Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB977 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 977
5	5	January 30, 2024 - Introduced by Senators MARKLEIN, LEMAHIEU, BALLWEG,
6	6	BRADLEY, CABRAL-GUEVARA, FELZKOWSKI, FEYEN, JAGLER, NASS, QUINN,
7	7	STROEBEL, TESTIN and WANGGAARD, cosponsored by Representatives KATSMA,
8	8	BORN, ALLEN, ARMSTRONG, AUGUST, BEHNKE, BINSFELD, BRANDTJEN, DITTRICH,
9	9	DONOVAN, EDMING, GREEN, GUNDRUM, HURD, KRUG, KURTZ, MACCO, MAGNAFICI,
10	10	MAXEY, MELOTIK, MOSES, MURPHY, MURSAU, NEDWESKI, O'CONNOR, OLDENBURG,
11	11	PENTERMAN, PETRYK, PLUMER, RETTINGER, SCHMIDT, SCHRAA, SCHUTT, SNYDER,
12	12	SORTWELL, SPIROS, STEFFEN, TRANEL, WICHGERS, WITTKE, ZIMMERMAN and
13	13	SWEARINGEN. Referred to Joint Committee on Finance.
14	14	*AUTHORS SUBJECT TO CHANGE*
15	15	AN ACT to repeal 71.06 (1), (1m), (1n) and (1p), 71.06 (1q), 71.06 (2) (a) to (h),
16	16	71.06 (2) (i), 71.06 (2) (j) and 71.06 (2e) (a) and (b); to amend 71.06 (1q) (intro.),
17	17	71.06 (2) (i) (intro.), 71.06 (2) (j) (intro.) and 71.06 (2m); and to create 71.06 (1r),
18	18	71.06 (2) (k), 71.06 (2) (L) and 71.06 (2e) (bm) of the statutes; relating to:
19	19	expansion of the second individual income tax bracket.
20	20	Analysis by the Legislative Reference Bureau
21	21	This bill expands the second individual income tax bracket as follows:
22	22	1. For single individuals, certain fiduciaries, and heads of households, the
23	23	current law tax rate of 4.40 percent applies to taxable income exceeding $14,320 but
24	24	not exceeding $112,500. Under current law, as adjusted for inflation, the second tax
25	25	bracket for single individuals, certain fiduciaries, and heads of households applies
26	26	to taxable income exceeding $14,320 but not exceeding $28,640.
27	27	2. For married persons filing a joint return, the 4.40 percent tax rate applies
28	28	to taxable income exceeding $19,090 but not exceeding $150,000. Under current law,
29	29	as adjusted for inflation, the second tax bracket for married persons filing a joint
30	30	return applies to taxable income exceeding $19,090 but not exceeding $38,190.
31	31	3. For married persons filing separate returns the 4.40 percent tax rate applies
32	32	to taxable income exceeding $9,550 but not exceeding $75,000. Under current law,
33	33	as adjusted for inflation, the second tax bracket for married persons filing separate
34	34	returns applies to taxable income exceeding $9,550 but not exceeding $19,090.
35	35	Under current law, there are four income tax brackets for single individuals,
36	36	certain fiduciaries, heads of households, and married persons, and the brackets are
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43	43	SENATE BILL 977
44	44	indexed for inflation. The rate of taxation under current law for the lowest bracket
45	45	for single individuals, certain fiduciaries, heads of households, and married persons
46	46	is 3.50 percent of taxable income. The rate for the second bracket is 4.40 percent.
47	47	The rate for the third bracket is 5.3 percent. And the rate for the highest bracket is
48	48	7.65 percent.
49	49	For further information see the state fiscal estimate, which will be printed as
50	50	an appendix to this bill.
51	51	The people of the state of Wisconsin, represented in senate and assembly, do
52	52	enact as follows:
53	53	SECTION 1. 71.06 (1), (1m), (1n) and (1p) of the statutes are repealed.
54	54	SECTION 2. 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 TO 2023. (intro.) The tax to be assessed, levied, and collected upon the taxable
57	57	incomes of all fiduciaries, except fiduciaries of nuclear decommissioning trust or
58	58	reserve funds, and single individuals and heads of households shall be computed at
59	59	the following rates for taxable years beginning after December 31, 2012, and before
60	60	January 1, 2024:
61	61	SECTION 3. 71.06 (1q) of the statutes, as affected by 2023 Wisconsin Acts 19 and
62	62	...(this act), is repealed.
63	63	SECTION 4. 71.06 (1r) of the statutes is created to read:
64	64	71.06 (1r) FIDUCIARIES, SINGLE INDIVIDUALS, AND HEADS OF HOUSEHOLD; AFTER 2023.
65	65	The tax to be assessed, levied, and collected upon the taxable incomes of all
66	66	fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, and
67	67	single individuals and heads of households shall be computed at the following rates
68	68	for taxable years beginning after December 31, 2023:
69	69	(a) On all taxable income from $0 to $14,320, 3.50 percent.
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89	89	SECTION 4
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91	91	(b) On all taxable income exceeding $14,320 but not exceeding $112,500, 4.40
92	92	percent.
93	93	(c) On all taxable income exceeding $112,500 but not exceeding $315,310, 5.30
94	94	percent.
95	95	(d) On all taxable income exceeding $315,310, 7.65 percent.
96	96	SECTION 5. 71.06 (2) (a) to (h) of the statutes are repealed.
97	97	SECTION 6. 71.06 (2) (i) (intro.) of the statutes is amended to read:
98	98	71.06 (2) (i) (intro.) For joint returns, for taxable years beginning after
99	99	December 31, 2012, and before January 1, 2024:
100	100	SECTION 7. 71.06 (2) (i) of the statutes, as affected by 2023 Wisconsin Acts 19
101	101	and ... (this act), is repealed.
102	102	SECTION 8. 71.06 (2) (j) (intro.) of the statutes is amended to read:
103	103	71.06 (2) (j) (intro.) For married persons filing separately, for taxable years
104	104	beginning after December 31, 2012, and before January 1, 2024:
105	105	SECTION 9. 71.06 (2) (j) of the statutes, as affected by 2023 Wisconsin Acts 19
106	106	and ... (this act), is repealed.
107	107	SECTION 10. 71.06 (2) (k) of the statutes is created to read:
108	108	71.06 (2) (k) For joint returns, for taxable years beginning after December 31,
109	109	2023:
110	110	1. On all taxable income from $0 to $19,090, 3.50 percent.
111	111	2. On all taxable income exceeding $19,090 but not exceeding $150,000, 4.40
112	112	percent.
113	113	3. On all taxable income exceeding $150,000 but not exceeding $420,420, 5.30
114	114	percent.
115	115	4. On all taxable income exceeding $420,420, 7.65 percent.
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142	142	SECTION 11 SENATE BILL 977
143	143	SECTION 11. 71.06 (2) (L) of the statutes is created to read:
144	144	71.06 (2) (L) For married persons filing separately, for taxable years beginning
145	145	after December 31, 2023:
146	146	1. On all taxable income from $0 to $9,550, 3.50 percent.
147	147	2. On all taxable income exceeding $9,550 but not exceeding $75,000, 4.40
148	148	percent.
149	149	3. On all taxable income exceeding $75,000 but not exceeding $210,210, 5.30
150	150	percent.
151	151	4. On all taxable income exceeding $210,210, 7.65 percent.
152	152	SECTION 12. 71.06 (2e) (a) and (b) of the statutes are repealed.
153	153	SECTION 13. 71.06 (2e) (bm) of the statutes is created to read:
154	154	71.06 (2e) (bm) For taxable years beginning after December 31, 2024, the
155	155	maximum dollar amount in each tax bracket, and the corresponding minimum dollar
156	156	amount in the next bracket, under subs. (1r) and (2) (k) and (L), shall be increased
157	157	each year by a percentage equal to the percentage change between the U.S. consumer
158	158	price index for all urban consumers, U.S. city average, for the month of August of the
159	159	previous year and the U.S. consumer price index for all urban consumers, U.S. city
160	160	average, for the month of August 2023, as determined by the federal department of
161	161	labor, except that the adjustment may occur only if the resulting amount is greater
162	162	than the corresponding amount that was calculated for the previous year.
163	163	SECTION 14. 71.06 (2m) of the statutes is amended to read:
164	164	71.06 (2m) RATE CHANGES. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r) or
165	165	(2) (k) or (L) changes during a taxable year, the taxpayer shall compute the tax for
166	166	that taxable year by the methods applicable to the federal income tax under section
167	167	15 of the Internal Revenue Code.
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195	195	SECTION 15
196	196	SENATE BILL 977
197	197	SECTION 15.0Nonstatutory provisions.
198	198	(1) INDIVIDUAL INCOME TAX WITHHOLDING TABLE ADJUSTMENTS. No later than July
199	199	1, 2024, the department of revenue shall update the individual income tax
200	200	withholding tables under s. 71.64 (9) to reflect the tax rates, brackets, and sliding
201	201	scale standard deduction that are in effect for taxable year 2024. The adjustments
202	202	made under this subsection to the withholding tables shall take effect on July 1,
203	203	2024.
204	204	SECTION 16.0Effective dates. This act takes effect on the day after publication,
205	205	except as follows:
206	206	(1) The repeal of s. 71.06 (1q), (2) (i) and (j), and (2e) (a) and (b) takes effect on
207	207	January 1, 2029.
208	208	(END)
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