Payments from a retirement plan
Under current law, payments or distributions of $5,000 or less received each
year by an individual from a qualified retirement plan is exempt from income tax if
the individual is at least 65 years of age and has income of less than $15,000 if single
or filing a tax return as head of household or less than $30,000 if married. The bill
changes the exemption to a subtraction that the taxpayer can choose not to claim if
not claiming the subtraction would result in the taxpayer receiving a greater
homestead credit.
Sales tax
University of Wisconsin Hospitals and Clinics Authority
This bill provides a sales and use tax exemption for tangible personal property
sold to a construction contractor who transfers the property to the University of
Wisconsin Hospitals and Clinics Authority as part of constructing a facility for the
authority in this state. A similar exemption applies under current law to property
sold to a contractor who transfers the property to a local unit of government,
technical college district, or institution or campus of the University of Wisconsin
System. Under current law, a sale of tangible personal property directly to the
University of Wisconsin Hospitals and Clinics Authority is exempt from the sales
and use tax, but the exemption does not apply to a contractor who purchases tangible
personal property on the authority's behalf.
Property transferred with services
Current law provides that persons providing landscaping, printing,
fabricating, processing, or photographic services or performing services to tangible
personal property may purchase for resale, without paying the sales tax, items that
the person will transfer to a customer in conjunction with providing a service that
is subject to the sales tax. The bill provides that the exemption applies regardless
of whether the service is taxable.
Nonprofit organizations
The bill modifies the sales and use tax exemption for churches, religious
organizations, and certain nonprofit organizations to conform with DOR's current
practice with regard to the administration of the exemption. The bill provides that
the exemption applies to organizations that are exempt from federal taxation under
section
501 (c) (3) of the Internal Revenue Code and have received a determination
letter for the Internal Revenue Service. The bill also provides that the exemption
applies to churches and religious organizations that meet the requirements of
section
501 (c) (3) of the Internal Revenue Code, but are not required to apply for or
obtain tax-exempt status from the IRS.
Out-of-state retailer
Under current law, an out-of-state retailer that has annual gross sales into this
state in excess of $100,000 or 200 or more annual separate sales transactions into
this state must register with DOR and collect the sales tax on those sales and
transactions. The determination of the annual gross sales and transactions is based
on the retailer's taxable year for federal income tax purposes.
Under the bill, an out-of-state retailer that has annual gross sales into this
state in excess of $100,000 in the previous or current calendar year must register
with DOR and collect the sales tax on those sales.
Disclosure to state auditor
The bill allows the state auditor and Legislative Audit Bureau to examine sales
and use tax returns and related documents to the extent necessary for the LAB to
carry out its duties.
Other
Payments from counties to towns
Under current law, during the period beginning on the third Monday of March
and ending 10 days after the annual town meeting, a county treasurer may not pay
to a town treasurer any money that belongs to the town and that is in the hands of
the county treasurer except upon a written order of the town board. The bill
eliminates this restriction.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB2-ASA1,1
1Section
1. 48.561 (3) (a) 3. of the statutes is amended to read:
AB2-ASA1,7,32
48.561
(3) (a) 3. Through a deduction of $20,101,300 from any state payment
3due that county under s.
79.035, 79.04, or 79.08
79.02 (1), as provided in par. (b).
AB2-ASA1,2
4Section
2. 48.561 (3) (b) of the statutes is amended to read:
AB2-ASA1,8,25
48.561
(3) (b) The department of administration shall collect the amount
6specified in par. (a) 3. from a county having a population of 750,000 or more by
7deducting all or part of that amount from any state payment due that county under
8s.
79.035, 79.04, or 79.08 79.02 (1). The department of administration shall notify
9the department of revenue, by September 15 of each year, of the amount to be
10deducted from the state payments due under s.
79.035, 79.04, or 79.08 79.02 (1). The
11department of administration shall credit all amounts collected under this
12paragraph to the appropriation account under s. 20.437 (1) (kw) and shall notify the
13county from which those amounts are collected of that collection. The department
14may not expend any moneys from the appropriation account under s. 20.437 (1) (cx)
1for providing services to children and families under s. 48.48 (17) until the amounts
2in the appropriation account under s. 20.437 (1) (kw) are exhausted.
AB2-ASA1,3
3Section 3
. 59.25 (3) (i) of the statutes is amended to read:
AB2-ASA1,8,124
59.25
(3) (i) Make annually, on the 3rd Monday of March, a certified statement,
5and forward the statement to each municipal clerk in the county, showing the
6amount of money paid from the county treasury during the year next preceding to
7each municipal treasurer in the county. The statement shall specify the date of each
8payment, the amount thereof and the account upon which the payment was made.
9It shall be unlawful for any county treasurer to pay to the treasurer of any town any
10money in the hands of the county treasurer belonging to the town from the 3rd
11Monday of March until 10 days after the annual town meeting except upon the
12written order of the town board.
AB2-ASA1,4
13Section
4. 66.0602 (3) (h) 2. a. of the statutes is amended to read: