Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB229 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 SENATE BILL 229
5	5	April 14, 2023 - Introduced by Senator C ABRAL-GUEVARA, cosponsored by
6	6	Representatives SORTWELL, BEHNKE, EDMING, GUNDRUM, MAGNAFICI, ROZAR,
7	7	SAPIK, WICHGERS and ORTIZ-VELEZ. Referred to Committee on Universities
8	8	and Revenue.
9	9	*AUTHORS SUBJECT TO CHANGE*
10	10	AN ACT to amend 71.10 (4) (i); and to create 20.835 (2) (fm), 71.07 (9) (cm), 71.07
11	11	(11) and 71.54 (2s) of the statutes; relating to: a tax credit for certain property
12	12	tax increases and making an appropriation.
13	13	Analysis by the Legislative Reference Bureau
14	14	This bill creates a refundable individual income tax credit for an increase in the
15	15	property taxes that a person who has reached age 65 pays for a primary residence
16	16	owned in this state. The credit amount is calculated as the difference between the
17	17	property taxes levied on the claimant's primary residence in the year to which the
18	18	claim relates and those property taxes in the base year.
19	19	Under the bill, the “base year” is the most recent of either of the following years:
20	20	1) if a claimant has not moved to a different primary residence after first claiming
21	21	the credit, the year immediately before the year in which the claimant first claimed
22	22	the credit or 2) if a claimant moves to a different primary residence after first
23	23	claiming the credit, the first year for which property taxes are levied on that different
24	24	primary residence for the claimant. To claim the credit, the claimant must have paid
25	25	the property taxes that are the basis of the calculation. The maximum credit for a
26	26	taxable year allowed under the bill is $500.
27	27	Because the credit is refundable, if the amount of the claim for which a claimant
28	28	is eligible exceeds the claimant's tax liability, the difference will be paid to the
29	29	claimant by check.
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34	34	SENATE BILL 229
35	35	For further information see the state fiscal estimate, which will be printed as
36	36	an appendix to this bill.
37	37	The people of the state of Wisconsin, represented in senate and assembly, do
38	38	enact as follows:
39	39	SECTION 1. 20.835 (2) (fm) of the statutes is created to read:
40	40	20.835 (2) (fm) Elder property tax increase credit. A sum sufficient to pay the
41	41	claims approved under s. 71.07 (11).
42	42	SECTION 2. 71.07 (9) (cm) of the statutes is created to read:
43	43	71.07 (9) (cm) No credit may be allowed under this subsection for an amount
44	44	of property taxes claimed as a credit under sub. (11) that relates to the same taxable
45	45	year for which a claim is made under this subsection.
46	46	SECTION 3. 71.07 (11) of the statutes is created to read:
47	47	71.07 (11) ELDER PROPERTY TAX INCREASE CREDIT. (a) Definitions. In this
48	48	subsection:
49	49	1. “Base year” means the most recent of any of the following years:
50	50	a. If the claimant has not moved to a different principal dwelling after first
51	51	filing a claim under this subsection, the year immediately preceding the year in
52	52	which the claimant first files a claim under this subsection.
53	53	b. If a claimant moves to a different principal dwelling after the year in which
54	54	the claimant first files a claim under this subsection, the first year for which the
55	55	claimant has property taxes levied on that different principal dwelling.
56	56	2. “Claimant” means an individual who has reached age 65 by December 31 of
57	57	the taxable year to which the claim relates, or an individual and his or her spouse
58	58	filing a joint return, either of whom has reached age 65 by December 31 of the taxable
59	59	to which the claim relates, and who files a claim under this subsection.
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83	83	SECTION 3
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85	85	3. “Household” means an individual and his or her spouse.
86	86	4. “Principal dwelling” means a dwelling that is owned and used by the
87	87	claimant as a primary dwelling for the entire taxable year for which the credit under
88	88	this subsection is claimed and the land surrounding it that is reasonably necessary
89	89	for use of the dwelling as a primary dwelling, including a part of a multidwelling or
90	90	multipurpose building and a part of the land upon which it is built that is used as
91	91	the claimant's primary dwelling.
92	92	5. “Property taxes” means the real and personal property taxes, exclusive of
93	93	special assessments, delinquent interest, and charges for service, paid by a claimant,
94	94	and the claimant's spouse if filing a joint return, levied on the claimant's principal
95	95	dwelling in this state less any property taxes levied that are properly includable as
96	96	a trade or business expense under section 162 of the Internal Revenue Code. If the
97	97	principal dwelling on which the taxes were paid is owned by 2 or more persons or
98	98	entities as joint tenants or tenants in common or is owned by spouses as marital
99	99	property, “property taxes" is that part of property taxes paid that reflects the
100	100	ownership percentage of the claimant, except that this limitation does not apply to
101	101	spouses who file a joint return. If the principal dwelling is sold during the taxable
102	102	year, the “property taxes" for the seller and buyer shall be the amount of the tax
103	103	prorated to each in the closing agreement pertaining to the sale or, if not so provided
104	104	for in the closing agreement, the tax shall be prorated between the seller and buyer
105	105	in proportion to months of their respective ownership. “Property taxes” includes
106	106	monthly municipal permit fees with respect to a principal dwelling imposed under
107	107	s. 66.0435 (3) (c).
108	108	(b) Filing claims. For taxable years beginning after December 31, 2022, and
109	109	subject to the limitations provided in this subsection, a claimant may claim as a
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136	136	SECTION 3 SENATE BILL 229
137	137	credit against the tax imposed under s. 71.02 the increase, if any, of the amount of
138	138	the property taxes the claimant is levied in the taxable year to which the claim
139	139	relates from the property taxes the claimant is levied in the base year. If the
140	140	allowable amount of the claim exceeds the income taxes otherwise due on the
141	141	claimant's income, the amount of the claim not used as an offset against those taxes
142	142	shall be certified by the department of revenue to the department of administration
143	143	for payment to the claimant by check, share draft, or other draft from the
144	144	appropriation under s. 20.835 (2) (fm).
145	145	(c) Limitations. 1. The maximum amount of the credit that a claimant may
146	146	claim under this subsection in a taxable year is $500.
147	147	2. No credit may be allowed under this subsection if the claimant has not paid
148	148	the property taxes on the principal dwelling for the years described in par. (b).
149	149	3. a. No credit may be allowed under this subsection if the claimant or the
150	150	claimant's spouse files a claim under sub. (6e) that relates to the same taxable year
151	151	for which a claim is made under this subsection.
152	152	b. No credit may be allowed under this subsection for an amount of property
153	153	taxes claimed as a credit under sub. (9) or subch. VIII that relates to the same taxable
154	154	year for which a claim is made under this subsection.
155	155	4. Except as provided in subd. 6., only one claimant per household per taxable
156	156	year may claim a credit under this subsection.
157	157	5. No credit may be allowed under this subsection for property taxes that the
158	158	claimant pays on his or her principal dwelling that is leased to the claimant.
159	159	6. If married persons who are eligible to claim the credit under this subsection
160	160	file separate returns, each spouse may claim a credit under this subsection based on
161	161	his or her respective ownership interest in the principal dwelling.
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189	189	SECTION 3
190	190	SENATE BILL 229
191	191	7. No credit may be allowed under this subsection unless it is claimed within
192	192	the time period under s. 71.75 (2).
193	193	(d) Administration. 1. In administering this subsection, the department of
194	194	revenue shall make available suitable forms with instructions for claimants,
195	195	including a form that may be included with, or as a part of, the individual income tax
196	196	form.
197	197	2. Subsection (9e) (d), to the extent that it applies to the credit under that
198	198	subsection, applies to the credit under this subsection.
199	199	SECTION 4. 71.10 (4) (i) of the statutes is amended to read:
200	200	71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
201	201	preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
202	202	beyond under s. 71.613, homestead credit under subch. VIII, jobs tax credit under s.
203	203	71.07 (3q), business development credit under s. 71.07 (3y), research credit under s.
204	204	71.07 (4k) (e) 2. a., veterans and surviving spouses property tax credit under s. 71.07
205	205	(6e), elder property tax increase credit under s. 71.07 (11), enterprise zone jobs credit
206	206	under s. 71.07 (3w), electronics and information technology manufacturing zone
207	207	credit under s. 71.07 (3wm), earned income tax credit under s. 71.07 (9e), estimated
208	208	tax payments under s. 71.09, and taxes withheld under subch. X.
209	209	SECTION 5. 71.54 (2s) of the statutes is created to read:
210	210	71.54 (2s) LIMITATION. No credit may be allowed under this subchapter for an
211	211	amount of property taxes claimed as a credit under s. 71.07 (11) that relates to the
212	212	same taxable year for which a claim is made under this subchapter.
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