LRB-5172/2
JS/RPN/MES/PEN:all:km
1997 - 1998 LEGISLATURE
March 26, 1998 - Introduced by
Law Revision Committee. Referred to Committee
on Ways and Means.
AB963,2,2
1An Act to amend 71.65 (2) (b), 71.70 (1), 71.70 (2), 71.72, 71.77 (7) (a), 72.23,
277.52 (2) (a) 1., 77.54 (11), 77.54 (36), subchapter IV (title) of chapter 78
3[precedes 78.64], 78.75 (1m) (a) 3., 125.14 (2) (e), 139.40 (2), 812.37 (1) and
4812.44 (1) (b);
to repeal and recreate 71.65 (5) and 71.73 (2); and
to create
571.80 (6m) and 812.44 (1) (bg) of the statutes;
relating to: the forms used to
6claim motor vehicle fuel tax refunds; replacing obsolete references to "special
7fuel" and "motor fuel"; authorizing the department of revenue to give seized
8cigarettes to law enforcement officers for use in criminal investigations; seized
9alcohol beverages; unpaid instalments of the estate tax; garnishment of
10earnings by debtors; the place of trial for criminal violations of certain income
11and franchise tax provisions; the statute of limitations for income taxes and
12franchise taxes; income tax information returns; and defining "one month" for
1the sales tax on certain rentals (suggested as remedial legislation by the
2department of revenue).
Analysis by the Legislative Reference Bureau
This bill conforms the requirements for the motor vehicle fuel tax refund forms
to the exemptions from that tax.
This bill replaces obsolete references to "special fuel" with the appropriate
term, "alternate fuel", and replaces references to "motor fuel" with "motor vehicle
fuel".
This bill authorizes the department of revenue to give cigarettes that it seizes
to law enforcement officers for use in criminal investigations.
Current law authorizes law enforcement officers to seize all alcohol beverages
that are owned, possessed, kept, stored, manufactured, sold, distributed or
transported in violation of state law. Upon conviction of a person for such violations,
the seized alcohol beverages are turned over to the department of revenue (DOR) to
be given to state-operated veterans' hospitals in amounts needed for medicinal
purposes, to be sold to the highest eligible bidder or to be destroyed, at the discretion
of DOR, except that seized alcohol beverages that are unfit for sale must be
destroyed. If sold, the net proceeds from the sale, less all costs of seizure, storage and
sale, are turned over to the state treasurer and credited to the common school fund,
or are refunded to a person who has a security interest in the seized beverages and
who was not involved in the violation.
This bill authorizes DOR, in addition to the disposal alternatives presently
available, to dispose of seized alcohol beverages by giving the beverages free of
charge to law enforcement agencies for use in criminal investigations.
Under current law, if an instalment payment of the estate tax is not paid when
it is due, the unpaid portion of the tax and interest is due. Under this bill, in that
circumstance the entire balance of the tax and interest is due.
Current law requires every party in an earnings garnishment action to use the
earnings garnishment forms set forth in the statutes. However, current law also
provides that the exemptions mentioned in those forms do not apply to certain types
of judgment debts, including debts for unpaid taxes. The forms set forth in the
statutes are misleading for garnishments involving debts in which exemptions are
not allowed. This bill requires creditors who are seeking an earnings garnishment
for a judgment debt in which exemptions are not allowed to amend the garnishment
forms to inform the garnishee and debtor of the lack of exemptions.
This bill specifies that a trial for criminal violations of certain income and
franchise tax provisions may be held in either Dane County or in the county in which
the defendant resides or is located when charged with the violation.
For further information, see the Notes provided by the law revision committee
of the joint legislative council.
Under current law, if for income-tax purposes a taxpayer reports less than 75%
of his or her net income and if the taxes on the additional income are more than $100
for individual returns and more than $200 for joint returns, the department of
revenue may assess additional taxes or issue a refund within 6 years after the return
is filed. This bill rewords the rule so as to indicate its application to taxpayers other
than individuals.
This bill changes the dates on which certain persons must report to DOR on
rents, royalties and payments other than wages that they pay. The new dates
coincide with the dates under federal law. The bill also requires those persons to
furnish the recipients of those payments with a copy of those reports. Under current
law, DOR may grant an extension of no more than 30 days for the reports to DOR on
payments other than wages and for reports to employes on wage payments. This bill
retains the extension for reports to employes on wage payments and allows an
extension of no more than 60 days for the reports to DOR on rents, royalties and
payments other than wages.
Under current law, the rental for a continuous period of one month or more of
a mobile home that is used as a residence is exempt from the sales tax, and the
furnishing of public accommodations for a continuous period of less than one month
is subject to the sales tax. For both purposes, "one month" is defined as a calendar
month. Under this bill, for those purposes, "one month" is defined as a calendar
month or 30 days, whichever is less, counting the first day of residence or the rental
and not counting the last day of residence or the rental.
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:
Law revision committee prefatory note: This bill is a remedial legislation
proposal, requested by the department of revenue and introduced by the law revision
committee under s. 13.83 (1) (c) 4., stats. After careful consideration of the various
provisions of the bill, the law revision committee has determined that this bill makes
minor substantive changes in the statutes, and that these changes are desirable as a
matter of public policy.
AB963,4,113
71.65
(2) (b) Every resident of this state and every nonresident carrying on
4activities within this state, whether taxable or not under this chapter, who pays in
5any calendar year for services performed within this state by an individual
6remuneration which is excluded from the definition of wages, in the amount of $600
7or more, shall, on or before
January 31 of the succeeding year February 28 of the year
1following the year in which the payments are made, furnish a statement in such form
2as required by the department, disclosing the name of the payor, the name and
3address of the recipient and the total amount paid in such year to such recipient.
The
4person who pays for the services shall, on or before January 31 of the year in which
5the statement is required to be furnished to the department, furnish the recipient of
6the payment with a copy of that statement. In any case in which an individual
7receives wages and also remuneration for services which remuneration is excluded
8from such definition, both from the same payor, the wages and the excluded
9remuneration shall both be reported in the report required under this subsection in
10a manner satisfactory to the department, regardless of the amount of the excluded
11remuneration.
Note: Currently, payments for services which are excluded from the definition of
wages must be reported to the department of revenue (DOR) by January 31 of the
following year. Federal law provides that this information must be reported to the
recipient by January 31 and to the internal revenue service, by February 28. This
provision changes the dates to coincide with the dates required under federal law and
provides that the person who pays for the service must furnish the recipient of the
payment with a copy of the statement.
AB963, s. 2
12Section
2. 71.65 (5) of the statutes is repealed and recreated to read:
AB963,4,1513
71.65
(5) Extensions. (a) If an employer applies for an extension and shows
14good cause why an extension should be granted, the department may grant the
15following extensions for the following statements:
AB963,4,1616
1. Thirty days for filing a wage statement under sub. (1).
AB963,4,1717
2. Sixty days for filing a statement of nonwage payments under sub. (2) (b).
AB963,4,2018
(b) No extension under par. (a) extends the time to deposit with the public
19depository or pay to the department amounts that are required to be deducted and
20withheld under this subchapter.
Note: Currently, DOR may grant an extension of no more than 30 days for reports
to the employes and DOR on payments. This provision allows an extension not to exceed
30 days for reports to employes on wage payments and an extension for not more than
60 days for filing a statement of nonwage payments.
AB963,5,143
71.70
(1) Persons other than corporations. Persons other than corporations
4deducting rent or royalties in determining taxable income shall file a report that
5shows the amounts and the name and address of all natural persons who are
6residents of this state and to whom royalties of $600 or more were paid during the
7taxable year; and the amounts and the name and address of all natural persons to
8whom rent of $600 or more is paid during the taxable year for property having a situs
9in this state. Such information shall be filed
at the time of filing the income tax
10return on which such payments are deducted or at such other time as the department
11prescribes on or before February 28 of the year following the year in which the
12payments were made. The person who deducts rent or royalties shall, on or before
13January 31 of the year in which the report is required to be furnished, furnish the
14recipient with a copy of that report.
Note: This provision changes the date of filing by persons, other than corporations,
who deduct rent or royalties in determining taxable income. The reporting date is
changed from the time of the filing of the income tax return on which the payments are
deducted or such other time as the department prescribes to February 28 of the year
following the year in which the payments were made, to coincide with federal law. It
further requires a copy of the report to be furnished to the recipient of the rent or royalties.
AB963,6,217
71.70
(2) Corporations. All corporations doing business in this state shall file,
18on or before March 15, any information relative to payments made within the
19preceding calendar year of rents and royalties to all natural persons taxable thereon
20under this chapter.
A corporation shall, on or before January 31 of the year in which
1the statement is required to be furnished to the department, furnish the recipient of
2the payment with a copy of that statement.
Note: This provision adds a requirement that a corporation shall, on or before
January 31 of the year in which the statement of rent and royalty payments to natural
persons is filed, furnish a copy of the statement to the recipient of the rent or royalties.
AB963,6,20
571.72 Statement of nonwage payments. Every resident of this state and
6every nonresident carrying on activities within this state, whether taxable or not
7under this chapter, who pays in any calendar year for services performed within this
8state by an individual remuneration which is excluded from the definition of wages
9in s. 71.63 (6), in the amount of $600 or more, shall, on or before
January 31 of the
10succeeding year February 28 of the year following the year in which the payments
11were made, file a statement disclosing the name of the payor, the name and address
12of the recipient and the total amount paid in such year to such recipient.
The person
13who pays for the services shall, on or before January 31 of the year in which the
14statement is required to be furnished to the department, furnish the recipient of the
15payment with a copy of that statement. In any case in which an individual receives
16wages, as defined in s. 71.63 (6), and also remuneration for services which
17remuneration is excluded from such definition, both from the same payor, the wages
18and the excluded remuneration shall both be reported in the statement required by
19s. 71.71 (2) in a manner satisfactory to the department, regardless of the amount of
20the excluded remuneration.
Note: This provision changes the requirement that the statement of nonwage
payments be filed on or before January 31 of the succeeding year to February 28 of the
year following the year in which the payments are made. It further requires the person
who pays for the services to furnish the recipient of the payments with a copy of the
statement on or before January 31 of the year in which the statement is required to be
furnished to DOR.
AB963, s. 6
1Section
6. 71.73 (2) of the statutes is repealed and recreated to read:
AB963,7,42
71.73
(2) Extensions. If an employer applies for an extension and shows good
3cause why an extension should be granted, the department of revenue may grant the
4following extensions for the following statements:
AB963,7,55
(a) Sixty days for filing a rent and royalty statement under s. 71.70.
AB963,7,66
(b) Thirty days for filing a wage statement under s. 71.71.
AB963,7,77
(c) Sixty days for filing a statement of nonwage payments under s. 71.72.
Note: This provision amends the current statute which allows DOR to grant an
extension to a person, partnership or limited liability company, not to exceed 30 days in
which to furnish its employes and DOR with written statements of wages and
withholding and nonwage payments to permit extensions not to exceed 60 days for filing
a rent and royalty statement, 30 days for filing a wage statement and 60 days for filing
a statement of nonwage payments.
AB963, s. 7
8Section
7. 71.77 (7) (a) of the statutes is amended to read:
AB963,7,169
71.77
(7) (a) If notice of assessment is given within 6 years after a return was
10filed and if
on that return the taxpayer reported for taxation
on his or her return, or
11the taxpayers jointly reported
for taxation, less than 75% of the net income properly
12assessable, except that no assessment of additional income may be made under this
13subsection for any year beyond the period specified in sub. (2) unless the aggregate
14of the taxes on the additional income of such year is in excess of $100 in the case of
15an individual or a separate return a return other than a joint return or $200 in the
16case of a joint return.
Note: This provision removes an ambiguity in s. 71.77 (7) (a) as to whether the
6-year statute of limitations on notice of assessments applies to corporations. If a
corporation reports less than 75% of its net income and the taxes on the additional income
are more than $100, DOR may assess additional taxes or issue a refund within 6 years
after the return is filed.
