LRB-2457/1
JK:jld:pg
2007 - 2008 LEGISLATURE
December 21, 2007 - Introduced by Senators Hansen, Vinehout, Wirch, Jauch,
Robson, Coggs, Kreitlow, Lehman, Carpenter
and Erpenbach, cosponsored
by Representatives Garthwaite, Musser, Soletski, Sinicki, Black, Berceau,
Zepnick, Hilgenberg, Boyle, Pocan, Benedict, Grigsby, Pope-Roberts,
Seidel, Mason, Turner, Parisi, Jorgensen
and Vruwink. Referred to
Committee on Tax Fairness and Family Prosperity.
SB367,1,1 1An Act to create 71.31 of the statutes; relating to: tax disclosure statements.
Analysis by the Legislative Reference Bureau
This bill requires all publicly traded corporations doing business in this state,
including those traded on foreign stock exchanges, and all corporations doing
business in this state for which 50 percent or more of the voting stock is owned
directly or indirectly by a publicly traded corporation to submit annual statements
to the Department of Revenue (DOR). The bill requires that such statements contain
certain information regarding the corporation, including name and commercial
domicile, total gross income, total business income apportioned to this state, and
total deductions for management services, fees, rents, royalties, interest, and license
fees paid to an affiliated entity. If the corporation does not file a state income tax
return for the year related to the statement, the corporation must also explain in its
statement why it is not required to file a state income tax return and indicate the
total gross income from sales to purchasers in this state for the year related to the
statement. Under the bill, the information contained in the statement is considered
a public record beginning on the first day of the third calendar year following the
calendar year in which the taxable year related to the statement ends. After the
information becomes available to the public, DOR shall make the information
available in paper form and as a searchable database accessible on the Internet.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB367, s. 1
1Section 1. 71.31 of the statutes is created to read:
SB367,2,5 271.31 Tax disclosure statements. (1) The following corporations doing
3business in this state, not including a qualified personal service corporation under
4section 448 (d) (2) of the Internal Revenue Code, shall submit the statement under
5sub. (2) with the department:
SB367,2,76 (a) All publicly traded corporations, including corporations traded on foreign
7stock exchanges.
SB367,2,98 (b) All corporations for which 50 percent or more of the voting stock is owned
9directly or indirectly by a publicly traded corporation.
SB367,2,17 10(2) (a) Except as provided in sub. (3), all corporations required to submit a
11statement under this section shall submit the statement annually in an electronic
12format, as prescribed by the department, no later than 30 days after the date on
13which the corporation files a tax return under s. 71.24 or, with regard to a corporation
14that is not required to file a tax return under s. 71.24, no later than 90 days after
15either the date on which the corporation files a federal tax return or the date on which
16another entity files a federal consolidated tax return in which the corporation is
17included.
SB367,2,1918 (b) The statement submitted under par. (a) shall contain all of the following
19information:
SB367,2,2020 1. The corporation's name and commercial domicile.
SB367,2,2321 2. If different than the information provided in subd. 1., the name and
22commercial domicile of any corporation that owns directly or indirectly 50 percent
23or more of the voting stock of the corporation submitting the statement.
SB367,3,3
13. The corporation's industry number, as provided in the North American
2Industry Classification System, published by the U.S. office of management and
3budget.
SB367,3,54 4. The following information for the corporation related to the applicable tax
5return under par. (a):
SB367,3,66 a. Total gross income.
SB367,3,87 b. Total cost of tangible personal property sold and claimed as a deduction from
8gross income.
SB367,3,99 c. Taxable income prior to net operating loss deductions or apportionment.
SB367,3,1010 d. The sales factor under s. 71.25 (9).
SB367,3,1111 e. Total business income apportioned to this state.
SB367,3,1212 f. Net operating loss deduction.
SB367,3,1413 g. Total nonbusiness income and the amount of nonbusiness income allocated
14to this state.
SB367,3,1515 h. Total taxable income.
SB367,3,1616 i. Total tax before credits.
SB367,3,1717 j. Tax credits claimed and separately identified.
SB367,3,1818 k. Alternative minimum tax.
SB367,3,1919 L. Tax due.
SB367,3,2020 m. Tax paid.
SB367,3,2121 n. The amount of any tax paid under protest.
SB367,3,2522 o. Total deductions for management services fees, rent, royalties, interest,
23license fees, and similar payments for using intangible property, if such amounts
24were paid to any entity affiliated with the corporation and if the affiliated entity was
25not included with the corporation in a consolidated state tax return.
SB367,4,2
15. The name and commercial domicile of any affiliated entity described in subd.
24. o.
SB367,4,43 6. The source of any nonbusiness income reported on the applicable tax return
4under par. (a).
SB367,4,65 7. The name and commercial domicile of all corporations included in a
6consolidated tax return that includes the corporation submitting the statement.
SB367,4,97 8. The total number of the corporation's full-time employees in this state on the
8last day of the taxable year for the applicable tax return under par. (a) and for the
93 immediately preceding taxable years.
SB367,4,1510 9. With regard to a publicly traded corporation that is incorporated in the U.S.,
11or an affiliate of that publicly traded corporation, profits, before the imposition of
12taxes, reported on the U.S. Securities and Exchange Commission form 10-K for the
13corporation, or for any consolidated group of which the corporation is a member, for
14the corporation's fiscal year that contains the last day of the taxable year for which
15the applicable return under par. (a) is filed.
SB367,4,1816 11. The corporation's property factor under s. 71.25 (7) and payroll factor under
17s. 71.25 (8), regardless of whether the corporation is required to compute the factors
18under s. 71.25 (5).
SB367,4,2019 12. Accumulated tax credit carry-overs with each tax credit separately
20identified.
SB367,5,2 21(3) A corporation that is required to submit a statement under sub. (2) (a), but
22not required to file a tax return under s. 71.24 for the year of the statement, may
23instead, with the department's approval, submit a statement that contains the
24following information no later than 90 days after either the date on which the

1corporation files a federal tax return or the date on which another entity files a
2federal consolidated tax return in which the corporation is included:
SB367,5,33 (a) The information described in sub. (2) (b) 1. to 3.
SB367,5,54 (b) An explanation of why the corporation is not required to file a tax return
5under s. 71.24 for the year of the statement.
SB367,5,76 (c) An indication of whether the corporation's total gross income from sales to
7purchasers in this state for the year of the statement is:
SB367,5,88 1. Less than $10,000,000.
SB367,5,99 2. At least $10,000,000, but not greater than $50,000,000.
SB367,5,1010 3. Greater than $50,000,000, but not greater than $100,000,000.
SB367,5,1111 4. Greater than $100,000,000, but not greater than $250,000,000.
SB367,5,1212 5. Greater than $250,000,000.
SB367,5,15 13(4) In addition to the information provided in the statement submitted under
14sub. (2) (b) or (3), a corporation may submit to the department any other information
15it considers useful for interpreting the information contained in the statement.
SB367,5,25 16(5) If a corporation that submits a statement under sub. (2) subsequently files
17an amended tax return with the department, the corporation shall submit a revised
18statement under sub. (2) that reflects the changes made by the amended return no
19later than 90 days after the date on which the corporation files the amended return.
20If a corporation's tax liability for the taxable year for which the corporation has
21submitted a statement under sub. (2) is changed as a result of an uncontested audit
22adjustment or a final determination under subch. XIV, the corporation shall submit
23a revised statement under sub. (2) that reflects the change no later than 60 days after
24the date on which the time for appealing the change has passed or on which a final
25determination is made under subch. XIV.
SB367,6,5
1(6) (a) Except as provided in par. (b), and notwithstanding s. 71.78, the
2statements submitted under subs. (2), (3), and (5), and the information submitted
3under sub. (4), are not confidential. The department shall make the information
4available to the public as provided under s. 19.35 and on an ongoing basis as a
5searchable database that is accessible on the Internet.
SB367,6,86 (b) Except as provided in s. 71.78 (4), no information received from a
7corporation under this section for a taxable year shall be disclosed until the first day
8of the 3rd calendar year following the calendar year in which the taxable year ends.
SB367,6,11 9(7) Section 71.74, as it applies to returns filed under this subchapter, applies
10to statements submitted under this section. The penalties under subch. XIII apply
11for failure to comply with this section.
SB367, s. 2 12Section 2. Initial applicability.
SB367,6,1313 (1) This act first applies to taxable years beginning on January 1, 2008.
SB367,6,1414 (End)
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