An Act to repeal 77.94 (2) and 565.01 (5); to renumber and amend 77.94 (1); to amend 66.1105 (2) (L), 71.10 (4) (i) and 71.30 (3) (f) of the statutes; Relating to: eliminating the definition of relative for purposes of the lottery; the definition of taxable property in a tax incremental district; the order of certain withholdings and deposits in income tax computations; and eliminating an adjustment made to the economic development surcharge for certain businesses (suggested as remedial legislation by the Department of Revenue).
Summary
SB913 is a Department of Revenue-requested remedial bill that makes a set of targeted statutory cleanups across Wisconsin’s lottery, tax incremental financing, and income and corporate tax provisions. First, it repeals an obsolete lottery definition of “relative,” reflecting that the chapter now uses “immediate family member” instead. Second, it narrows the definition of “taxable property” for tax incremental districts by removing personal property from that definition, leaving real property as the relevant base for TIF purposes.
The bill also reorganizes the order in which certain items are applied when computing individual and corporate income tax liability. It moves pass-through entity withholding for nonresident members, and deposits made by nonresident entertainers or entertainment corporations, later in the computation sequence. In addition, it removes a proration rule for the economic development surcharge so that businesses that begin or end operations during the year are no longer subject to a days-in-state adjustment under that surcharge provision.
Impact
If enacted, SB913 would amend several sections of the Wisconsin Statutes governing municipal tax incremental financing, state income tax computation, the corporate income tax, the lottery code, and the economic development surcharge. The practical effect would be to simplify or clarify existing law by deleting obsolete language, aligning cross-references, and standardizing how certain withholding and deposit amounts are treated in tax liability calculations. It would also change the tax base used in TIF districts by excluding personal property from the statutory definition of taxable property.
Sentiment
The available context suggests generally favorable or at least routine technical support for the bill. It was introduced by the Law Revision Committee as remedial legislation and described in the bill text as having minor substantive changes that are desirable as a matter of public policy. There are no recorded committee transcripts or votes in the provided materials indicating public controversy, and the bill appears to have been treated as a technical cleanup measure rather than a major policy initiative. The bill ultimately failed to pass pursuant to Senate Joint Resolution 1, but the record provided does not show debate or opposition details.
Contention
The main substantive policy point that could draw attention is the change to the tax incremental financing definition of taxable property, because removing personal property from the TIF base could affect how districts are valued and administered. Another possible area of concern is the elimination of the proration adjustment for the economic development surcharge, which may affect businesses that operate in Wisconsin for only part of a taxable year. The lottery and income-tax changes appear more technical and less contentious, focused on conforming statutes and correcting outdated references.
Crossfiled
An Act to repeal 77.94 (2) and 565.01 (5); to renumber and amend 77.94 (1); to amend 66.1105 (2) (L), 71.10 (4) (i) and 71.30 (3) (f) of the statutes; Relating to: eliminating the definition of relative for purposes of the lottery; the definition of taxable property in a tax incremental district; the order of certain withholdings and deposits in income tax computations; and eliminating an adjustment made to the economic development surcharge for certain businesses (suggested as remedial legislation by the Department of Revenue).