Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB1191 Compare Versions

Only one version of the bill is available at this time.

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3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 1191
5	5	April 9, 2024 - Introduced by Representatives MCGUIRE, JOERS, MOORE OMOKUNDE,
6	6	PALMERI, RATCLIFF, SINICKI and SUBECK, cosponsored by Senators PFAFF, AGARD
7	7	and WIRCH. Referred to Committee on Ways and Means.
8	8	*AUTHORS SUBJECT TO CHANGE*
9	9	AN ACT to amend 71.10 (4) (i); and to create 20.835 (2) (ce) and 71.07 (9c) of the
10	10	statutes; relating to: a refundable income tax credit based on property taxes
11	11	paid and making an appropriation.
12	12	Analysis by the Legislative Reference Bureau
13	13	This bill creates a refundable income tax credit for individuals whose property
14	14	taxes, or rent that constitutes property taxes, exceed 4 percent of household income.
15	15	The property taxes or rent must be for the individual's principal dwelling. The bill
16	16	defines “rent constituting property taxes" to mean 20 percent of the rent if heat is
17	17	included and 25 percent of the rent if heat is not included.
18	18	Under the bill, if the claimant's household income is less than $100,000, the
19	19	credit equals a percentage of the amount by which the property taxes, or rent
20	20	constituting property taxes, exceed 4 percent of household income. The percentage
21	21	is 10 percent for tax year 2024, 15 percent for tax year 2025, and 40 percent for tax
22	22	year 2026 and for each tax year thereafter. The credit is phased out for claimants
23	23	whose household income is at least $100,000 but less than $150,000, and may not be
24	24	claimed if household income is $150,000 or more.
25	25	The credit is reduced by the amount of homestead credit claimed by the
26	26	individual and no credit may be claimed if the individual or the individual's spouse
27	27	claims the veterans and surviving spouses property tax credit. The credit may be
28	28	claimed only by full-year Wisconsin residents who cannot be claimed as a dependent
29	29	by another taxpayer. In addition, no individual may claim the credit for any taxable
30	30	year in which the assessed value of the individual's property exceeds $1,000,000.
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35	35	ASSEMBLY BILL 1191
36	36	Because the credit is refundable, if an individual is eligible to claim an amount
37	37	as a credit that exceeds his or her income tax liability, the individual receives the
38	38	excess as a refund.
39	39	For further information see the state fiscal estimate, which will be printed as
40	40	an appendix to this bill.
41	41	The people of the state of Wisconsin, represented in senate and assembly, do
42	42	enact as follows:
43	43	SECTION 1. 20.835 (2) (ce) of the statutes is created to read:
44	44	20.835 (2) (ce) Property tax credit. A sum sufficient to make the payments
45	45	under s. 71.07 (9c) (c).
46	46	SECTION 2. 71.07 (9c) of the statutes is created to read:
47	47	71.07 (9c) PROPERTY TAX CREDIT. (a) Definitions. In this subsection:
48	48	1. “Claimant" means an individual whose household income is less than
49	49	$125,000 and who files a claim under this subsection.
50	50	2. “Household" means a claimant and an individual related to the claimant as
51	51	husband or wife.
52	52	3. “Household income" means all income received by all persons of a household
53	53	in a calendar year while members of the household, less $500 for each of the
54	54	claimant's dependents, as defined in 26 USC 152, who have the same principal abode
55	55	as the claimant for more than 6 months during the year to which the claim relates.
56	56	4. “Income” has the meaning given in s. 71.52 (6).
57	57	5. “Principal dwelling" has the meaning given in sub. (9) (a) 2.
58	58	6. “Property taxes” has the meaning given in sub. (9) (a) 3.
59	59	7. “Rent constituting property taxes” has the meaning given in sub. (9) (a) 4.
60	60	(b) Filing claims. For taxable years beginning after December 31, 2023, subject
61	61	to the limitations provided in this subsection, a claimant may claim as a credit
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83	83	SECTION 2
84	84	ASSEMBLY BILL 1191
85	85	against the tax imposed under s. 71.02, up to the amount of those taxes, one of the
86	86	following amounts:
87	87	1. If the claimant's household income is less than $100,000 in the year to which
88	88	the claim relates, an amount equal to the following percentage of the amount by
89	89	which the claimant's property taxes or rent constituting property taxes or both
90	90	exceed 4 percent of the claimant's household income:
91	91	a. For taxable years beginning after December 31, 2023, and before January
92	92	1, 2025, 10 percent.
93	93	b. For taxable years beginning after December 31, 2024, and before January
94	94	1, 2026, 15 percent.
95	95	c. For taxable years beginning after December 31, 2025, 40 percent.
96	96	2. If the claimant's household income is at least $100,000 but less than
97	97	$150,000 in the year to which the claim relates, an amount that is calculated as
98	98	follows:
99	99	a. Calculate the value of a fraction, the denominator of which is $50,000 and
100	100	the numerator of which is the difference between the claimant's household income
101	101	and $75,000.
102	102	b. Subtract from 1.0 the amount that is calculated under subd. 2. a.
103	103	c. Multiply the amount that is calculated under subd. 2. b. by an amount equal
104	104	to 50 percent of the amount by which the claimant's property taxes or rent
105	105	constituting property taxes or both exceed 4 percent of the claimant's household
106	106	income.
107	107	(c) Refundability. If the allowable amount of the claim exceeds the income taxes
108	108	otherwise due on the claimant's income, the amount of the claim not used as an offset
109	109	against those taxes shall be certified by the department of revenue to the department
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136	136	SECTION 2 ASSEMBLY BILL 1191
137	137	of administration for payment to the claimant by check, share draft, or other draft
138	138	from the appropriation under s. 20.835 (2) (ce).
139	139	(d) Limitations. 1. The credit under this subsection shall be reduced by the
140	140	amount claimed by the claimant under s. 71.53 for the same taxable year to which
141	141	the claim under this subsection relates.
142	142	2. No credit is allowed under this subsection if the claimant or the claimant's
143	143	spouse files a claim under sub. (6e) for the same taxable year to which the claim
144	144	under this subsection relates.
145	145	3. No credit is allowed under this subsection unless it is claimed within the time
146	146	period under s. 71.75 (2).
147	147	4. Part-year residents and nonresidents of this state may not claim the credit
148	148	under this subsection.
149	149	5. The credit under this subsection may not be claimed by a person who may
150	150	be claimed as a dependent on the individual income tax return of another taxpayer.
151	151	6. If a principal dwelling is rented by a person from another person under
152	152	circumstances determined by the department of revenue to not be at arm's length,
153	153	the department may determine rent at arm's length and the determination shall be
154	154	final for purposes of this subsection.
155	155	7. Only one claimant per household per year shall be entitled to claim a credit
156	156	under this subsection.
157	157	8. No credit is allowed under this subsection if the assessed value of the
158	158	claimant's property for the taxable year for which the claim under this subsection
159	159	relates exceeds $1,000,000.
160	160	(e) Administration. Subsection (9e) (d), to the extent that it applies to the credit
161	161	under that subsection, applies to the credit under this subsection.
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189	189	SECTION 3
190	190	ASSEMBLY BILL 1191
191	191	SECTION 3. 71.10 (4) (i) of the statutes is amended to read:
192	192	71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
193	193	preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
194	194	beyond under s. 71.613, homestead credit under subch. VIII, jobs tax credit under s.
195	195	71.07 (3q), business development credit under s. 71.07 (3y), research credit under s.
196	196	71.07 (4k) (e) 2. a., veterans and surviving spouses property tax credit under s. 71.07
197	197	(6e), enterprise zone jobs credit under s. 71.07 (3w), electronics and information
198	198	technology manufacturing zone credit under s. 71.07 (3wm), property tax credit
199	199	under s. 71.07 (9c), earned income tax credit under s. 71.07 (9e), estimated tax
200	200	payments under s. 71.09, and taxes withheld under subch. X.
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