2. Creates additional deductions, for taxable year 2020, for certain individual
charitable contributions, and suspends the limitations on certain individual and
corporate charitable deductions. The suspension of limitations applies to
contributions made in calendar year 2020 only, although certain amounts donated
in 2020 may be carried forward to future years.
3. Clarifies that an individual's health insurance plan is still treated as a high
deductible plan even if it fails to provide a deductible for telehealth and other remote
care services.
4. Conforms state law to federal law regarding the treatment of paycheck
protection loans to businesses and employees under the small business
administration's loan guarantee program for the period of time from February 15,
2020, through June 30, 2020. A portion of the loans may be forgiven on a tax-free
basis under certain conditions.
5. Provides an exclusion from income for certain student loan principal and
interest payments made by an employer on behalf of an employee, subject to the same
current law cap of $5,250 in payments for qualified educational expenses made on
behalf of an employee by an employer. This provision applies to payments made from
March 28, 2020, through December 31, 2020.
6. Corrects a drafting error in the federal Tax Cuts and Jobs Act of 2017 to
provide a 15-year recovery period for qualified improvement property.
Authority to waive interest and penalties for general fund and
transportation fund taxes
This bill authorizes the secretary of revenue to waive, for any person who fails
to remit general fund taxes or transportation fund taxes and fees by their due date,
the interest and penalties that accrue during the period covered by the COVID-19
public health emergency if the due date falls within that period and the secretary
determines that the person's failure is due to the effects of the COVID-19 pandemic.
Interest on late property tax payments
Under current law, a late installment payment of property taxes is subject to
interest and penalties, with the interest accruing from February 1 of the year in
which the taxes are due. Under this bill, for property taxes payable in 2020, after
making a general or case-by-case finding of hardship, a municipality may provide
that an installment payment due after April 1, 2020, that is received after its due
date will not accrue interest or penalties if the total amount due is received on or
before October 1, 2020. Interest and penalties will accrue from October 1, 2020, for
any property taxes payable in 2020 that are delinquent after October 1, 2020.
Claims for recovery of unlawful taxes and excessive assessments
Current law allows a person to file a claim to recover the unlawful imposition
of property taxes or a claim for the excessive assessment of property taxes. However,
no person may file a claim for recovery of unlawful taxes or excessive assessment
unless the person has paid his or her property taxes on time. The bill provides that
this restriction does not apply to taxes due and payable in 2020 if paid by October 1,
2020, or by any installment date for which taxes are due after October 1, 2020.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report.
This proposal may contain a health insurance mandate requiring a social and
financial impact report under s. 601.423, stats.
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:
AB1038,1
1Section 1
. 13.101 (4) of the statutes is amended to read:
AB1038,19,162
13.101
(4) The committee may transfer between appropriations and programs
3if the committee finds that unnecessary duplication of functions can be eliminated,
4more efficient and effective methods for performing programs will result or
5legislative intent will be more effectively carried out because of such transfer, if
6legislative intent will not be changed as the result of such transfer and the purposes
7for which the transfer is requested have been authorized or directed by the
8legislature. The authority to transfer between appropriations includes the authority
9to transfer between 2 fiscal years of the same biennium, between 2 appropriations
10of the same agency and between an appropriation of one agency and an appropriation
11of a different agency. No transfer between appropriations or programs may be made
12to offset deficiencies arising from the lack of adequate expenditure controls by a
13department, board, institution, commission or agency.
The Except as provided in
14sub. (4d), the authority to transfer between appropriations shall not include the
15authority to transfer from sum sufficient appropriations as defined under s. 20.001
16(3) (d) to other types of appropriations.
AB1038,2
17Section 2
. 13.101 (4d) of the statutes is created to read:
AB1038,20,5
113.101
(4d) During the public health emergency declared on March 12, 2020,
2by executive order 72, and for a period of 90 days after termination of the emergency,
3the committee may transfer under sub. (4) an amount not to exceed $75,000,000 from
4sum sufficient appropriations, as defined under s. 20.001 (3) (d), to be used for
5expenditures related to the emergency.
AB1038,3
6Section 3
. 20.866 (2) (xm) of the statutes is amended to read:
AB1038,20,187
20.866
(2) (xm)
Building commission; refunding tax-supported and
8self-amortizing general obligation debt. From the capital improvement fund, a sum
9sufficient to refund the whole or any part of any unpaid indebtedness used to finance
10tax-supported or self-amortizing facilities. In addition to the amount that may be
11contracted under par. (xe), the state may contract public debt in an amount not to
12exceed
$6,785,000,000 $7,510,000,000 for this purpose. Such indebtedness shall be
13construed to include any premium and interest payable with respect thereto. Debt
14incurred by this paragraph shall be repaid under the appropriations providing for
15the retirement of public debt incurred for tax-supported and self-amortizing
16facilities in proportional amounts to the purposes for which the debt was refinanced.
17No moneys may be expended under this paragraph unless the true interest costs to
18the state can be reduced by the expenditure.
AB1038,4
19Section 4
. 40.22 (1) of the statutes is amended to read:
AB1038,20,2420
40.22
(1) Except as
otherwise provided in sub. (2)
and s. 40.26 (6), each
21employee currently in the service of, and receiving earnings from, a state agency or
22other participating employer shall be included within the provisions of the Wisconsin
23retirement system as a participating employee of that state agency or participating
24employer.
AB1038,5
25Section 5
. 40.22 (2m) (intro.) of the statutes is amended to read:
AB1038,21,7
140.22
(2m) (intro.)
An
Except as otherwise provided in s. 40.26 (6), an employee
2who was a participating employee before July 1, 2011, who is not expected to work
3at least one-third of what is considered full-time employment by the department,
4as determined by rule, and who is not otherwise excluded under sub. (2) from
5becoming a participating employee shall become a participating employee if he or she
6is subsequently employed by the state agency or other participating employer for
7either of the following periods:
AB1038,6
8Section 6
. 40.22 (2r) (intro.) of the statutes is amended to read:
AB1038,21,159
40.22
(2r) (intro.)
An Except as otherwise provided in s. 40.26 (6), an employee
10who was not a participating employee before July 1, 2011, who is not expected to work
11at least two-thirds of what is considered full-time employment by the department,
12as determined by rule, and who is not otherwise excluded under sub. (2) from
13becoming a participating employee shall become a participating employee if he or she
14is subsequently employed by the state agency or other participating employer for
15either of the following periods:
AB1038,7
16Section 7
. 40.22 (3) (intro.) of the statutes is amended to read:
AB1038,21,1917
40.22
(3) (intro.)
A Except as otherwise provided in s. 40.26 (6), a person who
18qualifies as a participating employee shall be included within, and shall be subject
19to, the Wisconsin retirement system effective on one of the following dates:
AB1038,8
20Section 8
. 40.26 (1m) (a) of the statutes is amended to read:
AB1038,22,221
40.26
(1m) (a)
If Except as otherwise provided in sub. (6), if a participant
22receiving a retirement annuity, or a disability annuitant who has attained his or her
23normal retirement date, is employed in a position in covered employment in which
24he or she is expected to work at least two-thirds of what is considered full-time
25employment by the department, as determined under s. 40.22 (2r), the participant's
1annuity shall be suspended and no annuity payment shall be payable until after the
2participant terminates covered employment.
AB1038,9
3Section 9
. 40.26 (1m) (b) of the statutes is amended to read:
AB1038,22,114
40.26
(1m) (b)
If Except as otherwise provided in sub. (6), if a participant
5receiving a retirement annuity, or a disability annuitant who has attained his or her
6normal retirement date, enters into a contract to provide employee services with a
7participating employer and he or she is expected to work at least two-thirds of what
8is considered full-time employment by the department, as determined under s. 40.22
9(2r), the participant's annuity shall be suspended and no annuity payment shall be
10payable until after the participant no longer provides employee services under the
11contract.
AB1038,10
12Section 10
. 40.26 (5) (intro.) of the statutes is amended to read:
AB1038,22,1713
40.26
(5) (intro.)
If Except as otherwise provided in sub. (5m), if a participant
14applies for an annuity or lump sum payment during the period in which less than 75
15days have elapsed between the termination of employment with a participating
16employer and becoming a participating employee with any participating employer,
17all of the following shall apply:
AB1038,11
18Section 11
. 40.26 (5m) of the statutes is created to read:
AB1038,22,2319
40.26
(5m) During the public health emergency declared on March 12, 2020,
20by executive order 72, sub. (5) does not apply if at least 15 days have elapsed between
21the termination of employment with a participating employer and becoming a
22participating employee if the position for which the participant is hired is a critical
23position, as determined by the secretary of health services under s. 323.19 (3).
AB1038,12
24Section 12
. 40.26 (6) of the statutes is created to read:
AB1038,23,4
140.26
(6) A participant who is hired during the public health emergency
2declared on March 12, 2020, by executive order 72, may elect to not suspend his or
3her retirement annuity or disability annuity under sub. (1m) for the duration of the
4state of emergency if all of the following conditions are met:
AB1038,23,85
(a) At the time the participant terminates his or her employment with a
6participating employer, the participant does not have an agreement with any
7participating employer to return to employment or enter into a contract to provide
8employee services for the employer.
AB1038,23,109
(b) The position for which the participant has been hired is a critical position,
10as determined under s. 323.19 (3).
AB1038,13
11Section 13
. 40.51 (8) of the statutes is amended to read:
AB1038,23,1612
40.51
(8) Every health care coverage plan offered by the state under sub. (6)
13shall comply with ss. 631.89, 631.90, 631.93 (2), 631.95, 632.72 (2),
632.729, 632.746
14(1) to (8) and (10), 632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853,
15632.855, 632.867, 632.87 (3) to (6), 632.885, 632.89, 632.895 (5m) and (8) to (17), and
16632.896.
AB1038,14
17Section 14
. 40.51 (8m) of the statutes is amended to read:
AB1038,23,2118
40.51
(8m) Every health care coverage plan offered by the group insurance
19board under sub. (7) shall comply with ss. 631.95,
632.729, 632.746 (1) to (8) and (10),
20632.747, 632.748, 632.798, 632.83, 632.835, 632.85, 632.853, 632.855, 632.867,
21632.885, 632.89, and 632.895 (11) to (17).
AB1038,15
22Section 15
. 49.688 (1) (c) of the statutes is renumbered 49.688 (1) (c) (intro.)
23and amended to read:
AB1038,23,2424
49.688
(1) (c) (intro.) “Prescription drug" means
a any of the following:
AB1038,24,3
11. A prescription drug, as defined in s. 450.01 (20), that is included in the drugs
2specified under s. 49.46 (2) (b) 6. h. and that is manufactured by a drug manufacturer
3that enters into a rebate agreement in force under sub. (6).
AB1038,16
4Section 16
. 49.688 (1) (c) 2. of the statutes is created to read:
AB1038,24,85
49.688
(1) (c) 2. A vaccination recommended for administration to adults by the
6federal centers for disease control and prevention's advisory committee on
7immunization practices and approved for administration to adults by the
8department.
AB1038,17
9Section 17
. 49.688 (10m) of the statutes is created to read:
AB1038,25,310
49.688
(10m) (a) Notwithstanding subs. (6) and (7) (a), from the appropriation
11accounts under s. 20.435 (4) (bv), (j), and (pg), except as provided under sub. (7) (b),
12the department shall, under a schedule that is identical to that used by the
13department for payment of claims under the Medical Assistance program, provide
14to health care providers who administer vaccinations, including pharmacies and
15pharmacists, payments for vaccinations, as described under sub. (1) (c) 2., that are
16administered by health care providers to persons eligible under sub. (2) who have
17paid the deductible specified under sub. (3) (b) 1. or 2., or who, under sub. (3) (b) 1.,
18are not required to pay a deductible. The reimbursement to a health care provider
19for each vaccination under this subsection shall be at the rate of payment made for
20the identical vaccination under s. 49.46 (2) (b), plus a dispensing fee that is equal to
21the dispensing fee permitted to be charged for vaccinations for which coverage is
22provided under s. 49.46 (2) (b). The department shall devise and distribute a claim
23form for use by health care providers under this subsection and may limit payment
24under this subsection to those vaccinations for which payment claims are submitted
25by health care providers directly to the department. The department may apply to
1the program under this subsection the same utilization and cost control procedures
2that apply under rules promulgated by the department to medical assistance under
3subch. IV of ch. 49.
AB1038,25,64
(b) The department may provide payment for a vaccination under this
5subsection only after deducting the amount of any payment for the vaccination
6available from other sources.
AB1038,18
7Section 18
. 60.11 (2) (b) of the statutes is renumbered 60.11 (2) (b) 1.
AB1038,19
8Section 19
. 60.11 (2) (b) 2. of the statutes is created to read:
AB1038,25,139
60.11
(2) (b) 2. The town board or, if the town board is unable to promptly meet,
10the town chair may postpone the annual town meeting to a date that is not during
11the period beginning on the first day of the public health emergency declared on
12March 12, 2020, by executive order 72, and ending 60 days after the termination of
13that order.
AB1038,20
14Section 20
. 66.0137 (4) of the statutes is amended to read:
AB1038,25,2115
66.0137
(4) Self-insured health plans. If a city, including a 1st class city, or
16a village provides health care benefits under its home rule power, or if a town
17provides health care benefits, to its officers and employees on a self-insured basis,
18the self-insured plan shall comply with ss. 49.493 (3) (d), 631.89, 631.90, 631.93 (2),
19632.729, 632.746 (10) (a) 2. and (b) 2., 632.747 (3), 632.798, 632.85, 632.853, 632.855,
20632.867, 632.87 (4) to (6), 632.885, 632.89, 632.895 (9) to (17), 632.896, and 767.513
21(4).
AB1038,21
22Section 21
. 70.47 (3) (aL) of the statutes is renumbered 70.47 (3) (aL) 1. and
23amended to read:
AB1038,26,224
70.47
(3) (aL) 1.
If Except as provided in subd. 2., if the assessment roll is not
25completed at the time of the first meeting, the board shall adjourn for the time
1necessary to complete the roll, and shall post a written notice on the outer door of the
2place of meeting stating the time to which the meeting is adjourned.
AB1038,22
3Section 22
. 70.47 (3) (aL) 2. of the statutes is created to read:
AB1038,26,74
70.47
(3) (aL) 2. Regardless of whether the 2020 assessment roll is completed
5at the time of the 45-day period beginning on the 4th Monday of April, the board may
6publish a class 1 notice under ch. 985 that the board has adjourned and will proceed
7under sub. (2).
AB1038,23
8Section 23
. 71.01 (6) (L) 3. of the statutes is amended to read:
AB1038,26,139
71.01
(6) (L) 3. For purposes of this paragraph, “Internal Revenue Code" does
10not include amendments to the federal Internal Revenue Code enacted after
11December 31, 2017
, except that “Internal Revenue Code” includes sections 1106,
122202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L.
13116-136.
AB1038,24
14Section 24
. 71.22 (4) (L) 3. of the statutes is amended to read:
AB1038,26,1915
71.22
(4) (L) 3. For purposes of this paragraph, “Internal Revenue Code" does
16not include amendments to the federal Internal Revenue Code enacted after
17December 31, 2017
, except that “Internal Revenue Code” includes sections 1106,
182202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L.
19116-136.
AB1038,25
20Section 25
. 71.22 (4m) (L) 3. of the statutes is amended to read:
AB1038,26,2521
71.22
(4m) (L) 3. For purposes of this paragraph, “Internal Revenue Code" does
22not include amendments to the federal Internal Revenue Code enacted after
23December 31, 2017
, except that “Internal Revenue Code” includes sections 1106,
242202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L.
25116-136.
AB1038,26
1Section
26. 71.26 (2) (b) 12. d. of the statutes is amended to read:
AB1038,27,62
71.26
(2) (b) 12. d. For purposes of subd. 12. a., “Internal Revenue Code" does
3not include amendments to the federal Internal Revenue Code enacted after
4December 31, 2017
, except that “Internal Revenue Code” includes sections 1106,
52202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L.
6116-136.
AB1038,27
7Section 27
. 71.34 (1g) (L) 3. of the statutes is amended to read:
AB1038,27,128
71.34
(1g) (L) 3. For purposes of this paragraph, “Internal Revenue Code" does
9not include amendments to the federal Internal Revenue Code enacted after
10December 31, 2017
, except that “Internal Revenue Code” includes sections 1106,
112202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L.
12116-136.
AB1038,28
13Section 28
. 71.42 (2) (L) 3. of the statutes is amended to read:
AB1038,27,1814
71.42
(2) (L) 3. For purposes of this paragraph, “Internal Revenue Code" does
15not include amendments to the federal Internal Revenue Code enacted after
16December 31, 2017
, except that “Internal Revenue Code” includes sections 1106,
172202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L.
18116-136.
AB1038,29
19Section 29
. 71.98 (3) of the statutes is amended to read:
AB1038,28,320
71.98
(3) Depreciation, depletion, and amortization. For taxable years
21beginning after December 31, 2013, and for purposes of computing depreciation and
22amortization, the Internal Revenue Code means the federal Internal Revenue Code
23in effect for federal purposes on January 1, 2014, except that sections 13201 (f),
2413203, 13204, and 13205 of P.L.
115-97 and section 2307 of division A of P.L. 116-136 25apply at the same time as for federal purposes. For taxable years beginning after
1December 31, 2013, and for purposes of computing depletion, the Internal Revenue
2Code means the federal Internal Revenue Code in effect for federal purposes for the
3year in which the property is placed in service.
AB1038,30
4Section 30
. 74.35 (5) (c) of the statutes is amended to read:
AB1038,28,95
74.35
(5) (c) No claim may be filed or maintained under this section unless the
6tax for which the claim is filed, or any authorized installment payment of the tax, is
7timely paid under s. 74.11, 74.12 or 74.87.
This paragraph does not apply to taxes
8due and payable in 2020 if paid by October 1, 2020, or by any installment date for
9which taxes are due after October 1, 2020.
AB1038,31
10Section 31
. 74.37 (4) (b) of the statutes is amended to read:
AB1038,28,1511
74.37
(4) (b) No claim or action for an excessive assessment may be brought or
12maintained under this section unless the tax for which the claim is filed, or any
13authorized installment of the tax, is timely paid under s. 74.11 or 74.12.
This
14paragraph does not apply to taxes due and payable in 2020 if paid by October 1, 2020,
15or by any installment date for which taxes are due after October 1, 2020.
AB1038,32
16Section 32
. 100.307 of the statutes is created to read:
AB1038,28,18
17100.307 Returns during emergency; prohibition. (1) Definitions. In this
18section:
AB1038,28,1919
(a) “Food product” has the meaning given in s. 93.01 (6).
AB1038,28,2020
(b) “Personal care product” has the meaning given in s. 299.50 (1) (b).
AB1038,29,2
21(2) Certain returns prohibited during emergency. Except as provided in sub.
22(3), no person who sells food products, personal care products, cleaning products, or
23paper products at retail may accept a return of a food product, personal care product,
24cleaning product, or paper product during the public health emergency declared on
1March 12, 2020, by executive order 72, or during the 30 days immediately after the
2public health emergency ends.
AB1038,29,6
3(3) Exceptions. A person who sells food products, personal care products,
4cleaning products, or paper products at retail may accept a return of a food product,
5personal care product, cleaning product, or paper product if any of the following
6applies: