Interest rates on late, nondelinquent taxes and on overpayments. (FE)
Impact
The impact of AB1089 on state laws is significant as it repeals and renumbers existing statutes governing tax interest rates. By establishing a clearer framework for how interest is to be assessed on overdue tax payments and on refunds, the bill intends to reduce disputes over tax liabilities and ensure that tax regulations align more rigorously with governmental revenue goals. Furthermore, the updated interest rates on unpaid taxes reinforce the accountability of taxpayers, encouraging timely payments and enhancing state fiscal health.
Summary
Assembly Bill 1089 represents legislation that amends various sections of Wisconsin statutes related to interest rates on late taxes and overpayments. The modifications chiefly involve changes to how interest is calculated on unpaid taxes, increasing the rates that apply to late payments and adjusting the rates that apply to overpayments. The bill aims to ensure consistency in tax administration and to clarify the interest calculations that the Department of Revenue must enforce, promoting transparency and rigor in the collection of state revenue.
Sentiment
Overall, the sentiment around AB1089 appears to be favorable among lawmakers focused on effective tax collection and state revenue maximization. Proponents argue that the clearer terms and higher interest rates will discourage late payments and streamline the tax guidance process. However, some opposition may arise from those who perceive such interest rate increases as a burden on taxpayers, particularly businesses and individuals already facing financial difficulties.
Contention
Despite its support, AB1089 could be subject to points of contention, particularly regarding the principles of fairness and fiscal responsibility. Critics may argue that the increased interest rates on late taxes could disproportionately affect low-income taxpayers or those facing economic hardships. This legislation could ignite discussions about balancing the state's urgency in tax collection against the economic realities faced by taxpayers, thus highlighting a critical divide in perspectives around fiscal policy.
In personal income tax, further providing for refund or credit of overpayment and providing for interest on refund or credit of overpayments; and, in general provisions, providing for interest on taxes due the Commonwealth and for interest on overpayments; and making repeals.
In personal income tax, further providing for refund or credit of overpayment and providing for interest on refund or credit of overpayments; in general provisions, providing for interest on taxes due the Commonwealth and for interest on overpayments; and making repeals.
Reducing penalties for the late filing of and the failure to file personal property renditions and the discovery of escaped personal property, requiring filing only an initial statement with county appraiser for personal property, decreasing the penalties for failing to timely remit withholding income taxes of employees by employers, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for county clerks for calendar year 2024, modifying and prescribing the contents of the revenue neutral rate public hearing notice, providing two prior years' values on the annual valuation notice, allowing for filing of an appraisal by a certified residential real property appraiser for appeal purposes, discontinuing the prohibition of paying taxes under protest after a valuation notice appeal, accounting for adverse influences in the valuation of agricultural land, including properties used for registered agritourism activities as land devoted to agricultural use for purposes of classification, providing a property tax exemption for certain business property operated in competition with property owned or operated by a governmental entity, providing income tax subtraction modifications to permit the carryforward of certain net operating losses for individuals and for the federal work opportunity tax credit and the employee retention credit disallowances, increasing the tax credit amount for adoption expenses and making the credit refundable, increasing the amount of income tax credits available for purchases under the disability employment act from qualified vendors, continuing in existence such credits beyond tax year 2023 and defining qualifying vendors and eligible employees, establishing a tax credit for contributions to eligible charitable organizations operating pregnancy centers or residential maternity facilities, clarifying the determination of taxable income of an electing pass-through entity and providing for the passing through of tax credits to electing pass-through entity owners for purposes of the salt parity act, excluding social security payments from household income and expanding eligibility for seniors and disabled veterans related to increased property tax homestead refund claims, providing a sales tax exemption for sales of property and services used in the provision of communications services and excluding manufacturers' coupons from the sales or selling price.
Income tax; interest accrual and due dates of certain reports or returns; emergency declaration; modifying period of underpayment for corporations. Effective date. Emergency.