AB43: Bill Text

AB43,,3398 70.995 (4) Whenever real property or tangible personal property is used for one, or some combination, of the processes mentioned in sub. (3) and also for other purposes, the department of revenue, if satisfied that there is substantial use in one or some combination of such processes, may assess the property under this section. For all purposes of this section the department of revenue shall have sole discretion for the determination of what is substantial use and what description of real property or what unit of tangible personal property shall constitute “the property” to be included for assessment purposes, and, in connection herewith, the department may include in a real property unit, real property owned by different persons. Vacant property designed for use in manufacturing, assembling, processing, fabricating, making, or milling tangible property for profit may be assessed under this section or under s. 70.32 (1), and the period of vacancy may not be the sole ground for making that determination. In those specific instances where a portion of a description of real property includes manufacturing property rented or leased and operated by a separate person which does not satisfy the substantial use qualification for the entire property, the local assessor shall assess the entire real property description and all personal property not exempt under s. 70.11 (27). The applicable portions of the standard manufacturing property report form under sub. (12) as they relate to manufacturing machinery and equipment shall be submitted by such person.

AB43,1346 Section 1346. 70.995 (5) of the statutes is amended to read:

AB43,,3400 70.995 (5) The department of revenue shall assess all property of manufacturing establishments included under subs. (1) and (2) as of the close of January 1 of each year, if on or before March 1 of that year the department has classified the property as manufacturing or the owner of the property has requested, in writing, that the department make such a classification and the department later does so. A change in ownership, location, or name of the manufacturing establishment does not necessitate a new request. In assessing lands from which metalliferous minerals are being extracted and valued for purposes of the tax under s. 70.375, the value of the metalliferous mineral content of such lands shall be excluded.

AB43,1347 Section 1347. 70.995 (5n) of the statutes is created to read:

AB43,,3402 70.995 (5n) (a) If the department of revenue determines that an establishment is engaged in manufacturing, as defined in subs. (1), (2), and (3), the department may classify the establishment as manufacturing. The establishment shall submit a written request on or before July 1 of the year for which classification is desired, as provided under s. 71.07 (5n) (a) 9. c. or 71.28 (5n) (a) 9. c.

AB43,,3403 (b) The department may at any time investigate or audit requests submitted under par. (a) and may revoke a classification. An establishment that submits a request under par. (a) shall notify the department within 60 days of any termination of manufacturing activity.

AB43,,3404 (c) On or before December 31 of the year in which a request is timely submitted under par. (a), the department shall issue a notice of determination responding to the timely request. The department may, in its sole discretion, issue a notice of determination by December 31 for requests received after July 1 of the year in which classification is desired. The notice shall be in writing and shall be sent by 1st class mail or electronic mail. In addition, the notice shall specify that objections to the decision shall be filed with the state board of assessors no later than 60 days after the date of the notice, that a fee of $200 shall be paid when the objection is filed, and that the objection is not filed until the fee is paid.

AB43,,3405 (d) For purposes of this subsection, an objection is considered timely filed if received by the state board of assessors no later than 60 days after the date of the notice or sent to the state board of assessors by U.S. postal service certified mail in a properly addressed envelope, with postage paid, that is postmarked before midnight of the last day for filing. Neither the board nor the tax appeals commission may waive the requirement that objections be in writing.

AB43,,3406 (e) The state board of assessors shall investigate any timely objection filed under par. (d) if the fee specified under par. (c) is paid. The board shall notify the person objecting or the person’s agent of its determination by 1st class mail or electronic mail.

AB43,,3407 (f) If a determination of the state board of assessors under par. (e) results in an establishment not being classified as manufacturing, the person having been notified of the determination shall be deemed to have accepted the determination unless the person files a petition for review with the clerk of the tax appeals commission, as provided under s. 73.01 (5) and the rules of practice of the tax appeals commission.

AB43,1348 Section 1348. 70.995 (7) (b) of the statutes is amended to read:

AB43,,3409 70.995 (7) (b) Each 5 years, or more frequently if the department of revenue’s workload permits and if in the department’s judgment it is desirable, the department of revenue shall complete a field investigation or on-site appraisal at full value under ss. s. 70.32 (1) and 70.34 of all manufacturing real property in this state.

AB43,1349 Section 1349. 70.995 (8) (b) 1. of the statutes is amended to read:

AB43,,3411 70.995 (8) (b) 1. The department of revenue shall annually notify each manufacturer assessed under this section and the municipality in which the manufacturing property is located of the full value of all real and personal property owned by the manufacturer. The notice shall be in writing and shall be sent by 1st class mail or electronic mail. In addition, the notice shall specify that objections to valuation, amount, or taxability must be filed with the state board of assessors no later than 60 days after the date of the notice of assessment, that objections to a change from assessment under this section to assessment under s. 70.32 (1) must be filed no later than 60 days after the date of the notice, that the fee under par. (c) 1. or (d) must be paid, and that the objection is not filed until the fee is paid. For purposes of this subdivision, an objection is considered timely filed if received by the state board of assessors no later than 60 days after the date of the notice or sent to the state board of assessors by U.S. postal service certified mail in a properly addressed envelope, with postage paid, that is postmarked before midnight of the last day for filing. A statement shall be attached to the assessment roll indicating that the notices required by this section have been mailed and failure to receive the notice does not affect the validity of the assessments, the resulting tax on real or personal property, the procedures of the tax appeals commission or of the state board of assessors, or the enforcement of delinquent taxes by statutory means.

AB43,1350 Section 1350. 70.995 (12) (a) of the statutes is amended to read:

AB43,,3413 70.995 (12) (a) The department of revenue shall prescribe a standard manufacturing property report form that shall be submitted annually for each real estate parcel and each personal property account on or before March 1 by all manufacturers whose property is assessed under this section. The report form shall contain all information considered necessary by the department and shall include, without limitation, income and operating statements, fixed asset schedules and a report of new construction or demolition. Failure to submit the report shall result in denial of any right of redetermination by the state board of assessors or the tax appeals commission. If any property is omitted or understated in the manufacturing real estate assessment roll in any of the next 5 previous years, or in a manufacturing personal property assessment roll made before January 1, 2024, the assessor shall enter the value of the omitted or understated property once for each previous year of the omission or understatement. The assessor shall affix a just valuation to each entry for a former year as it should have been assessed according to the assessor’s best judgment. Taxes shall be apportioned and collected on the tax roll for each entry, on the basis of the net tax rate for the year of the omission, taking into account credits under s. 79.10. In the case of omitted property, interest shall be added at the rate of 0.0267 percent per day for the period of time between the date when the form is required to be submitted and the date when the assessor affixes the just valuation. In the case of underpayments determined after an objection under sub. (8) (d), interest shall be added at the average annual discount interest rate determined by the last auction of 6-month U.S. treasury bills before the objection per day for the period of time between the date when the tax was due and the date when it is paid.

AB43,1351 Section 1351. 70.995 (12r) of the statutes is repealed.

AB43,1352 Section 1352. 70.995 (14) (b) of the statutes is amended to read:

AB43,,3416 70.995 (14) (b) If the department of revenue does not receive the fee imposed on a municipality imposes a fee under par. (a) by March 31 of each year on a municipality, the department shall reduce the a distribution made to the municipality under s. 79.02 (1) in the following year by the amount of the fee. Any amount that is not able to be deducted from a distribution under s. 79.02 (1) shall be directly imposed upon the municipality.

AB43,1353 Section 1353. 71.01 (6) of the statutes is repealed and recreated to read:

AB43,,3418 71.01 (6) For individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, “Internal Revenue Code” has the meaning given in s. 71.99.

AB43,1354 Section 1354. 71.01 (7) of the statutes is repealed.

AB43,1355 Section 1355. 71.01 (7g) of the statutes is repealed.

AB43,1356 Section 1356. 71.01 (7m) of the statutes is repealed.

AB43,1357 Section 1357. 71.01 (7n) of the statutes is repealed.

AB43,1358 Section 1358. 71.01 (7r) of the statutes is repealed.

AB43,1359 Section 1359. 71.03 (2) (d) (title) of the statutes is amended to read:

AB43,,3425 71.03 (2) (d) (title) Husband and wife Spouses joint filing.

AB43,1360 Section 1360. 71.03 (2) (d) 1. of the statutes is amended to read:

AB43,,3427 71.03 (2) (d) 1. Except as provided in subds. 2. and 3. and par. (e), a husband and a wife spouses may file a joint return for income tax purposes even though one of the spouses has no gross income or no deductions.

AB43,1361 Section 1361. 71.03 (2) (d) 2. of the statutes is amended to read:

AB43,,3429 71.03 (2) (d) 2. No joint return may be filed if either the husband or wife spouse at any time during the taxable year is a nonresident alien, unless an election is in effect for the taxable year under section 6013 (g) or (h) of the internal revenue code Internal Revenue Code.

AB43,1362 Section 1362. 71.03 (2) (d) 3. of the statutes is amended to read:

AB43,,3431 71.03 (2) (d) 3. No joint return may be filed if the husband and wife spouses have different taxable years, except that if their taxable years begin on the same day and end on different days because of the death of either or both the joint return may be filed with respect to the taxable year of each unless the surviving spouse remarries before the close of his or her taxable year or unless the taxable year of either spouse is a fractional part of a year under section 443 (a) (1) of the internal revenue code Internal Revenue Code.

AB43,1363 Section 1363. 71.03 (2) (g) of the statutes is amended to read:

AB43,,3433 71.03 (2) (g) Joint return following separate return. Except as provided in par. (i), if an individual has filed a separate return for a taxable year for which a joint return could have been filed by the individual and the individual’s spouse under par. (d) or (e) and the time prescribed by law for timely filing the return for that taxable year has expired, the individual and the individual’s spouse may file a joint return for that taxable year. A joint return filed by the husband and wife spouses under this paragraph is their return for that taxable year, and all payments, credits, refunds or other repayments made or allowed with respect to the separate return of each spouse for that taxable year shall be taken into account in determining the extent to which the tax based upon the joint return has been paid. If a joint return is filed under this paragraph, any election, other than the election to file a separate return, made by either spouse in that spouse’s separate return for that taxable year with respect to the treatment of any income, deduction or credit of that spouse may not be changed in the filing of the joint return if that election would have been irrevocable if the joint return had not been filed.

AB43,1364 Section 1364. 71.03 (2) (m) 2. of the statutes is amended to read:

AB43,,3435 71.03 (2) (m) 2. If a husband and wife spouses change from a joint return to separate returns within the time prescribed in subd. 1., the tax paid on the joint return shall be allocated between them in proportion to the tax liability shown on each separate return.

AB43,1365 Section 1365. 71.03 (4) (a) of the statutes is amended to read:

AB43,,3437 71.03 (4) (a) Natural persons whose total income is not in excess of $10,000 and consists entirely of wages subject to withholding for Wisconsin tax purposes and not more than $200 total of dividends, interest and other wages not subject to Wisconsin withholding, and who have elected the Wisconsin standard deduction and have not claimed either the credit for homestead property tax relief or deductions for expenses incurred in earning such income, shall, at their election, not be required to record on their income tax returns the amount of the tax imposed on their Wisconsin taxable income. Married persons shall be permitted this election only if the joint income of the husband and wife spouses does not exceed $10,000, if both report their incomes on the same joint income tax return form, and if both make this election.

AB43,1366 Section 1366. 71.03 (9) of the statutes is created to read:

AB43,,3439 71.03 (9) Medical Assistance coverage. (a) The department shall include the following questions and explanatory information on each individual income tax return under this section and a method for the taxpayer to respond to each question:

AB43,,3440 1. “Are you, your spouse, your dependent children, or any eligible adult child dependent not covered under a health insurance policy, health plan, or other health care coverage? ‘Eligible adult child dependent’ means a child who is under the age of 26 who is a full-time student or a child who is under the age of 27 who is called to active duty in the national guard or armed forces reserve while enrolled as a full-time student.”

AB43,,3441 2. “If you responded ‘yes’ to question 1, do you want to have evaluated your eligibility for Medical Assistance under subch. IV of ch. 49 or your eligibility for subsidized health insurance coverage?”

AB43,,3442 (b) For each person who responded “yes” to the question under par. (a) 2., the department shall provide that person’s contact information and other relevant information from that person’s individual income tax return to the department of health services to perform an evaluation of that person’s eligibility under the Medical Assistance program or an evaluation of that person’s eligibility for subsidized health insurance coverage through an exchange, as defined under 45 CFR 155.20. The information provided to the department of health services may not be used to determine that the individual is ineligible to enroll in the Medical Assistance program.

AB43,1367 Section 1367. 71.05 (1) (am) of the statutes is amended to read:

AB43,,3444 71.05 (1) (am) Military retirement systems. All retirement payments received from the U.S. military employee retirement system, to the extent that such payments are not exempt under par. (a) or sub. (6) (b) 54. or 54m.

AB43,1368 Section 1368. 71.05 (1) (an) of the statutes is amended to read:

AB43,,3446 71.05 (1) (an) Uniformed services retirement benefits. All retirement payments received from the U.S. government that relate to service with the coast guard, the commissioned corps of the national oceanic and atmospheric administration, or the commissioned corps of the public health service, to the extent that such payments are not exempt under par. (a) or (am) or sub. (6) (b) 54. or 54m.

AB43,1369 Section 1369. 71.05 (6) (a) 15. of the statutes is amended to read:

AB43,,3448 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5i), (5j), (5k), (5r), (5rm), (6n), (8m), 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).

AB43,1370 Section 1370. 71.05 (6) (a) 28. of the statutes is amended to read:

AB43,,3450 71.05 (6) (a) 28. Upon the termination of an account as described under s. 16.643 or 224.55, any amount in the account that is returned to an account owner’s estate.

AB43,1371 Section 1371. 71.05 (6) (a) 30. of the statutes is created to read:

AB43,,3452 71.05 (6) (a) 30. For an account holder, as defined in s. 71.10 (10) (a) 1., or an account holder’s estate:

AB43,,3453 a. Any amount distributed under s. 71.10 (10) (d) 2. or 3.

AB43,,3454 b. Any amount withdrawn from the account created under s. 71.10 (10) (b) 1. for any reason other than payment or reimbursement of eligible costs, as defined in s. 71.10 (10) (a) 4., except that this subd. 30. b. does not apply to the transfer of funds to another account as described in s. 71.10 (10) (c) 4. or to the disbursement of funds pursuant to a filing for bankruptcy protection under 11 USC 101 et seq.

AB43,1372 Section 1372. 71.05 (6) (b) 4. (intro.) of the statutes is amended to read:

AB43,,3456 71.05 (6) (b) 4. (intro.) Disability For taxable years beginning before January 1, 2023, disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subd. subds. 54. and 54m. and sub. (1) (am) and (an), if the individual either is single or is married and files a joint return and is under 65 years of age before the close of the taxable year to which the subtraction relates, retired on disability, and, when the individual retired, was permanently and totally disabled. In this subdivision, “permanently and totally disabled” means an individual who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An individual shall not be considered permanently and totally disabled for purposes of this subdivision unless proof is furnished in such form and manner, and at such times, as prescribed by the department. The exclusion under this subdivision shall be determined as follows:

****Note: This is reconciled s. 71.05 (6) (b) 4. (intro.). This Section has been affected by drafts with the following LRB numbers: -1235/P1 and -1234/P1.

AB43,1373 Section 1373. 71.05 (6) (b) 4m. of the statutes is created to read:

AB43,,3458 71.05 (6) (b) 4m. For taxable years beginning after December 31, 2022, disability payments other than disability payments that are paid from a retirement plan, the payments from which are exempt under subds. 54. and 54m. and sub. (1) (am) and (an), if the individual is under 65 years of age before the close of the taxable year to which the subtraction relates, retired on disability, and, when the individual retired, was permanently and totally disabled. In this subdivision, “permanently and totally disabled” means an individual who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. An individual shall not be considered permanently and totally disabled for purposes of this subdivision unless proof is furnished in such form and manner, and at such times, as prescribed by the department. The exclusion under this subdivision shall be determined as follows:

AB43,,3459 a. If the individual is single or files as a head of household and the individual’s federal adjusted gross income in the year to which the subtraction relates is less than $30,000, the maximum subtraction is $5,500 or the amount of disability pay reported as income, whichever is less.

AB43,,3460 b. If the individual is married and is a joint filer and the couple’s federal adjusted gross income in the year to which the subtraction relates is less than $60,000, the maximum subtraction is $5,500 per spouse that is disabled or the amount of disability pay reported as income, whichever is less.

AB43,,3461 c. If the individual is married and files a separate return and the sum of both spouses’ federal adjusted gross income in the year to which the subtraction relates is less than $60,000, the maximum subtraction is $5,500 or the amount of disability pay reported as income, whichever is less.

****Note: This is reconciled s. 71.05 (6) (b) 4m. This Section has been affected by drafts with the following LRB numbers: -1235/P1 and -1234/P1.

AB43,1374 Section 1374. 71.05 (6) (b) 9. of the statutes is renumbered 71.05 (6) (b) 9. (intro.) and amended to read:

AB43,,3463 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, 2022, no subtraction may be made under this subdivision by an individual whose federal adjusted gross income in the taxable year exceeds the applicable threshold amount, except that an individual whose federal adjusted gross income, less 30 percent of the capital gains otherwise eligible for subtraction under this subdivision, is below the applicable threshold amount may make the subtraction reduced by the amount that the individual’s federal adjusted gross income exceeds the applicable threshold amount. In this subdivision, “applicable threshold amount” means:

AB43,1375 Section 1375. 71.05 (6) (b) 9. a. of the statutes is created to read:

AB43,,3465 71.05 (6) (b) 9. a. For an estate, a trust, a single individual, or an individual who files as a head of household, $400,000.

AB43,1376 Section 1376. 71.05 (6) (b) 9. b. of the statutes is created to read:

AB43,,3467 71.05 (6) (b) 9. b. For a married couple who files a joint return, $533,000.

AB43,1377 Section 1377. 71.05 (6) (b) 9. c. of the statutes is created to read:

AB43,,3469 71.05 (6) (b) 9. c. For a married individual who files a separate return, $266,500.

AB43,1378 Section 1378. 71.05 (6) (b) 49. a. of the statutes is amended to read:

AB43,,3471 71.05 (6) (b) 49. a. Subject to the definitions provided in subd. 49. b. to g. and the limitations specified in subd. 49. h. to j. for taxable years beginning after December 31, 2013, and subject to the limitation in subd. 49. k. for taxable years beginning after December 31, 2017, and subject to the limitation in subd. 49. m. for taxable years beginning after December 31, 2022, tuition expenses that are paid by a claimant for tuition for a pupil to attend an eligible institution.

AB43,1379 Section 1379. 71.05 (6) (b) 49. m. of the statutes is created to read:

AB43,,3473 71.05 (6) (b) 49. m. For taxable years beginning after December 31, 2022, no modification may be made under this subdivision unless the adjusted gross income of the claimant is less than $100,000 if the claimant is filing as single or head of household, $150,000 if the claimant is married and filing jointly, or $75,000 if the claimant is married and filing separately.

AB43,1380 Section 1380. 71.05 (6) (b) 54. (intro.) of the statutes is amended to read:

AB43,,3475 71.05 (6) (b) 54. (intro.) Except for a payment that is exempt under sub. (1) (a), (am), or (an), or that is exempt as a railroad retirement benefit, for taxable years beginning after December 31, 2020, and before January 1, 2023, up to $5,000 of payments or distributions received each year by an individual from a qualified retirement plan under the Internal Revenue Code or from an individual retirement account established under 26 USC 408, if all of the following conditions apply:

AB43,1381 Section 1381. 71.05 (6) (b) 54m. of the statutes is created to read:

AB43,,3477 71.05 (6) (b) 54m. Except for a payment that is exempt under sub. (1) (a), (am), or (an), or that is exempt as a railroad retirement benefit, for taxable years beginning after December 31, 2022, up to $5,500 of payments or distributions received each year by an individual from a qualified retirement plan under the Internal Revenue Code or from an individual retirement account established under 26 USC 408, if all of the following conditions apply:

AB43,,3478 a. The individual is at least 65 years of age before the close of the taxable year to which the exemption claim relates.

AB43,,3479 b. If the individual is single or files as head of household, his or her federal adjusted gross income in the year to which the exemption claim relates is less than $30,000.

AB43,,3480 c. If the individual is married and is a joint filer, the couple’s federal adjusted gross income in the year to which the exemption claim relates is less than $60,000.

AB43,,3481 d. If the individual is married and files a separate return, the sum of both spouses’ federal adjusted gross income in the year to which the exemption claim relates is less than $60,000.

AB43,1382 Section 1382. 71.05 (6) (b) 57. of the statutes is created to read:

AB43,,3483 71.05 (6) (b) 57. For each account an account holder, as defined in s. 71.10 (10) (a) 1., creates under s. 71.10 (10) (b) 1., and subject to s. 71.10 (10) (d), the amount deposited, limited to $5,000, by the account holder into the account during the taxable year and any interest, dividends, and other gains that accrue in the account and are redeposited into it. If the account holder is married and files a joint return, the $5,000 limitation shall be increased to $10,000. The subtraction under this subdivision does not apply to the transfer of funds from another account as described in s. 71.10 (10) (c) 4.

AB43,1383 Section 1383. 71.05 (8) (a) of the statutes is amended to read: