Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB235 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 235
5	5	April 28, 2023 - Introduced by Representatives SORTWELL, BEHNKE, EDMING,
6	6	GUNDRUM, MAGNAFICI, ROZAR, SAPIK, WICHGERS and ORTIZ-VELEZ, cosponsored
7	7	by Senator CABRAL-GUEVARA. 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) (fm), 71.07 (9) (cm), 71.07
10	10	(11) and 71.54 (2s) of the statutes; relating to: a tax credit for certain property
11	11	tax increases and making an appropriation.
12	12	Analysis by the Legislative Reference Bureau
13	13	This bill creates a refundable individual income tax credit for an increase in the
14	14	property taxes that a person who has reached age 65 pays for a primary residence
15	15	owned in this state. The credit amount is calculated as the difference between the
16	16	property taxes levied on the claimant's primary residence in the year to which the
17	17	claim relates and those property taxes in the base year.
18	18	Under the bill, the “base year” is the most recent of either of the following years:
19	19	1) if a claimant has not moved to a different primary residence after first claiming
20	20	the credit, the year immediately before the year in which the claimant first claimed
21	21	the credit or 2) if a claimant moves to a different primary residence after first
22	22	claiming the credit, the first year for which property taxes are levied on that different
23	23	primary residence for the claimant. To claim the credit, the claimant must have paid
24	24	the property taxes that are the basis of the calculation. The maximum credit for a
25	25	taxable year allowed under the bill is $500.
26	26	Because the credit is refundable, if the amount of the claim for which a claimant
27	27	is eligible exceeds the claimant's tax liability, the difference will be paid to the
28	28	claimant by check.
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33	33	ASSEMBLY BILL 235
34	34	For further information see the state fiscal estimate, which will be printed as
35	35	an appendix to this bill.
36	36	The people of the state of Wisconsin, represented in senate and assembly, do
37	37	enact as follows:
38	38	SECTION 1. 20.835 (2) (fm) of the statutes is created to read:
39	39	20.835 (2) (fm) Elder property tax increase credit. A sum sufficient to pay the
40	40	claims approved under s. 71.07 (11).
41	41	SECTION 2. 71.07 (9) (cm) of the statutes is created to read:
42	42	71.07 (9) (cm) No credit may be allowed under this subsection for an amount
43	43	of property taxes claimed as a credit under sub. (11) that relates to the same taxable
44	44	year for which a claim is made under this subsection.
45	45	SECTION 3. 71.07 (11) of the statutes is created to read:
46	46	71.07 (11) ELDER PROPERTY TAX INCREASE CREDIT. (a) Definitions. In this
47	47	subsection:
48	48	1. “Base year” means the most recent of any of the following years:
49	49	a. If the claimant has not moved to a different principal dwelling after first
50	50	filing a claim under this subsection, the year immediately preceding the year in
51	51	which the claimant first files a claim under this subsection.
52	52	b. If a claimant moves to a different principal dwelling after the year in which
53	53	the claimant first files a claim under this subsection, the first year for which the
54	54	claimant has property taxes levied on that different principal dwelling.
55	55	2. “Claimant” means an individual who has reached age 65 by December 31 of
56	56	the taxable year to which the claim relates, or an individual and his or her spouse
57	57	filing a joint return, either of whom has reached age 65 by December 31 of the taxable
58	58	to which the claim relates, and who files a claim under this subsection.
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84	84	3. “Household” means an individual and his or her spouse.
85	85	4. “Principal dwelling” means a dwelling that is owned and used by the
86	86	claimant as a primary dwelling for the entire taxable year for which the credit under
87	87	this subsection is claimed and the land surrounding it that is reasonably necessary
88	88	for use of the dwelling as a primary dwelling, including a part of a multidwelling or
89	89	multipurpose building and a part of the land upon which it is built that is used as
90	90	the claimant's primary dwelling.
91	91	5. “Property taxes” means the real and personal property taxes, exclusive of
92	92	special assessments, delinquent interest, and charges for service, paid by a claimant,
93	93	and the claimant's spouse if filing a joint return, levied on the claimant's principal
94	94	dwelling in this state less any property taxes levied that are properly includable as
95	95	a trade or business expense under section 162 of the Internal Revenue Code. If the
96	96	principal dwelling on which the taxes were paid is owned by 2 or more persons or
97	97	entities as joint tenants or tenants in common or is owned by spouses as marital
98	98	property, “property taxes" is that part of property taxes paid that reflects the
99	99	ownership percentage of the claimant, except that this limitation does not apply to
100	100	spouses who file a joint return. If the principal dwelling is sold during the taxable
101	101	year, the “property taxes" for the seller and buyer shall be the amount of the tax
102	102	prorated to each in the closing agreement pertaining to the sale or, if not so provided
103	103	for in the closing agreement, the tax shall be prorated between the seller and buyer
104	104	in proportion to months of their respective ownership. “Property taxes” includes
105	105	monthly municipal permit fees with respect to a principal dwelling imposed under
106	106	s. 66.0435 (3) (c).
107	107	(b) Filing claims. For taxable years beginning after December 31, 2022, and
108	108	subject to the limitations provided in this subsection, a claimant may claim as a
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135	135	SECTION 3 ASSEMBLY BILL 235
136	136	credit against the tax imposed under s. 71.02 the increase, if any, of the amount of
137	137	the property taxes the claimant is levied in the taxable year to which the claim
138	138	relates from the property taxes the claimant is levied in the base year. If the
139	139	allowable amount of the claim exceeds the income taxes otherwise due on the
140	140	claimant's income, the amount of the claim not used as an offset against those taxes
141	141	shall be certified by the department of revenue to the department of administration
142	142	for payment to the claimant by check, share draft, or other draft from the
143	143	appropriation under s. 20.835 (2) (fm).
144	144	(c) Limitations. 1. The maximum amount of the credit that a claimant may
145	145	claim under this subsection in a taxable year is $500.
146	146	2. No credit may be allowed under this subsection if the claimant has not paid
147	147	the property taxes on the principal dwelling for the years described in par. (b).
148	148	3. a. No credit may be allowed under this subsection if the claimant or the
149	149	claimant's spouse files a claim under sub. (6e) that relates to the same taxable year
150	150	for which a claim is made under this subsection.
151	151	b. No credit may be allowed under this subsection for an amount of property
152	152	taxes claimed as a credit under sub. (9) or subch. VIII that relates to the same taxable
153	153	year for which a claim is made under this subsection.
154	154	4. Except as provided in subd. 6., only one claimant per household per taxable
155	155	year may claim a credit under this subsection.
156	156	5. No credit may be allowed under this subsection for property taxes that the
157	157	claimant pays on his or her principal dwelling that is leased to the claimant.
158	158	6. If married persons who are eligible to claim the credit under this subsection
159	159	file separate returns, each spouse may claim a credit under this subsection based on
160	160	his or her respective ownership interest in the principal dwelling.
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188	188	SECTION 3
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190	190	7. No credit may be allowed under this subsection unless it is claimed within
191	191	the time period under s. 71.75 (2).
192	192	(d) Administration. 1. In administering this subsection, the department of
193	193	revenue shall make available suitable forms with instructions for claimants,
194	194	including a form that may be included with, or as a part of, the individual income tax
195	195	form.
196	196	2. Subsection (9e) (d), to the extent that it applies to the credit under that
197	197	subsection, applies to the credit under this subsection.
198	198	SECTION 4. 71.10 (4) (i) of the statutes is amended to read:
199	199	71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
200	200	preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
201	201	beyond under s. 71.613, homestead credit under subch. VIII, jobs tax credit under s.
202	202	71.07 (3q), business development credit under s. 71.07 (3y), research credit under s.
203	203	71.07 (4k) (e) 2. a., veterans and surviving spouses property tax credit under s. 71.07
204	204	(6e), elder property tax increase credit under s. 71.07 (11), enterprise zone jobs credit
205	205	under s. 71.07 (3w), electronics and information technology manufacturing zone
206	206	credit under s. 71.07 (3wm), earned income tax credit under s. 71.07 (9e), estimated
207	207	tax payments under s. 71.09, and taxes withheld under subch. X.
208	208	SECTION 5. 71.54 (2s) of the statutes is created to read:
209	209	71.54 (2s) LIMITATION. No credit may be allowed under this subchapter for an
210	210	amount of property taxes claimed as a credit under s. 71.07 (11) that relates to the
211	211	same taxable year for which a claim is made under this subchapter.
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