Wis. Admin. Code § Tax 3.095 — Income tax status of interest and dividends received from government and other securities by individuals and fiduciaries

Tax 3.095(1) (1) Purpose. This section lists federal, state, municipal and other government securities, and certain nongovernment securities, and specifies whether interest and dividends payable on those securities are exempt from or subject to the Wisconsin income tax on individuals and fiduciaries. The lists are not all-inclusive.

Tax 3.095(2) (2) Definitions. In this section:

Tax 3.095(2)(a) (a) “CHAP” means “Community Housing Alternatives Program.”

Tax 3.095(2)(b) (b) “Federal securities” means only securities which are direct and primary obligations of the United States and securities the interest on which federal law prohibits states from taxing. Federal securities do not include securities for which the United States is merely a guarantor and, therefore, has an obligation which is secondary and contingent to that of the issuer of the security.

Tax 3.095(2)(c) (c) “Public housing agency” means any state, county, municipality or other governmental entity or public body, or agency or instrumentality thereof, which is authorized to engage in or assist in the development or operation of lower income housing, under 42 USC 1437a (b) (6).

Tax 3.095(2)(d) (d) “WHEDA” means “Wisconsin Housing and Economic Development Authority.”

Tax 3.095(2)(e) (e) “WHEFA” means “Wisconsin Health and Educational Facilities Authority.”

Tax 3.095(3) (3) General.

Tax 3.095(3)(a) (a) Under s. 71.05 (6) (a) 1. , Stats., interest income which is subject to the Wisconsin income tax on individuals and fiduciaries, but which is not included in federal adjusted gross income, shall be added to federal adjusted gross income in computing Wisconsin taxable income.

Tax 3.095(3)(b) (b) Under s. 71.05 (6) (b) 1. , Stats., interest and dividend income which is included in federal adjusted gross income but which is by federal law exempt from state income taxation, shall be subtracted from federal adjusted gross income in computing Wisconsin taxable income.

Tax 3.095(4) (4) Exempt securities. Interest and dividends payable on the following securities shall be exempt from the Wisconsin income tax on individuals and fiduciaries:

Tax 3.095(4)(a) (a) State, municipal and other government securities exempt from Wisconsin income tax.

Tax 3.095(4)(a)1. 1. District of Columbia general obligation bonds issued on or prior to January 28, 1987, where the interest from the bonds qualifies for exemption from federal income taxation for a reason other than or in addition to s. 103 of the internal revenue code.

Tax 3.095(4)(a)2. 2. Higher education bonds issued by the state of Wisconsin, s. 71.05 (6) (a) 1. , Stats.

Tax 3.095(4)(a)3. 3. Public housing agency bonds issued on or prior to January 28, 1987, by agencies located outside Wisconsin where the interest from the bonds qualifies for exemption from federal income taxation for a reason other than or in addition to s. 103 of the internal revenue code.

Tax 3.095(4)(a)4. 4. Public housing authority bonds issued by municipalities located in Wisconsin, s. 66.1201 (14) (a) , Stats.

Tax 3.095(4)(a)5. 5. Redevelopment authority bonds issued by municipalities located in Wisconsin, s. 66.1333 (5) (a) 4. c. , Stats.

Tax 3.095(4)(a)6. 6. Stripped general obligation bond certificates attributable to certain District of Columbia general obligation bonds issued on or prior to January 28, 1987, where the interest from the bonds qualifies for exemption from federal income taxation under section 1286 of the internal revenue code and D.C. Code Ann. 47-332.

Tax 3.095(4)(a)7. 7. Virgin Island Housing Authority bonds issued on or prior to January 28, 1987, where the interest from the bonds qualifies for exemption from federal income taxation for a reason other than or in addition to section 103 of the internal revenue code.

Tax 3.095(4)(a)8. 8. WHEDA bonds issued on or prior to January 28, 1987, except business development revenue bonds, economic development revenue bonds and CHAP housing revenue bonds issued by WHEDA.

Tax 3.095(4)(a)10. 10. WHEDA bonds issued under s. 234.65 , Stats., to fund an economic development loan to finance construction, renovation or development of property that would be exempt under s. 70.11 (36) , Stats.

Tax 3.095(4)(a)11. 11. Wisconsin Housing Finance Authority bonds, 42 USC 1437i (b).

Tax 3.095(4)(a)12. 12. WHEDA bonds or notes issued under s. 234.08 or 234.61 , Stats., on or after January 1, 2004, if the bonds or notes are issued to fund multifamily affordable housing projects or elderly housing projects.

Tax 3.095(4)(a)13. 13. Bonds or notes issued by a local exposition district created under subch. II of ch. 229 , Stats.

Tax 3.095(4)(a)14. 14. Bonds or notes issued by a local professional baseball park district created under subch. III of ch. 229 , Stats.

Tax 3.095(4)(a)15. 15. Bonds or notes issued by a local professional football stadium district created under subch. IV of ch. 229 , Stats.

Tax 3.095(4)(a)16. 16. Bonds or notes issued by a local cultural arts district created under subch. V of ch. 229 , Stats.

Tax 3.095(4)(a)17. 17. Bonds or notes issued by the Wisconsin Aerospace Authority.

Tax 3.095(4)(a)18. 18. Wisconsin Health and Educational Facilities Authority bonds or notes issued under s. 231.03 (6) , Stats., on or after October 27, 2007, if the proceeds from the bonds or notes that are issued are used by a health facility, as defined in s. 231.01 (5) , Stats., to fund the acquisition of information technology hardware or software.

Tax 3.095(4)(a)19. 19. Bonds or notes issued by a commission created under s. 66.0304 , Stats., if any of the following applies:

Tax 3.095(4)(a)19.a. a. The bonds or notes are used to fund multifamily affordable housing projects or elderly housing projects in this state, and WHEDA has the authority to issue its bonds or notes for the project being funded.

Tax 3.095(4)(a)19.b. b. The bonds or notes are used by a health facility, as defined in s. 231.01 (5) , Stats., to fund the acquisition of information technology hardware or software, in this state, and the Wisconsin Health and Educational Facilities Authority has the authority to issue its bonds or notes for the project being funded.

Tax 3.095(4)(a)19.c. c. The bonds or notes are issued to fund a redevelopment project in this state or a housing project in this state, and the authority exists for bonds or notes to be issued by an entity described under s. 66.1201 , 66.1333 , or 66.1335 , Stats.

Tax 3.095(4)(a)20. 20. WHEDA bonds or notes, if the bonds or notes are issued to provide loans to a public affairs network under s. 234.75 (4) , Stats.

Tax 3.095(4)(a)21. 21. WHEFA bonds or notes, if the bonds or notes are issued for the benefit of a person who is eligible to receive the proceeds of bonds or notes from another entity for the same purpose for which the bonds or notes are issued and the interest income received from the other bonds or notes is exempt from taxation under subch. I of ch. 71 , Stats.

Tax 3.095(4)(a)22. 22. Bonds or notes issued by a sponsoring municipality to assist a local exposition district created under subch. II of ch. 229 , Stats.

Tax 3.095(4)(b) (b) Federal securities exempt from Wisconsin income tax.

Tax 3.095(4)(b)1. 1. Armed Services Housing Mortgage Insurance debentures, 12 USC 1748b (f).

Tax 3.095(4)(b)2. 2. Bank for Cooperative debentures, 12 USC 2134 .

Tax 3.095(4)(b)3. 3. Bank repurchase agreements for U.S. Government treasury bills, notes and bonds, if interest is paid by the federal government directly to the taxpayer.

Tax 3.095(4)(b)4. 4. Commodity Credit Corporation bonds, 15 USC 713a-5 .

Tax 3.095(4)(b)5. 5. Commonwealth of Puerto Rico public improvement bonds, 48 USC 745 .

Tax 3.095(4)(b)6. 6. Farm Credit System Financial Assistance Corporation notes, bonds and debentures, 12 USC 2278b-10 (b).

Tax 3.095(4)(b)7. 7. Federal Deposit Insurance Corporation bonds, 12 USC 1825 .

Tax 3.095(4)(b)8. 8. Federal Farm Credit Banks Consolidated Systemwide Securities, 12 USC 2023 .

Tax 3.095(4)(b)9. 9. Federal Home Loan Bank bonds, debentures and notes, 12 USC 1433 .

Tax 3.095(4)(b)10. 10. Federal Housing Authority debentures, 12 USC 1710 (d) and 1747g (g).

Tax 3.095(4)(b)11. 11. Federal Intermediate Credit Bank debentures, 12 USC 2023 .

Tax 3.095(4)(b)12. 12. Federal Land Bank Association bonds, notes and debentures, 12 USC 2098 .

Tax 3.095(4)(b)13. 13. Federal Land Bank bonds, 12 USC 2055 .

Tax 3.095(4)(b)14. 14. Federal Reserve Bank dividends, 12 USC 531 .

Tax 3.095(4)(b)15. 15. Federal Savings and Loan Insurance Corporation bonds, 12 USC 1725 (e).

Tax 3.095(4)(b)16. 16. Financial Assistance Corporation bonds, notes and debentures, 12 USC 2278b-10 (b).

Tax 3.095(4)(b)17. 17. Financing Corporation obligations, 12 USC 1441 .

Tax 3.095(4)(b)18. 18. General Insurance Fund debentures issued to acquire housing projects, 12 USC 1747g (g).