SB1021,,112023 SENATE BILL 1021
February 13, 2024 - Introduced by Senator Marklein, cosponsored by Representative Wittke. Referred to Committee on Universities and Revenue.
SB1021,,22An Act to renumber and amend 77.60 (1) (a) and 77.60 (1) (b); to amend 70.38 (1m), 71.03 (7) (intro.), 71.24 (7) (a), 71.44 (3) (a), 71.775 (4) (bm) 1., 71.775 (4) (bm) 2., 71.775 (4) (em), 71.82 (1), 71.82 (2) (b), 71.82 (2) (d), 71.84 (1), 71.84 (2) (a), 71.84 (2) (b), 71.84 (2) (c), 71.90 (1), 71.91 (6) (e) 3., 71.91 (6) (f) 5., 73.03 (6), 76.075, 76.13 (2), 76.13 (2a), 76.13 (3), 76.22 (2), 76.28 (4) (a), 76.28 (4) (b), 76.28 (11), 76.39 (4) (d), 76.48 (5), 77.59 (6) (c), 77.96 (5), 78.68 (1), 139.25 (1), 139.44 (9), 168.12 (6) (c), 168.12 (6) (d) 2., 168.12 (6) (e) 1. and 168.12 (6) (e) 3.; and to create 77.60 (1) (b) 2. of the statutes; relating to: interest rates on late, nondelinquent taxes and on overpayments.
SB1021,,33Analysis by the Legislative Reference Bureau
This bill modifies the interest rates applicable to various late, nondelinquent taxes and fees owed to the Department of Revenue and to overpayments for those taxes and fees that are refunded by DOR. Under current law, generally, late, nondelinquent taxes or fees administered by DOR are subject to an interest rate of 12 percent per year, and DOR must pay interest at the rate of 3 percent per year on refunds of overpayments of those taxes or fees. Under the bill, the interest rate for late, nondelinquent taxes or fees administered by DOR is 6 percent per year, and DOR must pay interest at the rate of 6 percent per year on refunds of overpayments. The bill applies to the following taxes and fees: 1) the individual income and corporate income and franchise tax; 2) the withholding; 3) the sales and use tax; 4) taxes paid by utilities and insurers; 5) excises taxes on motor vehicle fuel, alcohol beverages, and cigarettes, tobacco, and vapor products; 6) the economic development surcharge; 7) the petroleum inspection fee; 8) the metalliferous mining tax; and 9) the charge imposed by DOR on a city, village, town, or county for the expenses incurred by DOR in examining city, village, town, or county records regarding the assessment of property upon failure to return information requested by DOR.
Also, current law requires that an interest rate of 12 percent per year apply to delinquent individual income and corporate income and franchise taxes in instances in which the secretary of DOR determines that reduction from an interest rate of 1.5 percent per month for such delinquent taxes is fair and equitable. The bill requires that an interest rate of 6 percent per year apply to such delinquent taxes in instances in which the DOR secretary determines that the reduction is fair and equitable.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
SB1021,,44The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SB1021,15Section 1. 70.38 (1m) of the statutes is amended to read:
SB1021,,6670.38 (1m) Estimated liability. Upon written request and for sufficient reason shown, the department shall allow a person subject to the tax under s. 70.375 to file, on or before June 15, a net proceeds tax return and to pay that tax based upon estimated tax liability. On or before September 15, that person shall file a final report and pay any additional tax due along with interest at the rate of 1 0.5 percent per month from June 15 until the date of payment. If the additional tax exceeds 10 percent of the person’s tax under s. 70.375 for the previous year, the penalty and interest under s. 70.39 (1) apply. If the final report indicates that the person overpaid the person’s liability, the department shall refund the overpayment.
SB1021,27Section 2. 71.03 (7) (intro.) of the statutes is amended to read:
SB1021,,8871.03 (7) Extension of time to file. (intro.) Returns of natural persons and fiduciaries that require a statement of amounts or information contained or entered on a corresponding return under the internal revenue code shall be filed within the time fixed under that code for filing of the corresponding federal return. Any extension of time granted by law or by the internal revenue service for the filing of that corresponding federal return extends the time for filing under this chapter if a copy of the taxpayer’s application to the internal revenue service requesting the extension is filed with the return under this chapter or if a copy of any request for an extension required by the internal revenue service is filed with the return under this chapter or at an earlier date that the department prescribes by rule and if the taxpayer pays the Wisconsin tax in the manner applicable to federal income taxes under the internal revenue code. Taxes payable upon the filing of the return do not become delinquent during the period of an extension but are subject to interest at the rate of 12 6 percent per year during such period except as follows:
SB1021,39Section 3. 71.24 (7) (a) of the statutes is amended to read:
SB1021,,101071.24 (7) (a) In the case of a corporation required to file a return, the department of revenue shall allow an automatic extension of 7 months or until the original due date of the corporation’s corresponding federal return, whichever is later. Any extension of time granted by law or by the internal revenue service for the filing of corresponding federal returns shall extend the time for filing under this subchapter to 30 days after the federal due date if the corporation reports the extension in the manner specified by the department on the return. Except for payments of estimated taxes, income or franchise taxes payable upon the filing of the tax return shall not become delinquent during such extension period, but shall, except as provided in par. (b), be subject to interest at the rate of 12 6 percent per year during such period.
SB1021,411Section 4. 71.44 (3) (a) of the statutes is amended to read:
SB1021,,121271.44 (3) (a) In the case of a corporation required to file a return, the department of revenue shall allow an automatic extension of 7 months or until the original due date of the corporation’s corresponding federal return, whichever is later. Any extension of time granted by law or by the internal revenue service for the filing of corresponding federal returns shall extend the time for filing under this subchapter to 30 days after the federal due date if the corporation reports the extension in the manner specified by the department on the return. Except for payments of estimated taxes, income or franchise taxes payable upon the filing of the tax return shall not become delinquent during such extension period, but shall, except as provided in par. (b), be subject to interest at the rate of 12 6 percent per year during such period.
SB1021,513Section 5. 71.775 (4) (bm) 1. of the statutes is amended to read: