State Codes and Statutes

77.94

77.94 Surcharge determination.

77.94(1)

(1) Except as provided in sub. (2), for taxable years beginning after December 31, 1999, the surcharge imposed under s. 77.93 is calculated as follows:

77.94(1)(a)

(a) On a corporation under s. 77.93 (1) and (4), an amount equal to the amount calculated by multiplying gross tax liability for the taxable year of the corporation by 3%, or in the case of a tax-option corporation an amount equal to the amount calculated by multiplying net income under s. 71.34 by 0.2%, up to a maximum of $9,800, or $25, whichever is greater.

77.94(1)(b)

(b) On an entity under s. 77.93 (2), (3), or (5), except an entity that has less than $4,000,000 of gross receipts, an amount equal to the amount calculated by multiplying net business income as allocated or apportioned to this state by means of the methods under s. 71.04, for the taxable year of the entity by 0.2%, up to a maximum of $9,800, or $25, whichever is greater.

77.94(2)

(2)

77.94(2)(a)

(a) In this subsection:

77.94(2)(a)1.

1. "Begins to do business" includes but is not limited to a change in corporate form and the occurrence of any event that creates a short taxable year for purposes of the taxes under ch. 71.

77.94(2)(a)2.

2. "Ceases to do business" includes but is not limited to a change in corporate form, the death of an individual and the occurrence of any event that creates a short taxable year for purposes of the taxes under ch. 71.

77.94(2)(b)

(b) If an entity under s. 77.93 (1) to (4) begins to do business in this state after the beginning of its taxable year or ceases to do business in this state before the end of its taxable year, subject to the maximum and minimum surcharge, the surcharge imposed on it under s. 77.93 is calculated as follows:

77.94(2)(b)1.

1. Multiply its gross tax liability or net business income for the taxable year by a fraction the numerator of which is 365 and, if the entity begins to do business in this state after the beginning of its taxable year, the denominator of which is the number of days from the day that it begins to do business in this state until the end of its taxable year and, if the entity ceases to do business in this state before the end of its taxable year, the denominator of which is the number of days from the beginning of its taxable year until the day that it ceases to do business in this state and, if the entity both begins to do business in this state after the beginning of its taxable year and ceases to do business in this state before the end of its taxable year, the denominator of which is the number of days from the day that it begins to do business in this state to the day that it ceases to do business in this state.

77.94(2)(b)2.

2. Determine the surcharge that would be imposed under sub. (1) on the amount calculated under subd. 1.

77.94(2)(b)3.

3. Divide the surcharge under subd. 2. by the fraction under subd. 1.

77.94 - ANNOT.

History: 1989 a. 335; 1991 a. 39, 60; 1993 a. 16; 1999 a. 9; 2001 a. 16.

77.94 - ANNOT.

Cross Reference: See also s. Tax 2.32, Wis. adm. code.