X. Other Issues Affecting Combined Filers

The recycling surcharge has been changed to the economic development surcharge (2011 Act 32, effective July 1, 2011). All of the former recycling surcharge provisions apply to the economic development surcharge.

All corporations engaged in business in Wisconsin are subject to the economic development surcharge. If at least one member of a combined group is conducting unitary business in Wisconsin, all corporations in the group are considered to be doing business in Wisconsin (sec. 71.255(5)(a), Wis. Stats.).

Each corporation in a combined group is considered a separate corporation for purposes of computing the economic development surcharge. Therefore, the $4,000,000 gross receipts threshold, the $25 minimum economic development surcharge, and the $9,800 maximum economic development surcharge must be determined separately for each entity in the combined group.

Example:

A Wisconsin combined group is made up of corporations A, B, C and D. The following gross receipts and gross tax liabilities are reported:

Corporation	Gross Receipts	Gross Tax
A	$4,200,000	$0
B	$51,000,0000	$330,000
C	$350,000	$0
D	$250,000	$7,000

Corporation A's gross receipts are greater than $4,000,000; therefore, the economic development surcharge must be calculated. The minimum economic development surcharge is 3% of the tax or $25, whichever is greater. Since 3% of the tax is $0, the economic development surcharge is $25.

Corporation B's gross receipts are greater than $4,000,000; therefore, the economic development surcharge must be calculated. The maximum economic development surcharge is 3% of the tax but not more than $9,800. Since 3% of the tax is $9,900, the economic development surcharge is $9,800.

Corporations C and D are not subject to a economic development surcharge because their gross receipts are less than $4,000,000.

The economic development surcharge for the Wisconsin combined group is $9,825, which is the sum of the individual corporations' economic development surcharges of $25, $9,800, $0 and $0.