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SB59,598,620 70.11 (1) Property of the state. Property owned by this state except land
21contracted to be sold by the state. This exemption shall not apply to land conveyed
22after September, 1933, to this state or for its benefit while the grantor or others for
23the grantor's benefit are permitted to occupy the land or part thereof in consideration
24for the conveyance; nor shall it apply to land devised to the state or for its benefit
25while another person is permitted by the will to occupy the land or part thereof. This

1exemption shall not apply to any property acquired by the department of veterans
2affairs under s. 45.32 (5) and (7), 2017 stats., or to the property of insurers
3undergoing rehabilitation or liquidation under ch. 645. Property exempt under this
4subsection includes general property owned by the state and leased to a private,
5nonprofit corporation that operates an Olympic ice training center, regardless of the
6use of the leasehold income.
SB59,829 7Section 829. 70.32 (1) of the statutes is amended to read:
SB59,599,28 70.32 (1) Real property shall be valued by the assessor in the manner specified
9in the Wisconsin property assessment manual provided under s. 73.03 (2a) at its
10highest and best use
from actual view or from the best information that the assessor
11can practicably obtain, at the full value which could ordinarily be obtained therefor
12at private sale. In determining the value, the assessor shall consider recent
13arm's-length sales of the property to be assessed if according to professionally
14acceptable appraisal practices those sales conform to recent arm's-length sales of
15reasonably comparable property; recent arm's-length sales of reasonably
16comparable property; and all factors that, according to professionally acceptable
17appraisal practices, affect the value of the property to be assessed. In this subsection,
18“arm's-length sale" means a sale between a willing buyer and willing seller, neither
19being under compulsion to buy or sell and each being familiar with the attributes of
20the property sold. In this subsection, “highest and best use" means the specific use
21of the property as of the current assessment date or a higher use to which the
22property can be expected to be put before the next assessment date, if the use is
23legally permissible, physically possible, not highly speculative, and financially
24feasible and provides the highest net return. When the current use of a property is
25the highest and best use of that property, value in the current use equals full market

1value. In this subsection, “legally permissible” does not include a conditional use
2that has not been granted as of the assessment date.
SB59,830 3Section 830 . 70.32 (1b) of the statutes is created to read:
SB59,599,124 70.32 (1b) In determining the value of real property under sub. (1), the assessor
5shall consider, as part of the valuation under sub. (1), any lease provisions and actual
6rent pertaining to a property and affecting its value, including the lease provisions
7and rent associated with a sale and leaseback of the property, if all such lease
8provisions and rent are the result of an arm's-length transaction involving persons
9who are not related, as provided under section 267 of the Internal Revenue Code for
10the year of the transaction. In this subsection, an “arm's-length transaction" means
11an agreement between willing parties, neither being under compulsion to act and
12each being familiar with the attributes of the property.
SB59,831 13Section 831 . 70.32 (1d) of the statutes is created to read:
SB59,599,1614 70.32 (1d) (a) To determine the value of property using generally accepted
15appraisal methods, the assessor shall consider all of the following as comparable to
16the property being assessed:
SB59,599,1917 1. Sales or rentals of properties exhibiting the same or a similar highest and
18best use, as defined in sub. (1), with placement in the same real estate market
19segment.
SB59,599,2420 2. Sales or rentals of properties that are similar to the property being assessed
21with regard to age, condition, use, type of construction, location, design, physical
22features, and economic characteristics, including similarities in occupancy and the
23potential to generate rental income. For purposes of this subdivision, such
24properties may be found locally, regionally, or nationally.
SB59,600,2
1(b) For purposes of par. (a), a property is not comparable if any of the following
2applies:
SB59,600,63 1. At or before the time of sale, the seller places any deed restriction on the
4property that changes the highest and best use, as defined in sub. (1), of the property,
5or prohibits competition, so that it no longer qualifies as a comparable property
6under par. (a) 1. or 2. and the property being assessed lacks such a restriction.
SB59,600,117 2. The property is dark property and the property being assessed is not dark
8property. In this subdivision, “dark property” means property that is vacant or
9unoccupied beyond the normal period for property in the same real estate market
10segment. For purposes of this subdivision, what is considered vacant or unoccupied
11beyond the normal period may vary depending on the property location.
SB59,600,1712 (c) For purposes of par. (a), “real estate market segment” means a pool of
13potential buyers and sellers that typically buy or sell properties similar to the
14property being assessed, including potential buyers who are investors or
15owner-occupants. For purposes of this paragraph, and depending on the type of
16property being assessed, the pool of potential buyers and sellers may be found locally,
17regionally, nationally, or internationally.
SB59,600,1918 (d) The department of revenue shall assist local assessors with implementing
19and applying this subsection.
SB59,832 20Section 832. 71.01 (1as) of the statutes is repealed.
SB59,833 21Section 833. 71.01 (6) (c) of the statutes is repealed.
SB59,834 22Section 834. 71.01 (6) (j) 3. m. of the statutes is created to read:
SB59,600,2423 71.01 (6) (j) 3. m. Sections 101 (m), (n), (o), (p), and (q) and 104 (a) of division
24U of P.L. 115-141.
SB59,835 25Section 835. 71.01 (6) (k) 3. of the statutes is amended to read:
SB59,601,4
171.01 (6) (k) 3. For purposes of this paragraph, “Internal Revenue Code" does
2not include amendments to the federal Internal Revenue Code enacted after
3December 31, 2016, except that “Internal Revenue Code” includes sections 11024,
411025, and 13543 of P.L. 115-97 and sections 40307 and 40413 of P.L. 115-123.
SB59,836 5Section 836. 71.01 (6) (L) 1. of the statutes is amended to read:
SB59,601,106 71.01 (6) (L) 1. For taxable years beginning after December 31, 2017, and
7before January 1, 2019,
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.
SB59,837 11Section 837. 71.01 (6) (L) 4. of the statutes is amended to read:
SB59,601,1712 71.01 (6) (L) 4. For purposes of this paragraph, the provisions of federal public
13laws that directly or indirectly affect the Internal Revenue Code, as defined in this
14paragraph, apply for Wisconsin purposes at the same time as for federal purposes,
15except that changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207,
1613306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97
17first apply for taxable years beginning after December 31, 2017
.
SB59,838 18Section 838. 71.01 (6) (m) of the statutes is created to read:
SB59,601,2319 71.01 (6) (m) 1. For taxable years beginning after December 31, 2018, for
20individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or
21reserve funds, “Internal Revenue Code" means the federal Internal Revenue Code
22as amended to December 31, 2018, except as provided in subds. 2. and 3. and s. 71.98
23and subject to subd. 4.
SB59,602,1924 2. For purposes of this paragraph, “Internal Revenue Code" does not include
25the following provisions of federal public laws for taxable years beginning after

1December 31, 2018: section 13113 of P.L. 103-66; sections 1, 3, 4, and 5 of P.L.
2106-519; sections 101, 102, and 422 of P.L. 108-357; sections 1310 and 1351 of P.L.
3109-58; section 11146 of P.L. 109-59; section 403 (q) of P.L. 109-135; section 513 of
4P.L. 109-222; sections 104 and 307 of P.L. 109-432; sections 8233 and 8235 of P.L.
5110-28; section 11 (e) and (g) of P.L. 110-172; section 301 of P.L. 110-245; section
615351 of P.L. 110-246; section 302 of division A, section 401 of division B, and sections
7312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343; sections 1232, 1241, 1251,
81501, and 1502 of division B of P.L. 111-5; sections 211, 212, 213, 214, and 216 of P.L.
9111-226; sections 2011 and 2122 of P.L. 111-240; sections 753, 754, and 760 of P.L.
10111-312; section 1106 of P.L. 112-95; sections 104, 318, 322, 323, 324, 326, 327, and
11411 of P.L. 112-240; P.L. 114-7; section 1101 of P.L. 114-74; section 305 of division
12P of P.L. 114-113; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to
13171, 189, 191, 307, 326, and 411 of division Q of P.L. 114-113; sections 11011, 13201
14(a) to (e) and (g), 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213,
1514214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97; sections
1640304, 40305, 40306, and 40412 of P.L. 115-123; section 101 (c) of division T of P.L.
17115-141; and sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and
18(195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), and (xiii) and (xvii) (II) of
19division U of P.L. 115-141.
SB59,602,2120 3. For purposes of this paragraph, “Internal Revenue Code" does not include
21amendments to the federal Internal Revenue Code enacted after December 31, 2018.
SB59,603,422 4. For purposes of this paragraph, the provisions of federal public laws that
23directly or indirectly affect the Internal Revenue Code, as defined in this paragraph,
24apply for Wisconsin purposes at the same time as for federal purposes, except that
25changes made by sections 11012, 13221, 13301, 13304 (a) and (b), 13531, and 13601

1of P.L. 115-97, 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309,
240311, 40414, 41101, 41107, 41115, and 41116 of PL. 115-123 and section 101 (a), (b),
3and (h) of division U of P.L. 115-141 apply for taxable years beginning after
4December 31, 2018.
SB59,839 5Section 839. 71.01 (7g) of the statutes is created to read:
SB59,603,76 71.01 (7g) For purposes of sub. (6) (b), 2013 stats., “ Internal Revenue Code”
7includes section 109 of division U of P.L. 115-141.
SB59,840 8Section 840 . 71.01 (8j) of the statutes is created to read:
SB59,603,119 71.01 (8j) For purposes of ss. 71.05 (6) (a) 30., 71.21 (7), 71.26 (3) (e) 4., 71.34
10(1k) (o), and 71.45 (2) (a) 20., “moving expenses” means expenses incurred to move
11the operation of a business, including all of the following:
SB59,603,1212 (a) Vehicle rentals.
SB59,603,1313 (b) Storage rentals.
SB59,603,1414 (c) Moving company expenses for packing, unpacking, and transportation.
SB59,603,1515 (d) Consulting fees and surveys.
SB59,603,1616 (e) Brokerage commissions or fees.
SB59,603,1717 (f) Architecture, design, and remodeling expenses.
SB59,603,1818 (g) Expenses paid or incurred to sell property in this state.
SB59,603,1919 (h) Loss on the sale of property in this state.
SB59,603,2020 (i) Lease cancellation fees.
SB59,603,2121 (j) Expenses paid or incurred for professional services, including legal services.
SB59,603,2222 (k) Utility fees.
SB59,603,2323 (L) Employee wages.
SB59,603,2424 (m) Reimbursement of an employee's expenses.
SB59,603,2525 (n) The cost of meals, lodging, and fuel.
SB59,604,1
1(o) Mileage deductions for vehicle use.
SB59,841 2Section 841. 71.04 (7) (dh) 3. of the statutes is amended to read:
SB59,604,63 71.04 (7) (dh) 3. Except as provided in subd. 4., if If the purchaser of a service
4receives the benefit of a service in more than one state, the gross receipts from the
5performance of the service are included in the numerator of the sales factor according
6to the portion of the service received in this state.
SB59,842 7Section 842. 71.04 (7) (dh) 4. of the statutes is repealed.
SB59,843 8Section 843. 71.04 (7) (dj) 1. (intro.) of the statutes is renumbered 71.04 (7)
9(dj) (intro.) and amended to read:
SB59,604,1510 71.04 (7) (dj) (intro.) Except as provided in subd. 2. and par. (df), gross royalties
11and other gross receipts received for the use or license of intangible property,
12including patents, copyrights, trademarks, trade names, service names, franchises,
13licenses, plans, specifications, blueprints, processes, techniques, formulas, designs,
14layouts, patterns, drawings, manuals, technical know-how, contracts, and customer
15lists, are sales in this state if any of the following applies:
SB59,844 16Section 844. 71.04 (7) (dj) 1. a. of the statutes is renumbered 71.04 (7) (dj) 1m.
17and amended to read:
SB59,604,2418 71.04 (7) (dj) 1m. The purchaser or licensee uses the intangible property in the
19operation of a trade or business at a location in this state. Except as provided in subd.
202., if
If the purchaser or licensee uses the intangible property in the operation of a
21trade or business in more than one state, the gross royalties and other gross receipts
22from the use of the intangible property shall be divided between those states having
23jurisdiction to impose an income tax on the taxpayer in proportion to the use of the
24intangible property in those states.
SB59,845 25Section 845. 71.04 (7) (dj) 1. b. of the statutes is renumbered 71.04 (7) (dj) 2m.
SB59,846
1Section 846. 71.04 (7) (dj) 1. c. of the statutes is renumbered 71.04 (7) (dj) 3m.
SB59,847 2Section 847. 71.04 (7) (dj) 2. of the statutes is repealed.
SB59,848 3Section 848. 71.04 (7) (g) of the statutes is repealed.
SB59,849 4Section 849. 71.05 (1) (c) 14. of the statutes is created to read:
SB59,605,85 71.05 (1) (c) 14. The Wisconsin Health and Educational Facilities Authority
6under s. 231.03 (6), if the bonds or notes are issued in an amount totaling $35,000,000
7or less, and to the extent that the interest income received is not otherwise exempt
8under this subsection.
SB59,850 9Section 850. 71.05 (6) (a) 15. of the statutes is amended to read:
SB59,605,1610 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the
11credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r),
12(3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5r),
13(5rm), (6n), (8b), (8r), and (10) and not passed through by a partnership, limited
14liability company, or tax-option corporation that has added that amount to the
15partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or
1671.34 (1k) (g).
SB59,851 17Section 851 . 71.05 (6) (a) 29. of the statutes is created to read:
SB59,605,1918 71.05 (6) (a) 29. For an account holder or an account holder's estate, with regard
19to an account described under s. 71.10 (10):
SB59,605,2120 a. Any amount that is distributed to an account holder under s. 71.10 (10) (d)
213. or to an account holder's estate under s. 71.10 (10) (d) 4.
SB59,606,222 b. Any amount that is withdrawn from the account for any reason other than
23payment or reimbursement of eligible costs as defined under s. 71.10 (10) (a) 3.,
24except that this subd. 29. b. does not apply to the transfer of funds to another account

1as described under s. 71.10 (10) (c) 4. or funds that are disbursed pursuant to a filing
2for bankruptcy protection under 11 USC 101 et seq.
SB59,852 3Section 852. 71.05 (6) (a) 30. of the statutes is created to read:
SB59,606,84 71.05 (6) (a) 30. The amount deducted under the Internal Revenue Code as
5moving expenses, as defined in s. 71.01 (8j), paid or incurred during the taxable year
6to move the taxpayer's Wisconsin business operation, in whole or in part, to a location
7outside the state or to move the taxpayer's business operation outside the United
8States.
SB59,853 9Section 853. 71.05 (6) (b) 9. of the statutes is renumbered 71.05 (6) (b) 9.
10(intro.) and amended to read:
SB59,607,211 71.05 (6) (b) 9. (intro.) On assets held more than one year and on all assets
12acquired from a decedent, 30 percent of the capital gain as computed under the
13internal revenue code Internal Revenue Code, not including capital gains for which
14the federal tax treatment is determined under section 406 of P.L. 99-514; not
15including amounts treated as ordinary income for federal income tax purposes
16because of the recapture of depreciation or any other reason; and not including
17amounts treated as capital gain for federal income tax purposes from the sale or
18exchange of a lottery prize. For purposes of this subdivision, the capital gains and
19capital losses for all assets shall be netted before application of the percentage. For
20taxable years beginning after December 31, 2018, this subdivision does not apply to
21any of the following individuals whose federal adjusted gross income in the year to
22which the subtraction relates exceeds the following threshold amounts, except that
23for a taxpayer whose federal adjusted gross income, less 30 percent of eligible
24long-term capital gains from nonfarm assets, is below the specified threshold
25amount, the taxpayer may claim the subtraction under this subdivision reduced by

1the amount of the taxpayer's federal adjusted gross income that exceeds the
2threshold amount:
SB59,854 3Section 854. 71.05 (6) (b) 9. a. of the statutes is created to read:
SB59,607,54 71.05 (6) (b) 9. a. For an estate, a trust, a single individual, or an individual who
5files as a head of household, $100,000.
SB59,855 6Section 855. 71.05 (6) (b) 9. b. of the statutes is created to read:
SB59,607,77 71.05 (6) (b) 9. b. For a married couple who files a joint return, $150,000.
SB59,856 8Section 856. 71.05 (6) (b) 9. c. of the statutes is created to read:
SB59,607,99 71.05 (6) (b) 9. c. For a married individual who files a separate return, $75,000.
SB59,857 10Section 857. 71.05 (6) (b) 17. of the statutes is repealed.
SB59,858 11Section 858. 71.05 (6) (b) 18. of the statutes is repealed.
SB59,859 12Section 859. 71.05 (6) (b) 19. c. of the statutes is amended to read:
SB59,607,1813 71.05 (6) (b) 19. c. For taxable years beginning before January 1, 2020, for a
14person who is a nonresident or a part-year resident of this state, modify the amount
15calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
16of which is the person's net earnings from a trade or business that are taxable by this
17state and the denominator of which is the person's total net earnings from a trade
18or business.
SB59,860 19Section 860. 71.05 (6) (b) 19. cm. of the statutes is created to read:
SB59,608,720 71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2019, for
21a person who is a nonresident or a part-year resident of this state, modify the amount
22calculated under subd. 19. b. by multiplying the amount by a fraction the numerator
23of which is the person's wages, salary, tips, unearned income, and net earnings from
24a trade or business that are taxable by this state and the denominator of which is the
25person's total wages, salary, tips, unearned income, and net earnings from a trade

1or business. In this subdivision, for married persons filing separately “wages, salary,
2tips, unearned income, and net earnings from a trade or business" means the
3separate wages, salary, tips, unearned income, and net earnings from a trade or
4business of each spouse, and for married persons filing jointly “wages, salary, tips,
5unearned income, and net earnings from a trade or business" means the total wages,
6salary, tips, unearned income, and net earnings from a trade or business of both
7spouses.
SB59,861 8Section 861. 71.05 (6) (b) 19. d. of the statutes is amended to read:
SB59,608,119 71.05 (6) (b) 19. d. Reduce For taxable years beginning before January 1, 2020,
10reduce
the amount calculated under subd. 19. b. or c. to the person's aggregate net
11earnings from a trade or business that are taxable by this state.
SB59,862 12Section 862. 71.05 (6) (b) 19. dm. of the statutes is created to read:
SB59,608,1613 71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2019,
14reduce the amount calculated under subd. 19. b. or cm. to the person's aggregate
15wages, salary, tips, unearned income, and net earnings from a trade or business that
16are taxable by this state.
SB59,863 17Section 863. 71.05 (6) (b) 20. of the statutes is repealed.
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