Wisconsin Assembly Bill AB1191

Wisconsin 2023-2024 Regular Session

• Introduced: 4/9/24
• Refer: 4/9/24
• Failed: 4/15/24

Caption

A refundable income tax credit based on property taxes paid and making an appropriation. (FE)

Impact

The bill is designed to ease the financial burden of property taxes on residents, particularly benefiting lower and middle-income households in Wisconsin. By offering a credit that adjusts based on income and tax obligations, it aims to provide greater fairness and accessibility in the taxation system. The provision that allows for a refund if the claimed credit exceeds the individual's tax liability further enhances its benefit for eligible taxpayers, potentially increasing disposable income for these residents.

Summary

Assembly Bill 1191 proposes the establishment of a refundable income tax credit aimed at providing financial relief to individuals whose property tax or rent obligations exceed a certain threshold relative to their household income. Specifically, the bill allows eligible claimants—defined as individuals with a household income of less than $100,000—to claim a credit based on the extent to which their property taxes or rent constitute more than 4 percent of their income. The credit begins at 10 percent of the excess for the 2024 tax year, gradually increasing to 40 percent by 2026 and beyond for qualifying applicants.

Contention

However, there are various elements of contention surrounding AB1191. Critics may argue that establishing such credits could lead to complications in tax administration and a potential decrease in overall tax revenue for state funding. Additionally, limitations such as the exclusion of individuals with a household income above $150,000 and those whose property's assessed value exceeds $1 million may be viewed as restricting access to the benefits intended for lower income households. Further debate is likely to arise around the bill's long-term fiscal implications on the state's budget and its impact on funding for essential services.