2.32 Economic development surcharge —

gross receipts defined. (1) PURPOSE. This section defines Xgross receiptsY for purposes of the economic development sur- charge under subch. VII of ch. 77, Stats. Note: For taxable years beginning before January 1, 2013, an economic develop- ment surcharge is imposed on: (a) individuals, estates, trusts, statutory employees and partnerships that have at least $4,000,000 in gross receipts from a trade or busi- ness for the taxable year; (b) corporations and insurers that have at least $4,000,000 in gross receipts from all activities for the taxable year; and (c) individuals, estates, trusts and partnerships engaged in farming that have at least $4,000,000 in gross re- ceipts from farming for the taxable year. For taxable years beginning on or after January 1, 2013, an economic development surcharge is only imposed on corpora- tions and insurers that have at least $4,000,000 in gross receipts from all activities for the taxable year. (2) DEFINITIONS. In subch. VII of ch. 77, Stats., and this section: (a) XGross receipts from all activities of corporationsY means the sum of the following items reportable by corporations other than those listed in pars. (c) and (d): 1. Gross receipts or sales reportable on federal Form 1120, U. S. corporation income tax return. 2. Gross dividends reportable on federal Form 1120. 3. Gross interest income reportable on federal Form 1120. 4. Gross rents reportable on federal Form 1120. 5. Gross royalties reportable on federal Form 1120. 6. The gross sales price from the disposition of capital assets and business assets includable in computing the net gain or loss on federal Form 1120. 7. Gross receipts passed through from other entities, and all other receipts that are included in gross income for Wisconsin franchise or income tax purposes. (b) XGross receipts from all activities of exempt organizations taxable as corporationsY means the sum of the following items reportable by those entities: 1. Gross receipts or sales reportable on federal Form 990-T, exempt organization business income tax return. 2. The gross sales price from the disposition of capital assets and business assets includable in computing the gain or loss on federal Form 990-T. 3. Gross rents includable in computing rent income on fed- eral Form 990-T. 4. Gross income from unrelated debt-financed property in- cludable in computing unrelated debt-financed income on federal Form 990-T. 5. Gross interest, annuities, royalties and rents from con- trolled organizations includable in computing those items of in- come on federal Form 990-T. Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published. WISCONSIN ADMINISTRATIVE CODE 6. Gross investment income includable in computing invest- ment income on federal Form 990-T. 7. Gross exploited exempt activity income includable in computing that item of income on federal Form 990-T. 8. Gross advertising income includable in computing adver- tising income on federal Form 990-T. 9. Gross receipts passed through from other entities, and all other receipts that are included in gross income for Wisconsin franchise or income tax purposes. (c) XGross receipts from all activities of insurance compa- niesY means the sum of the following items reportable by insur- ance companies: 1. Gross premiums earned reportable on Schedule A on fed- eral Form 1120-PC, U. S. property and casualty insurance com- pany income tax return. 2. Gross dividends reportable on Schedule A, or Schedule B if applicable, of federal Form 1120-PC. 3. Gross interest income reportable on Schedule A, or Schedule B if applicable, of federal Form 1120-PC. 4. Gross rents reportable on Schedule A, or Schedule B if ap- plicable, of federal Form 1120-PC. 5. Gross royalties reportable on Schedule A, or Schedule B if applicable, of federal Form 1120-PC. 6. The gross sales price from the disposition of capital assets and business assets includable in computing the gain or loss on Schedule A, or Schedule B if applicable, of federal Form 1120- PC. 7. Gross receipts passed through from other entities, and all other receipts that are included in gross income for Wisconsin franchise or income tax purposes. (d) XGross receipts from all activities of tax-option (S) corpo- rationsY means the sum of the following items reportable by S corporations: 1. Gross receipts or sales reportable on federal Form 1120S, U. S. corporation income tax return for an S corporation. 2. Gross rents includable in computing the income from real estate and other rental activities reportable on Schedule K of fed- eral Form 1120S. 3. Gross interest income reportable on Schedule K of federal Form 1120S. 4. Ordinary dividends reportable on Schedule K of federal Form 1120S. 5. Gross royalties includable in computing royalty income re- portable on Schedule K of federal Form 1120S. 6. The gross sales price from the disposition of capital assets and business assets includable in computing the gain or loss on federal Form 1120S and Schedule K of federal Form 1120S. 7. Gross receipts passed through from other entities, and all other receipts that are included in gross income for Wisconsin franchise or income tax purposes. (3) COMBINED GROUPS. The economic development sur- charge applies to each member of a combined group separately. See s. Tax 2.82 for rules pertaining to the imposition and calcula- tion of the economic development surcharge for combined group members. Note: Section Tax 2.32 interprets subch. VII of ch. 77, Stats. Note: Subchapter VII of ch. 77, Stats., was amended by 1999 Wis. Act 9 to re- place the expired temporary recycling surcharge with a recycling surcharge, effective for taxable years beginning on or after January 1, 2000, and by 2011 Wis. Act 32 to change the recycling surcharge to the economic development surcharge effective July 1, 2011. This section applies to the economic development surcharge. History: Cr. Register, August, 2000, No. 536, eff. 9-1-00; CR 10-095: am. (2) (g) (intro.), cr. (3) Register November 2010 No. 659, eff. 12-1-10; CR 12-011: am. (ti- tle), (1), (2) (a) 1., (d), 1., 3. to 6., (e) 1., (g) 1., 2., (h) 1., (3) Register July 2012 No. 679, eff. 8-1-12; CR 14-005: r. (2) (e) to (h) Register August 2014 No. 704, eff. 9-1- 14; CR 19-141: am. (2) (a) 1. to 6., (b) 1. to 8., (c) 1. to 6., (d) 1. to 6. Register Sep- tember 2020 No. 777, eff. 10-1-20.