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Please see http://docs.legis.wisconsin.gov for the production version.
Under current law, a taxpayer who receives a final audit determination from
DOR has 90 days to report to DOR any changes or corrections related to that
determination. The bill increases the time for providing that report to 180 days.
Historic rehabilitation credit
The bill modifies the procedure for transferring the historic rehabilitation tax
credit so that the person transferring the credit may file a claim for more than one
taxable year.
Internal Revenue Code
The bill adopts for state income and franchise tax purposes various provisions
of the federal Internal Revenue Code, including provisions of the Consolidated
Appropriations Act of 2020 related to the earned income tax credit, the paycheck
protection program, the economic injury disaster loan program, payment assistance
for certain loan programs, and grants to shuttered venue operators.
Medical care insurance subtraction
The bill eliminates obsolete provisions related to the medical care insurance
subtraction for self-employed persons.
Payments from a retirement plan
Under current law, payments or distributions of $5,000 or less received each
year by an individual from a qualified retirement plan is exempt from income tax if
the individual is at least 65 years of age and has income of less than $15,000 if single
or filing a tax return as head of household or less than $30,000 if married. The bill
changes the exemption to a subtraction that the taxpayer can choose not to claim if
not claiming the subtraction would result in the taxpayer receiving a greater
homestead credit.

Sales tax
University of Wisconsin Hospitals and Clinics Authority
This bill provides a sales and use tax exemption for tangible personal property
sold to a construction contractor who transfers the property to the University of
Wisconsin Hospitals and Clinics Authority as part of constructing a facility for the
authority in this state. A similar exemption applies under current law to property
sold to a contractor who transfers the property to a local unit of government,
technical college district, or institution or campus of the University of Wisconsin
System. Under current law, a sale of tangible personal property directly to the
University of Wisconsin Hospitals and Clinics Authority is exempt from the sales
and use tax, but the exemption does not apply to a contractor who purchases tangible
personal property on the authority's behalf.
Property transferred with services
Current law provides that persons providing landscaping, printing,
fabricating, processing, or photographic services or performing services to tangible
personal property may purchase for resale, without paying the sales tax, items that
the person will transfer to a customer in conjunction with providing a service that
is subject to the sales tax. The bill provides that the exemption applies regardless
of whether the service is taxable.
Nonprofit organizations
The bill modifies the sales and use tax exemption for churches, religious
organizations, and certain nonprofit organizations to conform with DOR's current
practice with regard to the administration of the exemption. The bill provides that
the exemption applies to organizations that are exempt from federal taxation under
section 501 (c) (3) of the Internal Revenue Code and have received a determination
letter for the Internal Revenue Service. The bill also provides that the exemption
applies to churches and religious organizations that meet the requirements of
section 501 (c) (3) of the Internal Revenue Code, but are not required to apply for or
obtain tax-exempt status from the IRS.
Out-of-state retailer
Under current law, an out-of-state retailer that has annual gross sales into this
state in excess of $100,000 or 200 or more annual separate sales transactions into
this state must register with DOR and collect the sales tax on those sales and
transactions. The determination of the annual gross sales and transactions is based
on the retailer's taxable year for federal income tax purposes.
Under the bill, an out-of-state retailer that has annual gross sales into this
state in excess of $100,000 in the previous or current calendar year must register
with DOR and collect the sales tax on those sales.
Disclosure to state auditor
The bill allows the state auditor and Legislative Audit Bureau to examine sales
and use tax returns and related documents to the extent necessary for the LAB to
carry out its duties.

Other
Payments from counties to towns
Under current law, during the period beginning on the third Monday of March
and ending 10 days after the annual town meeting, a county treasurer may not pay
to a town treasurer any money that belongs to the town and that is in the hands of
the county treasurer except upon a written order of the town board. The bill
eliminates this restriction.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB2-ASA1,1 1Section 1. 48.561 (3) (a) 3. of the statutes is amended to read:
AB2-ASA1,7,32 48.561 (3) (a) 3. Through a deduction of $20,101,300 from any state payment
3due that county under s. 79.035, 79.04, or 79.08 79.02 (1), as provided in par. (b).
AB2-ASA1,2 4Section 2. 48.561 (3) (b) of the statutes is amended to read:
AB2-ASA1,8,25 48.561 (3) (b) The department of administration shall collect the amount
6specified in par. (a) 3. from a county having a population of 750,000 or more by
7deducting all or part of that amount from any state payment due that county under
8s. 79.035, 79.04, or 79.08 79.02 (1). The department of administration shall notify
9the department of revenue, by September 15 of each year, of the amount to be
10deducted from the state payments due under s. 79.035, 79.04, or 79.08 79.02 (1). The
11department of administration shall credit all amounts collected under this
12paragraph to the appropriation account under s. 20.437 (1) (kw) and shall notify the
13county from which those amounts are collected of that collection. The department
14may not expend any moneys from the appropriation account under s. 20.437 (1) (cx)

1for providing services to children and families under s. 48.48 (17) until the amounts
2in the appropriation account under s. 20.437 (1) (kw) are exhausted.
AB2-ASA1,3 3Section 3 . 59.25 (3) (i) of the statutes is amended to read:
AB2-ASA1,8,124 59.25 (3) (i) Make annually, on the 3rd Monday of March, a certified statement,
5and forward the statement to each municipal clerk in the county, showing the
6amount of money paid from the county treasury during the year next preceding to
7each municipal treasurer in the county. The statement shall specify the date of each
8payment, the amount thereof and the account upon which the payment was made.
9It shall be unlawful for any county treasurer to pay to the treasurer of any town any
10money in the hands of the county treasurer belonging to the town from the 3rd
11Monday of March until 10 days after the annual town meeting except upon the
12written order of the town board.
AB2-ASA1,4 13Section 4. 66.0602 (3) (h) 2. a. of the statutes is amended to read:
AB2-ASA1,8,2014 66.0602 (3) (h) 2. a. The total charges assessed by the joint fire department or
15the joint emergency medical services district for the current year increase, relative
16to the total charges assessed by the joint fire department or the joint emergency
17medical services district for the previous year, by a percentage that is less than or
18equal to the percentage change in the U.S. consumer price index for all urban
19consumers, U.S. city average, as determined by the U.S. department of labor, for the
2012 months ending on September 30 August 31 of the year of the levy, plus 2 percent.
AB2-ASA1,5 21Section 5. 66.0602 (6) (a) of the statutes is amended to read:
AB2-ASA1,8,2422 66.0602 (6) (a) Reduce the amount of county and municipal aid payments the
23payment
to the political subdivision under s. 79.035 79.02 (1) in the following year
24by an amount equal to the amount of the penalized excess.
AB2-ASA1,6 25Section 6. 66.0602 (6) (b) of the statutes is amended to read:
AB2-ASA1,9,2
166.0602 (6) (b) Ensure that the amount of any reductions in county and
2municipal aid
payments under par. (a) lapses to the general fund.
AB2-ASA1,7 3Section 7. 66.1105 (6m) (d) 4. of the statutes is amended to read:
AB2-ASA1,9,114 66.1105 (6m) (d) 4. If an annual report is not timely filed under par. (c), the
5department of revenue shall notify the city that the report is past due. If the city does
6not file the report within 60 days of the date on the notice, except as provided in this
7subdivision, the department shall charge the city a fee of $100 per day for each day
8that the report is past due, up to a maximum penalty of $6,000 per report. If the city
9does not pay within 30 days of issuance, the department of revenue shall reduce and
10withhold the amount of the shared revenue payments to the city under subch. I of
11ch. 79
s. 79.02 (1), in the following year, by an amount equal to the unpaid penalty.
AB2-ASA1,8 12Section 8 . 70.11 (4) (b) 3. of the statutes is created to read:
AB2-ASA1,9,1613 70.11 (4) (b) 3. Leasing all or part of property described in par. (a) that is owned
14by a church or religious association or institution to an educational association or
15institution exempt under par. (a) does not render the property taxable, regardless of
16how the lessor uses the leasehold income.
AB2-ASA1,9 17Section 9. 70.46 (4) of the statutes is amended to read:
AB2-ASA1,9,2318 70.46 (4) No board of review may be constituted unless it includes at least one
19voting member who, within 2 years of the board's first meeting, has attended
at least
20one member completes in each year
a training session under s. 73.03 (55) and unless
21that member is the municipality's chief executive officer or that officer's designee
.
22The municipal clerk shall provide an affidavit to the department of revenue stating
23whether the requirement under this subsection has been fulfilled.
AB2-ASA1,10 24Section 10. 70.855 (4) (b) of the statutes is amended to read:
AB2-ASA1,10,5
170.855 (4) (b) If the department of revenue does not receive the fee imposed on
2a municipality under par. (a) by March 31 of the year following the department's
3determination under sub. (2) (b), the department shall reduce the distribution made
4to the municipality under s. 79.02 (2) (b) (1) by the amount of the fee and shall
5transfer that amount to the appropriation under s. 20.566 (2) (ga).
AB2-ASA1,11 6Section 11. 70.995 (8) (c) 1. of the statutes is amended to read:
AB2-ASA1,10,217 70.995 (8) (c) 1. All objections to the amount, valuation, taxability, or change
8from assessment under this section to assessment under s. 70.32 (1) of property shall
9be first made in writing on a form prescribed by the department of revenue that
10specifies that the objector shall set forth the reasons for the objection, the objector's
11estimate of the correct assessment, and the basis under s. 70.32 (1) for the objector's
12estimate of the correct assessment. An objection shall be filed with the state board
13of assessors within the time prescribed in par. (b) 1. A $45 $200 fee shall be paid when
14the objection is filed unless a fee has been paid in respect to the same piece of property
15and that appeal has not been finally adjudicated. The objection is not filed until the
16fee is paid. Neither the state board of assessors nor the tax appeals commission may
17waive the requirement that objections be in writing. Persons who own land and
18improvements to that land may object to the aggregate value of that land and
19improvements to that land, but no person who owns land and improvements to that
20land may object only to the valuation of that land or only to the valuation of
21improvements to that land.
AB2-ASA1,12 22Section 12. 70.995 (8) (d) of the statutes is amended to read:
AB2-ASA1,11,1023 70.995 (8) (d) A municipality may file an objection with the state board of
24assessors to the amount, valuation, or taxability under this section or to the change
25from assessment under this section to assessment under s. 70.32 (1) of a specific

1property having a situs in the municipality, whether or not the owner of the specific
2property in question has filed an objection. Objection shall be made on a form
3prescribed by the department and filed with the board within the time prescribed in
4par. (b) 1. If the person assessed files an objection and the municipality affected does
5not file an objection, the municipality affected may file an appeal to that objection
6within 15 days after the person's objection is filed. A $45 $200 filing fee shall be paid
7when the objection is filed unless a fee has been paid in respect to the same piece of
8property and that appeal has not been finally adjudicated. The objection is not filed
9until the fee is paid. The board shall forthwith notify the person assessed of the
10objection filed by the municipality.
AB2-ASA1,13 11Section 13 . 70.995 (14) (b) of the statutes is amended to read:
AB2-ASA1,11,1512 70.995 (14) (b) If the department of revenue does not receive the fee imposed
13on a municipality under par. (a) by March 31 of each year, the department shall
14reduce the distribution made to the municipality under s. 79.02 (2) (b) (1) by the
15amount of the fee.
AB2-ASA1,14 16Section 14 . 71.01 (6) (c), (d), (e), (f), (g), (h) and (i) of the statutes are repealed.
AB2-ASA1,15 17Section 15 . 71.01 (6) (j) 3. m. of the statutes is created to read:
AB2-ASA1,11,1918 71.01 (6) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q), 104 (a), and 109 of
19division U of P.L. 115-141.
AB2-ASA1,16 20Section 16 . 71.01 (6) (j) 3. n. of the statutes is created to read:
AB2-ASA1,11,2221 71.01 (6) (j) 3. n. Section 102 of division M and sections 110, 111, and 116 (b)
22of division O of P.L. 116-94.
AB2-ASA1,17 23Section 17 . 71.01 (6) (k) 3. of the statutes is amended to read:
AB2-ASA1,12,424 71.01 (6) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does
25not include amendments to the federal Internal Revenue Code enacted after

1December 31, 2016, except that “Internal Revenue Code” includes sections 11024,
211025, and 13543 of P.L. 115-97; sections 40307 and 40413 of P.L. 115-123; sections
3101 (m), (n), (o), (p), and (q), 104 (a), and 109 of division U of P.L. 115-141; and section
4102 of division M and sections 110, 111, and 116 (b) of division O of P.L. 116-94
.
AB2-ASA1,18 5Section 18 . 71.01 (6) (L) 1. of the statutes is amended to read:
AB2-ASA1,12,106 71.01 (6) (L) 1. For taxable years beginning after December 31, 2017, and
7before January 1, 2021,
for individuals and fiduciaries, except fiduciaries of nuclear
8decommissioning trust or reserve funds, “Internal Revenue Code" means the federal
9Internal Revenue Code as amended to December 31, 2017, except as provided in
10subds. 2. and 3. and s. 71.98 and subject to subd. 4.
AB2-ASA1,19 11Section 19. 71.01 (6) (L) 3. of the statutes is amended to read:
AB2-ASA1,12,2312 71.01 (6) (L) 3. For purposes of this paragraph, “Internal Revenue Code" does
13not include amendments to the federal Internal Revenue Code enacted after
14December 31, 2017, except that “Internal Revenue Code” includes sections 40307,
1540413, and 41113 of P.L. 115-123; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109,
16401 (a) (54) and (b) (15) (A), (B), and (C), 19, 20, 23, 26, 27, and 28 of division U of P.L.
17115-141; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109,
18110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section
191302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94;

20sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of
21division A of P.L. 116-136; and sections 202, 208, 209, 211, and 214 of division EE and
22sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L.
23116-260
.
AB2-ASA1,20 24Section 20 . 71.01 (6) (L) 4. of the statutes is amended to read:
AB2-ASA1,13,6
171.01 (6) (L) 4. For purposes of this paragraph, the provisions of federal public
2laws that directly or indirectly affect the Internal Revenue Code, as defined in this
3paragraph, apply for Wisconsin purposes at the same time as for federal purposes,
4except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207,
513306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97
6first apply for taxable years beginning after December 31, 2017
.
AB2-ASA1,21 7Section 21 . 71.01 (6) (m) of the statutes is created to read:
AB2-ASA1,13,128 71.01 (6) (m) 1. For taxable years beginning after December 31, 2020, for
9individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or
10reserve funds, “Internal Revenue Code” means the federal Internal Revenue Code
11as amended to December 31, 2020, except as provided in subds. 2. and 3. and s. 71.98
12and subject to subd. 4.
AB2-ASA1,14,1113 2. For purposes of this paragraph, “Internal Revenue Code” does not include
14the following provisions of federal public laws for taxable years beginning after
15December 31, 2020: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L.
16106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L.
17109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
18P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
19110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section
2015351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections
21312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251,
221501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L.
23111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L.
24111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and
25411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division

1P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to
2171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 11012,
313201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601,
413801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215,
514221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305,
640306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141;
7sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13),
8(17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L.
9115-141; sections 104, 114, 115, 116, 130, and 145 of division Q of P.L. 116-94;
10sections 2304 and 2306 of P.L. 116-136; and sections 111, 114, 115, 116, 118 (a) and
11(d), 133, 137, 138, and 210 of division EE of P.L. 116-260.
AB2-ASA1,14,1312 3. For purposes of this paragraph, “Internal Revenue Code” does not include
13amendments to the federal Internal Revenue Code enacted after December 31, 2020.
AB2-ASA1,14,2414 4. For purposes of this paragraph, the provisions of federal public laws that
15directly or indirectly affect the Internal Revenue Code, as defined in this paragraph,
16apply for Wisconsin purposes at the same time as for federal purposes, except that
17changes made by sections 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308,
1840309, 40311, 40414, 41101, 41107, 41114, 41115, and 41116 of P.L. 115-123; section
19101 (a), (b), and (h) of division U of P.L. 115-141; section 1203 of P.L. 116-25; section
201122 of P.L. 116-92; section 301 of division O, section 1302 of division P, and sections
21101, 102, 103, 117, 118, 132, 201, 202 (a), (b), and (c), 204 (a), (b), and (c), 301, and
22302 of division Q of P.L. 116-94; section 2 of P.L. 116-98; and sections 301, 302, and
23304 of division EE of P.L. 116-260 apply for taxable years beginning after December
2431, 2020.
AB2-ASA1,22 25Section 22 . 71.01 (7g) of the statutes is created to read:
AB2-ASA1,15,2
171.01 (7g) For purposes of s. 71.01 (6) (b), 2013 stats., “Internal Revenue Code"
2includes section 109 of division U of P.L. 115-141.
AB2-ASA1,23 3Section 23 . 71.05 (1) (ae) of the statutes is repealed.
AB2-ASA1,24 4Section 24 . 71.05 (1) (am) of the statutes is amended to read:
AB2-ASA1,15,75 71.05 (1) (am) Military retirement systems. All retirement payments received
6from the U.S. military employee retirement system, to the extent that such payments
7are not exempt under par. (a) or (ae) or sub. (6) (b) 54.
AB2-ASA1,25 8Section 25 . 71.05 (1) (an) of the statutes is amended to read:
AB2-ASA1,15,139 71.05 (1) (an) Uniformed services retirement benefits. All retirement payments
10received from the U.S. government that relate to service with the coast guard, the
11commissioned corps of the national oceanic and atmospheric administration, or the
12commissioned corps of the public health service, to the extent that such payments are
13not exempt under par. (a), (ae), or (am) or sub. (6) (b) 54.
AB2-ASA1,26 14Section 26 . 71.05 (6) (b) 4. of the statutes is renumbered 71.05 (6) (b) 4. (intro.)
15and amended to read:
AB2-ASA1,16,1216 71.05 (6) (b) 4. (intro.) Disability payments other than disability payments that
17are paid from a retirement plan, the payments from which are exempt under sub.
18subs. (1) (ae), (am), and (an) and (6) (b) 54., if the individual either is single or is
19married and files a joint return, to the extent those payments are excludable under
20section 105 (d) of the Internal Revenue Code as it existed immediately prior to its
21repeal in 1983 by section 122 (b) of P.L. 98-21, except that if an individual is divorced
22during the taxable year that individual may subtract an amount only if that person
23is disabled and the amount that may be subtracted then is $100 for each week that
24payments are received or the amount of disability pay reported as income, whichever
25is less. If the exclusion under this subdivision is claimed on a joint return and only

1one of the spouses is disabled, the maximum exclusion is $100 for each week that
2payments are received or the amount of disability pay reported as income, whichever
3is less.
and is under 65 years of age before the close of the taxable year to which the
4subtraction relates, retired on disability, and, when the individual retired, was
5permanently and totally disabled. In this subdivision, “permanently and totally
6disabled" means an individual who is unable to engage in any substantial gainful
7activity by reason of any medically determinable physical or mental impairment that
8can be expected to result in death or which has lasted or can be expected to last for
9a continuous period of not less than 12 months. An individual shall not be considered
10permanently and totally disabled for purposes of this subdivision unless proof is
11furnished in such form and manner, and at such times, as prescribed by the
12department. The exclusion under this subdivision shall be determined as follows:
AB2-ASA1,27 13Section 27 . 71.05 (6) (b) 4. a. to c. of the statutes are created to read:
AB2-ASA1,16,1714 71.05 (6) (b) 4. a. If the individual is single and the individual's federal adjusted
15gross income in the year to which the subtraction relates is less than $20,200, the
16maximum subtraction is $100 for each week that payments are received or the
17amount of disability pay reported as income, whichever is less.
AB2-ASA1,16,2218 b. If the individual is married and filing a joint return and the couple's federal
19adjusted gross income in the year to which the subtraction relates is less than
20$20,200, or $25,400 if both spouses are disabled, the maximum subtraction is $100
21for each week that payments are received, per spouse if both spouses are disabled,
22or the amount of disability pay reported as income, whichever is less.
AB2-ASA1,17,223 c. If the federal adjusted gross income of the individual, or individuals if filing
24a joint return, for the taxable year, determined without regard to this subd. 4.,
25exceeds $15,000, the amount subtracted under this subd. 4. for the taxable year shall

1be reduced by an amount equal to the excess of the federal adjusted gross income over
2$15,000.
AB2-ASA1,28 3Section 28 . 71.05 (6) (b) 17. and 18. of the statutes are repealed.
AB2-ASA1,29 4Section 29 . 71.05 (6) (b) 19. c. of the statutes is amended to read:
AB2-ASA1,17,105 71.05 (6) (b) 19. c. For taxable years beginning before January 1, 2021, for a
6person who is a nonresident or a part-year resident of this state, modify the amount
7calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
8of which is the person's net earnings from a trade or business that are taxable by this
9state and the denominator of which is the person's total net earnings from a trade
10or business.
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