SB 616

This bill makes the following changes to current law provisions administered

by the Department of Revenue:

Road-building equipment

The bill creates a sales and use tax exemption for the sale of portable machinery

and equipment used primarily to crush, mill, produce, or pulverize asphalt, concrete,

gravel, rock, or aggregate base for road or commercial surface lot construction or

resurfacing.

Withholding thresholds

Under current law, generally, every employer must, at the time of paying an

employee, withhold from the employee's wages attributable to this state an amount

determined pursuant to the withholding tables prepared by the Department of

Revenue in order to pay for state and federal taxes and other obligations and

benefits. However, an employer is not required to withhold amounts from an

employee who is not a resident of this state if the total amount of the annual wages

attributable to this state paid by the employer to that employee is less than $1,500.

In addition, a pass-through entity, such as a partnership or limited liability

company, is not required to withhold amounts paid to a partner, member,

shareholder, or beneficiary if the total annual wages attributable to this state paid

to that partner, member, shareholder, or beneficiary is less than $1,000.

The bill increases the withholding thresholds for nonresident employees so that

no withholding is required for nonresident employees if the total amount of annual

wages attributable to this state is less than $2,000.

Qualified opportunity funds

Current law allows a taxpayer, for state tax purposes, to claim a capital gains

exclusion equal to the gain excluded from federal gross income in the taxable year

for an investment held in a Wisconsin qualified opportunity fund for a specified

minimum period, typically five to seven years. A “Wisconsin qualified opportunity

fund” is a fund that holds at least 90 percent of its assets in qualified opportunity zone

property in this state, as determined under federal law. Current state law requires

a Wisconsin qualified opportunity fund to certify to its investors and DOR that the

fund qualifies as a WQOF no later than January 31 following the close of the fund's

taxable year. Under the bill, the certification must be made to investors and DOR

no later than the due date, including extensions, of the fund's corresponding income

or franchise tax return. The bill also requires a WQOF to make the certification in

the form and manner prescribed by DOR.

Lottery games

Under current law, the administrator of the Lottery Division of DOR

determines the particular features of and procedures for each lottery game offered.

Current law requires that the features and procedures be in written form and

accessible to the public and include the name and theme of the game, the price of the