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SB865: Bill Text
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2025 - 2026 LEGISLATURE
LRB-5921/1
KP:ads&emw
2025 SENATE BILL 865
January 23, 2026 - Introduced by Senator
Tomczyk
, cosponsored by Representatives
Wittke
,
Green
and
Knodl
. Referred to Committee on Agriculture and Revenue.
SB865,1,5
1
An Act
to amend
71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34 (1k) (g)
2
and 71.45 (2) (a) 10.;
to create
71.07 (8t), 71.10 (4) (cu), 71.28 (8t), 71.30 (3)
3
(cu), 71.47 (8t) and 71.49 (1) (cu) of the statutes;
relating to:
a tax credit for
4
certain sales and use taxes paid on services sold through an amusement
5
device.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit for the total amount of the additional Milwaukee County sales and use tax and the sales and use tax imposed by a municipality that is paid by a person on sales of taxable services purchased through an amusement device. The bill defines an “amusement device” as a single or multiplayer device, machine, or game played for amusement. Current law subjects the furnishing, for payment or other consideration, of access or use of amusement, entertainment, or recreational devices or facilities to sales and use taxes. Also, under current law, the City of Milwaukee is the only municipality that is authorized to impose a sales and use tax, which it imposes at a rate of 2 percent. Under current law, Milwaukee County is authorized to impose an additional sales and use tax of 0.4 percent. The revenues from both of those taxes must generally be used to pay for the unfunded actuarial accrued liability of the pension systems of the City of Milwaukee and Milwaukee County, respectively.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SB865,1
1
Section
1
.
71.05 (6) (a) 15. of the statutes, as affected by
2025 Wisconsin Act
2
1
5, is amended to read:
SB865,2,8
3
71.05
(6)
(a) 15. The amount of the credits computed under s. 71.07 (2dm),
4
(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5f), (5h),
5
(5i), (5j), (5k), (5r), (5rm), (6n),
(8t),
and (10) and not passed through by a
6
partnership, limited liability company, or tax-option corporation that has added
7
that amount to the partnership’s, company’s, or tax-option corporation’s income
8
under s. 71.21 (4) or 71.34 (1k) (g).
SB865,2
9
Section
2
.
71.07 (8t) of the statutes is created to read:
SB865,2,11
10
71.07
(8t)
Amusement device sales tax credit.
(a)
Definitions.
In this
11
subsection:
SB865,2,13
12
1. “Amusement device” means any single or multiplayer device, machine, or
13
game played for amusement.
SB865,2,14
14
2. “Claimant” means a person who files a claim under this subsection.
SB865,2,15
15
3. “Municipality” means a city, village, or town.
SB865,3,2
16
(b)
Filing claims.
For taxable years beginning after December 31, 2024, and
17
subject to the limitations provided in this subsection, a claimant may claim as a
18
credit against the tax imposed under s. 71.02, up to the amount of those taxes, an
19
amount equal to the sum of the county sales and use tax imposed under s. 77.70 (2)
20
(a) and the sales and use tax imposed by a municipality under subch. V of ch. 77
1
paid by the claimant in the taxable year on sales of a service described in s. 77.52 (2)
2
(a) 2. a. purchased through an amusement device.
SB865,3,10
3
(c)
Limitations.
Partnerships, tax-option corporations, and limited liability
4
companies may not claim a credit under this subsection, but the eligibility for, and
5
the amount of, the credit are based on their taxes paid under par. (b). A
6
partnership, tax-option corporation, or limited liability company shall compute the
7
amount of the credit that each of its partners, shareholders, or members may claim
8
and shall provide that information to each of them. Partners of a partnership,
9
shareholders of tax-option corporations, and members of limited liability companies
10
may claim the credit in proportion to their ownership interest.
SB865,3,12
11
(d)
Administration.
1. Section 71.28 (4) (e), (g), and (h), as it applies to the
12
credit under s. 71.28 (4), applies to the credit under this subsection.
SB865,3,18
13
2. If a credit computed under this subsection is not entirely offset against
14
Wisconsin income or franchise taxes otherwise due, the unused balance may be
15
carried forward and credited against Wisconsin income or franchise taxes
16
otherwise due for the following 20 taxable years to the extent not offset by these
17
taxes otherwise due in all intervening years between the year in which the
18
expenditure was made and the year in which the carry-forward credit is claimed.
SB865,3
19
Section
3
.
71.10 (4) (cu) of the statutes is created to read:
SB865,3,20
20
71.10
(4)
(cu) Amusement device sales tax credit under s. 71.07 (8t).
SB865,4
21
Section
4
.
71.21 (4) (a) of the statutes, as affected by
2025 Wisconsin Act 15
,
22
is amended to read:
SB865,4,2
23
71.21
(4)
(a) The amount of the credits computed by a partnership under s.
24
71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
1
(5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n),
(8t),
and (10) and passed through to
2
partners shall be added to the partnership’s income.
SB865,5
3
Section
5
.
71.26 (2) (a) 4. of the statutes, as affected by
2025 Wisconsin Act
4
15
, is amended to read:
SB865,4,10
5
71.26
(2)
(a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
6
(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y), (5f), (5g), (5h), (5i), (5j), (5k),
7
(5r), (5rm), (6n),
(8t),
and (10) and not passed through by a partnership, limited
8
liability company, or tax-option corporation that has added that amount to the
9
partnership’s, limited liability company’s, or tax-option corporation’s income under
10
s. 71.21 (4) or 71.34 (1k) (g).
SB865,6
11
Section
6
.
71.28 (8t) of the statutes is created to read:
SB865,4,13
12
71.28
(8t)
Amusement device sales tax credit.
(a)
Definitions.
In this
13
subsection:
SB865,4,15
14
1. “Amusement device” means any single or multiplayer device, machine, or
15
game played for amusement.
SB865,4,16
16
2. “Claimant” means a person who files a claim under this subsection.
SB865,4,17
17
3. “Municipality” means a city, village, or town.
SB865,4,24
18
(b)
Filing claims.
For taxable years beginning after December 31, 2024, and
19
subject to the limitations provided in this subsection, a claimant may claim as a
20
credit against the tax imposed under s. 71.23, up to the amount of those taxes, an
21
amount equal to the sum of the county sales and use tax imposed under s. 77.70 (2)
22
(a) and the sales and use tax imposed by a municipality under subch. V of ch. 77
23
paid by the claimant in the taxable year on sales of a service described in s. 77.52 (2)
24
(a) 2. a. purchased through an amusement device.
SB865,5,8
1
(c)
Limitations.
Partnerships, tax-option corporations, and limited liability
2
companies may not claim a credit under this subsection, but the eligibility for, and
3
the amount of, the credit are based on their taxes paid under par. (b). A
4
partnership, tax-option corporation, or limited liability company shall compute the
5
amount of the credit that each of its partners, shareholders, or members may claim
6
and shall provide that information to each of them. Partners of a partnership,
7
shareholders of tax-option corporations, and members of limited liability companies
8
may claim the credit in proportion to their ownership interest.
SB865,5,10
9
(d)
Administration.
1. Subsection (4) (e), (g), and (h), as it applies to the credit
10
under sub. (4), applies to the credit under this subsection.
SB865,5,16
11
2. If a credit computed under this subsection is not entirely offset against
12
Wisconsin income or franchise taxes otherwise due, the unused balance may be
13
carried forward and credited against Wisconsin income or franchise taxes
14
otherwise due for the following 20 taxable years to the extent not offset by these
15
taxes otherwise due in all intervening years between the year in which the
16
expenditure was made and the year in which the carry-forward credit is claimed.
SB865,7
17
Section
7
.
71.30 (3) (cu) of the statutes is created to read:
SB865,5,18
18
71.30
(3)
(cu) Amusement device sales tax credit under s. 71.28 (8t).
SB865,8
19
Section
8
.
71.34 (1k) (g) of the statutes, as affected by
2025 Wisconsin Act
20
15
, is amended to read:
SB865,5,24
21
71.34
(1k)
(g) An addition shall be made for credits computed by a tax-option
22
corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
23
(3wm), (3y), (4), (5), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n),
(8t),
and (10) and
24
passed through to shareholders.
SB865,9
1
Section
9
.
71.45 (2) (a) 10. of the statutes, as affected by
2025 Wisconsin Act
2
1
5, is amended to read:
SB865,6,9
3
71.45
(2)
(a) 10. By adding to federal taxable income the amount of credit
4
computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y), (5f), (5g),
5
(5h), (5i), (5j), (5k), (5r), (5rm), (6n),
(8t),
and (10) and not passed through by a
6
partnership, limited liability company, or tax-option corporation that has added
7
that amount to the partnership’s, limited liability company’s, or tax-option
8
corporation’s income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit
9
computed under s. 71.47 (3), (3t), (4), (4m), and (5).
SB865,10
10
Section
10
.
71.47 (8t) of the statutes is created to read:
SB865,6,12
11
71.47
(8t)
Amusement device sales tax credit.
(a)
Definitions.
In this
12
subsection:
SB865,6,14
13
1. “Amusement device” means any single or multiplayer device, machine, or
14
game played for amusement.
SB865,6,15
15
2. “Claimant” means a person who files a claim under this subsection.
SB865,6,16
16
3. “Municipality” means a city, village, or town.
SB865,6,23
17
(b)
Filing claims.
For taxable years beginning after December 31, 2024, and
18
subject to the limitations provided in this subsection, a claimant may claim as a
19
credit against the tax imposed under s. 71.43, up to the amount of those taxes, an
20
amount equal to the sum of the county sales and use tax imposed under s. 77.70 (2)
21
(a) and the sales and use tax imposed by a municipality under subch. V of ch. 77
22
paid by the claimant in the taxable year on sales of a service described in s. 77.52 (2)
23
(a) 2. a. purchased through an amusement device.
SB865,7,7
24
(c)
Limitations.
Partnerships, tax-option corporations, and limited liability
1
companies may not claim a credit under this subsection, but the eligibility for, and
2
the amount of, the credit are based on their taxes paid under par. (b). A
3
partnership, tax-option corporation, or limited liability company shall compute the
4
amount of the credit that each of its partners, shareholders, or members may claim
5
and shall provide that information to each of them. Partners of a partnership,
6
shareholders of tax-option corporations, and members of limited liability companies
7
may claim the credit in proportion to their ownership interest.
SB865,7,9
8
(d)
Administration.
1. Section 71.28 (4) (e), (g), and (h), as it applies to the
9
credit under s. 71.28 (4), applies to the credit under this subsection.
SB865,7,15
10
2. If a credit computed under this subsection is not entirely offset against
11
Wisconsin income or franchise taxes otherwise due, the unused balance may be
12
carried forward and credited against Wisconsin income or franchise taxes
13
otherwise due for the following 20 taxable years to the extent not offset by these
14
taxes otherwise due in all intervening years between the year in which the
15
expenditure was made and the year in which the carry-forward credit is claimed.
SB865,11
16
Section
11
.
71.49 (1) (cu) of the statutes is created to read:
SB865,7,17
17
71.49
(1)
(cu) Amusement device sales tax credit under s. 71.47 (8t).
SB865,7,18
18
(end)
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