Date of enactment: March 21, 2024
2023 Senate Bill 616 Date of publication*: March 22, 2024
2023 WISCONSIN ACT 146
AN ACT to repeal 125.22 (2) (a) 1. and 565.32 (3) (a) 2. c.; to renumber and amend 71.05 (6) (b) 25.; to amend
25.69, 71.05 (1) (i), 71.05 (25m) (c), 71.26 (1) (i), 71.26 (3) (vm) 2., 71.34 (1k) (p) 2., 71.45 (2) (a) 21. b., 71.64 (6)
(b), 71.775 (3) (a) 2., 125.12 (5) (a), 125.22 (2) (a) 2. and 5. and (3) (b), 229.42 (7) (b) 1m., 565.30 (3) (a) 1., 995.15
(6) and 995.15 (9) (a) and (b); to create 20.566 (1) (v), 20.566 (2) (s), 71.05 (6) (b) 25. a. and b., 71.365 (4m) (d)
1. bd., 77.54 (71) and 565.30 (3) (a) 3. of the statutes; and to affect 2023 Wisconsin Act 73, section 65 (3m); relating
to: a sales tax exemption for road−building equipment; increasing the income tax withholding threshold for nonresi-
dents; modifying the certification requirement for a qualified opportunity fund; prohibiting certain lottery games;
extending the capital gains exclusion to family members who inherit certain farms organized as a partnership or lim-
ited liability company; length of service for certain local exposition district board members; common carriers
involved in direct wine shipping; authorizing shared revenue and municipality sales and use tax positions; the income
tax exemption for income from certain commercial loans; authorizing cigarette, tobacco, and vapor product enforce-
ment positions; correcting a cross−reference; and making an appropriation.
The people of the state of Wisconsin, represented in
senate and assembly, do enact as follows:
SECTION 1b. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts
for the purposes indicated:
2023−24 2024−25
20.566Revenue, department of
(1) COLLECTION OF TAXES
(v)Cigarette, tobacco, and vapor product
enforcement SEG A 201,100 643,100
(2) STATE AND LOCAL FINANCE
(s)Shared revenue and innovation grant
administration SEG A −0− 409,700
SECTION 1c. 20.566 (1) (v) of the statutes is created
to read:
20.566 (1) (v) Cigarette, tobacco, and vapor product
enforcement. From the permanent endowment fund, the
* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 146 2023 Senate Bill 616
amounts in the schedule for special agent positions
related to cigarette, tobacco, and vapor product enforce-
ment.
SECTION 1cm. 20.566 (2) (s) of the statutes is created
to read:
20.566 (2) (s) Shared revenue and innovation grant
administration. From the local government fund, the
amounts in the schedule to administer the distributions
under ss. 79.036 and 79.037 and the grants under s.
79.038.
SECTION 1d. 25.69 of the statutes is amended to read:
25.69 Permanent endowment fund. There is estab-
lished a separate nonlapsible trust fund designated as the
permanent endowment fund, consisting of all of the pro-
ceeds from the sale of the state’s right to receive pay-
ments under the Attorneys General Master Tobacco Set-
tlement Agreement of November 23, 1998, and all
investment earnings on the proceeds. Any revenues or
proceeds that are derived from the repurchase by the state
of the tobacco settlement revenues under s. 16.527 (3) (c)
1. are also deposited into the permanent endowment
fund. Beginning in the 2021−22 fiscal year, there is trans-
ferred from the permanent endowment fund to the Medi-
cal Assistance trust fund all of the moneys deposited into
the permanent endowment fund in each fiscal year,
except that beginning in the 2023−24 fiscal year, the
amount of the transfer is reduced by the amount appropri-
ated under s. 20.566 (1) (v) for that fiscal year.
SECTION 1e. 71.05 (1) (i) of the statutes, as created
by 2023 Wisconsin Act 19, is amended to read:
71.05 (1) (i) Commercial loans. Income from of a
tax−option corporation that is a financial institution, as
defined in s. 69.30 (1) (b), including interest, fees, and
penalties, derived from a commercial loan of five million
dollars or less provided to a person residing or located in
this state and used primarily for a business or agricultural
purpose in this state.
SECTION 1m. 71.05 (6) (b) 25. of the statutes is
renumbered 71.05 (6) (b) 25. (intro.) and amended to
read:
71.05 (6) (b) 25. (intro.) All gains that are not
excluded from taxation under subd. 9., on business assets
or on assets used in farming, including shares in a corpo-
ration or trust that meets the standards under s. 182.001
(1), or both, held more than one year, that are sold or oth-
erwise disposed of to persons who are related to the seller
or transferor by blood, marriage or adoption within the
3rd degree of kinship as determined under s. 990.001
(16), as computed under the Internal Revenue Code, not
including amounts treated as ordinary income for federal
income tax purposes because of the recapture of depreci-
ation or any other reason. For purposes of this subdivi-
sion, “assets used in farming” includes any of the follow-
ing:
SECTION 2. 71.05 (6) (b) 25. a. and b. of the statutes
are created to read:
71.05 (6) (b) 25. a. Shares in a corporation or benefi-
cial interest in a trust that meets the standards under s.
182.001 (1).
b. Ownership interest in a partnership or limited lia-
bility company treated as a partnership under this chap-
ter, if the partnership or limited liability company has 15
or fewer partners or members and all partners or mem-
bers are natural persons.
SECTION 3. 71.05 (25m) (c) of the statutes is amended
to read:
71.05 (25m) (c) No later than January 31 of the year
following the close of the fund’s taxable year In the form
and manner prescribed by the department, a fund shall
annually certify to each investor and the department that
it qualifies as a Wisconsin qualified opportunity fund for
the fund’s taxable year. A fund shall make the annual cer-
tifications under this paragraph no later than the due date,
including extensions, of the fund’s corresponding
income or franchise tax return under this chapter.
SECTION 3m. 71.26 (1) (i) of the statutes, as created
by 2023 Wisconsin Act 19, is amended to read:
71.26 (1) (i) Commercial loans. Income of a finan-
cial institution, as defined in s. 69.30 (1) (b), including
interest, fees, and penalties, derived from a commercial
loan of five million dollars or less provided to a person
residing or located in this state and used primarily for a
business or agricultural purpose in this state.
SECTION 4. 71.26 (3) (vm) 2. of the statutes is
amended to read:
71.26 (3) (vm) 2. No later than January 31 of the year
following the close of the fund’s taxable year In the form
and manner prescribed by the department, a fund shall
annually certify to each investor and the department that
it qualifies as a Wisconsin qualified opportunity fund for
the fund’s taxable year. A fund shall make the annual cer-
tifications under this subdivision no later than the due
date, including extensions, of the fund’s corresponding
income or franchise tax return under this chapter.
SECTION 5. 71.34 (1k) (p) 2. of the statutes is
amended to read:
71.34 (1k) (p) 2. No later than January 31 of the year
following the close of the fund’s taxable year In the form
and manner prescribed by the department, a fund shall
annually certify to each investor and the department of
revenue that it qualifies as a Wisconsin qualified opportu-
nity fund for the fund’s taxable year. A fund shall make
the annual certifications under this subdivision no later
than the due date, including extensions, of the fund’s cor-
responding income or franchise tax return under this
chapter.
SECTION 5m. 71.365 (4m) (d) 1. bd. of the statutes is
created to read:
71.365 (4m) (d) 1. bd. For taxable years beginning
after December 31, 2022, the income exclusion under s.
71.05 (1) (i) shall be allowed. − 3 − 2023 Wisconsin Act 146 2023 Senate Bill 616
SECTION 6. 71.45 (2) (a) 21. b. of the statutes is
amended to read:
71.45 (2) (a) 21. b. No later than January 31 of the
year following the close of the fund’s taxable year In the
form and manner prescribed by the department, a fund
shall annually certify to each investor and the department
that it qualifies as a Wisconsin qualified opportunity fund
for the fund’s taxable year. A fund shall make the annual
certifications under this subd. 21. b. no later than the due
date, including extensions, of the fund’s corresponding
income or franchise tax return under this chapter.
SECTION 7. 71.64 (6) (b) of the statutes is amended
to read:
71.64 (6) (b) No amount shall be withheld from the
wages paid to a nonresident employee for services per-
formed in this state if the employer reasonably estimates
that during that calendar year the employee will earn less
than $1,500 $2,000; but whenever it appears that the
employee will earn more than $1,500 $2,000 in this state
during the calendar year, the employer shall withhold,
from wages paid thereafter, such additional amounts as
the employer reasonably estimates will be required to
offset the amounts not withheld from previous payments.
SECTION 8. 71.775 (3) (a) 2. of the statutes is
amended to read:
71.775 (3) (a) 2. The partner’s, member’s, sharehold-
er’s, or beneficiary’s share of income from the pass−
through entity that is attributable to this state is less than
$1,000 $2,000.
SECTION 9. 77.54 (71) of the statutes is created to
read:
77.54 (71) The sales price from the sale of and the
storage, use, or other consumption of portable machinery
and equipment, including accessories, attachments,
parts, and supplies for such 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.
SECTION 9d. 125.12 (5) (a) of the statutes, as affected
by 2023 Wisconsin Act 73, section 25L, is amended to
read:
125.12 (5) (a) The division may, after notice and an
opportunity for hearing, revoke, suspend, or refuse to
renew any retail permit issued by it for the causes pro-
vided in sub. (4) and any other permit issued by it under
this chapter for any violation of this chapter or ch. 139,
except that, for a violation of s. 125.535 or 139.035, the
division shall revoke the permit, and the division shall
revoke a common carrier permit as provided in s. 125.22
(3) (b) and a fulfillment house permit as provided in s.
125.23 (6) (b) and may revoke a common carrier permit
as provided in s. 125.22 (3) (b).
SECTION 9f. 125.22 (2) (a) 1. of the statutes, as cre-
ated by 2023 Wisconsin Act 73, is repealed.
SECTION 9g. 125.22 (2) (a) 2. and 5. and (3) (b) of the
statutes, as created by 2023 Wisconsin Act 73, are
amended to read:
125.22 (2) (a) 2. The name and address of the con-
signor of the shipment, if different from the person that
manufactured the alcohol beverages.
5. The type and quantity weight of the alcohol bever-
ages shipped to the consignee, as reported to the common
carrier by the consignor.
(3) (b) Any common carrier that ships alcohol bever-
ages other than wine obtained from a direct wine shipper
permittee under s. 125.535 or from a fulfillment house
permittee under s. 125.23 is may be subject to a forfeiture
of not more than $2,000. The When the division deter-
mines that a common carrier has engaged in repeated and
negligent transportation and shipping practices involv-
ing alcohol beverages, the division shall may revoke the
permit of any common carrier that violates this prohibi-
tion in more than one month during a calendar year.
Except as provided in this paragraph, s. 125.12 (5) shall
apply with respect to the division’s revocation of the per-
mit.
SECTION 9m. 229.42 (7) (b) 1m. of the statutes is
amended to read:
229.42 (7) (b) 1m. Subject to subds. 2. and 3. and sub.
(4) (g), the terms of office of the members of the board of
directors shall be 3 years, except that for the initial
appointments that occur following the secretary of
administration issuing the certification described in sub.
(4e) (d), 3 of the appointments shall be for one year, 3
appointments shall be for 2 years, and 3 appointments
shall be for 3 years. The comptroller’s appointments
shall be for the comptroller’s tenure in his or her position.
The term of the secretary of administration or his or her
designee shall be concurrent with the secretary’s term in
office, and the terms of the persons described in sub. (4)
(f) shall be their terms in office or the term of the person
who designated the board members under sub. (4) (f).
The length of the initial terms shall be determined jointly
by the secretary of administration and the county execu-
tive of the most populous county in which the sponsoring
municipality is located. With regard to appointed board
members to whom this subdivision applies, no individual
may serve on the board of directors for more than 6 9
years.
SECTION 10. 565.30 (3) (a) 1. of the statutes is
amended to read:
565.30 (3) (a) 1. Except as provided in subd. subds.
2. and 3., the holder of a winning lottery ticket or lottery
share may claim a prize within 180 days after the drawing
or other selection in which the prize is won.
SECTION 11. 565.30 (3) (a) 3. of the statutes is created
to read: − 4 −2023 Wisconsin Act 146 2023 Senate Bill 616
565.30 (3) (a) 3. As determined by the administrator,
multijurisdictional lottery secondary or subsequent
chance drawings or games may have a shorter claim
period for holders of a winning lottery ticket or lottery
share, which shall be prescribed in the features and proce-
dures for the secondary or subsequent chance drawing or
game.
SECTION 12. 565.32 (3) (a) 2. c. of the statutes is
repealed.
SECTION 12d. 995.15 (6) of the statutes, as created by
2023 Wisconsin Act 73, is amended to read:
995.15 (6) Beginning March September 1, 2025, the
department shall maintain and make publicly available
on its website a directory that lists all electronic vaping
device manufacturers and electronic vaping devices for
which certification forms have been submitted and shall
update the directory at least monthly to ensure accuracy.
SECTION 12e. 995.15 (9) (a) and (b) of the statutes,
as created by 2023 Wisconsin Act 73, are amended to
read:
995.15 (9) (a) Beginning March September 1, 2025,
or on the date that the department first makes the direc-
tory maintained under sub. (6) available for public
inspection on its website, whichever is later, the depart-
ment shall impose on each retailer who sells or offers for
sale an electronic vaping device in this state that is not
included in the directory a forfeiture of $1,000 per day for
each electronic vaping device offered for sale in violation
of this section until each such device is no longer offered
for sale in this state or until each such device is properly
listed on the directory pursuant to this section.
(b) Beginning March September 1, 2025, or on the
date that the department first makes the directory main-
tained under sub. (6) available for public inspection on its
website, whichever is later, the department shall impose
on each manufacturer of an electronic vaping device that
is sold in this state, but not included in the directory a for-
feiture of $1,000 per day for each electronic vaping
device offered for sale in violation of this section until
each such device is no longer offered for sale in this state
or until each such device is properly listed on the direc-
tory pursuant to this section.
SECTION 12m. 2023 Wisconsin Act 73, section 65
(3m) is amended by replacing “SECTION 64c” with “SEC-
TION 64c (5m)”.
SECTION 12n.0Nonstatutory provisions.
(1) CIGARETTE, TOBACCO, AND VAPOR PRODUCT SPE-
CIAL AGENTS. The authorized FTE positions for the
department of revenue are increased by 4.0 SEG posi-
tions on April 1, 2024, to be funded from the appropria-
tion under s. 20.566 (1) (v), for the purpose of cigarette,
tobacco, and vapor product enforcement.
(2) POSITION AUTHORIZATION; MUNICIPALITY SALES
AND USE TAX. The authorized FTE positions for the
department of revenue are increased by 1.0 PR position,
to be funded from the appropriation under s. 20.566 (1)
(gi), for the purpose of administering the municipality
taxes imposed under s. 77.701.
(3) POSITION AUTHORIZATION; SHARED REVENUE AND
INNOVATION GRANTS. The authorized FTE positions for
the department of revenue are increased by 4.0 SEG proj-
ect positions on July 1, 2024, to be funded from the
appropriation under s. 20.566 (2) (s), to administer the
distributions under ss. 79.036 and 79.037 and the grants
under s. 79.038. On July 1, 2024, all incumbent employ-
ees holding the project positions authorized under SEC-
TION 12r (1) of this act as of June 30, 2024, shall hold the
project positions authorized under this subsection.
SECTION 12r.0Fiscal changes.
(1) ADMINISTRATION OF SHARED REVENUE AND INNO-
VATION GRANTS. In the schedule under s. 20.005 (3) for the
appropriation to the department of revenue under s.
20.566 (2) (a), the dollar amount for fiscal year 2023−24
is increased by $125,600 to increase the authorized FTE
positions for the department by 4.0 GPR project positions
for the period ending on June 30, 2024, to administer the
distributions under ss. 79.036 and 79.037 and the grants
under s. 79.038.
SECTION 13.0Initial applicability.
(1) The treatment of ss. 71.05 (25m) (c), 71.26 (3)
(vm) 2., 71.34 (1k) (p) 2., 71.45 (2) (a) 21. b., 71.64 (6)
(b), and 71.775 (3) (a) 2., the renumbering and amend-
ment of s. 71.05 (6) (b) 25., and the creation of s. 71.05
(6) (b) 25. a. and b. first apply to taxable years beginning
on January 1, 2024.
SECTION 14.0Effective dates. This act takes effect on
the day after publication, except as follows:
(1) The treatment of s. 77.54 (71) takes effect on the
first day of the 3rd month beginning after publication.
(2m) The treatment of ss. 125.12 (5) (a) and 125.22
(2) (a) 1., 2., and 5. and (3) (b) takes effect on January 1,
2025.