Wisconsin Legislature: AB867: Bill Text

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2009 - 2010 LEGISLATURE

2009 Assembly BILL 867

March 19, 2010 - Introduced by Representatives Bies, Meyer, Mursau, Clark,
Brooks, LeMahieu, Spanbauer, Vos, Townsend, Gunderson and Petrowski,
cosponsored by Senators Holperin, A. Lasee, Olsen, Schultz and Leibham.
Referred to Joint Committee on Finance.

AB867,1,4 1An Act to amend 71.05 (6) (a) 15., 71.21 (4), 71.26 (2) (a) 4., 71.34 (1k) (g), 71.45
2(2) (a) 10. and 77.92 (4); and to create 71.07 (5n), 71.10 (4) (cd), 71.28 (5n), 71.30
3(3) (cd), 71.47 (5n) and 71.49 (1) (cd) of the statutes; relating to: a tax credit
4for hospitality business advertising.

Analysis by the Legislative Reference Bureau

This bill creates an income and franchise tax credit equal to 10 percent of the
amount that a taxpayer spends in the taxable year on advertising outside of this state
to promote the taxpayer's hospitality business located in this state. 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:

AB867, s. 1 5Section 1. 71.05 (6) (a) 15. of the statutes, as affected by 2009 Wisconsin Act
628, is amended to read:

AB867,2,6

171.05 (6) (a) 15. The amount of the credits computed under s. 71.07 (2dd), (2de),
2(2di), (2dj), (2dL), (2dm), (2dr), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s),
3(3t), (3w), (5e), (5f), (5h), (5i), (5j), (5k), (5n), and (8r) and not passed through by a
4partnership, limited liability company, or tax-option corporation that has added that
5amount to the partnership's, company's, or tax-option corporation's income under s.
671.21 (4) or 71.34 (1k) (g).

AB867, s. 2 7Section 2. 71.07 (5n) of the statutes is created to read:

AB867,2,98 71.07 (5n) Hospitality business advertising credit. (a) Definitions. In this
9subsection:

AB867,2,1010 1. "Claimant" means a person who files a claim under this subsection.

AB867,2,1411 2. "Hospitality business" means a hospitality business located in this state,
12including a business that is classified in the standard industrial classification
13manual, 1987 edition, published by the U.S. office of management and budget, under
14any of the following industry numbers:

AB867,2,1515 a. 5812 — Eating places.

AB867,2,1616 b. 5813 — Drinking places.

AB867,2,1717 c. 7011 — Hotels and motels.

AB867,2,1818 d. 7032 — Sporting and recreational camps.

AB867,2,1919 e. 7033 — Recreational vehicle parks and campsites.

AB867,2,2020 f. 7922 — Theatrical producers and miscellaneous theatrical services.

AB867,2,2221 g. 7929 — Bands, orchestras, actors, and other entertainers and entertainment
22groups.

AB867,2,2323 h. 7948 — Racing, including track operation.

AB867,2,2424 i. 7992 — Public golf courses.

AB867,2,2525 j. 7996 — Amusement parks.

AB867,3,1

1k. 7997 — Membership sports and recreation clubs.

AB867,3,22 L. 7999 — Amusement and recreational services, not elsewhere classified.

AB867,3,73 (b) Filing claims. Subject to the limitations provided in this subsection, a
4claimant may claim as a credit against the tax imposed under s. 71.02, up to the
5amount of the tax, an amount equal to 10 percent of the amount the claimant spent
6in the taxable year on advertising outside of this state to promote the claimant's
7hospitality business.

AB867,3,158 (c) Limitations. Partnerships, limited liability companies, and tax-option
9corporations may not claim the credit under this subsection, but the eligibility for,
10and the amount of, the credit are based on their payment of amounts under par. (b).
11A partnership, limited liability company, or tax-option corporation shall compute
12the amount of credit that each of its partners, members, or shareholders may claim
13and shall provide that information to each of them. Partners, members of limited
14liability companies, and shareholders of tax-option corporations may claim the
15credit in proportion to their ownership interests.

AB867,3,1716 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under
17s. 71.28 (4), applies to the credit under this subsection.

AB867, s. 3 18Section 3. 71.10 (4) (cd) of the statutes is created to read:

AB867,3,1919 71.10 (4) (cd) Hospitality business advertising credit under s. 71.07 (5n).

AB867, s. 4 20Section 4. 71.21 (4) of the statutes, as affected by 2009 Wisconsin Act 28, is
21amended to read:

AB867,3,2522 71.21 (4) Credits computed by a partnership under s. 71.07 (2dd), (2de), (2di),
23(2dj), (2dL), (2dm), (2ds), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3s), (3t), (3w),
24(5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), and (8r) and passed through to partners shall
25be added to the partnership's income.

AB867, s. 5

1Section 5. 71.26 (2) (a) 4. of the statutes, as affected by 2009 Wisconsin Act 28,
2is amended to read:

AB867,4,83 71.26 (2) (a) 4. Plus the amount of the credit computed under s. 71.28 (1dd),
4(1de), (1di), (1dj), (1dL), (1dm), (1ds), (1dx), (1dy), (3g), (3h), (3n), (3p), (3q), (3r), (3t),
5(3w), (5e), (5f), (5g), (5h), (5i), (5j), (5k), (5n), and (8r) and not passed through by a
6partnership, limited liability company, or tax-option corporation that has added that
7amount to the partnership's, limited liability company's, or tax-option corporation's
8income under s. 71.21 (4) or 71.34 (1k) (g).

AB867, s. 6 9Section 6. 71.28 (5n) of the statutes is created to read:

AB867,4,1110 71.28 (5n) Hospitality business advertising credit. (a) Definitions. In this
11subsection:

AB867,4,1212 1. "Claimant" means a person who files a claim under this subsection.

AB867,4,1613 2. "Hospitality business" means a hospitality business located in this state,
14including a business that is classified in the standard industrial classification
15manual, 1987 edition, published by the U.S. office of management and budget, under
16any of the following industry numbers:

AB867,4,1717 a. 5812 — Eating places.

AB867,4,1818 b. 5813 — Drinking places.

AB867,4,1919 c. 7011 — Hotels and motels.

AB867,4,2020 d. 7032 — Sporting and recreational camps.

AB867,4,2121 e. 7033 — Recreational vehicle parks and campsites.

AB867,4,2222 f. 7922 — Theatrical producers and miscellaneous theatrical services.

AB867,4,2423 g. 7929 — Bands, orchestras, actors, and other entertainers and entertainment
24groups.

AB867,4,2525 h. 7948 — Racing, including track operation.