LRB-3191/1
JK:kjf:nwn
2007 - 2008 LEGISLATURE
November 6, 2007 - Introduced by Senators Plale, Sullivan and Roessler,
cosponsored by Representatives Montgomery, Kerkman, Ziegelbauer,
Cullen, Stone, Nass, Kaufert, Jeskewitz, Hebl, Fields, Townsend, Musser,
Pridemore, Kleefisch
and Albers. Referred to Committee on Tax Fairness
and Family Prosperity.
SB313,1,5 1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a), 71.34 (1) (g), 71.45 (2)
2(a) 10. and 77.92 (4); and to create 71.07 (3y), 71.10 (4) (cr), 71.28 (3y), 71.30
3(3) (dr), 71.47 (3y) and 71.49 (1) (dr) of the statutes; relating to: an income and
4franchise tax credit for sales tax paid for the right to purchase season admission
5to athletic events sponsored by an institution of higher education.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit in an amount equal to the
sales and use taxes that a taxpayer paid in the taxable year on the right to purchase
season admission to athletic events sponsored by certain institutions of higher
education. Generally, a "right to purchase" is an amount given to the institution that
is greater than the actual cost of the seat at an athletic event. If the credit claimed
by a taxpayer exceeds the taxpayer's tax liability, the state will not issue a refund
check, but the taxpayer may carry forward any remaining credit to subsequent
taxable years.
For further information see the state 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:
SB313, s. 1
1Section 1. 71.05 (6) (a) 15. of the statutes is amended to read:
SB313,2,62 71.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
3(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (3y), (5b), (5d),
4and (5e), (5f), and (5h) and not passed through by a partnership, limited liability
5company, or tax-option corporation that has added that amount to the partnership's,
6company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g).
SB313, s. 2 7Section 2. 71.07 (3y) of the statutes is created to read:
SB313,2,88 71.07 (3y) Athletic events credit. (a) Definitions. In this subsection:
SB313,2,99 1. "Claimant" means a person who files a claim under this subsection.
SB313,2,1010 2. "Institution of higher education" has the meaning given in s. 36.32 (1).
SB313,2,1711 (b) Filing claims. Subject to the limitations provided in this subsection, a
12claimant may claim as a credit against the taxes imposed under s. 71.02, up to the
13amount of those taxes, an amount that is equal to the amount of the taxes imposed
14under subch. III of ch. 77 that the claimant paid in the taxable year on the right to
15purchase from an institution of higher education season admission to athletic events
16sponsored by the institution that take place at a facility that is owned or leased by
17the institution.
SB313,2,2518 (c) Limitations. Partnerships, limited liability companies, and tax-option
19corporations may not claim the credit under this subsection, but the eligibility for,
20and the amount of, the credit are based on their payment of amounts described under
21par. (b). A partnership, limited liability company, or tax-option corporation shall
22compute the amount of credit that each of its partners, members, or shareholders
23may claim and shall provide that information to each of them. Partners, members
24of limited liability companies, and shareholders of tax-option corporations may
25claim the credit in proportion to their ownership interests.
SB313,3,2
1(d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
2s. 71.28 (4), applies to the credit under this subsection.
SB313, s. 3 3Section 3. 71.10 (4) (cr) of the statutes is created to read:
SB313,3,44 71.10 (4) (cr) Athletic events credit under s. 71.07 (3y).
SB313, s. 4 5Section 4. 71.21 (4) of the statutes is amended to read:
SB313,3,86 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
7(2dj), (2dL), (2dm), (2ds), (2dx), (3g), (3n), (3s), (3t), (3w), (3y), (5b), (5e), (5f), (5g), and
8(5h) and passed through to partners shall be added to the partnership's income.
SB313, s. 5 9Section 5. 71.26 (2) (a) of the statutes is amended to read:
SB313,4,210 71.26 (2) (a) Corporations in general. The "net income" of a corporation means
11the gross income as computed under the Internal Revenue Code as modified under
12sub. (3) minus the amount of recapture under s. 71.28 (1di) plus the amount of credit
13computed under s. 71.28 (1), (3), (4), and (5) minus, as provided under s. 71.28 (3) (c)
147., the amount of the credit under s. 71.28 (3) that the taxpayer added to income
15under this paragraph at the time that the taxpayer first claimed the credit plus the
16amount of the credit computed under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm),
17(1ds), (1dx), (3g), (3n), (3t), (3w), (3y), (5b), (5e), (5f), (5g), and (5h) and not passed
18through by a partnership, limited liability company, or tax-option corporation that
19has added that amount to the partnership's, limited liability company's, or
20tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) plus the amount
21of losses from the sale or other disposition of assets the gain from which would be
22wholly exempt income, as defined in sub. (3) (L), if the assets were sold or otherwise
23disposed of at a gain and minus deductions, as computed under the Internal Revenue
24Code as modified under sub. (3), plus or minus, as appropriate, an amount equal to
25the difference between the federal basis and Wisconsin basis of any asset sold,

1exchanged, abandoned, or otherwise disposed of in a taxable transaction during the
2taxable year, except as provided in par. (b) and s. 71.45 (2) and (5).
SB313, s. 6 3Section 6. 71.28 (3y) of the statutes is created to read:
SB313,4,44 71.28 (3y) Athletic events credit. (a) Definitions. In this subsection:
SB313,4,55 1. "Claimant" means a person who files a claim under this subsection.
SB313,4,66 2. "Institution of higher education" has the meaning given in s. 36.32 (1).
SB313,4,137 (b) Filing claims. Subject to the limitations provided in this subsection, a
8claimant may claim as a credit against the taxes imposed under s. 71.23, up to the
9amount of those taxes, an amount that is equal to the amount of the taxes imposed
10under subch. III of ch. 77 that the claimant paid in the taxable year on the right to
11purchase from an institution of higher education season admission to athletic events
12sponsored by the institution that take place at a facility that is owned or leased by
13the institution.
SB313,4,2114 (c) Limitations. Partnerships, limited liability companies, and tax-option
15corporations may not claim the credit under this subsection, but the eligibility for,
16and the amount of, the credit are based on their payment of amounts described under
17par. (b). A partnership, limited liability company, or tax-option corporation shall
18compute the amount of credit that each of its partners, members, or shareholders
19may claim and shall provide that information to each of them. Partners, members
20of limited liability companies, and shareholders of tax-option corporations may
21claim the credit in proportion to their ownership interests.
SB313,4,2322 (d) Administration. Subsection (4) (e) to (h), as it applies to the credit under
23sub. (4), applies to the credit under this subsection.
SB313, s. 7 24Section 7. 71.30 (3) (dr) of the statutes is created to read:
SB313,4,2525 71.30 (3) (dr) Athletic events credit under s. 71.28 (3y).
SB313, s. 8
1Section 8. 71.34 (1) (g) of the statutes is amended to read:
SB313,5,42 71.34 (1) (g) An addition shall be made for credits computed by a tax-option
3corporation under s. 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (3), (3g),
4(3n), (3t), (3w), (3y), (5b), (5e), (5f), (5g), and (5h) and passed through to shareholders.
SB313, s. 9 5Section 9. 71.45 (2) (a) 10. of the statutes is amended to read:
SB313,5,116 71.45 (2) (a) 10. By adding to federal taxable income the amount of credit
7computed under s. 71.47 (1dd) to (1dx), (3n), (3w), (3y), (5b), (5e), (5f), (5g), and (5h)
8and not passed through by a partnership, limited liability company, or tax-option
9corporation that has added that amount to the partnership's, limited liability
10company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1) (g) and
11the amount of credit computed under s. 71.47 (1), (3), (3t), (4), and (5).
SB313, s. 10 12Section 10. 71.47 (3y) of the statutes is created to read:
SB313,5,1313 71.47 (3y) Athletic events credit. (a) Definitions. In this subsection:
SB313,5,1414 1. "Claimant" means a person who files a claim under this subsection.
SB313,5,1515 2. "Institution of higher education" has the meaning given in s. 36.32 (1).
SB313,5,2216 (b) Filing claims. Subject to the limitations provided in this subsection, a
17claimant may claim as a credit against the taxes imposed under s. 71.43, up to the
18amount of those taxes, an amount that is equal to the amount of the taxes imposed
19under subch. III of ch. 77 that the claimant paid in the taxable year on the right to
20purchase from an institution of higher education season admission to athletic events
21sponsored by the institution that take place at a facility that is owned or leased by
22the institution.
SB313,6,523 (c) Limitations. Partnerships, limited liability companies, and tax-option
24corporations may not claim the credit under this subsection, but the eligibility for,
25and the amount of, the credit are based on their payment of amounts described under

1par. (b). A partnership, limited liability company, or tax-option corporation shall
2compute the amount of credit that each of its partners, members, or shareholders
3may claim and shall provide that information to each of them. Partners, members
4of limited liability companies, and shareholders of tax-option corporations may
5claim the credit in proportion to their ownership interests.
SB313,6,76 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
7s. 71.28 (4), applies to the credit under this subsection.
SB313, s. 11 8Section 11. 71.49 (1) (dr) of the statutes is created to read:
SB313,6,99 71.49 (1) (dr) Athletic events credit under s. 71.47 (3y).
SB313, s. 12 10Section 12. 77.92 (4) of the statutes is amended to read:
SB313,6,2511 77.92 (4) "Net business income," with respect to a partnership, means taxable
12income as calculated under section 703 of the Internal Revenue Code; plus the items
13of income and gain under section 702 of the Internal Revenue Code, including taxable
14state and municipal bond interest and excluding nontaxable interest income or
15dividend income from federal government obligations; minus the items of loss and
16deduction under section 702 of the Internal Revenue Code, except items that are not
17deductible under s. 71.21; plus guaranteed payments to partners under section 707
18(c) of the Internal Revenue Code; plus the credits claimed under s. 71.07 (2dd), (2de),
19(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (3g), (3s), (3n), (3t), (3w), (3y), (5b), (5e),
20(5f), (5g), and (5h); and plus or minus, as appropriate, transitional adjustments,
21depreciation differences, and basis differences under s. 71.05 (13), (15), (16), (17), and
22(19); but excluding income, gain, loss, and deductions from farming. "Net business
23income," with respect to a natural person, estate, or trust, means profit from a trade
24or business for federal income tax purposes and includes net income derived as an
25employee as defined in section 3121 (d) (3) of the Internal Revenue Code.
SB313, s. 13
1Section 13. Initial applicability.
SB313,7,22 (1) This act first applies to taxable years beginning on January 1, 2008.
SB313,7,33 (End)
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