Amendment AA1-SB70

SB70-AA1,560,18 71.98 (10) Federal Tax Cuts and Jobs Act. For taxable years beginning after December 31, 2022, sections 11012, 13221, 13301, 13304 (a), (b), and (d), 13531, and 13601 of P.L. 115-97.”.

SB70-AA1,560,19 207. Page 374, line 11: after that line insert:

SB70-AA1,560,20 “ Section 1231. 71.05 (6) (b) 49. a. of the statutes is amended to read:

SB70-AA1,561,2 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, 2022, tuition expenses that are paid by a claimant for tuition for a pupil to attend an eligible institution.

SB70-AA1,1232 Section 1232. 71.05 (6) (b) 49. m. of the statutes is created to read:

SB70-AA1,561,8 71.05 (6) (b) 49. m. For taxable years beginning after December 31, 2022, 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.”.

SB70-AA1,561,9 208. Page 374, line 11: after that line insert:

SB70-AA1,561,10 “ Section 1233. 71.05 (6) (a) 30. of the statutes is created to read:

SB70-AA1,561,12 71.05 (6) (a) 30. For an account holder, as defined in s. 71.10 (10) (a) 1., or an account holder's estate:

SB70-AA1,561,13 a. Any amount distributed under s. 71.10 (10) (d) 2. or 3.

SB70-AA1,561,18 b. Any amount withdrawn from the account created under s. 71.10 (10) (b) 1.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.

SB70-AA1,1234 Section 1234. 71.05 (6) (b) 57. of the statutes is created to read:

SB70-AA1,562,3 71.05 (6) (b) 57. 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.

SB70-AA1,1235 Section 1235. 71.10 (4) (k) of the statutes is created to read:

SB70-AA1,562,5 71.10 (4) (k) Any amount computed under s. 71.83 (1) (ch).

SB70-AA1,1236 Section 1236. 71.10 (10) of the statutes is created to read:

SB70-AA1,562,8 71.10 (10) First-time home buyer savings accounts. (a) Definitions. In this subsection:

SB70-AA1,562,10 1. “Account holder” means an individual who creates, individually or jointly with his or her spouse, an account under par. (b) 1.

SB70-AA1,562,12 2. “Allowable closing costs” means disbursements listed in a settlement statement for the purchase of a single-family residence by a beneficiary.

SB70-AA1,562,14 3. “Beneficiary" means a first-time home buyer who is designated by an account holder as the beneficiary of an account created under par. (b) 1.

SB70-AA1,562,16 4. “Eligible costs” means the down payment and allowable closing costs for the purchase of a single-family residence in this state by a beneficiary.

SB70-AA1,562,21 5. “Financial institution" means a bank, trust company, savings institution, savings bank, savings and loan association, industrial loan association, consumer finance company, credit union, benefit association, insurance company, safe deposit company, money market mutual fund, or similar entity authorized to do business in this state.

SB70-AA1,562,25 6. “First-time home buyer” means an individual who resides in this state and did not have, either individually or jointly, a present ownership interest in a single-family residence during the 36 months before the month in which the individual purchases a single-family residence in this state.

SB70-AA1,563,3 7. “Single-family residence” means a residence intended for occupation by a single family unit that is purchased by a beneficiary for use as his or her principal residence.

SB70-AA1,563,12 (b) Creation of account. 1. An individual may create an account and become the account holder by opening an account at a financial institution for the purpose of paying or reimbursing the eligible costs of a first-time home buyer. The account holder shall designate a beneficiary when the account is created and may designate himself or herself as the beneficiary. An account may have only one beneficiary at any one time. An individual may be the beneficiary of more than one account, and an individual may be the account holder of more than one account, but an account holder may not have more than one account that designates the same beneficiary. The account holder may change the beneficiary at any time.

SB70-AA1,563,14 2. An individual may jointly own an account created under subd. 1 with his or her spouse.

SB70-AA1,563,16 3. Only cash and marketable securities may be contributed to an account created under subd. 1.

SB70-AA1,563,19 4. Persons other than an account holder may contribute to an account created under subd. 1, but the subtraction under s. 71.05 (6) (b) 57. may be made only by the account holder.

SB70-AA1,563,23 (c) Account holder rights and responsibilities. 1. An account holder may withdraw funds from an account created under par. (b) 1. to pay eligible costs for the benefit of the beneficiary or to reimburse the beneficiary for eligible costs the beneficiary incurs and has paid.

SB70-AA1,564,3 2. An account holder may not use funds in an account created under par. (b) 1. to pay any expenses he or she incurs in administering the account, although a financial institution may deduct a service fee from the account.

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.”.