Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB1020 Compare Versions

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1		-	Date of enactment:
2		-	2023 Assembly Bill 1020 Date of publication*:
3		-	2023 WISCONSIN ACT
4		-	AN ACT to repeal 71.06 (1), (1m), (1n) and (1p), 71.06 (1q), 71.06 (2) (a) to (h), 71.06 (2) (i), 71.06 (2) (j) and 71.06
5		-	(2e) (a) and (b); to amend 71.06 (1q) (intro.), 71.06 (2) (i) (intro.), 71.06 (2) (j) (intro.) and 71.06 (2m); and to create
6		-	71.06 (1r), 71.06 (2) (k), 71.06 (2) (L) and 71.06 (2e) (bm) of the statutes; relating to: expansion of the second indi-
7		-	vidual income tax bracket.
8		-	The people of the state of Wisconsin, represented in
9		-	senate and assembly, do enact as follows:
10		-	SECTION 1. 71.06 (1), (1m), (1n) and (1p) of the
11		-	statutes are repealed.
12		-	SECTION 2. 71.06 (1q) (intro.) of the statutes is
13		-	amended to read:
14		-	71.06 (1q) FIDUCIARIES, SINGLE INDIVIDUALS, AND
15		-	HEADS OF HOUSEHOLDS; AFTER 2012 TO 2023. (intro.) The
16		-	tax to be assessed, levied, and collected upon the taxable
17		-	incomes of all fiduciaries, except fiduciaries of nuclear
18		-	decommissioning trust or reserve funds, and single indi-
19		-	viduals and heads of households shall be computed at the
20		-	following rates for taxable years beginning after Decem-
21		-	ber 31, 2012, and before January 1, 2024:
22		-	SECTION 3. 71.06 (1q) of the statutes, as affected by
23		-	2023 Wisconsin Acts 19 and .... (this act), is repealed.
24		-	SECTION 4. 71.06 (1r) of the statutes is created to
25		-	read:
26		-	71.06 (1r) FIDUCIARIES, SINGLE INDIVIDUALS, AND
27		-	HEADS OF HOUSEHOLD; AFTER 2023. The tax to be assessed,
28		-	levied, and collected upon the taxable incomes of all fidu-
29		-	ciaries, except fiduciaries of nuclear decommissioning
30		-	trust or reserve funds, and single individuals and heads of
31		-	households shall be computed at the following rates for
32		-	taxable years beginning after December 31, 2023:
33		-	(a) On all taxable income from $0 to $14,320, 3.50
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	3	+	2023 - 2024 LEGISLATURE
	4	+	2023 ASSEMBLY BILL 1020
	5	+	January 29, 2024 - Introduced by Representatives KATSMA, BORN, ALLEN,
	6	+	ARMSTRONG, AUGUST, BEHNKE, BINSFELD, BRANDTJEN, DITTRICH, DONOVAN,
	7	+	EDMING, GREEN, GUNDRUM, HURD, KRUG, KURTZ, MACCO, MAGNAFICI, MAXEY,
	8	+	MELOTIK, MOSES, MURPHY, MURSAU, NEDWESKI, O'CONNOR, OLDENBURG,
	9	+	PENTERMAN, PETRYK, PLUMER, RETTINGER, SCHMIDT, SCHRAA, SCHUTT, SNYDER,
	10	+	SORTWELL, SPIROS, STEFFEN, TRANEL, WICHGERS, WITTKE, ZIMMERMAN and
	11	+	SWEARINGEN, cosponsored by Senators MARKLEIN, LEMAHIEU, BALLWEG,
	12	+	BRADLEY, CABRAL-GUEVARA, FELZKOWSKI, FEYEN, JAGLER, NASS, QUINN,
	13	+	STROEBEL, TESTIN, WANGGAARD and TOMCZYK. Referred to Joint Committee on
	14	+	Finance.
	15	+	*AUTHORS SUBJECT TO CHANGE*
	16	+	AN ACT to repeal 71.06 (1), (1m), (1n) and (1p), 71.06 (1q), 71.06 (2) (a) to (h),
	17	+	71.06 (2) (i), 71.06 (2) (j) and 71.06 (2e) (a) and (b); to amend 71.06 (1q) (intro.),
	18	+	71.06 (2) (i) (intro.), 71.06 (2) (j) (intro.) and 71.06 (2m); and to create 71.06 (1r),
	19	+	71.06 (2) (k), 71.06 (2) (L) and 71.06 (2e) (bm) of the statutes; relating to:
	20	+	expansion of the second individual income tax bracket.
	21	+	Analysis by the Legislative Reference Bureau
	22	+	This bill expands the second individual income tax bracket as follows:
	23	+	1. For single individuals, certain fiduciaries, and heads of households, the
	24	+	current law tax rate of 4.40 percent applies to taxable income exceeding $14,320 but
	25	+	not exceeding $112,500. Under current law, as adjusted for inflation, the second tax
	26	+	bracket for single individuals, certain fiduciaries, and heads of households applies
	27	+	to taxable income exceeding $14,320 but not exceeding $28,640.
	28	+	2. For married persons filing a joint return, the 4.40 percent tax rate applies
	29	+	to taxable income exceeding $19,090 but not exceeding $150,000. Under current law,
	30	+	as adjusted for inflation, the second tax bracket for married persons filing a joint
	31	+	return applies to taxable income exceeding $19,090 but not exceeding $38,190.
	32	+	3. For married persons filing separate returns the 4.40 percent tax rate applies
	33	+	to taxable income exceeding $9,550 but not exceeding $75,000. Under current law,
	34	+	as adjusted for inflation, the second tax bracket for married persons filing separate
	35	+	returns applies to taxable income exceeding $9,550 but not exceeding $19,090.
	36	+	Under current law, there are four income tax brackets for single individuals,
	37	+	certain fiduciaries, heads of households, and married persons, and the brackets are
	38	+	1
	39	+	2
	40	+	3
	41	+	4
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	44	+	ASSEMBLY BILL 1020
	45	+	indexed for inflation. The rate of taxation under current law for the lowest bracket
	46	+	for single individuals, certain fiduciaries, heads of households, and married persons
	47	+	is 3.50 percent of taxable income. The rate for the second bracket is 4.40 percent.
	48	+	The rate for the third bracket is 5.3 percent. And the rate for the highest bracket is
	49	+	7.65 percent.
	50	+	For further information see the state fiscal estimate, which will be printed as
	51	+	an appendix to this bill.
	52	+	The people of the state of Wisconsin, represented in senate and assembly, do
	53	+	enact as follows:
	54	+	SECTION 1. 71.06 (1), (1m), (1n) and (1p) of the statutes are repealed.
	55	+	SECTION 2. 71.06 (1q) (intro.) of the statutes is amended to read:
	56	+	71.06 (1q) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLDS; AFTER
	57	+	2012 TO 2023. (intro.) The tax to be assessed, levied, and collected upon the taxable
	58	+	incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or
	59	+	reserve funds, and single individuals and heads of households shall be computed at
	60	+	the following rates for taxable years beginning after December 31, 2012, and before
	61	+	January 1, 2024:
	62	+	SECTION 3. 71.06 (1q) of the statutes, as affected by 2023 Wisconsin Acts 19 and
	63	+	...(this act), is repealed.
	64	+	SECTION 4. 71.06 (1r) of the statutes is created to read:
	65	+	71.06 (1r) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLD; AFTER 2023.
	66	+	The tax to be assessed, levied, and collected upon the taxable incomes of all
	67	+	fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
	68	+	single individuals and heads of households shall be computed at the following rates
	69	+	for taxable years beginning after December 31, 2023:
	70	+	(a) On all taxable income from $0 to $14,320, 3.50 percent.
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	90	+	SECTION 4
	91	+	ASSEMBLY BILL 1020
	92	+	(b) On all taxable income exceeding $14,320 but not exceeding $112,500, 4.40
34	93		percent.
35		-	(b) On all taxable income exceeding $14,320 but not
36		-	exceeding $112,500, 4.40 percent.
37		-	(c) On all taxable income exceeding $112,500 but not
38		-	exceeding $315,310, 5.30 percent.
39		-	(d) On all taxable income exceeding $315,310, 7.65
	94	+	(c) On all taxable income exceeding $112,500 but not exceeding $315,310, 5.30
40	95		percent.
41		-	SECTION 5. 71.06 (2) (a) to (h) of the statutes are
42		-	repealed.
43		-	SECTION 6. 71.06 (2) (i) (intro.) of the statutes is
44		-	amended to read:
45		-	71.06 (2) (i) (intro.) For joint returns, for taxable
46		-	years beginning after December 31, 2012, and before
47		-	January 1, 2024:
48		-	SECTION 7. 71.06 (2) (i) of the statutes, as affected by
49		-	2023 Wisconsin Acts 19 and .... (this act), is repealed.
50		-	SECTION 8. 71.06 (2) (j) (intro.) of the statutes is
51		-	amended to read:
52		-	71.06 (2) (j) (intro.) For married persons filing sepa-
53		-	rately, for taxable years beginning after Decem-
54		-	ber 31, 2012, and before January 1, 2024:
55		-	SECTION 9. 71.06 (2) (j) of the statutes, as affected by
56		-	2023 Wisconsin Acts 19 and .... (this act), is repealed.
57		-	* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
58		-	partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 2023 Assembly Bill 1020
59		-	SECTION 10. 71.06 (2) (k) of the statutes is created to
60		-	read:
61		-	71.06 (2) (k) For joint returns, for taxable years
62		-	beginning after December 31, 2023:
63		-	1. On all taxable income from $0 to $19,090, 3.50
	96	+	(d) On all taxable income exceeding $315,310, 7.65 percent.
	97	+	SECTION 5. 71.06 (2) (a) to (h) of the statutes are repealed.
	98	+	SECTION 6. 71.06 (2) (i) (intro.) of the statutes is amended to read:
	99	+	71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after
	100	+	December 31, 2012, and before January 1, 2024:
	101	+	SECTION 7. 71.06 (2) (i) of the statutes, as affected by 2023 Wisconsin Acts 19
	102	+	and ... (this act), is repealed.
	103	+	SECTION 8. 71.06 (2) (j) (intro.) of the statutes is amended to read:
	104	+	71.06 (2) (j) (intro.) For married persons filing separately, for taxable years
	105	+	beginning after December 31, 2012, and before January 1, 2024:
	106	+	SECTION 9. 71.06 (2) (j) of the statutes, as affected by 2023 Wisconsin Acts 19
	107	+	and ... (this act), is repealed.
	108	+	SECTION 10. 71.06 (2) (k) of the statutes is created to read:
	109	+	71.06 (2) (k) For joint returns, for taxable years beginning after December 31,
	110	+	2023:
	111	+	1. On all taxable income from $0 to $19,090, 3.50 percent.
	112	+	2. On all taxable income exceeding $19,090 but not exceeding $150,000, 4.40
64	113		percent.
65		-	2. On all taxable income exceeding $19,090 but not
66		-	exceeding $150,000, 4.40 percent.
67		-	3. On all taxable income exceeding $150,000 but not
68		-	exceeding $420,420, 5.30 percent.
69		-	4. On all taxable income exceeding $420,420, 7.65
	114	+	3. On all taxable income exceeding $150,000 but not exceeding $420,420, 5.30
70	115		percent.
71		-	SECTION 11. 71.06 (2) (L) of the statutes is created to
72		-	read:
73		-	71.06 (2) (L) For married persons filing separately,
74		-	for taxable years beginning after December 31, 2023:
75		-	1. On all taxable income from $0 to $9,550, 3.50 per-
76		-	cent.
77		-	2. On all taxable income exceeding $9,550 but not
78		-	exceeding $75,000, 4.40 percent.
79		-	3. On all taxable income exceeding $75,000 but not
80		-	exceeding $210,210, 5.30 percent.
81		-	4. On all taxable income exceeding $210,210, 7.65
	116	+	4. On all taxable income exceeding $420,420, 7.65 percent.
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	144	+	SECTION 11. 71.06 (2) (L) of the statutes is created to read:
	145	+	71.06 (2) (L) For married persons filing separately, for taxable years beginning
	146	+	after December 31, 2023:
	147	+	1. On all taxable income from $0 to $9,550, 3.50 percent.
	148	+	2. On all taxable income exceeding $9,550 but not exceeding $75,000, 4.40
82	149		percent.
83		-	SECTION 12. 71.06 (2e) (a) and (b) of the statutes are
84		-	repealed.
85		-	SECTION 13. 71.06 (2e) (bm) of the statutes is created
86		-	to read:
87		-	71.06 (2e) (bm) For taxable years beginning after
88		-	December 31, 2024, the maximum dollar amount in each
89		-	tax bracket, and the corresponding minimum dollar
90		-	amount in the next bracket, under subs. (1r) and (2) (k)
91		-	and (L), shall be increased each year by a percentage
92		-	equal to the percentage change between the U.S. con-
93		-	sumer price index for all urban consumers, U.S. city aver-
94		-	age, for the month of August of the previous year and the
95		-	U.S. consumer price index for all urban consumers, U.S.
96		-	city average, for the month of August 2023, as deter-
97		-	mined by the federal department of labor, except that the
98		-	adjustment may occur only if the resulting amount is
99		-	greater than the corresponding amount that was calcu-
100		-	lated for the previous year.
101		-	SECTION 14. 71.06 (2m) of the statutes is amended to
102		-	read:
103		-	71.06 (2m) RATE CHANGES. If a rate under sub. (1),
104		-	(1m), (1n), (1p), (1q), (1r) or (2) (k) or (L) changes during
105		-	a taxable year, the taxpayer shall compute the tax for that
106		-	taxable year by the methods applicable to the federal
107		-	income tax under section 15 of the Internal Revenue
108		-	Code.
	150	+	3. On all taxable income exceeding $75,000 but not exceeding $210,210, 5.30
	151	+	percent.
	152	+	4. On all taxable income exceeding $210,210, 7.65 percent.
	153	+	SECTION 12. 71.06 (2e) (a) and (b) of the statutes are repealed.
	154	+	SECTION 13. 71.06 (2e) (bm) of the statutes is created to read:
	155	+	71.06 (2e) (bm) For taxable years beginning after December 31, 2024, the
	156	+	maximum dollar amount in each tax bracket, and the corresponding minimum dollar
	157	+	amount in the next bracket, under subs. (1r) and (2) (k) and (L), shall be increased
	158	+	each year by a percentage equal to the percentage change between the U.S. consumer
	159	+	price index for all urban consumers, U.S. city average, for the month of August of the
	160	+	previous year and the U.S. consumer price index for all urban consumers, U.S. city
	161	+	average, for the month of August 2023, as determined by the federal department of
	162	+	labor, except that the adjustment may occur only if the resulting amount is greater
	163	+	than the corresponding amount that was calculated for the previous year.
	164	+	SECTION 14. 71.06 (2m) of the statutes is amended to read:
	165	+	71.06 (2m) RATE CHANGES. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r) or
	166	+	(2) (k) or (L) changes during a taxable year, the taxpayer shall compute the tax for
	167	+	that taxable year by the methods applicable to the federal income tax under section
	168	+	15 of the Internal Revenue Code.
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	196	+	SECTION 15
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109	198		SECTION 15.0Nonstatutory provisions.
110		-	(1) INDIVIDUAL INCOME TAX WITHHOLDING TABLE
111		-	ADJUSTMENTS. No later than July 1, 2024, the department
112		-	of revenue shall update the individual income tax with-
113		-	holding tables under s. 71.64 (9) to reflect the tax rates,
114		-	brackets, and sliding scale standard deduction that are in
115		-	effect for taxable year 2024. The adjustments made
116		-	under this subsection to the withholding tables shall take
117		-	effect on July 1, 2024.
118		-	SECTION 16.0Effective dates. This act takes effect on
119		-	the day after publication, except as follows:
120		-	(1) The repeal of s. 71.06 (1q), (2) (i) and (j), and (2e)
121		-	(a) and (b) takes effect on January 1, 2029.
	199	+	(1) INDIVIDUAL INCOME TAX WITHHOLDING TABLE ADJUSTMENTS. No later than July
	200	+	1, 2024, the department of revenue shall update the individual income tax
	201	+	withholding tables under s. 71.64 (9) to reflect the tax rates, brackets, and sliding
	202	+	scale standard deduction that are in effect for taxable year 2024. The adjustments
	203	+	made under this subsection to the withholding tables shall take effect on July 1,
	204	+	2024.
	205	+	SECTION 16.0Effective dates. This act takes effect on the day after publication,
	206	+	except as follows:
	207	+	(1) The repeal of s. 71.06 (1q), (2) (i) and (j), and (2e) (a) and (b) takes effect on
	208	+	January 1, 2029.
	209	+	(END)
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