Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB1112

Introduced
4/11/24  
Refer
4/11/24  

Caption

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

Impact

This bill is expected to significantly impact state tax laws by creating a new avenue for financial relief for homeowners and renters affected by high property taxes. It is structured in a way that prioritizes low-income individuals, assisting them with their tax burdens by offering a proportional tax credit based on their financial situation. Furthermore, the phased nature of the credit increases the potential for impacted individuals to receive greater relief as the bill matures, reinforcing support for those in need. This legislative change underscores a commitment to alleviating financial strain on residents struggling with housing costs.

Summary

Senate Bill 1112 establishes a refundable income tax credit targeted at individuals facing high property tax burdens relative to their household income. Specifically, it allows for a tax credit for residents whose property taxes or rent (deemed as property taxes) exceed four percent of their household income. The credit is designed to assist lower and middle-income households, with a maximum household income threshold of $150,000. The percentage of the credit offered will gradually increase over the years, starting at 10% in the 2024 tax year, increasing to 15% in 2025, and reaching 40% in 2026 and beyond, contingent upon the amount that exceeds the four percent threshold.

Contention

Points of contention may arise regarding the income thresholds and the phases of the credit. Critics might argue that the income limits set a restrictive barrier that could exclude many who also struggle with property taxes but earn slightly over the threshold. Additionally, there may be discussions surrounding funding for these credits, with concerns on how they will be financed and whether they could lead to increased taxes elsewhere. Some could challenge the fairness of phasing the credit, questioning whether it adequately addresses the immediate needs of eligible claimants who require assistance right away.

Companion Bills

No companion bills found.

Previously Filed As

WI AB1191

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

WI SB272

Refundable income tax credit for bicycle purchases and making an appropriation. (FE)

WI AB276

Refundable income tax credit for bicycle purchases and making an appropriation. (FE)

WI AB1020

Expansion of the second individual income tax bracket. (FE)

WI SB229

A tax credit for certain property tax increases and making an appropriation. (FE)

WI AB235

A tax credit for certain property tax increases and making an appropriation. (FE)

WI SB1025

Income tax credits for beginning farmers and owners of farm assets and making an appropriation. (FE)

WI AB1124

Income tax credits for beginning farmers and owners of farm assets and making an appropriation. (FE)

WI SB623

Creating a tax credit for employer child care programs and making an appropriation. (FE)

WI AB660

Creating a tax credit for employer child care programs and making an appropriation. (FE)

Similar Bills

WI AB1020

Expansion of the second individual income tax bracket. (FE)

WI AB1191

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

MI HB4894

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: HB 4895'23

MI SB0095

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0096'23

MI SB0454

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0455'23

MI HB4724

Individual income tax: property tax credit; credit for disabled veterans or widow or widower of disabled veterans who rent or lease a homestead; increase. Amends secs. 506, 520, 522 & 530 of 1967 PA 281 (MCL 206.506 et seq.).

MI HB4543

Individual income tax: home heating credit; adjustments based on Detroit Consumer Price Index; change to United States Consumer Price Index. Amends sec. 527a of 1967 PA 281 (MCL 206.527a).

MI HB4088

Individual income tax: property tax credit; taxable value cap on homestead eligibility for credit; increase and modify adjustment factor. Amends sec. 520 of 1967 PA 281 (MCL 206.520).