This is the preview version of the Wisconsin State Legislature site.
Please see http://docs.legis.wisconsin.gov for the production version.
SB720,22,2322 71.75 (11) The department shall not issue a refund to a pass-through entity
23except when the claim is for overpayment of tax originally paid by the entity.
SB720,34 24Section 34. 71.76 of the statutes is amended to read:
SB720,23,18
171.76 Internal revenue service and other state adjustments. If for any
2year the amount of federal net income tax payable, of a credit claimed or carried
3forward, of a net operating loss carried forward or of a capital loss carried forward
4of any taxpayer as reported to the internal revenue service is changed or corrected
5by the internal revenue service or other officer of the United States, such taxpayer
6shall report such changes or corrections to the department within 90 180 days after
7its final determination and shall concede the accuracy of such determination or state
8how the determination is erroneous. Such changes or corrections need not be
9reported unless they affect the amount of net tax payable under this chapter, of a
10credit calculated under this chapter, of a Wisconsin net operating loss carried
11forward, of a Wisconsin net business loss carried forward or of a capital loss carried
12forward under this chapter. Any taxpayer submitting an amended return to the
13internal revenue service, or to another state if there has been allowed a credit against
14Wisconsin taxes for taxes paid to that state, shall also file, within 90 180 days of such
15filing date, an amended return if any information contained on the amended return
16affects the amount of net tax payable under this chapter of a credit calculated under
17this chapter, of a Wisconsin net operating loss carried forward, of a Wisconsin net
18business loss carried forward or of a capital loss carried forward under this chapter.
SB720,35 19Section 35. 71.77 (7) (b) of the statutes is amended to read:
SB720,24,220 71.77 (7) (b) If notice of assessment or refund is given to the taxpayer within
2190 180 days of the date on which the department receives a report from the taxpayer
22under s. 71.76 or within such other period specified in a written agreement entered
23into prior to the expiration of such 90 180 days by the taxpayer and the department.
24If the taxpayer does not report to the department as required under s. 71.76, the

1department may make an assessment against the taxpayer or refund to the taxpayer
2within 4 years after discovery by the department.
SB720,36 3Section 36. 71.775 (1) (intro.) and (a) of the statutes are consolidated,
4renumbered 71.775 (1) and amended to read:
SB720,24,85 71.775 (1) Definitions. In this section: (a) “Nonresident", “nonresident”
6includes an individual who is not domiciled in this state; a partnership, limited
7liability company, or corporation whose commercial domicile is outside the state; and
8an estate or a trust that is a nonresident under s. 71.14 (1) to (3m).
SB720,37 9Section 37. 71.775 (1) (b) of the statutes is repealed.
SB720,38 10Section 38. 71.78 (1) of the statutes is amended to read:
SB720,25,411 71.78 (1) Divulging information. Except as provided in subs. (4), (4m) and,
12(10), and (11), no person may divulge or circulate or offer to obtain, divulge, or
13circulate any information derived from an income, franchise, withholding, fiduciary,
14partnership, or limited liability company tax return or tax credit claim, including
15information which may be furnished by the department as provided in this section.
16This subsection does not prohibit publication by any newspaper of information
17lawfully derived from such returns or claims for purposes of argument or prohibit
18any public speaker from referring to such information in any address. This
19subsection does not prohibit the department from publishing statistics classified so
20as not to disclose the identity of particular returns, or claims or reports and the items
21thereof. This subsection does not prohibit employees or agents of the department of
22revenue from offering or submitting any return, including joint returns of a spouse
23or former spouse, separate returns of a spouse, individual returns of a spouse or
24former spouse, and combined individual income tax returns, or from offering or
25submitting any claim, schedule, exhibit, writing, or audit report or a copy of, and any

1information derived from, any of those documents as evidence into the record of any
2contested matter involving the department in proceedings or litigation on state tax
3matters if, in the department's judgment, that evidence has reasonable probative
4value.
SB720,39 5Section 39. 71.78 (11) of the statutes is created to read:
SB720,25,96 71.78 (11) Pass-through entity audits. If the department audits a
7pass-through entity for the income or franchise taxes of its pass-through members,
8including when an election is made under s. 71.21 (6) (a) or 71.365 (4m) (a) to pay tax
9at the entity level, the department may disclose the following:
SB720,25,1410 (a) To a pass-through member that the pass-through entity is under audit or
11was audited, if the disclosure is necessary to explain any amounts assessed or
12refunded to the pass-through member or to obtain information necessary to
13determine the proper amount of adjustment to make at the pass-through entity
14level.
SB720,25,2015 (b) To a pass-through entity, the identities of one or more members who have
16failed to report pass-through items originating with the entity on their Wisconsin
17returns, if the disclosure is necessary to explain any amounts assessed or refunded
18to the pass-through entity or to obtain information about a pass-through member's
19return in order to determine the proper amount of adjustment to make at the
20pass-through entity level.
SB720,40 21Section 40. 71.80 (26) of the statutes is created to read:
SB720,26,822 71.80 (26) Tax matters member of a pass-through entity. (a) Each
23pass-through entity filing a return in this state under this chapter shall designate
24one pass-through member as the tax matters member on the pass-through entity's
25return filed in this state for each taxable year. If no tax matters member is

1designated on the return or no return is filed, the pass-through entity shall appoint
2a tax matters member no later than 30 days after a written request by the
3department. If no member is so appointed, the department may designate the tax
4matters member and notify the pass-through entity in writing of the designation.
5The pass-through entity may at any time provide a written statement designating
6a new tax matters member and the department shall accept it if it is signed by an
7authorized agent of the pass-through entity. The tax matters member for this state
8may be different from the entity's federal tax matters member.
SB720,26,119 (b) With regard to a department audit of a pass-through entity for income or
10franchise taxes, the tax matters member has the power and duty to do all of the
11following:
SB720,26,1412 1. Act as the sole authority on behalf of the pass-through entity with respect
13to the year under review. The pass-through members are bound by actions of the tax
14matters member under this subdivision.
SB720,26,1715 2. Provide the department sufficient information to identify each pass-through
16member, and the profits interest of each pass-through member, for each taxable year
17affected by the audit.
SB720,26,1918 3. Represent the pass-through entity and keep all pass-through members
19informed.
SB720,26,2120 4. Enter extension agreements on behalf of the pass-through entity under s.
2171.77 (5).
SB720,26,2222 5. Receive pass-through entity adjustment notices.
SB720,26,2523 6. Notify all pass-through members of their share of corrections and
24adjustments made to the pass-through entity within 90 days after the final
25determination date of the notice.
SB720,27,1
17. File appeals of pass-through entity adjustment notices.
SB720,27,32 8. Enter a settlement agreement related to pass-through entity items from the
3entity that is binding on the pass-through members.
SB720,27,54 (c) The tax matters member may delegate the powers and duties under par. (b)
5to an authorized agent.
SB720,41 6Section 41. 71.80 (27) of the statutes is created to read:
SB720,27,157 71.80 (27) Exception to pass-through entity level assessment. No later than
860 days after receipt of the department's audit determination, in a manner
9prescribed by the department, a pass-through entity with 5 or fewer members for all
10years under review may elect an audit assessment to be assessed separately to each
11pass-through member. This subsection does not apply to a pass-through entity if
12one or more of its members is a pass-through entity for any year under review or if
13the pass-through entity has made an election for the taxable year under s. 71.21 (6)
14(a) or 71.365 (4m) (a). The election under this subsection does not dismiss the duties
15of a tax matters member provided under sub. (26) (a) and (b) 2., 3., and 6.
SB720,42 16Section 42. 71.83 (1) (a) 12. of the statutes is created to read:
SB720,27,2317 71.83 (1) (a) 12. `Incomplete or incorrect pass-through entity return.' If any
18pass-through entity, as defined in s. 71.738 (3c), required under this chapter to file
19a return files an incomplete or incorrect return, the department, upon a showing by
20the department under s. 73.16 (4), shall assess the pass-through entity an amount
21equal to 25 percent of the amount of tax assessed under s. 71.745. The amount shall
22be assessed, levied, and collected in the same manner as additional income or
23franchise taxes.
SB720,43 24Section 43. 71.87 of the statutes is amended to read:
SB720,28,6
171.87 Definition. In this subchapter, “person feeling aggrieved" and “person
2aggrieved" include includes a pass-through entity, as defined in s. 71.738 (3c), and
3the spouse of a person against whom an additional assessment was made or who was
4denied a claim for refund for a taxable year for which a separate return was filed and
5include either spouse for a taxable year for which a joint return was filed or, if no
6return was filed, a joint return could have been filed.
SB720,44 7Section 44. 73.0305 of the statutes is amended to read:
SB720,28,14 873.0305 Revenue limits calculations. The department of revenue shall
9annually determine and certify to the state superintendent of public instruction, no
10later than the 4th Monday in June
at the superintendent's request, the allowable
11rate of increase under subch. VII of ch. 121. The allowable rate of increase is the
12percentage change, if not negative, in the consumer price index for all urban
13consumers, U.S. city average, between the preceding March 31 and the 2nd
14preceding March 31, as computed by the federal department of labor.
SB720,45 15Section 45. 73.09 (4) (c) of the statutes is amended to read:
SB720,28,2216 73.09 (4) (c) Recertification is contingent upon submission of an application for
17renewal, at least 60 days before the expiration date of the current certificate,
18attesting to the completion of the requirements specified in par. (b). Persons
19applying for renewal on the basis of attendance at the meetings called by the
20department under s. 73.06 (1) and by meeting continuing education requirements
21shall submit a $20 recertification fee, in an amount determined by the department
22not to exceed $75,
with their applications.
SB720,46 23Section 46. 73.09 (5) of the statutes is amended to read:
SB720,29,924 73.09 (5) Examinations. As provided in subs. (1) and (2), the department of
25revenue shall prepare and administer examinations for each level of certification.

1A person applying for an examination under this subsection shall submit a $20 an
2examination fee with the person's application. If the department administers and
3grades the examinations, the fee shall be the amount equal to the department's best
4estimate of the actual cost to administer and grade the examinations, but no greater
5than $75. If a test service provider administers and grades the examinations, the fee
6shall be the amount equal to the department's best estimate of the provider's actual
7cost to administer and grade the examinations, but no greater than $75.
The
8department of revenue shall grant certification to each person who passes the
9examination for that level.
SB720,47 10Section 47. 73.16 (4) of the statutes is amended to read:
SB720,29,1611 73.16 (4) Negligence determinations. The department shall not impose a
12penalty on a taxpayer under ss. 71.09 (11) (d), 71.83 (1) (a) 1. to 4. and 12. and (3) (a),
1376.05 (2), 76.14, 76.28 (6) (b), 76.39 (3), 76.645 (2), 77.60 (2) (intro.), (3), and (4), 78.68
14(3) and (4), and 139.25 (3) and (4), unless the department shows that the taxpayer's
15action or inaction was due to the taxpayer's willful neglect and not to reasonable
16cause.
SB720,48 17Section 48 . 74.315 (1) of the statutes is amended to read:
SB720,29,2218 74.315 (1) Submission. No later than October 1 of each year, the taxation
19district clerk shall submit to the department of revenue, on a form prescribed by the
20department, a listing of all the omitted taxes under s. 70.44 to be included on the
21taxation district's next tax roll, if the total of all such omitted taxes exceeds $5,000
22for any single description of property are $250 or more.
SB720,49 23Section 49 . 74.315 (1m) of the statutes is created to read:
SB720,30,424 74.315 (1m) Amount collected from property in a tax incremental district.
25A tax may not be included on a form submitted under sub. (1) if the tax was levied

1on a property within a tax incremental district, as defined in s. 60.85 (1) (n) or 66.1105
2(2) (k), unless the current value of the tax incremental district is lower than the tax
3incremental base, as defined in s. 60.85 (1) (m) or 66.1105 (2) (j), in the assessment
4year for which the tax was collected.
SB720,50 5Section 50 . 74.315 (2) of the statutes is amended to read:
SB720,30,146 74.315 (2) Equalized valuation Amount determined. After receiving the form
7under sub. (1), but no later than November 15, the department of revenue shall
8determine the amount of any change in the taxation district's equalized valuation
9that results from considering the valuation represented by the taxes described under
10sub. (1)
taxes to be shared with each taxing jurisdiction for which the taxation district
11collected taxes and determine the amount of taxes collected under s. 70.44 to be
12shared with each taxing jurisdiction for which the taxation district collected taxes
.
13The department's determination under this subsection is subject to review only
14under s. 227.53.
SB720,51 15Section 51 . 74.315 (3) of the statutes is amended to read:
SB720,30,2116 74.315 (3) Notice and distribution. If the department of revenue determines
17under sub. (2) that the taxation district's equalized valuation changed as a result of
18considering the valuation represented by the taxes described under sub. (1), the
The
19department shall notify the taxation district and the taxation district shall distribute
20the resulting collections under ss. 74.23 (1) (a) 5., 74.25 (1) (a) 4m., and 74.30 (1) (dm)
21resulting from the determinations made under sub. (2).
SB720,52 22Section 52. 76.04 (1) of the statutes is amended to read:
SB720,31,223 76.04 (1) Every company defined in s. 76.02 shall, annually, file a true and
24accurate statement in such manner and form and setting forth such facts as the
25department shall deem necessary to enforce ss. 76.01 to 76.26. The annual reports

1for railroad companies shall be filed on or before April 15 and for conservation and
2regulation companies, air carriers and pipeline companies
on or before May 1.
SB720,53 3Section 53. 76.07 (1) of the statutes is amended to read:
SB720,31,94 76.07 (1) Duty of department. The department on or before August 1
5September 15 in each year in the case of railroad companies, and on or before
6September 15 in the case of air carrier companies, conservation and regulation
7companies and pipeline companies,
shall, according to its best knowledge and
8judgment, ascertain and determine the full market value of the property of each
9company within the state.
SB720,54 10Section 54. 76.075 of the statutes is amended to read:
SB720,31,25 1176.075 Adjustments of assessments. Within 4 years after the due date, or
12extended due date, of the report under s. 76.04, any person subject to taxation under
13this subchapter may request the department to make, or the department may make,
14an adjustment to the data under s. 76.07 (4g) or (4r) submitted by the person. If an
15adjustment under this section results in an increase in the tax due under this
16subchapter, the person shall pay the amount of the tax increase plus interest on that
17amount at the rate of 1 percent per month from the due date or extended due date
18of the report under s. 76.04 until the date of final determination and interest at the
19rate of 1.5 percent per month from the date of final determination until the date of
20payment. If an adjustment under this section results in a decrease in the tax due
21under this subchapter, the department shall refund the appropriate amount plus
22interest at the rate of 0.75 0.25 percent per month from the due date or extended due
23date under s. 76.04 until the date of refund. Sections 71.74 (1) and (2) and 71.75 (6)
24and (7), as they apply to income and franchise tax adjustments, apply to adjustments
25under this section. Review of the adjustments is as stated in s. 76.08.
SB720,55
1Section 55. 76.13 (3) of the statutes is amended to read:
SB720,32,132 76.13 (3) If the Dane County circuit court, after such roll is delivered to the
3secretary of administration, increases or decreases the assessment of any company,
4the department shall immediately redetermine the tax of the company on the basis
5of the revised assessment, and shall certify and deliver the revised assessment to the
6secretary of administration as a revision of the tax roll. If the amount of tax upon
7the assessment as determined by the court is less than the amount paid by the
8company, the secretary of administration shall refund the excess to the company with
9interest at the rate of 9 3 percent per year. If the amount of the tax upon the
10assessment as determined by the court is in excess of the amount of the tax as
11determined by the department, interest shall be paid on the additional amount at the
12rate of 12 percent per year from the date of entry of judgment to the date the
13judgment becomes final, and at 1.5 percent per month thereafter until paid.
SB720,56 14Section 56. 76.28 (4) (b) of the statutes is amended to read:
SB720,32,2315 76.28 (4) (b) In the case of overpayments of license fees by any light, heat and
16power company under par. (a), the department shall certify the overpayments to the
17department of administration, which shall audit the amount of the overpayments
18and the secretary of administration shall pay the amounts determined by means of
19the audit. All refunds of license fees under this subsection shall bear interest at the
20annual rate of 9 3 percent from the date of the original payment to the date when
21the refund is made. The time for making additional levies of license fees or claims
22for refunds of excess license fees paid, in respect to any year, shall be limited to 4
23years after the time the report for such year was filed.
SB720,57 24Section 57. 76.28 (11) of the statutes is amended to read:
SB720,33,7
176.28 (11) Payment before contesting. No action or proceeding, except a
2petition for redetermination under sub. (4), may be brought by a light, heat or power
3company against this state to contest any assessment of a tax under this section
4unless the taxpayer first pays to this state the amount of tax assessed. If the
5taxpayer prevails in an action or proceeding, this state shall settle with the taxpayer,
6including payment of interest at 9 3 percent per year on the amount of the money
7paid from the date of payment until the date of judgment.
SB720,58 8Section 58. 76.39 (4) (d) of the statutes is amended to read:
SB720,33,149 76.39 (4) (d) All refunds shall be certified by the department to the department
10of administration which shall audit the amount of the refunds and the secretary of
11administration shall pay the amount, together with interest at the rate of 9 3 percent
12per year from the date payment was made. All additional taxes shall bear interest
13at the rate of 12 percent per year from the time they should have been paid to the date
14upon which the additional taxes shall become delinquent if unpaid.
SB720,59 15Section 59. 76.48 (5) of the statutes is amended to read:
SB720,34,216 76.48 (5) Additional assessments may be made, if notice of such assessment is
17given, within 4 years of the date the annual return was filed, but if no return was
18filed, or if the return filed was incorrect and was filed with intent to defeat or evade
19the tax, an additional assessment may be made at any time upon the discovery of
20gross revenues by the department. Refunds may be made if a claim for the refund
21is filed in writing with the department within 4 years of the date the annual return
22was filed. Refunds shall bear interest at the rate of 9 3 percent per year and shall
23be certified by the department to the secretary of administration who shall audit the
24amounts of such overpayments and pay the amount audited. Additional

1assessments shall bear interest at the rate of 12 percent per year from the time they
2should have been paid to the date upon which they shall become delinquent if unpaid.
SB720,60 3Section 60. 77.51 (13gm) (a) (intro.) of the statutes is renumbered 77.51
4(13gm) (a) and amended to read:
SB720,34,95 77.51 (13gm) (a) “Retailer engaged in business in this state” does not include
6a retailer who has no activities as described in sub. (13g), except for activities
7described in sub. (13g) (c), unless the retailer meets either of the following criteria
8retailer's annual gross sales into this state exceed $100,000 in the previous year or
9current calendar year:.
SB720,61 10Section 61. 77.51 (13gm) (a) 1. and 2. of the statutes are repealed.
SB720,62 11Section 62. 77.51 (13gm) (b) of the statutes is amended to read:
SB720,34,1712 77.51 (13gm) (b) If an out-of-state retailer's annual gross sales into this state
13exceed $100,000 in the previous calendar year or the retailer's annual number of
14separate sales transactions into this state is 200 or more in the previous year
, the
15retailer shall register with the department and collect the taxes administered under
16s. 77.52 or 77.53 on sales sourced to this state under s. 77.522 for the entire current
17calendar year.
SB720,63 18Section 63. 77.51 (13gm) (c) of the statutes is amended to read:
SB720,35,219 77.51 (13gm) (c) If an out-of-state retailer's annual gross sales into this state
20are $100,000 or less in the previous calendar year and the retailer's annual number
21of separate sales transactions into this state is less than 200 in the previous year
, the
22retailer is not required to register with the department and collect the taxes
23administered under s. 77.52 or 77.53 on sales sourced to this state under s. 77.522
24until the retailer's gross sales or transactions meet the criteria in par. (a) 1. or 2.
25exceed $100,000 for the current calendar year, at which time the retailer shall

1register with the department and collect the tax for the remainder of the current
2calendar year.
SB720,64 3Section 64. 77.51 (13gm) (d) 1. of the statutes is repealed.
SB720,65 4Section 65. 77.51 (13gm) (d) 2. of the statutes is amended to read:
SB720,35,65 77.51 (13gm) (d) 2. The annual amounts described in this subsection include
6“Gross sales” includes both taxable and nontaxable sales.
SB720,66 7Section 66. 77.51 (13gm) (d) 3. and 4. of the statutes are repealed.
SB720,67 8Section 67. 77.51 (13gm) (d) 5. of the statutes is amended to read:
SB720,35,119 77.51 (13gm) (d) 5. An out-of-state retailer's annual amounts gross sales
10include all sales into this state by the retailer on behalf of other persons and all sales
11into this state by another person on the retailer's behalf.
SB720,68 12Section 68 . 77.52 (2m) (b) of the statutes is amended to read:
SB720,35,2113 77.52 (2m) (b) With respect to the type of services subject to tax under sub. (2)
14(a) 7., 10., 11., and 20. and except as provided in s. 77.54 (60) (b) and (bm) 2., all
15tangible personal property or items, property, or goods under s. 77.52 sub. (1) (b), (c),
16or (d) physically transferred, or transferred electronically, to the customer in
17conjunction with the selling, performing, or furnishing of the service is a sale of
18tangible personal property or items, property, or goods under s. 77.52 sub. (1) (b), (c),
19or (d) separate from the selling, performing, or furnishing of the service, regardless
20of whether the purchaser claims an exemption on its purchase of the service. This
21paragraph does not apply to services provided by veterinarians
.
SB720,69 22Section 69 . 77.54 (6) (am) 2. of the statutes is amended to read:
SB720,36,623 77.54 (6) (am) 2. Containers, labels, sacks, cans, boxes, drums, bags or other
24packaging and shipping materials for use in packing, packaging or shipping tangible
25personal property or items or property under s. 77.52 (1) (b) or (c), if the containers,

1labels, sacks, cans, boxes, drums, bags, or other packaging and shipping materials
2are used by the purchaser to transfer merchandise to customers or physically
3transferred to the customer in conjunction with the selling, performing, or
4furnishing of the type of services under s. 77.52 (2) (a) 7., 10, 11., or 20. that are
5exempt from or not subject to taxation under this subchapter. This subdivision does
6not apply to services provided by veterinarians
.
SB720,70 7Section 70. 77.54 (9a) (f) of the statutes is amended to read:
SB720,36,188 77.54 (9a) (f) Any corporation, community chest fund, or foundation or
9association organized and operated exclusively for religious, charitable, scientific or
10educational purposes, or for the prevention of cruelty to children or animals, except
11hospital service insurance corporations under s. 613.80 (2), no part of the net income
12of which inures to the benefit of any private stockholder, shareholder, member or
13corporation
that is exempt from federal income tax under section 501 (c) (3) of the
14Internal Revenue Code and has received a determination letter from the internal
15revenue service. The exemption under this paragraph applies to churches and
16religious organizations that meet the requirements of section 501 (c) (3) but are not
17required to apply for and obtain tax-exempt status from the internal revenue
18service
.
SB720,71 19Section 71. 77.61 (5) (b) 8m. of the statutes is created to read:
SB720,36,2120 77.61 (5) (b) 8m. The state auditor and the employees of the legislative audit
21bureau to the extent necessary for the bureau to carry out its duties under 13.94.
SB720,72 22Section 72. 79.02 (1) of the statutes is amended to read:
SB720,37,223 79.02 (1) The Except as provided in sub. (2) (b), the department of
24administration, upon certification by the department of revenue, shall distribute

1shared revenue payments to each municipality and county on the 4th Monday in July
2and the 3rd Monday in November.
SB720,73 3Section 73. 79.02 (2) (b) of the statutes is amended to read:
SB720,37,84 79.02 (2) (b) Subject to ss. 59.605 (4) and 70.995 (14) (b), payments in July shall
5equal 15 percent of the municipality's or county's estimated payments under ss.
679.035 and 79.04 and 100 percent of the municipality's estimated payments under
7s. 79.05. Upon certification by the department of revenue, the estimated payment
8under s. 79.05 may be distributed before the 4th Monday in July.
Loading...
Loading...