Wisconsin 2025-2026 Regular Session

Wisconsin Senate Bill SB36 Compare Versions

Only one version of the bill is available at this time.

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1	1	2025 - 2026 LEGISLATURE
2	2	LRB-0181/1
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4	4	2025 SENATE BILL 36
5	5	February 12, 2025 - Introduced by Senators JACQUE, BRADLEY, HUTTON, CABRAL-
6	6	GUEVARA, FEYEN, NASS, QUINN and TOMCZYK, cosponsored by Representatives
7	7	TUSLER, BEHNKE, GREEN, GUNDRUM, KREIBICH, MAXEY, MURSAU,
8	8	PENTERMAN, PIWOWARCZYK, TITTL, TRANEL and WICHGERS. Referred to
9	9	Committee on Agriculture and Revenue.
10	10	AN ACT to repeal 71.63 (6) (n) 1. and 71.63 (6) (n) 2.; to renumber and amend
11	11	71.63 (6) (n) (intro.); to amend 71.05 (6) (b) 19. cm., 71.05 (6) (b) 19. dm., 71.05
12	12	(6) (b) 28. e., 71.05 (6) (b) 28. f., 71.05 (6) (b) 32. b., 71.05 (6) (b) 32. c., 71.05 (6)
13	13	(b) 33. b., 71.05 (6) (b) 33. c., 71.05 (6) (b) 35. c., 71.05 (6) (b) 35. d., 71.05 (6) (b)
14	14	38. c., 71.05 (6) (b) 38. d., 71.05 (6) (b) 42. c., 71.05 (6) (b) 42. d. and 71.05 (6) (b)
15	15	43. f.; to create 71.05 (1) (j) of the statutes; relating to: an income tax
16	16	exemption for cash tips paid to an employee.
17	17	Analysis by the Legislative Reference Bureau
18	18	This bill creates an income tax exemption for cash tips received by an employee
19	19	from the customers of the employee[s employer.
20	20	Because this bill relates to an exemption from state or local taxes, it may be
21	21	referred to the Joint Survey Committee on Tax Exemptions for a report to be
22	22	printed as an appendix to the bill.
23	23	For further information see the state fiscal estimate, which will be printed as
24	24	an appendix to this bill.
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32	32	SENATE BILL 36
33	33	- 2 - LRB-0181/1
34	34	KP:amn
35	35	The people of the state of Wisconsin, represented in senate and assembly, do
36	36	enact as follows:
37	37	SECTION 1. 71.05 (1) (j) of the statutes is created to read:
38	38	71.05 (1) (j) Tips. Amounts received as cash tips by an employee from the
39	39	customers of the employee[s employer.
40	40	SECTION 2. 71.05 (6) (b) 19. cm. of the statutes is amended to read:
41	41	71.05 (6) (b) 19. cm. For taxable years beginning after December 31, 2020, for
42	42	a person who is a nonresident or a part-year resident of this state, modify the
43	43	amount calculated under subd. 19. b. by multiplying the amount by a fraction the
44	44	numerator of which is the person[s wages, salary, tips, unearned income, and net
45	45	earnings from a trade or business that are taxable by this state and the
46	46	denominator of which is the person[s total wages, salary, tips, unearned income,
47	47	and net earnings from a trade or business. In this subd. 19. cm., for married
48	48	persons filing separately Xwages, salary, tips, unearned income, and net earnings
49	49	from a trade or businessY means the separate wages, salary, tips, unearned income,
50	50	and net earnings from a trade or business of each spouse, and for married persons
51	51	filing jointly Xwages, salary, tips, unearned income, and net earnings from a trade
52	52	or businessY means the total wages, salary, tips, unearned income, and net earnings
53	53	from a trade or business of both spouses.
54	54	SECTION 3. 71.05 (6) (b) 19. dm. of the statutes is amended to read:
55	55	71.05 (6) (b) 19. dm. For taxable years beginning after December 31, 2020,
56	56	reduce the amount calculated under subd. 19. b. or cm. to the person[s aggregate
57	57	wages, salary, tips, unearned income, and net earnings from a trade or business
58	58	that are taxable by this state.
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81	81	SENATE BILL 36
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84	84	SECTION 4
85	85	SECTION 4. 71.05 (6) (b) 28. e. of the statutes is amended to read:
86	86	71.05 (6) (b) 28. e. For an individual who is a nonresident or part-year
87	87	resident of this state, multiply the amount calculated under subd. 28. a., am., b., c.
88	88	or d. by a fraction the numerator of which is the individual[s wages, salary, tips,
89	89	unearned income and net earnings from a trade or business that are taxable by this
90	90	state and the denominator of which is the individual[s total wages, salary, tips,
91	91	unearned income and net earnings from a trade or business. In this subd. 28. e., for
92	92	married persons filing separately Xwages, salary, tips, unearned income and net
93	93	earnings from a trade or businessY means the separate wages, salary, tips,
94	94	unearned income and net earnings from a trade or business of each spouse, and for
95	95	married persons filing jointly Xwages, salary, tips, unearned income and net
96	96	earnings from a trade or businessY means the total wages, salary, tips, unearned
97	97	income and net earnings from a trade or business of both spouses.
98	98	SECTION 5. 71.05 (6) (b) 28. f. of the statutes is amended to read:
99	99	71.05 (6) (b) 28. f. Reduce the amount calculated under subd. 28. a., am., b., c.,
100	100	d. or e. to the individual[s aggregate wages, salary, tips, unearned income and net
101	101	earnings from a trade or business that are taxable by this state.
102	102	SECTION 6. 71.05 (6) (b) 32. b. of the statutes is amended to read:
103	103	71.05 (6) (b) 32. b. For an individual who is a nonresident or part-year
104	104	resident of this state, multiply the amount calculated under subd. 32. a. by a
105	105	fraction the numerator of which is the individual[s wages, salary, tips, unearned
106	106	income and net earnings from a trade or business that are taxable by this state and
107	107	the denominator of which is the individual[s total wages, salary, tips, unearned
108	108	income and net earnings from a trade or business. In this subd. 32. b., for married
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133	133	SENATE BILL 36
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136	136	SECTION 6
137	137	persons filing separately Xwages, salary, tips, unearned income and net earnings
138	138	from a trade or businessY means the separate wages, salary, tips, unearned income
139	139	and net earnings from a trade or business of each spouse, and for married persons
140	140	filing jointly Xwages, salary, tips, unearned income and net earnings from a trade or
141	141	businessY means the total wages, salary, tips, unearned income and net earnings
142	142	from a trade or business of both spouses.
143	143	SECTION 7. 71.05 (6) (b) 32. c. of the statutes is amended to read:
144	144	71.05 (6) (b) 32. c. Reduce the amount calculated under subd. 32. a. or b. to the
145	145	individual[s aggregate wages, salary, tips, unearned income and net earnings from
146	146	a trade or business that are taxable by this state.
147	147	SECTION 8. 71.05 (6) (b) 33. b. of the statutes is amended to read:
148	148	71.05 (6) (b) 33. b. For an individual who is a nonresident or part-year
149	149	resident of this state, multiply the amount calculated under subd. 33. a. by a
150	150	fraction the numerator of which is the individual[s wages, salary, tips, unearned
151	151	income and net earnings from a trade or business that are taxable by this state and
152	152	the denominator of which is the individual[s total wages, salary, tips, unearned
153	153	income and net earnings from a trade or business. In this subd. 33. b., for married
154	154	persons filing separately Xwages, salary, tips, unearned income and net earnings
155	155	from a trade or businessY means the separate wages, salary, tips, unearned income
156	156	and net earnings from a trade or business of each spouse, and for married persons
157	157	filing jointly Xwages, salary, tips, unearned income and net earnings from a trade or
158	158	businessY means the total wages, salary, tips, unearned income and net earnings
159	159	from a trade or business of both spouses.
160	160	SECTION 9. 71.05 (6) (b) 33. c. of the statutes is amended to read:
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185	185	SENATE BILL 36
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188	188	SECTION 9
189	189	71.05 (6) (b) 33. c. Reduce the amount calculated under subd. 33. a. or b. to the
190	190	individual[s aggregate wages, salary, tips, unearned income and net earnings from
191	191	a trade or business that are taxable by this state.
192	192	SECTION 10. 71.05 (6) (b) 35. c. of the statutes is amended to read:
193	193	71.05 (6) (b) 35. c. For an individual who is a nonresident or part-year
194	194	resident of this state, multiply the amount calculated under subd. 35. a. or b., by a
195	195	fraction the numerator of which is the individual[s wages, salary, tips, unearned
196	196	income, and net earnings from a trade or business that are taxable by this state and
197	197	the denominator of which is the individual[s total wages, salary, tips, unearned
198	198	income, and net earnings from a trade or business. In this subd. 35. c., for married
199	199	persons filing separately Xwages, salary, tips, unearned income, and net earnings
200	200	from a trade or businessY means the separate wages, salary, tips, unearned income,
201	201	and net earnings from a trade or business of each spouse, and for married persons
202	202	filing jointly Xwages, salary, tips, unearned income, and net earnings from a trade
203	203	or businessY means the total wages, salary, tips, unearned income, and net earnings
204	204	from a trade or business of both spouses.
205	205	SECTION 11. 71.05 (6) (b) 35. d. of the statutes is amended to read:
206	206	71.05 (6) (b) 35. d. Reduce the amount calculated under subd. 35. a., b., or c. to
207	207	the individual[s aggregate wages, salary, tips, unearned income, and net earnings
208	208	from a trade or business that are taxable by this state.
209	209	SECTION 12. 71.05 (6) (b) 38. c. of the statutes is amended to read:
210	210	71.05 (6) (b) 38. c. For an individual who is a nonresident or part-year
211	211	resident of this state, multiply the amount calculated under subd. 38. a. or b., by a
212	212	fraction the numerator of which is the individual[s wages, salary, tips, unearned
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237	237	SENATE BILL 36
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240	240	SECTION 12
241	241	income, and net earnings from a trade or business that are taxable by this state and
242	242	the denominator of which is the individual[s total wages, salary, tips, unearned
243	243	income, and net earnings from a trade or business. In this subd. 38. c., for married
244	244	persons filing separately Xwages, salary, tips, unearned income, and net earnings
245	245	from a trade or businessY means the separate wages, salary, tips, unearned income,
246	246	and net earnings from a trade or business of each spouse, and for married persons
247	247	filing jointly Xwages, salary, tips, unearned income, and net earnings from a trade
248	248	or businessY means the total wages, salary, tips, unearned income, and net earnings
249	249	from a trade or business of both spouses.
250	250	SECTION 13. 71.05 (6) (b) 38. d. of the statutes is amended to read:
251	251	71.05 (6) (b) 38. d. Reduce the amount calculated under subd. 38. a., b., or c. to
252	252	the individual[s aggregate wages, salary, tips, unearned income, and net earnings
253	253	from a trade or business that are taxable by this state.
254	254	SECTION 14. 71.05 (6) (b) 42. c. of the statutes is amended to read:
255	255	71.05 (6) (b) 42. c. For an individual who is a nonresident or part-year
256	256	resident of this state, multiply the amount calculated under subd. 42. a. or b., by a
257	257	fraction the numerator of which is the individual[s wages, salary, tips, unearned
258	258	income, and net earnings from a trade or business that are taxable by this state and
259	259	the denominator of which is the individual[s total wages, salary, tips, unearned
260	260	income, and net earnings from a trade or business. In this subd. 42. c., for married
261	261	persons filing separately Xwages, salary, tips, unearned income, and net earnings
262	262	from a trade or businessY means the separate wages, salary, tips, unearned income,
263	263	and net earnings from a trade or business of each spouse, and for married persons
264	264	filing jointly Xwages, salary, tips, unearned income, and net earnings from a trade
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289	289	SENATE BILL 36
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292	292	SECTION 14
293	293	or businessY means the total wages, salary, tips, unearned income, and net earnings
294	294	from a trade or business of both spouses.
295	295	SECTION 15. 71.05 (6) (b) 42. d. of the statutes is amended to read:
296	296	71.05 (6) (b) 42. d. Reduce the amount calculated under subd. 42. a., b., or c. to
297	297	the individual[s aggregate wages, salary, tips, unearned income, and net earnings
298	298	from a trade or business that are taxable by this state.
299	299	SECTION 16. 71.05 (6) (b) 43. f. of the statutes is amended to read:
300	300	71.05 (6) (b) 43. f. An individual who is a nonresident or part-year resident of
301	301	this state and who claims the subtraction under this subdivision shall multiply the
302	302	amount calculated under subd. 43. a., b., c., or d. by a fraction the numerator of
303	303	which is the individual[s wages, salary, tips, unearned income, and net earnings
304	304	from a trade or business that are taxable by this state and the denominator of which
305	305	is the individual[s total wages, salary, tips, unearned income, and net earnings from
306	306	a trade or business. In this subd. 43. f., for married persons filing separately
307	307	Xwages, salary, tips, unearned income, and net earnings from a trade or businessY
308	308	means the separate wages, salary, tips, unearned income, and net earnings from a
309	309	trade or business of each spouse, and for married persons filing jointly Xwages,
310	310	salary, tips, unearned income, and net earnings from a trade or businessY means
311	311	the total wages, salary, tips, unearned income, and net earnings from a trade or
312	312	business of both spouses.
313	313	SECTION 17. 71.63 (6) (n) (intro.) of the statutes is renumbered 71.63 (6) (n)
314	314	and amended to read:
315	315	71.63 (6) (n) In the form of tips paid to employees if:.
316	316	SECTION 18. 71.63 (6) (n) 1. of the statutes is repealed.
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341	341	SENATE BILL 36
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344	344	SECTION 19
345	345	SECTION 19. 71.63 (6) (n) 2. of the statutes is repealed.
346	346	SECTION 20. Initial applicability.
347	347	(1) This act first applies to taxable years beginning after December 31, 2024.
348	348	(END)
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