b) (a) 5. “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this subdivision, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

SB70-AA1,1243 Section 1243. 71.47 (8b) (a) 7. of the statutes is amended to read:

SB70-AA1,568,5 71.47 (8b) (a) 7. “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

SB70-AA1,1244 Section 1244. 76.639 (1) (e) of the statutes is amended to read:

SB70-AA1,568,11 76.639 (1) (e) “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this paragraph, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

SB70-AA1,1245 Section 1245. 76.639 (1) (g) of the statutes is amended to read:

SB70-AA1,568,22 76.639 (1) (g) “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

SB70-AA1,1246 Section 1246. 234.45 (1) (c) of the statutes is amended to read:

SB70-AA1,569,3 234.45 (1) (c) “Credit period” means the period of 6 10 taxable years beginning with the taxable year in which a qualified development is placed in service. For purposes of this paragraph, if a qualified development consists of more than one building, the qualified development is placed in service in the taxable year in which the last building of the qualified development is placed in service.

SB70-AA1,1247 Section 1247. 234.45 (1) (e) of the statutes is amended to read:

SB70-AA1,569,14 234.45 (1) (e) “Qualified development” means a qualified low-income housing project under section 42 (g) of the Internal Revenue Code that is financed with tax-exempt bonds, pursuant to section 42 (i) (2) described in section 42 (h) (4) (A) of the Internal Revenue Code, allocated the credit under section 42 of the Internal Revenue Code, and located in this state; except that the authority may waive, in the qualified allocation plan under section 42 (m) (1) (B) of the Internal Revenue Code, the requirements of tax-exempt bond financing and federal credit allocation to the extent the authority anticipates that sufficient volume cap under section 146 of the Internal Revenue Code will not be available to finance low-income housing projects in any year.

SB70-AA1,1248 Section 1248. 234.45 (4) of the statutes is amended to read:

SB70-AA1,569,22 234.45 (4) Allocation limits. In any calendar year, the aggregate amount of all state tax credits for which the authority certifies persons in allocation certificates issued under sub. (3) in that year may not exceed $42,000,000 $100,000,000, including all amounts each person is eligible to claim for each year of the credit period, plus the total amount of all unallocated state tax credits from previous calendar years and plus the total amount of all previously allocated state tax credits that have been revoked or cancelled or otherwise recovered by the authority.”.

SB70-AA1,569,23 211. Page 374, line 11: after that line insert:

SB70-AA1,569,24 “ Section 1249. 77.51 (3h) of the statutes is created to read:

SB70-AA1,570,2 77.51 (3h) “Diaper” means an absorbent garment worn by humans who are incapable of, or have difficulty controlling their bladder or bowel movements.

SB70-AA1,1250 Section 1250. 77.51 (3pq) of the statutes is created to read:

SB70-AA1,570,7 77.51 (3pq) “Feminine hygiene products” means tampons, panty liners, menstrual cups, sanitary napkins, and other similar tangible personal property designed for feminine hygiene in connection with the human menstrual cycle. “Feminine hygiene products” do not include grooming and hygiene products.

SB70-AA1,1251 Section 1251. 77.51 (4f) of the statutes is created to read:

SB70-AA1,570,11 77.51 (4f) “Grooming and hygiene products” means soaps and cleaning solutions, shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and screens.

SB70-AA1,1252 Section 1252. 77.52 (13) of the statutes is amended to read:

SB70-AA1,570,24 77.52 (13) For the purpose of the proper administration of this section and to prevent evasion of the sales tax it shall be presumed that all receipts are subject to the tax until the contrary is established. The burden of proving that a sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services is not a taxable sale at retail is upon the person who makes the sale unless that person takes from the purchaser an electronic or a paper certificate, in a manner prescribed by the department, to the effect that the property, item, good, or service is purchased for resale or is otherwise exempt, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under sub. (1) (b), (c), or (d), or services that are exempt under s. 77.54 (5) (a) 3., (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), (52), (66), and (67), (71), (72), and (73).

SB70-AA1,1253 Section 1253. 77.53 (10) of the statutes is amended to read:

SB70-AA1,571,14 77.53 (10) For the purpose of the proper administration of this section and to prevent evasion of the use tax and the duty to collect the use tax, it is presumed that tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable services sold by any person for delivery in this state is sold for storage, use, or other consumption in this state until the contrary is established. The burden of proving the contrary is upon the person who makes the sale unless that person takes from the purchaser an electronic or paper certificate, in a manner prescribed by the department, to the effect that the property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or taxable service is purchased for resale, or otherwise exempt from the tax, except that no certificate is required for the sale of tangible personal property, or items, property, or goods under s. 77.52 (1) (b), (c), or (d), or services that are exempt under s. 77.54 (7), (7m), (8), (10), (11), (14), (15), (17), (20n), (21), (22b), (31), (32), (35), (36), (37), (42), (44), (45), (46), (51), (52), and (67), (71), (72) and (73).

SB70-AA1,1254 Section 1254. 77.54 (71) of the statutes is created to read:

SB70-AA1,571,17 77.54 (71) The sales price from the sale of and the storage, use, or other consumption of diapers and feminine hygiene products.

SB70-AA1,1255 Section 1255. 77.54 (72) of the statutes is created to read:

SB70-AA1,571,21 77.54 (72) The sales price from the sale of and the storage, use, or other consumption of breast pumps, breast pump kits, and breast pump storage and collection supplies.

SB70-AA1,1256 Section 1256. 77.54 (73) of the statutes is created to read:

SB70-AA1,571,25 77.54 (73) (a) The sales price from the sale of and the storage, use, or other consumption of gun safes that are specifically designed for the storage of guns, but not other items used for gun storage, such as locking gun cabinets and racks.

SB70-AA1,572,2 (b) The sales price from the sale of and the storage, use, or other consumption of trigger locks and gun barrel locks.”.

SB70-AA1,572,3 212. Page 374, line 11: after that line insert:

SB70-AA1,572,4 “ Section 1. 71.98 (10) of the statutes is created to read:

SB70-AA1,572,6 71.98 (10) 529 accounts. For taxable years beginning after December 31, 2022, section 529 of the Internal Revenue Code, relating to qualified tuition programs.”.

SB70-AA1,572,7 213. Page 374, line 11: after that line insert:

SB70-AA1,572,8 “ Section 1257. 77.54 (56) (a) of the statutes is repealed.

SB70-AA1,1258 Section 1258. 77.54 (56) (ad) of the statutes is created to read:

SB70-AA1,572,20 77.54 (56) (ad) 1. The sales price from the sale of and the storage, use, or other consumption of a solar power system or wind energy system that produces usable electrical or heat energy directly from the sun or wind, if the system is capable of continuously producing at least 200 watts of alternating current or 600 British thermal units. A solar power system or wind energy system described under this subdivision includes tangible personal property sold with the system that is used primarily to store or facilitate the storage of the electrical or heat energy produced by the system, but does not include an uninterruptible power source that is designed primarily for computers. The exemption under this subdivision does not apply to tangible personal property designed for any use other than for a solar power system or wind energy system described in this subdivision.

SB70-AA1,573,7 2. The sales price from the sale of and the storage, use, or other consumption of a waste energy system that produces usable electrical or heat energy directly from gas generated from anaerobic digestion of animal manure and other agricultural waste if the system is capable of continuously producing at least 200 watts of alternating current or 600 British thermal units. A system described under this subdivision includes tangible personal property sold with the system that is used primarily to store or facilitate the storage of the electrical or heat energy produced by the system, but does not include an uninterruptible power source that is designed primarily for computers. The exemption under this subdivision does not apply to tangible personal property designed for any use other than for a waste energy system described in this subdivision.

SB70-AA1,1259 Section 1259. 77.54 (56) (b) of the statutes is amended to read:

SB70-AA1,573,12 77.54 (56) (b) Except for the sale of electricity or energy that is exempt from taxation under sub. (30), beginning on July 1, 2011, the sales price from the sale of and the storage, use, or other consumption of electricity or heat energy produced by a product system described under par. (a) (ad).”.

SB70-AA1,573,13 214. Page 374, line 11: after that line insert:

SB70-AA1,573,14 “ Section 1260. 77.51 (11d) of the statutes is amended to read:

SB70-AA1,573,18 77.51 (11d) For purposes of subs. (1ag), (1f), (3pf), (7j), and (9p), and (17g) and ss. 77.52 (20) and (21), 77.522, 77.54 (9g), (51), (52), and (60), and 77.59 (5r), “product" includes tangible personal property, and items, property, and goods under s. 77.52 (1) (b), (c), and (d), and services.

SB70-AA1,1261 Section 1261. 77.51 (17g) of the statutes is created to read:

SB70-AA1,573,21 77.51 (17g) “Separate and optional fee” means a fee charged to receive a distinct and identifiable product if either of the following applies:

SB70-AA1,574,2 (a) The fee is in addition to fees that the seller charges for other distinct and identifiable products sold to the same buyer, the fee is separately set forth on the invoice given by the seller to the buyer, and the seller does not require the buyer to pay the fee if the buyer chooses not to receive the additional distinct and identifiable product for which the fee applies.

SB70-AA1,574,9 (b) The seller charges a single amount for multiple distinct and identifiable products and offers the buyer the option of paying a lower amount if the buyer chooses not to receive one or more of the distinct and identifiable products. For purposes of this paragraph, the separate and optional fee is the single amount the seller charges for the multiple distinct and identifiable products less the reduced amount the seller charges to the buyer because the buyer chooses not to receive one or more of the products.

SB70-AA1,1262 Section 1262. 77.52 (2) (a) 20. of the statutes is amended to read:

SB70-AA1,574,18 77.52 (2) (a) 20. The sale of landscaping and lawn maintenance services including landscape planning and counseling, lawn and garden services such as planting, mowing, spraying and fertilizing, and shrub and tree services. For purposes of this subdivision, landscaping and lawn maintenance services do not include planning and counseling services for the restoration, reclamation, or revitalization of prairie, savanna, or wetlands to improve biodiversity, the quality of land, soils, or water, or other ecosystem functions if the planning and counseling services are provided for a separate and optional fee from any other services.

SB70-AA1,1263 Section 1263. 77.52 (2m) (a) of the statutes is amended to read:

SB70-AA1,574,24 77.52 (2m) (a) With respect to the services subject to tax under sub. (2), no part of the charge for the service may be deemed a sale or rental of tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d) if the property, items, or goods transferred by the service provider are incidental to the selling, performing or furnishing of the service, except as provided in par. pars. (b) and (c).

SB70-AA1,1264 Section 1264. 77.52 (2m) (c) of the statutes is created to read:

SB70-AA1,575,8 77.52 (2m) (c) With respect to services subject to tax under sub. (2) (a) 7., 10., 11., and 20. that are provided for a separate and optional fee from the planning and counseling services described under sub. (2) (a) 20., all tangible personal property or items, property, or goods under sub. (1) (b), (c), or (d) physically transferred, or transferred electronically, to the customer in conjunction with the provision of the services subject to tax under sub. (2) (a) 7., 10., 11., and 20. is a sale of tangible personal property or items, property, or goods separate from the selling, performing, or furnishing of the services.”.

SB70-AA1,575,9 215. Page 374, line 11: after that line insert:

SB70-AA1,575,10 “ Section 1265. 77.25 (15) of the statutes is amended to read:

SB70-AA1,575,16 77.25 (15) Between a corporation and its shareholders if all of the stock is owned by persons who are related to each other as spouses, as lineal ascendants, lineal descendants, an uncle and his nieces or nephews, an aunt and her nieces or nephews, first cousins, or siblings, whether by blood or by adoption, or as spouses of siblings, if the transfer is for no consideration except the assumption of debt or stock of the corporation and if the corporation owned the property for at least 3 years.

SB70-AA1,1266 Section 1266. 77.25 (15m) of the statutes is amended to read:

SB70-AA1,575,23 77.25 (15m) Between a partnership and one or more of its partners if all of the partners are related to each other as spouses, as lineal ascendants, lineal descendants, an uncle and his nieces or nephews, an aunt and her nieces or nephews, first cousins, or siblings, whether by blood or by adoption, or as spouses of siblings and if the transfer is for no consideration other than the assumption of debt or an interest in the partnership.

SB70-AA1,1267 Section 1267. 77.25 (15s) of the statutes is amended to read:

SB70-AA1,576,6 77.25 (15s) Between a limited liability company and one or more of its members if all of the members are related to each other as spouses, as lineal ascendants, lineal descendants, an uncle and his nieces or nephews, an aunt and her nieces or nephews, first cousins, or siblings, whether by blood or by adoption, or as spouses of siblings and if the transfer is for no consideration other than the assumption of debt or an interest in the limited liability company.