SB59: Bill Text

SB59,828 Section 828. 70.11 (1) of the statutes is amended to read:

SB59,598,6 70.11 (1) Property of the state. Property owned by this state except land contracted to be sold by the state. This exemption shall not apply to land conveyed after September, 1933, to this state or for its benefit while the grantor or others for the grantor's benefit are permitted to occupy the land or part thereof in consideration for the conveyance; nor shall it apply to land devised to the state or for its benefit while another person is permitted by the will to occupy the land or part thereof. This exemption shall not apply to any property acquired by the department of veterans affairs under s. 45.32 (5) and (7), 2017 stats., or to the property of insurers undergoing rehabilitation or liquidation under ch. 645. Property exempt under this subsection includes general property owned by the state and leased to a private, nonprofit corporation that operates an Olympic ice training center, regardless of the use of the leasehold income.

SB59,829 Section 829. 70.32 (1) of the statutes is amended to read:

SB59,599,2 70.32 (1) Real property shall be valued by the assessor in the manner specified in the Wisconsin property assessment manual provided under s. 73.03 (2a) at its highest and best use from actual view or from the best information that the assessor can practicably obtain, at the full value which could ordinarily be obtained therefor at private sale. In determining the value, the assessor shall consider recent arm's-length sales of the property to be assessed if according to professionally acceptable appraisal practices those sales conform to recent arm's-length sales of reasonably comparable property; recent arm's-length sales of reasonably comparable property; and all factors that, according to professionally acceptable appraisal practices, affect the value of the property to be assessed. In this subsection, “arm's-length sale" means a sale between a willing buyer and willing seller, neither being under compulsion to buy or sell and each being familiar with the attributes of the property sold. In this subsection, “highest and best use" means the specific use of the property as of the current assessment date or a higher use to which the property can be expected to be put before the next assessment date, if the use is legally permissible, physically possible, not highly speculative, and financially feasible and provides the highest net return. When the current use of a property is the highest and best use of that property, value in the current use equals full market value. In this subsection, “legally permissible” does not include a conditional use that has not been granted as of the assessment date.

SB59,830 Section 830 . 70.32 (1b) of the statutes is created to read:

SB59,599,12 70.32 (1b) In determining the value of real property under sub. (1), the assessor shall consider, as part of the valuation under sub. (1), any lease provisions and actual rent pertaining to a property and affecting its value, including the lease provisions and rent associated with a sale and leaseback of the property, if all such lease provisions and rent are the result of an arm's-length transaction involving persons who are not related, as provided under section 267 of the Internal Revenue Code for the year of the transaction. In this subsection, an “arm's-length transaction" means an agreement between willing parties, neither being under compulsion to act and each being familiar with the attributes of the property.

SB59,831 Section 831 . 70.32 (1d) of the statutes is created to read:

SB59,599,16 70.32 (1d) (a) To determine the value of property using generally accepted appraisal methods, the assessor shall consider all of the following as comparable to the property being assessed:

SB59,599,19 1. Sales or rentals of properties exhibiting the same or a similar highest and best use, as defined in sub. (1), with placement in the same real estate market segment.

SB59,599,24 2. Sales or rentals of properties that are similar to the property being assessed with regard to age, condition, use, type of construction, location, design, physical features, and economic characteristics, including similarities in occupancy and the potential to generate rental income. For purposes of this subdivision, such properties may be found locally, regionally, or nationally.

SB59,600,2 (b) For purposes of par. (a), a property is not comparable if any of the following applies:

SB59,600,6 1. At or before the time of sale, the seller places any deed restriction on the property that changes the highest and best use, as defined in sub. (1), of the property, or prohibits competition, so that it no longer qualifies as a comparable property under par. (a) 1. or 2. and the property being assessed lacks such a restriction.

SB59,600,11 2. The property is dark property and the property being assessed is not dark property. In this subdivision, “dark property” means property that is vacant or unoccupied beyond the normal period for property in the same real estate market segment. For purposes of this subdivision, what is considered vacant or unoccupied beyond the normal period may vary depending on the property location.

SB59,600,17 (c) For purposes of par. (a), “real estate market segment” means a pool of potential buyers and sellers that typically buy or sell properties similar to the property being assessed, including potential buyers who are investors or owner-occupants. For purposes of this paragraph, and depending on the type of property being assessed, the pool of potential buyers and sellers may be found locally, regionally, nationally, or internationally.

SB59,600,19 (d) The department of revenue shall assist local assessors with implementing and applying this subsection.

SB59,832 Section 832. 71.01 (1as) of the statutes is repealed.

SB59,833 Section 833. 71.01 (6) (c) of the statutes is repealed.

SB59,834 Section 834. 71.01 (6) (j) 3. m. of the statutes is created to read:

SB59,600,24 71.01 (6) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q) and 104 (a) of division U of P.L. 115-141.

SB59,835 Section 835. 71.01 (6) (k) 3. of the statutes is amended to read:

SB59,601,4 71.01 (6) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2016, except that “Internal Revenue Code” includes sections 11024, 11025, and 13543 of P.L. 115-97 and sections 40307 and 40413 of P.L. 115-123.

SB59,836 Section 836. 71.01 (6) (L) 1. of the statutes is amended to read:

SB59,601,10 71.01 (6) (L) 1. For taxable years beginning after December 31, 2017, and before January 1, 2019, for individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2. and 3. and s. 71.98 and subject to subd. 4.

SB59,837 Section 837. 71.01 (6) (L) 4. of the statutes is amended to read:

SB59,601,17 71.01 (6) (L) 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97 first apply for taxable years beginning after December 31, 2017.

SB59,838 Section 838. 71.01 (6) (m) of the statutes is created to read:

SB59,601,23 71.01 (6) (m) 1. For taxable years beginning after December 31, 2018, for individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, “Internal Revenue Code" means the federal Internal Revenue Code as amended to December 31, 2018, except as provided in subds. 2. and 3. and s. 71.98 and subject to subd. 4.

SB59,602,19 2. For purposes of this paragraph, “Internal Revenue Code" does not include the following provisions of federal public laws for taxable years beginning after December 31, 2018: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L. 106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L. 109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L. 110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section 15351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251, 1501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L. 111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L. 111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and 411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 13201 (a) to (e) and (g), 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections 40304, 40305, 40306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L. 115-141; and sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of division U of P.L. 115-141.

SB59,602,21 3. For purposes of this paragraph, “Internal Revenue Code" does not include amendments to the federal Internal Revenue Code enacted after December 31, 2018.

SB59,603,4 4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except that changes made by sections 11012, 13221, 13301, 13304 (a) and (b), 13531, and 13601 of P.L. 115-97, 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41115, and 41116 of PL. 115-123 and section 101 (a), (b), and (h) of division U of P.L. 115-141 apply for taxable years beginning after December 31, 2018.

SB59,839 Section 839. 71.01 (7g) of the statutes is created to read:

SB59,603,7 71.01 (7g) For purposes of sub. (6) (b), 2013 stats., “ Internal Revenue Code” includes section 109 of division U of P.L. 115-141.

SB59,840 Section 840 . 71.01 (8j) of the statutes is created to read:

SB59,603,11 71.01 (8j) For purposes of ss. 71.05 (6) (a) 30., 71.21 (7), 71.26 (3) (e) 4., 71.34 (1k) (o), and 71.45 (2) (a) 20., “moving expenses” means expenses incurred to move the operation of a business, including all of the following:

SB59,603,12 (a) Vehicle rentals.

SB59,603,13 (b) Storage rentals.

SB59,603,14 (c) Moving company expenses for packing, unpacking, and transportation.

SB59,603,15 (d) Consulting fees and surveys.

SB59,603,16 (e) Brokerage commissions or fees.

SB59,603,17 (f) Architecture, design, and remodeling expenses.

SB59,603,18 (g) Expenses paid or incurred to sell property in this state.

SB59,603,19 (h) Loss on the sale of property in this state.

SB59,603,20 (i) Lease cancellation fees.

SB59,603,21 (j) Expenses paid or incurred for professional services, including legal services.

SB59,603,22 (k) Utility fees.

SB59,603,23 (L) Employee wages.

SB59,603,24 (m) Reimbursement of an employee's expenses.

SB59,603,25 (n) The cost of meals, lodging, and fuel.

SB59,604,1 (o) Mileage deductions for vehicle use.

SB59,841 Section 841. 71.04 (7) (dh) 3. of the statutes is amended to read:

SB59,604,6 71.04 (7) (dh) 3. Except as provided in subd. 4., if If the purchaser of a service receives the benefit of a service in more than one state, the gross receipts from the performance of the service are included in the numerator of the sales factor according to the portion of the service received in this state.

SB59,842 Section 842. 71.04 (7) (dh) 4. of the statutes is repealed.

SB59,843 Section 843. 71.04 (7) (dj) 1. (intro.) of the statutes is renumbered 71.04 (7) (dj) (intro.) and amended to read:

SB59,604,15 71.04 (7) (dj) (intro.) Except as provided in subd. 2. and par. (df), gross royalties and other gross receipts received for the use or license of intangible property, including patents, copyrights, trademarks, trade names, service names, franchises, licenses, plans, specifications, blueprints, processes, techniques, formulas, designs, layouts, patterns, drawings, manuals, technical know-how, contracts, and customer lists, are sales in this state if any of the following applies:

SB59,844 Section 844. 71.04 (7) (dj) 1. a. of the statutes is renumbered 71.04 (7) (dj) 1m. and amended to read:

SB59,604,24 71.04 (7) (dj) 1m. The purchaser or licensee uses the intangible property in the operation of a trade or business at a location in this state. Except as provided in subd. 2., if If the purchaser or licensee uses the intangible property in the operation of a trade or business in more than one state, the gross royalties and other gross receipts from the use of the intangible property shall be divided between those states having jurisdiction to impose an income tax on the taxpayer in proportion to the use of the intangible property in those states.

SB59,845 Section 845. 71.04 (7) (dj) 1. b. of the statutes is renumbered 71.04 (7) (dj) 2m.

SB59,846 Section 846. 71.04 (7) (dj) 1. c. of the statutes is renumbered 71.04 (7) (dj) 3m.

SB59,847 Section 847. 71.04 (7) (dj) 2. of the statutes is repealed.

SB59,848 Section 848. 71.04 (7) (g) of the statutes is repealed.

SB59,849 Section 849. 71.05 (1) (c) 14. of the statutes is created to read:

SB59,605,8 71.05 (1) (c) 14. The Wisconsin Health and Educational Facilities Authority under s. 231.03 (6), if the bonds or notes are issued in an amount totaling $35,000,000 or less, and to the extent that the interest income received is not otherwise exempt under this subsection.

SB59,850 Section 850. 71.05 (6) (a) 15. of the statutes is amended to read:

SB59,605,16 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8b), (8r), and (10) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

SB59,851 Section 851 . 71.05 (6) (a) 29. of the statutes is created to read:

SB59,605,19 71.05 (6) (a) 29. For an account holder or an account holder's estate, with regard to an account described under s. 71.10 (10):

SB59,605,21 a. Any amount that is distributed to an account holder under s. 71.10 (10) (d) 3. or to an account holder's estate under s. 71.10 (10) (d) 4.

SB59,606,2 b. Any amount that is withdrawn from the account for any reason other than payment or reimbursement of eligible costs as defined under s. 71.10 (10) (a) 3., except that this subd. 29. b. does not apply to the transfer of funds to another account as described under s. 71.10 (10) (c) 4. or funds that are disbursed pursuant to a filing for bankruptcy protection under 11 USC 101 et seq.

SB59,852 Section 852. 71.05 (6) (a) 30. of the statutes is created to read:

SB59,606,8 71.05 (6) (a) 30. The amount deducted under the Internal Revenue Code as moving expenses, as defined in s. 71.01 (8j), paid or incurred during the taxable year to move the taxpayer's Wisconsin business operation, in whole or in part, to a location outside the state or to move the taxpayer's business operation outside the United States.

SB59,853 Section 853. 71.05 (6) (b) 9. of the statutes is renumbered 71.05 (6) (b) 9. (intro.) and amended to read:

SB59,607,2 71.05 (6) (b) 9. (intro.) On assets held more than one year and on all assets acquired from a decedent, 30 percent of the capital gain as computed under the internal revenue code Internal Revenue Code, not including capital gains for which the federal tax treatment is determined under section 406 of P.L. 99-514; not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason; and not including amounts treated as capital gain for federal income tax purposes from the sale or exchange of a lottery prize. For purposes of this subdivision, the capital gains and capital losses for all assets shall be netted before application of the percentage. For taxable years beginning after December 31, 2018, this subdivision does not apply to any of the following individuals whose federal adjusted gross income in the year to which the subtraction relates exceeds the following threshold amounts, except that for a taxpayer whose federal adjusted gross income, less 30 percent of eligible long-term capital gains from nonfarm assets, is below the specified threshold amount, the taxpayer may claim the subtraction under this subdivision reduced by the amount of the taxpayer's federal adjusted gross income that exceeds the threshold amount:

SB59,854 Section 854. 71.05 (6) (b) 9. a. of the statutes is created to read:

SB59,607,5 71.05 (6) (b) 9. a. For an estate, a trust, a single individual, or an individual who files as a head of household, $100,000.

SB59,855 Section 855. 71.05 (6) (b) 9. b. of the statutes is created to read:

SB59,607,7 71.05 (6) (b) 9. b. For a married couple who files a joint return, $150,000.

SB59,856 Section 856. 71.05 (6) (b) 9. c. of the statutes is created to read:

SB59,607,9 71.05 (6) (b) 9. c. For a married individual who files a separate return, $75,000.

SB59,857 Section 857. 71.05 (6) (b) 17. of the statutes is repealed.

SB59,858 Section 858. 71.05 (6) (b) 18. of the statutes is repealed.

SB59,859 Section 859. 71.05 (6) (b) 19. c. of the statutes is amended to read:

SB59,607,18 71.05 (6) (b) 19. c. For taxable years beginning before January 1, 2020, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person's net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total net earnings from a trade or business.

SB59,860 Section 860. 71.05 (6) (b) 19. cm. of the statutes is created to read:

SB59,608,7 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2019, for a person who is a nonresident or a part-year resident of this state, modify the amount calculated under subd. 19. b. by multiplying the amount by a fraction the numerator of which is the person's wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state and the denominator of which is the person's total wages, salary, tips, unearned income, and net earnings from a trade or business. In this subdivision, for married persons filing separately “wages, salary, tips, unearned income, and net earnings from a trade or business" means the separate wages, salary, tips, unearned income, and net earnings from a trade or business of each spouse, and for married persons filing jointly “wages, salary, tips, unearned income, and net earnings from a trade or business" means the total wages, salary, tips, unearned income, and net earnings from a trade or business of both spouses.

SB59,861 Section 861. 71.05 (6) (b) 19. d. of the statutes is amended to read:

SB59,608,11 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2020, reduce the amount calculated under subd. 19. b. or c. to the person's aggregate net earnings from a trade or business that are taxable by this state.

SB59,862 Section 862. 71.05 (6) (b) 19. dm. of the statutes is created to read:

SB59,608,16 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2019, reduce the amount calculated under subd. 19. b. or cm. to the person's aggregate wages, salary, tips, unearned income, and net earnings from a trade or business that are taxable by this state.