Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB262 Compare Versions

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

Old	New	Differences
1	1	LRB-1939/1
2	2	JK:klm&cjs
3	3	2023 - 2024 LEGISLATURE
4	4	2023 ASSEMBLY BILL 262
5	5	May 8, 2023 - Introduced by Representatives O 'CONNOR, MACCO, ALLEN,
6	6	ARMSTRONG, WITTKE, MAGNAFICI, BRANDTJEN, MURPHY, DITTRICH, MOSES,
7	7	GUNDRUM and BEHNKE. Referred to Committee on Ways and Means.
8	8	*AUTHORS SUBJECT TO CHANGE*
9	9	AN ACT to amend 71.06 (1q) (intro.), 71.06 (2) (i) (intro.), 71.06 (2) (j) (intro.),
10	10	71.06 (2e) (a), 71.06 (2e) (b), 71.06 (2m), 71.06 (2s) (d), 71.125 (1), 71.125 (2),
11	11	71.17 (6), 71.64 (9) (b) (intro.), 71.67 (5) (a) and 71.67 (5m); and to create 71.06
12	12	(1r), 71.06 (2) (k), 71.06 (2) (km), 71.06 (2) (L), 71.06 (2) (Lm), 71.06 (2) (m), 71.06
13	13	(2) (mm), 71.06 (2) (n), 71.06 (2) (nn), 71.06 (2) (o), 71.06 (2) (oo), 71.06 (2e) (be),
14	14	71.06 (2e) (bm), 71.06 (2e) (bs), 71.06 (2e) (bt), 71.06 (2e) (bu), 71.06 (2s) (e),
15	15	71.06 (2s) (f), 71.06 (2s) (g), 71.06 (2s) (h), 71.06 (2s) (i) and 71.06 (4) of the
16	16	statutes; relating to: phase-in changes to individual income tax rates and
17	17	brackets.
18	18	Analysis by the Legislative Reference Bureau
19	19	This bill modifies the individual income tax rates and brackets beginning with
20	20	the 2024 tax year and ending with the 2028 tax year. The bill decreases individual
21	21	income tax rates each year for each tax bracket. Beginning with tax year 2027, the
22	22	tax rate for individuals whose income is $7,500 or less, before being adjusted for
23	23	inflation, is zero. Beginning with tax year 2028, the tax rate for individuals whose
24	24	income exceeds $7,500, before being adjusted for inflation, is 4.5 percent.
25	25	Under current law, there are four income tax brackets for single individuals,
26	26	certain fiduciaries, heads of households, and married persons, and the brackets are
27	27	1
28	28	2
29	29	3
30	30	4
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35	35	9 - 2 -2023 - 2024 Legislature LRB-1939/1
36	36	JK:klm&cjs
37	37	ASSEMBLY BILL 262
38	38	indexed for inflation. The rate of taxation under current law for the lowest bracket
39	39	for single individuals, certain fiduciaries, heads of households, and married persons
40	40	is 3.54 percent of taxable income. The rate for the second bracket is 4.65 percent.
41	41	The rate for the third bracket is 5.3 percent. And the rate for the highest bracket is
42	42	7.65 percent. Before bracket indexing, the four brackets for individuals, certain
43	43	fiduciaries, and heads of households, to which the above rates apply, are as follows:
44	44	1) taxable income from $0 to $7,500; 2) taxable income exceeding $7,500 but not
45	45	exceeding $15,000; 3) taxable income exceeding $15,000 but not exceeding $225,000;
46	46	and 4) taxable income exceeding $225,000.
47	47	Because this bill relates to an exemption from state or local taxes, it may be
48	48	referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
49	49	as an appendix to the bill.
50	50	For further information see the state fiscal estimate, which will be printed as
51	51	an appendix to this bill.
52	52	The people of the state of Wisconsin, represented in senate and assembly, do
53	53	enact as follows:
54	54	SECTION 1. 71.06 (1q) (intro.) of the statutes is amended to read:
55	55	71.06 (1q) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLDS; AFTER
56	56	2012 AND BEFORE 2024. (intro.) The tax to be assessed, levied, and collected upon the
57	57	taxable incomes of all fiduciaries, except fiduciaries of nuclear decommissioning
58	58	trust or reserve funds, and single individuals and heads of households shall be
59	59	computed at the following rates for taxable years beginning after December 31, 2012,
60	60	and before January 1, 2024:
61	61	SECTION 2. 71.06 (1r) of the statutes is created to read:
62	62	71.06 (1r) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLDS; AFTER
63	63	2023. (a) The tax to be assessed, levied, and collected upon the taxable incomes of all
64	64	fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
65	65	single individuals and heads of households shall be computed at the following rates
66	66	for taxable years beginning after December 31, 2023, and before January 1, 2025,
67	67	except as provided under s. 71.06 (4):
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82	82	LRB-1939/1
83	83	JK:klm&cjs
84	84	SECTION 2
85	85	ASSEMBLY BILL 262
86	86	1. On all taxable income from $0 to $7,500, 3.15 percent.
87	87	2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.5
88	88	percent.
89	89	3. On all taxable income exceeding $15,000 but not exceeding $225,000, 5
90	90	percent.
91	91	4. On all taxable income exceeding $225,000, 7.40 percent.
92	92	(b) The tax to be assessed, levied, and collected upon the taxable incomes of all
93	93	fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
94	94	single individuals and heads of households shall be computed at the following rates
95	95	for taxable years beginning after December 31, 2024, and before January 1, 2026,
96	96	except as provided under s. 71.06 (4):
97	97	1. On all taxable income from $0 to $7,500, 2.20 percent.
98	98	2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.5
99	99	percent.
100	100	3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.75
101	101	percent.
102	102	4. On all taxable income exceeding $225,000, 6.70 percent.
103	103	(c) The tax to be assessed, levied, and collected upon the taxable incomes of all
104	104	fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
105	105	single individuals and heads of households shall be computed at the following rates
106	106	for taxable years beginning after December 31, 2025, and before January 1, 2027,
107	107	except as provided under s. 71.06 (4):
108	108	1. On all taxable income from $0 to $7,500, 1.25 percent.
109	109	2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.5
110	110	percent.
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136	136	JK:klm&cjs
137	137	SECTION 2 ASSEMBLY BILL 262
138	138	3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.5
139	139	percent.
140	140	4. On all taxable income exceeding $225,000, 6 percent.
141	141	(d) The tax to be assessed, levied, and collected upon the taxable incomes of all
142	142	fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
143	143	single individuals and heads of households shall be computed at the following rates
144	144	for taxable years beginning after December 31, 2026, and before January 1, 2028,
145	145	except as provided under s. 71.06 (4):
146	146	1. On all taxable income from $0 to $7,500, 0 percent.
147	147	2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.5
148	148	percent.
149	149	3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.5
150	150	percent.
151	151	4. On all taxable income exceeding $225,000, 5.20 percent.
152	152	(e) The tax to be assessed, levied, and collected upon the taxable incomes of all
153	153	fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
154	154	single individuals and heads of households shall be computed at the following rates
155	155	percent for taxable years beginning after December 31, 2027, except as provided
156	156	under s. 71.06 (4):
157	157	1. On all taxable income from $0 to $7,500, 0 percent.
158	158	2. On all taxable income exceeding $7,500 but not exceeding $15,000, 4.5
159	159	percent.
160	160	3. On all taxable income exceeding $15,000 but not exceeding $225,000, 4.5
161	161	percent.
162	162	4. On all taxable income exceeding $225,000, 4.5 percent.
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187	187	25 - 5 -2023 - 2024 Legislature
188	188	LRB-1939/1
189	189	JK:klm&cjs
190	190	SECTION 3
191	191	ASSEMBLY BILL 262
192	192	SECTION 3. 71.06 (2) (i) (intro.) of the statutes is amended to read:
193	193	71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after
194	194	December 31, 2012, and before January 1, 2024:
195	195	SECTION 4. 71.06 (2) (j) (intro.) of the statutes is amended to read:
196	196	71.06 (2) (j) (intro.) For married persons filing separately, for taxable years
197	197	beginning after December 31, 2012, and before January 1, 2024:
198	198	SECTION 5. 71.06 (2) (k) of the statutes is created to read:
199	199	71.06 (2) (k) For joint returns, for taxable years beginning after December 31,
200	200	2023, and before January 1, 2025, except as provided under s. 71.06 (4):
201	201	1. On all taxable income from $0 to $10,000, 3.15 percent.
202	202	2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5
203	203	percent.
204	204	3. On all taxable income exceeding $20,000 but not exceeding $300,000, 5
205	205	percent.
206	206	4. On all taxable income exceeding $300,000, 7.40 percent.
207	207	SECTION 6. 71.06 (2) (km) of the statutes is created to read:
208	208	71.06 (2) (km) For married persons filing separately, for taxable years
209	209	beginning after December 31, 2023, and before January 1, 2025, except as provided
210	210	under s. 71.06 (4):
211	211	1. On all taxable income from $0 to $5,000, 3.15 percent.
212	212	2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5
213	213	percent.
214	214	3. On all taxable income exceeding $10,000 but not exceeding $150,000, 5
215	215	percent.
216	216	4. On all taxable income exceeding $150,000, 7.40 percent.
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241	241	25 - 6 -2023 - 2024 Legislature LRB-1939/1
242	242	JK:klm&cjs
243	243	SECTION 7 ASSEMBLY BILL 262
244	244	SECTION 7. 71.06 (2) (L) of the statutes is created to read:
245	245	71.06 (2) (L) For joint returns, for taxable years beginning after December 31,
246	246	2024, and before January 1, 2026, except as provided under s. 71.06 (4):
247	247	1. On all taxable income from $0 to $10,000, 2.20 percent.
248	248	2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5
249	249	percent.
250	250	3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.75
251	251	percent.
252	252	4. On all taxable income exceeding $300,000, 6.70 percent.
253	253	SECTION 8. 71.06 (2) (Lm) of the statutes is created to read:
254	254	71.06 (2) (Lm) For married persons filing separately, for taxable years
255	255	beginning after December 31, 2024, and before January 1, 2026, except as provided
256	256	under s. 71.06 (4):
257	257	1. On all taxable income from $0 to $5,000, 2.20 percent.
258	258	2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5
259	259	percent.
260	260	3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.75
261	261	percent.
262	262	4. On all taxable income exceeding $150,000, 6.70 percent.
263	263	SECTION 9. 71.06 (2) (m) of the statutes is created to read:
264	264	71.06 (2) (m) For joint returns, for taxable years beginning after December 31,
265	265	2025, and before January 1, 2027, except as provided under s. 71.06 (4):
266	266	1. On all taxable income from $0 to $10,000, 1.25 percent.
267	267	2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5
268	268	percent.
269	269	1
270	270	2
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293	293	25 - 7 -2023 - 2024 Legislature
294	294	LRB-1939/1
295	295	JK:klm&cjs
296	296	SECTION 9
297	297	ASSEMBLY BILL 262
298	298	3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.5
299	299	percent.
300	300	4. On all taxable income exceeding $300,000, 6 percent.
301	301	SECTION 10. 71.06 (2) (mm) of the statutes is created to read:
302	302	71.06 (2) (mm) For married persons filing separately, for taxable years
303	303	beginning after December 31, 2025, and before January 1, 2027, except as provided
304	304	under s. 71.06 (4):
305	305	1. On all taxable income from $0 to $5,000, 1.25 percent.
306	306	2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5
307	307	percent.
308	308	3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.5
309	309	percent.
310	310	4. On all taxable income exceeding $150,000, 6 percent.
311	311	SECTION 11. 71.06 (2) (n) of the statutes is created to read:
312	312	71.06 (2) (n) For joint returns, for taxable years beginning after December 31,
313	313	2026, and before January 1, 2028, except as provided under s. 71.06 (4):
314	314	1. On all taxable income from $0 to $10,000, 0 percent.
315	315	2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5
316	316	percent.
317	317	3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.5
318	318	percent.
319	319	4. On all taxable income exceeding $300,000, 5.20 percent.
320	320	SECTION 12. 71.06 (2) (nn) of the statutes is created to read:
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344	344	JK:klm&cjs
345	345	SECTION 12 ASSEMBLY BILL 262
346	346	71.06 (2) (nn) For married persons filing separately, for taxable years
347	347	beginning after December 31, 2026, and before January 1, 2028, except as provided
348	348	under s. 71.06 (4):
349	349	1. On all taxable income from $0 to $5,000, 0 percent.
350	350	2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5
351	351	percent.
352	352	3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.5
353	353	percent.
354	354	4. On all taxable income exceeding $150,000, 5.20 percent.
355	355	SECTION 13. 71.06 (2) (o) of the statutes is created to read:
356	356	71.06 (2) (o) For joint returns, for taxable years beginning after December 31,
357	357	2027, except as provided under s. 71.06 (4):
358	358	1. On all taxable income from $0 to $10,000, 0 percent.
359	359	2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5
360	360	percent.
361	361	3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.5
362	362	percent.
363	363	4. On all taxable income exceeding $300,000, 4.5 percent.
364	364	SECTION 14. 71.06 (2) (oo) of the statutes is created to read:
365	365	71.06 (2) (oo) For married persons filing separately, for taxable years beginning
366	366	after December 31, 2027, except as provided under s. 71.06 (4):
367	367	1. On all taxable income from $0 to $5,000, 0 percent.
368	368	2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5
369	369	percent.
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393	393	24 - 9 -2023 - 2024 Legislature
394	394	LRB-1939/1
395	395	JK:klm&cjs
396	396	SECTION 14
397	397	ASSEMBLY BILL 262
398	398	3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.5
399	399	percent.
400	400	4. On all taxable income exceeding $150,000, 4.5 percent.
401	401	SECTION 15. 71.06 (2e) (a) of the statutes is amended to read:
402	402	71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before
403	403	January 1, 2000, the maximum dollar amount in each tax bracket, and the
404	404	corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2)
405	405	(c) and (d), and for taxable years beginning after December 31, 1999, and before
406	406	January 1, 2024, the maximum dollar amount in each tax bracket, and the
407	407	corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a)
408	408	to (c), (1q) (a) and (b), and (2) (e), (f), (g) 1. to 3., (h) 1. to 3., (i) 1. and 2., and (j) 1. and
409	409	2., shall be increased each year by a percentage equal to the percentage change
410	410	between the U.S. consumer price index for all urban consumers, U.S. city average,
411	411	for the month of August of the previous year and the U.S. consumer price index for
412	412	all urban consumers, U.S. city average, for the month of August 1997, as determined
413	413	by the federal department of labor, except that for taxable years beginning after
414	414	December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket
415	415	under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased by a
416	416	percentage equal to the percentage change between the U.S. consumer price index
417	417	for all urban consumers, U.S. city average, for the month of August of the previous
418	418	year and the U.S. consumer price index for all urban consumers, U.S. city average,
419	419	for the month of August 1999, as determined by the federal department of labor,
420	420	except that for taxable years beginning after December 31, 2011, the adjustment may
421	421	occur only if the resulting amount is greater than the corresponding amount that was
422	422	calculated for the previous year.
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447	447	25 - 10 -2023 - 2024 Legislature LRB-1939/1
448	448	JK:klm&cjs
449	449	SECTION 16 ASSEMBLY BILL 262
450	450	SECTION 16. 71.06 (2e) (b) of the statutes is amended to read:
451	451	71.06 (2e) (b) For taxable years beginning after December 31, 2009, and before
452	452	January 1, 2024, the maximum dollar amount in each tax bracket, and the
453	453	corresponding minimum dollar amount in the next bracket, under subs. (1p) (d), (1q)
454	454	(c), and (2) (g) 4., (h) 4., (i) 3., and (j) 3., and the dollar amount in the top bracket under
455	455	subs. (1p) (e), (1q) (d), and (2) (g) 5., (h) 5., (i) 4., and (j) 4., shall be increased each year
456	456	by a percentage equal to the percentage change between the U.S. consumer price
457	457	index for all urban consumers, U.S. city average, for the month of August of the
458	458	previous year and the U.S. consumer price index for all urban consumers, U.S. city
459	459	average, for the month of August 2008, as determined by the federal department of
460	460	labor, except that for taxable years beginning after December 31, 2011, the
461	461	adjustment may occur only if the resulting amount is greater than the corresponding
462	462	amount that was calculated for the previous year.
463	463	SECTION 17. 71.06 (2e) (be) of the statutes is created to read:
464	464	71.06 (2e) (be) 1. For taxable years beginning after December 31, 2023, and
465	465	before January 1, 2025, the maximum dollar amount in each tax bracket, and the
466	466	corresponding minimum dollar amount in the next bracket, under subs. (1r) (a) 1.
467	467	and 2. and (2) (k) 1. and 2. and (km) 1. and 2., shall be increased by a percentage equal
468	468	to the percentage change between the U.S. consumer price index for all urban
469	469	consumers, U.S. city average, for the month of August of the previous year and the
470	470	U.S. consumer price index for all urban consumers, U.S. city average, for the month
471	471	of August 1997, as determined by the federal department of labor, except that the
472	472	adjustment may occur only if the resulting amount is greater than the corresponding
473	473	amount that was calculated for the previous year.
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497	497	24 - 11 -2023 - 2024 Legislature
498	498	LRB-1939/1
499	499	JK:klm&cjs
500	500	SECTION 17
501	501	ASSEMBLY BILL 262
502	502	2. For taxable years beginning after December 31, 2023, and before January
503	503	1, 2025, the maximum dollar amount in each tax bracket, and the corresponding
504	504	minimum dollar amount in the next bracket, under subs. (1r) (a) 3. and (2) (k) 3. and
505	505	(km) 3., and the dollar amount in the top bracket under subs. (1r) (a) 4. and (2) (k)
506	506	4. and (km) 4., shall be increased by a percentage equal to the percentage change
507	507	between the U.S. consumer price index for all urban consumers, U.S. city average,
508	508	for the month of August of the previous year and the U.S. consumer price index for
509	509	all urban consumers, U.S. city average, for the month of August 2008, as determined
510	510	by the federal department of labor, except that the adjustment may occur only if the
511	511	resulting amount is greater than the corresponding amount that was calculated for
512	512	the previous year.
513	513	SECTION 18. 71.06 (2e) (bm) of the statutes is created to read:
514	514	71.06 (2e) (bm) 1. For taxable years beginning after December 31, 2024, and
515	515	before January 1, 2026, the maximum dollar amount in each tax bracket, and the
516	516	corresponding minimum dollar amount in the next bracket, under subs. (1r) (b) 1.
517	517	and 2. and (2) (L) 1. and 2. and (Lm) 1. and 2. shall be increased by a percentage equal
518	518	to the percentage change between the U.S. consumer price index for all urban
519	519	consumers, U.S. city average, for the month of August of the previous year and the
520	520	U.S. consumer price index for all urban consumers, U.S. city average, for the month
521	521	of August 1997, as determined by the federal department of labor, except that the
522	522	adjustment may occur only if the resulting amount is greater than the corresponding
523	523	amount that was calculated for the previous year.
524	524	2. For taxable years beginning after December 31, 2024, and before January
525	525	1, 2026, the maximum dollar amount in each tax bracket, and the corresponding
526	526	minimum dollar amount in the next bracket, under subs. (1r) (b) 3. and (2) (L) 3. and
527	527	1
528	528	2
529	529	3
530	530	4
531	531	5
532	532	6
533	533	7
534	534	8
535	535	9
536	536	10
537	537	11
538	538	12
539	539	13
540	540	14
541	541	15
542	542	16
543	543	17
544	544	18
545	545	19
546	546	20
547	547	21
548	548	22
549	549	23
550	550	24
551	551	25 - 12 -2023 - 2024 Legislature LRB-1939/1
552	552	JK:klm&cjs
553	553	SECTION 18 ASSEMBLY BILL 262
554	554	(Lm) 3., and the dollar amount in the top bracket under subs. (1r) (b) 4. and (2) (L)
555	555	4. and (Lm) 4., shall be increased by a percentage equal to the percentage change
556	556	between the U.S. consumer price index for all urban consumers, U.S. city average,
557	557	for the month of August of the previous year and the U.S. consumer price index for
558	558	all urban consumers, U.S. city average, for the month of August 2008, as determined
559	559	by the federal department of labor, except that the adjustment may occur only if the
560	560	resulting amount is greater than the corresponding amount that was calculated for
561	561	the previous year.
562	562	SECTION 19. 71.06 (2e) (bs) of the statutes is created to read:
563	563	71.06 (2e) (bs) 1. For taxable years beginning after December 31, 2025, and
564	564	before January 1, 2027, the maximum dollar amount in each tax bracket, and the
565	565	corresponding minimum dollar amount in the next bracket, under subs. (1r) (c) 1.
566	566	and 2. and (2) (m) 1. and 2. and (mm) 1. and 2., shall be increased by a percentage
567	567	equal to the percentage change between the U.S. consumer price index for all urban
568	568	consumers, U.S. city average, for the month of August of the previous year and the
569	569	U.S. consumer price index for all urban consumers, U.S. city average, for the month
570	570	of August 1997, as determined by the federal department of labor, except that the
571	571	adjustment may occur only if the resulting amount is greater than the corresponding
572	572	amount that was calculated for the previous year.
573	573	2. For taxable years beginning after December 31, 2025, and before January
574	574	1, 2027, the maximum dollar amount in each tax bracket, and the corresponding
575	575	minimum dollar amount in the next bracket, under subs. (1r) (c) 3. and (2) (m) 3. and
576	576	(mm) 3., and the dollar amount in the top bracket under subs. (1r) (c) 4. and (2) (m)
577	577	4. and (mm) 4., shall be increased by a percentage equal to the percentage change
578	578	between the U.S. consumer price index for all urban consumers, U.S. city average,
579	579	1
580	580	2
581	581	3
582	582	4
583	583	5
584	584	6
585	585	7
586	586	8
587	587	9
588	588	10
589	589	11
590	590	12
591	591	13
592	592	14
593	593	15
594	594	16
595	595	17
596	596	18
597	597	19
598	598	20
599	599	21
600	600	22
601	601	23
602	602	24
603	603	25 - 13 -2023 - 2024 Legislature
604	604	LRB-1939/1
605	605	JK:klm&cjs
606	606	SECTION 19
607	607	ASSEMBLY BILL 262
608	608	for the month of August of the previous year and the U.S. consumer price index for
609	609	all urban consumers, U.S. city average, for the month of August 2008, as determined
610	610	by the federal department of labor, except that the adjustment may occur only if the
611	611	resulting amount is greater than the corresponding amount that was calculated for
612	612	the previous year.
613	613	SECTION 20. 71.06 (2e) (bt) of the statutes is created to read:
614	614	71.06 (2e) (bt) 1. For taxable years beginning after December 31, 2026, and
615	615	before January 1, 2028, the maximum dollar amount in each tax bracket, and the
616	616	corresponding minimum dollar amount in the next bracket, under subs. (1r) (d) 1.
617	617	and 2. and (2) (n) 1. and 2. and (nn) 1. and 2., shall be increased by a percentage equal
618	618	to the percentage change between the U.S. consumer price index for all urban
619	619	consumers, U.S. city average, for the month of August of the previous year and the
620	620	U.S. consumer price index for all urban consumers, U.S. city average, for the month
621	621	of August 1997, as determined by the federal department of labor, except that the
622	622	adjustment may occur only if the resulting amount is greater than the corresponding
623	623	amount that was calculated for the previous year.
624	624	2. For taxable years beginning after December 31, 2026, and before January
625	625	1, 2028, the maximum dollar amount in each tax bracket, and the corresponding
626	626	minimum dollar amount in the next bracket, under subs. (1r) (d) 3. and (2) (n) 3. and
627	627	(nn) 3., and the dollar amount in the top bracket under subs. (1r) (d) 4. and (2) (n) 4.
628	628	and (nn) 4., shall be increased by a percentage equal to the percentage change
629	629	between the U.S. consumer price index for all urban consumers, U.S. city average,
630	630	for the month of August of the previous year and the U.S. consumer price index for
631	631	all urban consumers, U.S. city average, for the month of August 2008, as determined
632	632	by the federal department of labor, except that the adjustment may occur only if the
633	633	1
634	634	2
635	635	3
636	636	4
637	637	5
638	638	6
639	639	7
640	640	8
641	641	9
642	642	10
643	643	11
644	644	12
645	645	13
646	646	14
647	647	15
648	648	16
649	649	17
650	650	18
651	651	19
652	652	20
653	653	21
654	654	22
655	655	23
656	656	24
657	657	25 - 14 -2023 - 2024 Legislature LRB-1939/1
658	658	JK:klm&cjs
659	659	SECTION 20 ASSEMBLY BILL 262
660	660	resulting amount is greater than the corresponding amount that was calculated for
661	661	the previous year.
662	662	SECTION 21. 71.06 (2e) (bu) of the statutes is created to read:
663	663	71.06 (2e) (bu) 1. For taxable years beginning after December 31, 2027, the
664	664	maximum dollar amount in each tax bracket, and the corresponding minimum dollar
665	665	amount in the next bracket, under subs. (1r) (e) 1. and 2. and (2) (o) 1. and 2. and (oo)
666	666	1. and 2., shall be increased by a percentage equal to the percentage change between
667	667	the U.S. consumer price index for all urban consumers, U.S. city average, for the
668	668	month of August of the previous year and the U.S. consumer price index for all urban
669	669	consumers, U.S. city average, for the month of August 1997, as determined by the
670	670	federal department of labor, except that the adjustment may occur only if the
671	671	resulting amount is greater than the corresponding amount that was calculated for
672	672	the previous year.
673	673	2. For taxable years beginning after December 31, 2027, the maximum dollar
674	674	amount in each tax bracket, and the corresponding minimum dollar amount in the
675	675	next bracket, under subs. (1r) (e) 3. and (2) (o) 3. and (oo) 3., and the dollar amount
676	676	in the top bracket under subs. (1r) (e) 4. and (2) (o) 4. and (oo) 4., shall be increased
677	677	by a percentage equal to the percentage change between the U.S. consumer price
678	678	index for all urban consumers, U.S. city average, for the month of August of the
679	679	previous year and the U.S. consumer price index for all urban consumers, U.S. city
680	680	average, for the month of August 2008, as determined by the federal department of
681	681	labor, except that the adjustment may occur only if the resulting amount is greater
682	682	than the corresponding amount that was calculated for the previous year.
683	683	SECTION 22. 71.06 (2m) of the statutes is amended to read:
684	684	1
685	685	2
686	686	3
687	687	4
688	688	5
689	689	6
690	690	7
691	691	8
692	692	9
693	693	10
694	694	11
695	695	12
696	696	13
697	697	14
698	698	15
699	699	16
700	700	17
701	701	18
702	702	19
703	703	20
704	704	21
705	705	22
706	706	23
707	707	24 - 15 -2023 - 2024 Legislature
708	708	LRB-1939/1
709	709	JK:klm&cjs
710	710	SECTION 22
711	711	ASSEMBLY BILL 262
712	712	71.06 (2m) RATE CHANGES. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r),
713	713	or (2) changes during a taxable year, the taxpayer shall compute the tax for that
714	714	taxable year by the methods applicable to the federal income tax under section 15 of
715	715	the Internal Revenue Code.
716	716	SECTION 23. 71.06 (2s) (d) of the statutes is amended to read:
717	717	71.06 (2s) (d) For taxable years beginning after December 31, 2000, and before
718	718	January 1, 2024, with respect to nonresident individuals, including individuals
719	719	changing their domicile into or from this state, the tax brackets under subs. (1p), (1q),
720	720	and (2) (g), (h), (i), and (j) shall be multiplied by a fraction, the numerator of which
721	721	is Wisconsin adjusted gross income and the denominator of which is federal adjusted
722	722	gross income. In this paragraph, for married persons filing separately “adjusted
723	723	gross income" means the separate adjusted gross income of each spouse, and for
724	724	married persons filing jointly “adjusted gross income" means the total adjusted gross
725	725	income of both spouses. If an individual and that individual's spouse are not both
726	726	domiciled in this state during the entire taxable year, the tax brackets under subs.
727	727	(1p), (1q), and (2) (g), (h), (i), and (j) on a joint return shall be multiplied by a fraction,
728	728	the numerator of which is their joint Wisconsin adjusted gross income and the
729	729	denominator of which is their joint federal adjusted gross income.
730	730	SECTION 24. 71.06 (2s) (e) of the statutes is created to read:
731	731	71.06 (2s) (e) For taxable years beginning after December 31, 2023, and before
732	732	January 1, 2025, with respect to nonresident individuals, including individuals
733	733	changing their domicile into or from this state, the tax brackets under subs. (1r) (a)
734	734	and (2) (k) and (km) shall be multiplied by a fraction, the numerator of which is
735	735	Wisconsin adjusted gross income and the denominator of which is federal adjusted
736	736	gross income. In this paragraph, for married persons filing separately “adjusted
737	737	1
738	738	2
739	739	3
740	740	4
741	741	5
742	742	6
743	743	7
744	744	8
745	745	9
746	746	10
747	747	11
748	748	12
749	749	13
750	750	14
751	751	15
752	752	16
753	753	17
754	754	18
755	755	19
756	756	20
757	757	21
758	758	22
759	759	23
760	760	24
761	761	25 - 16 -2023 - 2024 Legislature LRB-1939/1
762	762	JK:klm&cjs
763	763	SECTION 24 ASSEMBLY BILL 262
764	764	gross income" means the separate adjusted gross income of each spouse, and for
765	765	married persons filing jointly “adjusted gross income" means the total adjusted gross
766	766	income of both spouses. If an individual and that individual's spouse are not both
767	767	domiciled in this state during the entire taxable year, the tax brackets under subs.
768	768	(1r) (a) and (2) (k) and (km) on a joint return shall be multiplied by a fraction, the
769	769	numerator of which is their joint Wisconsin adjusted gross income and the
770	770	denominator of which is their joint federal adjusted gross income.
771	771	SECTION 25. 71.06 (2s) (f) of the statutes is created to read:
772	772	71.06 (2s) (f) For taxable years beginning after December 31, 2024, and before
773	773	January 1, 2026, with respect to nonresident individuals, including individuals
774	774	changing their domicile into or from this state, the tax brackets under subs. (1r) (b)
775	775	and (2) (L) and (Lm) shall be multiplied by a fraction, the numerator of which is
776	776	Wisconsin adjusted gross income and the denominator of which is federal adjusted
777	777	gross income. In this paragraph, for married persons filing separately “adjusted
778	778	gross income" means the separate adjusted gross income of each spouse, and for
779	779	married persons filing jointly “adjusted gross income" means the total adjusted gross
780	780	income of both spouses. If an individual and that individual's spouse are not both
781	781	domiciled in this state during the entire taxable year, the tax brackets under subs.
782	782	(1r) (b) and (2) (L) and (Lm) on a joint return shall be multiplied by a fraction, the
783	783	numerator of which is their joint Wisconsin adjusted gross income and the
784	784	denominator of which is their joint federal adjusted gross income.
785	785	SECTION 26. 71.06 (2s) (g) of the statutes is created to read:
786	786	71.06 (2s) (g) For taxable years beginning after December 31, 2025, and before
787	787	January 1, 2027, with respect to nonresident individuals, including individuals
788	788	changing their domicile into or from this state, the tax brackets under subs. (1r) (c)
789	789	1
790	790	2
791	791	3
792	792	4
793	793	5
794	794	6
795	795	7
796	796	8
797	797	9
798	798	10
799	799	11
800	800	12
801	801	13
802	802	14
803	803	15
804	804	16
805	805	17
806	806	18
807	807	19
808	808	20
809	809	21
810	810	22
811	811	23
812	812	24
813	813	25 - 17 -2023 - 2024 Legislature
814	814	LRB-1939/1
815	815	JK:klm&cjs
816	816	SECTION 26
817	817	ASSEMBLY BILL 262
818	818	and (2) (m) and (mm) shall be multiplied by a fraction, the numerator of which is
819	819	Wisconsin adjusted gross income and the denominator of which is federal adjusted
820	820	gross income. In this paragraph, for married persons filing separately “adjusted
821	821	gross income" means the separate adjusted gross income of each spouse, and for
822	822	married persons filing jointly “adjusted gross income" means the total adjusted gross
823	823	income of both spouses. If an individual and that individual's spouse are not both
824	824	domiciled in this state during the entire taxable year, the tax brackets under subs.
825	825	(1r) (c) and (2) (m) and (mm) on a joint return shall be multiplied by a fraction, the
826	826	numerator of which is their joint Wisconsin adjusted gross income and the
827	827	denominator of which is their joint federal adjusted gross income.
828	828	SECTION 27. 71.06 (2s) (h) of the statutes is created to read:
829	829	71.06 (2s) (h) For taxable years beginning after December 31, 2026, and before
830	830	January 1, 2028, with respect to nonresident individuals, including individuals
831	831	changing their domicile into or from this state, the tax brackets under subs. (1r) (d)
832	832	and (2) (n) and (nn) shall be multiplied by a fraction, the numerator of which is
833	833	Wisconsin adjusted gross income and the denominator of which is federal adjusted
834	834	gross income. In this paragraph, for married persons filing separately “adjusted
835	835	gross income" means the separate adjusted gross income of each spouse, and for
836	836	married persons filing jointly “adjusted gross income" means the total adjusted gross
837	837	income of both spouses. If an individual and that individual's spouse are not both
838	838	domiciled in this state during the entire taxable year, the tax brackets under subs.
839	839	(1r) (d) and (2) (n) and (nn) on a joint return shall be multiplied by a fraction, the
840	840	numerator of which is their joint Wisconsin adjusted gross income and the
841	841	denominator of which is their joint federal adjusted gross income.
842	842	SECTION 28. 71.06 (2s) (i) of the statutes is created to read:
843	843	1
844	844	2
845	845	3
846	846	4
847	847	5
848	848	6
849	849	7
850	850	8
851	851	9
852	852	10
853	853	11
854	854	12
855	855	13
856	856	14
857	857	15
858	858	16
859	859	17
860	860	18
861	861	19
862	862	20
863	863	21
864	864	22
865	865	23
866	866	24
867	867	25 - 18 -2023 - 2024 Legislature LRB-1939/1
868	868	JK:klm&cjs
869	869	SECTION 28 ASSEMBLY BILL 262
870	870	71.06 (2s) (i) For taxable years beginning after December 31, 2027, with
871	871	respect to nonresident individuals, including individuals changing their domicile
872	872	into or from this state, the tax brackets under subs. (1r) (e) and (2) (o) and (oo) shall
873	873	be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross
874	874	income and the denominator of which is federal adjusted gross income. In this
875	875	paragraph, for married persons filing separately “adjusted gross income" means the
876	876	separate adjusted gross income of each spouse, and for married persons filing jointly
877	877	“adjusted gross income" means the total adjusted gross income of both spouses. If
878	878	an individual and that individual's spouse are not both domiciled in this state during
879	879	the entire taxable year, the tax brackets under subs. (1r) (e) and (2) (o) and (oo) on
880	880	a joint return shall be multiplied by a fraction, the numerator of which is their joint
881	881	Wisconsin adjusted gross income and the denominator of which is their joint federal
882	882	adjusted gross income.
883	883	SECTION 29. 71.06 (4) of the statutes is created to read:
884	884	71.06 (4) PHASE-IN ADJUSTMENTS. (a) Notwithstanding subs. (1q), (1r), (2), and
885	885	(2e), the rates and brackets, as adjusted under sub. (2s), for taxable years beginning
886	886	after December 31, 2024, shall not take effect in any taxable year if in the preceding
887	887	fiscal year general fund tax collections, as indicated by the department's preliminary
888	888	actual general fund tax collection report, are less than the amount of general fund
889	889	tax collections reported for fiscal year 2019-20, multiplied by the percentage change,
890	890	if not negative, between the U.S. consumer price index for all urban consumers, U.S.
891	891	city average, for the month of August of the previous year and the U.S. consumer
892	892	price index for all urban consumers, U.S. city average, for the month of August 2020,
893	893	as determined by the federal department of labor.
894	894	1
895	895	2
896	896	3
897	897	4
898	898	5
899	899	6
900	900	7
901	901	8
902	902	9
903	903	10
904	904	11
905	905	12
906	906	13
907	907	14
908	908	15
909	909	16
910	910	17
911	911	18
912	912	19
913	913	20
914	914	21
915	915	22
916	916	23
917	917	24 - 19 -2023 - 2024 Legislature
918	918	LRB-1939/1
919	919	JK:klm&cjs
920	920	SECTION 29
921	921	ASSEMBLY BILL 262
922	922	(b) In any taxable year beginning after December 31, 2024, if in the preceding
923	923	fiscal year general fund tax collections, as indicated by the department's preliminary
924	924	actual general fund tax collection report, are less than the amount determined under
925	925	par. (a), the rates and brackets shall be the rates and brackets in effect for the
926	926	previous taxable year, as adjusted under sub. (2s), and the department shall delay
927	927	the implementation of the rates and brackets for taxable years beginning after
928	928	December 31, 2024, accordingly. For each taxable year beginning after December 31,
929	929	2024, the department shall make the determination under par. (a) no later than
930	930	September 1 following the close of the preceding fiscal year. If the department
931	931	determines that that a reduction in rates, as provided under subs. (1r) and (2) (k) to
932	932	(oo), shall take effect for the following taxable year, the department shall shall
933	933	update the individual income tax withholding tables under s. 71.64 (9) to reflect the
934	934	tax rates, brackets, and sliding scale standard deduction that are in effect on
935	935	January 1 of the corresponding taxable year. Rate reductions determined under this
936	936	subsection occur successively.
937	937	SECTION 30. 71.125 (1) of the statutes is amended to read:
938	938	71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on
939	939	individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall
940	940	apply to the Wisconsin taxable income of estates or trusts, except nuclear
941	941	decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.
942	942	SECTION 31. 71.125 (2) of the statutes is amended to read:
943	943	71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1)
944	944	of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1),
945	945	(1m), (1n), (1p), or (1q), or (1r), whichever taxable year is applicable, on its income
946	946	1
947	947	2
948	948	3
949	949	4
950	950	5
951	951	6
952	952	7
953	953	8
954	954	9
955	955	10
956	956	11
957	957	12
958	958	13
959	959	14
960	960	15
961	961	16
962	962	17
963	963	18
964	964	19
965	965	20
966	966	21
967	967	22
968	968	23
969	969	24 - 20 -2023 - 2024 Legislature LRB-1939/1
970	970	JK:klm&cjs
971	971	SECTION 31 ASSEMBLY BILL 262
972	972	as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05
973	973	(6) to (12), (19) and (20).
974	974	SECTION 32. 71.17 (6) of the statutes is amended to read:
975	975	71.17 (6) FUNERAL TRUSTS. If a qualified funeral trust makes the election under
976	976	section 685 of the Internal Revenue Code for federal income tax purposes, that
977	977	election applies for purposes of this chapter and each trust shall compute its own tax
978	978	and shall apply the rates under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r).
979	979	SECTION 33. 71.64 (9) (b) (intro.) of the statutes is amended to read:
980	980	71.64 (9) (b) (intro.) The department shall from time to time adjust the
981	981	withholding tables to reflect any changes in income tax rates, any applicable surtax
982	982	or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2)
983	983	resulting from statutory changes, except as follows:
984	984	SECTION 34. 71.67 (5) (a) of the statutes is amended to read:
985	985	71.67 (5) (a) Wager winnings. A person holding a license to sponsor and
986	986	manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any
987	987	payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount
988	988	determined by multiplying the amount of the payment by the highest rate applicable
989	989	to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r) if the amount
990	990	of the payment is more than $1,000.
991	991	SECTION 35. 71.67 (5m) of the statutes is amended to read:
992	992	71.67 (5m) WITHHOLDING FROM PAYMENTS TO PURCHASE ASSIGNMENT OF LOTTERY
993	993	PRIZE. A person that purchases an assignment of a lottery prize shall withhold from
994	994	the amount of any payment made to purchase the assignment the amount that is
995	995	determined by multiplying the amount of the payment by the highest rate applicable
996	996	to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r). Subsection
997	997	1
998	998	2
999	999	3
1000	1000	4
1001	1001	5
1002	1002	6
1003	1003	7
1004	1004	8
1005	1005	9
1006	1006	10
1007	1007	11
1008	1008	12
1009	1009	13
1010	1010	14
1011	1011	15
1012	1012	16
1013	1013	17
1014	1014	18
1015	1015	19
1016	1016	20
1017	1017	21
1018	1018	22
1019	1019	23
1020	1020	24
1021	1021	25 - 21 -2023 - 2024 Legislature
1022	1022	LRB-1939/1
1023	1023	JK:klm&cjs
1024	1024	SECTION 35
1025	1025	ASSEMBLY BILL 262
1026	1026	(5) (b), (c) and (d), as it applies to the amounts withheld under sub. (5) (a), applies
1027	1027	to the amount withheld under this subsection.
1028	1028	(END)
1029	1029	1
1030	1030	2
1031	1031	3