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.
AB963, s. 8
17Section
8. 71.80 (6m) of the statutes is created to read:
AB963,8,3
171.80
(6m) Venue. A proceeding for a criminal violation under this chapter
2may be brought in the circuit court for Dane County or for the county in which the
3defendant resides or is located when charges with the violation.
Note: This provision authorizes a trial for criminal violations of income tax laws
to be held either in Dane County or the county in which the defendant resides or is located
when charged with the violation.
AB963, s. 9
4Section
9. 72.23 of the statutes is amended to read:
AB963,8,10
572.23 Acceleration and interest. If the tax imposed by this chapter is not
6paid when it is due under s. 72.22, interest is due and payable at the rate of 12% per
7year from date of death. In computing time under this section, the day of death is
8excluded. If any payment of tax or interest under s. 72.225 is not paid when due, the
9unpaid portion of the tax and interest
due shall be paid upon notice by the
10department.
Note: This provision provides a default on an instalment arrangement for payment
of overdue taxes results in the entire remaining balance of tax and interest being payable,
not just the overdue instalments.
AB963, s. 10
11Section
10. 77.52 (2) (a) 1. of the statutes is amended to read:
AB963,9,1212
77.52
(2) (a) 1. The furnishing of rooms or lodging to transients by hotelkeepers,
13motel operators and other persons furnishing accommodations that are available to
14the public, irrespective of whether membership is required for use of the
15accommodations, including the furnishing of rooms or lodging through the sale of a
16time-share property, as defined in s. 707.02 (32), if the use of the rooms or lodging
17is not fixed at the time of sale as to the starting day or the lodging unit. In this
18subdivision, "transient" means any person residing for a continuous period of less
19than one month in a hotel, motel or other furnished accommodations available to the
20public. In this subdivision, "hotel" or "motel" means a building or group of buildings
21in which the public may obtain accommodations for a consideration, including,
1without limitation, such establishments as inns, motels, tourist homes, tourist
2houses or courts, lodging houses, rooming houses, summer camps, apartment hotels,
3resort lodges and cabins and any other building or group of buildings in which
4accommodations are available to the public, except accommodations, including
5mobile homes as defined in s. 66.058 (1) (d), rented for a continuous period of more
6than one month and accommodations furnished by any hospitals, sanatoriums, or
7nursing homes, or by corporations or associations organized and operated
8exclusively for religious, charitable or educational purposes provided that no part of
9the net earnings of such corporations and associations inures to the benefit of any
10private shareholder or individual.
In this subdivision, "one month" means a calendar
11month or 30 days, whichever is less, counting the first day of the rental and not
12counting the last day of the rental.
Note: Currently, the rental for a continuous period of more than one month of
accommodations is exempt from the sales tax, and furnishing of public accommodations
for a continuous period of one month or less is subject to the sales tax. Since no definition
of "one month" is contained in ch. 77, s. 990.01 (21) applies. It defines a month as a
calendar month unless otherwise expressed. This provision provides that one month is
defined as a calendar month or 30 days, whichever is less, counting the first day of
residence or rental and not counting the last day of the residence or rental.
AB963, s. 11
13Section
11. 77.54 (11) of the statutes is amended to read:
AB963,9,1814
77.54
(11) The gross receipts from the sales of and the storage, use or other
15consumption in this state of motor
vehicle fuel, general aviation fuel or
special 16alternate fuel, subject to taxation under ch. 78, unless the motor
vehicle fuel or
17special alternate fuel tax is refunded under s. 78.75 because the buyer does not use
18the fuel in operating a motor vehicle upon the public highways.
Note: This provision changes obsolete references to "special fuel" to "alternate fuel"
and replaces references to "motor fuel" with "motor vehicle fuel" to conform to existing
fuel tax laws. The statute was not updated when the definitions of fuels were changed
in
1993 Wisconsin Act 16.
AB963, s. 12
19Section
12. 77.54 (36) of the statutes is amended to read:
AB963,10,5
177.54
(36) The gross receipts from the rental for a continuous period of one
2month or more of a mobile home, as defined in s. 66.058 (1) (d), that is used as a
3residence.
In this subsection, "one month" means a calendar month or 30 days,
4whichever is less, counting the first day of the rental and not counting the last day
5of the rental.
Note: This provision amends the exemption from the sales tax for mobile homes
rented for more than one month to provide that one month means a calendar month or
30 days, whichever is less, counting the first day of the rental and not counting the last
day of the rental. This change is made consistent with that in the treatment of s. 77.52
(2) (a) 1.
AB963, s. 13
6Section
13. Subchapter IV (title) of chapter 78 [precedes 78.64] of the statutes
7is amended to read:
AB963,10,129
SUBCHAPTER IV
10
PROVISIONS COMMON TO MOTOR
vehicle11
FUEL TAX,GENERAL AVIATION FUEL
12
TAX AND
SPECIAL alternate FUEL TAX
AB963,11,515
78.75
(1m) (a) 3. Claims under subd. 1. shall be made and filed. The forms shall
16indicate that refunds are not available for motor vehicle fuel or alternate fuels used
17for motorboats, except motorboats exempt from registration as motor vehicles under
18s. 341.05 (20) and
motorboats that are not recreational motorboats, or motor vehicle
19fuel or alternate fuels used for snowmobiles and that the estimated snowmobile
20motor vehicle fuel or alternate fuels tax payments are used for snowmobile trails and
21areas. The forms shall indicate that refunds are not available for motor vehicle fuel
22or alternate fuels used for all-terrain vehicles unless the all-terrain vehicle is
1registered for private use under s. 23.33 (2) (d) or (2g) and shall indicate that
2estimated all-terrain vehicle motor vehicle fuel or alternate fuels tax payments are
3used for all-terrain vehicle trails and areas. The forms shall also indicate that
4refunds are not available for the tax on less than 100 gallons. The department shall
5distribute forms in sufficient quantities to each county clerk.
Note: This Section reconciles an apparent conflict between s. 78.75 (1m) (a) 3. and
ss. 78.01 (2) (e) and (2m) (f) and 78.75 (1m) (a) 2. which impose a tax on fuel used to operate
recreational motor boats. Current s. 78.75 (1m) (a) 3. appears to indicate that refunds
are available for motor vehicle fuel used for recreational motor boats.
AB963, s. 15
6Section
15. 125.14 (2) (e) of the statutes is amended to read:
AB963,11,207
125.14
(2) (e)
Disposal. The department shall dispose of the alcohol beverages
8turned over to it by the court by either
giving it to law enforcement agencies free of
9charge for use in criminal investigations, giving it to state-operated veterans'
10hospitals in amounts needed for medicinal purposes, selling it to the highest bidder
11if the bidder is a person holding a license or permit issued under this chapter, or
12destroying it, at the discretion of the department. If the department elects to sell the
13alcohol beverages, it shall publish a class 2 notice under ch. 985 asking for sealed bids
14from qualified bidders. Any items or groups of items in the inventory subject to a
15security interest, the existence of which was established in the proceedings for
16conviction as being bona fide and as having been created without the secured party
17having notice that the items were being used or were to be used in connection with
18the violation, shall be sold separately. The net proceeds from the sale, less all costs
19of seizure, storage and sale, shall be turned over to the state treasurer and credited
20to the common school fund.
Note: Currently, law enforcement officers are authorized to seize all alcohol
beverages owned, possessed, kept, stored, manufactured, sold, distributed or transported
in violation of state law. The law prohibits DOR from disposing of these beverages by
furnishing them to local and state law enforcement agencies for use in criminal
investigations. This change authorizes such use in addition to the other uses specifically
authorized by statute.
AB963, s. 16
1Section
16. 139.40 (2) of the statutes is amended to read:
AB963,12,102
139.40
(2) If cigarettes which do not bear the proper tax stamps or on which
3the tax has not been paid are so seized they may be
given to law enforcement officers
4to use in criminal investigations or sold to qualified buyers by the secretary, without
5notice
, and. If the cigarettes are sold, after deducting the costs of the sale and the
6keeping of the property, the proceeds of the sale shall be paid into the state treasury.
7When If the secretary finds that such cigarettes may deteriorate or become unfit for
8use in criminal investigations or for sale or that
such sale those uses would otherwise
9be impractical
, the secretary may order them destroyed or give them to a charitable
10or penal institution for free distribution to patients or inmates.
Note: Currently, the law is unclear as to whether DOR may dispose of seized
cigarettes by furnishing them to local and state law enforcement agencies for use in
criminal investigations. This provision authorized DOR to give cigarettes that it seizes
to law enforcement officers for this use in addition to other uses specifically authorized
by statute.
AB963, s. 17
11Section
17. 812.37 (1) of the statutes is amended to read:
AB963,12,1612
812.37
(1) The Except as provided in s. 812.34 (1), the debtor may claim an
13exemption under s. 812.34 (2) (b), or
may assert any defense to the earnings
14garnishment, by completing the answer form and delivering or mailing it to the
15garnishee. The debtor or debtor's spouse may file an answer or an amended answer
16at any time before or during the effective period of the earnings garnishment.
Note: This provision adds a cross-reference to the statute that provides that in
certain cases, the exemptions from garnishment do not apply.
AB963, s. 18
17Section
18. 812.44 (1) (b) of the statutes is amended to read:
AB963,13,318
812.44
(1) (b)
No Except as provided under par. (bg), no party may use a form
19substantially different from those in this subchapter as revised under this
20subsection. No party may alter those forms in a manner that may mislead any other
1party. If the court finds that a party has used a misleading form, the court shall
2award the aggrieved party actual damages, costs and reasonable attorney fees
3resulting from the additional proceeding.
Note: This provision creates an exemption to the required use by parties to
garnishment actions of the statutory forms for garnishment.
AB963, s. 19
4Section
19. 812.44 (1) (bg) of the statutes is created to read:
AB963,13,75
812.44
(1) (bg) If the judgment debt meets one of the conditions under s. 812.34
6(1), the creditor shall amend the forms used under this subchapter to inform the
7garnishee and debtor that the exemptions provided under s. 812.34 (1) do not apply.
Note: This provision provides that the creditor, when it garnishes earnings, does
not have to utilize the required forms if the debt is one to which the exemptions from
garnishment do not apply. In these cases, the creditor is required to amend the forms used
under the chapter, to inform the garnishee and the debtor that the exemptions from
garnishment do not apply.
AB963,13,109
(1)
Venue in income tax criminal cases. The treatment of section 71.80 (6m)
10of the statutes first applies to charges filed on the effective date of this subsection.
AB963,13,1311
(2)
Earnings garnishment. The treatment of sections 812.37 (1) and 812.44 (1)
12(b) and (bg) of the statutes first applies to actions commenced on the effective date
13of this subsection.
AB963, s. 21
14Section
21.
Effective dates. This act takes effect on the day after publication,
15except as follows:
AB963,13,1816
(1)
Income tax information returns. The treatment of sections 71.65 (2) (b) and
17(5), 71.70 (1) and (2), 71.72 and 71.73 (2) of the statutes takes effect on January 1,
181999.
