Wisconsin 2023-2024 Regular Session

Wisconsin Assembly Bill AB458 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 458
5	5	September 28, 2023 - Introduced by Representatives BARE, RIEMER, J. ANDERSON,
6	6	ANDRACA, BALDEH, CABRERA, CONSIDINE, GOYKE, JACOBSON, JOERS, MADISON,
7	7	OHNSTAD, ORTIZ-VELEZ, PALMERI, RATCLIFF, SHANKLAND, SINICKI, SNODGRASS,
8	8	VINING, CLANCY and HAYWOOD, cosponsored by Senators SPREITZER, L.
9	9	JOHNSON, AGARD, CARPENTER, HESSELBEIN, LARSON, PFAFF, ROYS, TAYLOR and
10	10	WIRCH. Referred to Committee on Ways and Means.
11	11	*AUTHORS SUBJECT TO CHANGE*
12	12	AN ACT to repeal 71.54 (1) (g) 5. and 71.54 (1) (g) 7.; to amend 71.54 (1) (g)
13	13	(intro.), 71.54 (1) (g) 4., 71.54 (1) (g) 6. (intro.), 71.54 (2) (b) 4. and 71.54 (2m);
14	14	and to create 71.54 (1) (h) and 71.54 (2) (b) 5. of the statutes; relating to:
15	15	expanding the homestead income tax credit.
16	16	Analysis by the Legislative Reference Bureau
17	17	Under current law, the homestead tax credit is a refundable income tax credit
18	18	that may be claimed by homeowners and renters. The credit is based on the
19	19	claimant's household income and the amount of property taxes or rent constituting
20	20	property taxes on his or her Wisconsin homestead. Because the credit is refundable,
21	21	if the credit exceeds the claimant's income tax liability, he or she receives the excess
22	22	as a refund check. Under current law, there are three key dollar amounts used when
23	23	calculating the credit:
24	24	1. If household income is $8,060 or less, the credit is 80 percent of the property
25	25	taxes or rent constituting property taxes. If household income exceeds $8,060, the
26	26	property taxes or rent constituting property taxes are reduced by 8.785 percent of the
27	27	household income exceeding $8,060, and the credit is 80 percent of the reduced
28	28	property taxes or rent constituting property taxes.
29	29	2. The credit may not be claimed if household income exceeds $24,680.
30	30	3. The maximum property taxes or rent constituting property taxes used to
31	31	calculate the credit is $1,460.
32	32	Beginning with claims filed for the 2023 tax year, this bill reduces the
33	33	percentage used for household income over $8,060 from 8.785 to 5.614 percent and
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39	39	ASSEMBLY BILL 458
40	40	increases the maximum income amount from $24,680 to $35,000. The bill also
41	41	indexes the $8,060, $35,000, and $1,460 amounts for inflation during future tax
42	42	years.
43	43	For further information see the state fiscal estimate, which will be printed as
44	44	an appendix to this bill.
45	45	The people of the state of Wisconsin, represented in senate and assembly, do
46	46	enact as follows:
47	47	SECTION 1. 71.54 (1) (g) (intro.) of the statutes is amended to read:
48	48	71.54 (1) (g) 2012 and thereafter to 2023. (intro.) The amount of any claim filed
49	49	in 2012 and thereafter to 2023 and based on property taxes accrued or rent
50	50	constituting property taxes accrued during the previous year is limited as follows:
51	51	SECTION 2. 71.54 (1) (g) 4. of the statutes is amended to read:
52	52	71.54 (1) (g) 4. Except as provided in subds. 5. and 7., for For claims filed in 2018
53	53	and thereafter and based on property taxes accrued or rent constituting property
54	54	taxes accrued during the previous year, no credit may be allowed under this
55	55	paragraph if the claimant has no earned income in the taxable year to which the
56	56	claim relates unless the claimant is disabled and provides the proof required under
57	57	subd. 6. or the claimant or the claimant's spouse is over the age of 61 at the close of
58	58	the year to which the claim relates.
59	59	SECTION 3. 71.54 (1) (g) 5. of the statutes is repealed.
60	60	SECTION 4. 71.54 (1) (g) 6. (intro.) of the statutes is amended to read:
61	61	71.54 (1) (g) 6. (intro.) With regard to a claimant who is disabled, the A claimant
62	62	who is disabled shall provide with his or her return proof that his or her disability
63	63	is in effect for the taxable year to which the claim relates. Proof of disability may be
64	64	demonstrated by any of the following:
65	65	SECTION 5. 71.54 (1) (g) 7. of the statutes is repealed.
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89	89	SECTION 6. 71.54 (1) (h) of the statutes is created to read:
90	90	71.54 (1) (h) 2024 and thereafter. Subject to sub. (2m), the amount of any claim
91	91	filed in 2024 and thereafter and based on property taxes accrued or rent constituting
92	92	property taxes accrued during the previous year is limited as follows:
93	93	1. If the household income was $8,060 or less in the year to which the claim
94	94	relates, the claim is limited to 80 percent of the property taxes accrued or rent
95	95	constituting property taxes accrued or both in that year on the claimant's homestead.
96	96	2. If the household income was more than $8,060 in the year to which the claim
97	97	relates, the claim is limited to 80 percent of the amount by which the property taxes
98	98	accrued or rent constituting property taxes accrued or both in that year on the
99	99	claimant's homestead exceeds 5.614 percent of the household income exceeding
100	100	$8,060.
101	101	3. No credit may be allowed if the household income exceeds $35,000.
102	102	4. Notwithstanding the time limitations described in par. (g) (intro.), the
103	103	provisions of par. (g) 4. apply to claims filed under this paragraph.
104	104	SECTION 7. 71.54 (2) (b) 4. of the statutes is amended to read:
105	105	71.54 (2) (b) 4. In calendar years 2011 or any subsequent calendar year to 2022,
106	106	$1,460.
107	107	SECTION 8. 71.54 (2) (b) 5. of the statutes is created to read:
108	108	71.54 (2) (b) 5. Subject to sub. (2m), in calendar year 2023 or any subsequent
109	109	calendar year, $1,460.
110	110	SECTION 9. 71.54 (2m) of the statutes is amended to read:
111	111	71.54 (2m) INDEXING FOR INFLATION; 2010 2024 AND THEREAFTER . (a) For calendar
112	112	years beginning after December 31, 2009, and before January 1, 2011 2023, the dollar
113	113	amounts of the threshold income under sub. (1) (f) (h) 1. and 2., the maximum
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140	140	SECTION 9 ASSEMBLY BILL 458
141	141	household income under sub. (1) (f) (h) 3., and the maximum property taxes under
142	142	sub. (2) (b) 3. 5. shall be increased each year by a percentage equal to the percentage
143	143	change between the U.S. consumer price index for all urban consumers, U.S. city
144	144	average, for the 12-month average of the U.S. consumer price index for the month
145	145	of August of the year before the previous year through the month of July of the
146	146	previous year and the U.S. consumer price index for all urban consumers, U.S. city
147	147	average, for the 12-month average of the U.S. consumer price index for August 2007
148	148	2021 through July 2008 2022, as determined by the federal department of labor,
149	149	except that the adjustment may occur only if the percentage is a positive number.
150	150	Each amount that is revised under this paragraph shall be rounded to the nearest
151	151	multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount
152	152	is a multiple of $5, such an amount shall be increased to the next higher multiple of
153	153	$10. The department of revenue shall annually adjust the changes in dollar amounts
154	154	required under this paragraph and incorporate the changes into the income tax
155	155	forms and instructions.
156	156	(b) The department of revenue shall annually adjust the slope under sub. (1)
157	157	(f) (h) 2. such so that, as a claimant's income increases from the threshold income as
158	158	calculated adjusted under par. (a), to an amount that exceeds the maximum
159	159	household income as calculated adjusted under par. (a), the credit that may be
160	160	claimed is reduced to $0, and the department of revenue shall incorporate the
161	161	changes into the income tax forms and instructions.
162	162	SECTION 10.0Initial applicability.
163	163	(1) HOMESTEAD TAX CREDIT. The treatment of s. 71.54 (1) (h) first applies to
164	164	claims filed for taxable years beginning after December 31, 2022.
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