SB58, s. 6 15Section 6. 71.06 (2) (i) of the statutes is created to read:
SB58,3,1716 71.06 (2) (i) For joint returns, for taxable years beginning after December 31,
172006, and before January 1, 2008:
SB58,3,1818 1. On all taxable income from $0 to $10,000, 4.554 percent.
SB58,3,2019 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 6.089
20percent.
SB58,3,2221 3. On all taxable income exceeding $20,000 but not exceeding $150,000, 6.435
22percent.
SB58,3,2323 4. On all taxable income exceeding $150,000, 6.683 percent.
SB58, s. 7 24Section 7. 71.06 (2e) of the statutes is renumbered 71.06 (2e) (a) and amended
25to read:
SB58,4,23
171.06 (2e) (a) Bracket indexing. For taxable years beginning after
2December 31, 1998, and before January 1, 2000, the maximum dollar amount in
3each tax bracket, and the corresponding minimum dollar amount in the next bracket,
4under subs. (1m) and (2) (c) and (d), and for taxable years beginning after
5December 31, 1999, and before January 1, 2007, the maximum dollar amount in
6each tax bracket, and the corresponding minimum dollar amount in the next bracket,
7under subs. (1n), (1p), and (2) (e), (f), (g), and (h), shall be increased each year by a
8percentage equal to the percentage change between the U.S. consumer price index
9for all urban consumers, U.S. city average, for the month of August of the previous
10year and the U.S. consumer price index for all urban consumers, U.S. city average,
11for the month of August 1997, as determined by the federal department of labor,
12except that for taxable years beginning after December 31, 2000, and before January
131, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3.
14and 4. and (h) 3. and 4. shall be increased by a percentage equal to the percentage
15change between the U.S. consumer price index for all urban consumers, U.S. city
16average, for the month of August of the previous year and the U.S. consumer price
17index for all urban consumers, U.S. city average, for the month of August 1999, as
18determined by the federal department of labor. Each amount that is revised under
19this subsection shall be rounded to the nearest multiple of $10 if the revised amount
20is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount
21shall be increased to the next higher multiple of $10. The department of revenue
22shall annually adjust the changes in dollar amounts required under this subsection
23and incorporate the changes into the income tax forms and instructions.
SB58, s. 8 24Section 8. 71.06 (2e) (b) of the statutes is created to read:
SB58,5,8
171.06 (2e) (b) For taxable years beginning after December 31, 2006, the
2maximum dollar amount in each tax bracket, and the corresponding minimum dollar
3amount in the next bracket, under subs. (1q) and (2) (i) and (j), shall be increased each
4year by a percentage equal to the percentage change between the U.S. consumer
5price index for all urban consumers, U.S. city average, for the month of August of the
6previous year and the U.S. consumer price index for all urban consumers, U.S. city
7average, for the month of August 1997, as determined by the federal department of
8labor.
SB58, s. 9 9Section 9. 71.06 (2e) (c) of the statutes is created to read:
SB58,5,1510 71.06 (2e) (c) Each amount that is revised under this subsection shall be
11rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10
12or, if the revised amount is a multiple of $5, such an amount shall be increased to the
13next higher multiple of $10. The department of revenue shall annually adjust the
14changes in dollar amounts required under this subsection and incorporate the
15changes into the income tax forms and instructions.
SB58, s. 10 16Section 10. 71.06 (2m) of the statutes is amended to read:
SB58,5,2017 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p) or, (1q), (1r),
18or (2) changes during a taxable year, the taxpayer shall compute the tax for that
19taxable year by the methods applicable to the federal income tax under section 15 of
20the internal revenue code.
SB58, s. 11 21Section 11. 71.06 (2s) (d) of the statutes is amended to read:
SB58,6,922 71.06 (2s) (d) For taxable years beginning after December 31, 2000, and before
23January 1, 2007,
with respect to nonresident individuals, including individuals
24changing their domicile into or from this state, the tax brackets under subs. (1p) and
25(2) (g) and (h) shall be multiplied by a fraction, the numerator of which is Wisconsin

1adjusted gross income and the denominator of which is federal adjusted gross
2income. In this paragraph, for married persons filing separately "adjusted gross
3income" means the separate adjusted gross income of each spouse, and for married
4persons filing jointly "adjusted gross income" means the total adjusted gross income
5of both spouses. If an individual and that individual's spouse are not both domiciled
6in this state during the entire taxable year, the tax brackets under subs. (1p) and (2)
7(g) and (h) on a joint return shall be multiplied by a fraction, the numerator of which
8is their joint Wisconsin adjusted gross income and the denominator of which is their
9joint federal adjusted gross income.
SB58, s. 12 10Section 12. 71.06 (2s) (e) of the statutes is created to read:
SB58,6,2311 71.06 (2s) (e) For taxable years beginning after December 31, 2006, with
12respect to nonresident individuals, including individuals changing their domicile
13into or from this state, the tax brackets under subs. (1q) and (2) (i) and (j) shall be
14multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income
15and the denominator of which is federal adjusted gross income. In this paragraph,
16for married persons filing separately "adjusted gross income" means the separate
17adjusted gross income of each spouse, and for married persons filing jointly "adjusted
18gross income" means the total adjusted gross income of both spouses. If an individual
19and that individual's spouse are not both domiciled in this state during the entire
20taxable year, the tax brackets under subs. (1q) and (2) (i) and (j) on a joint return shall
21be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted
22gross income and the denominator of which is their joint federal adjusted gross
23income.
SB58, s. 13 24Section 13. 71.125 of the statutes is amended to read:
SB58,7,5
171.125 Imposition of tax. (1) Except as provided in sub. (2), the tax imposed
2by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n), (1p) and,
3(1q), and (2) shall apply to the Wisconsin taxable income of estates or trusts, except
4nuclear decommissioning trust or reserve funds, and that tax shall be paid by the
5fiduciary.
SB58,7,10 6(2) Each electing small business trust, as defined in section 1361 (e) (1) of the
7Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1), (1m),
8(1n) or, (1p), or (1q), whichever taxable year is applicable, on its income as computed
9under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12),
10(19) and (20).
SB58, s. 14 11Section 14. 71.17 (6) of the statutes is amended to read:
SB58,7,1512 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under
13section 685 of the Internal Revenue Code for federal income tax purposes, that
14election applies for purposes of this chapter and each trust shall compute its own tax
15and shall apply the rates under s. 71.06 (1), (1m), (1n) or , (1p), or (1q).
SB58, s. 15 16Section 15. 71.64 (9) (b) (intro.) of the statutes is amended to read:
SB58,7,2017 71.64 (9) (b) (intro.) The department shall from time to time adjust the
18withholding tables to reflect any changes in income tax rates, any applicable surtax,
19or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p) , (1q), and (2) resulting
20from statutory changes, except as follows:
SB58, s. 16 21Section 16. 71.67 (5) (a) of the statutes is amended to read:
SB58,8,222 71.67 (5) (a) Wager winnings. A person holding a license to sponsor and
23manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any
24payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount
25determined by multiplying the amount of the payment by the highest rate applicable

1to individuals under s. 71.06 (1) (a) to (c), (1m), (1n) or, (1p), or (1q) if the amount of
2the payment is more than $1,000.
SB58, s. 17 3Section 17. 71.67 (5m) of the statutes is amended to read:
SB58,8,104 71.67 (5m) Withholding from payments to purchase assignment of lottery
5prize.
A person that purchases an assignment of a lottery prize shall withhold from
6the amount of any payment made to purchase the assignment the amount that is
7determined by multiplying the amount of the payment by the highest rate applicable
8to individuals under s. 71.06 (1) (a) to (c), (1m), (1n) or , (1p), or (1q). Subsection (5)
9(b), (c), and (d), as it applies to the amounts withheld under sub. (5) (a), applies to the
10amount withheld under this subsection.
SB58,8,1111 (End)
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