2001 - 2002 LEGISLATURE
February 20, 2002 - Introduced by Representatives Schooff, Balow, Black, Bock,
Carpenter, Coggs, J. Lehman, Musser, Pocan, Shilling, Turner and Miller,
cosponsored by Senators Burke, Harsdorf and Plache. Referred to
Committee on Ways and Means.
1An Act to amend
71.54 (1) (f) (intro.) and 71.54 (2) (b) 3.; and to create
(2m) of the statutes; relating to: indexing for inflation the maximum income
3and maximum property taxes under the homestead tax credit.
Analysis by the Legislative Reference Bureau
Under current law, for claims filed in 2001 and thereafter, the homestead tax
credit threshold income is $8,000, the maximum property taxes that a claimant may
use in calculating his or her credit are $1,450, and the maximum income is $24,500.
Under the current law formula, as a claimant's income exceeds $8,000, the credit is
phased out until the credit equals zero when income exceeds $24,500.
Under this bill, for claims filed in 2003 and thereafter, the maximum property
taxes and maximum income are indexed for inflation. Also under the bill, as a
claimant's income exceeds $8,000, the credit is phased out until the credit equals zero
when income exceeds the maximum income as adjusted for inflation.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB841, s. 1
71.54 (1) (f) (intro.) of the statutes is amended to read:
(f) 2001 and thereafter.
(intro.) The Subject to sub. (2m), the
of any claim filed in 2001 and thereafter and based on property taxes accrued or rent 3
constituting property taxes accrued during the previous year is limited as follows:
AB841, s. 2
71.54 (2) (b) 3. of the statutes is amended to read:
(b) 3. In Subject to sub. (2m), in
calendar year 1990 or any subsequent 6
calendar year, $1,450.
AB841, s. 3
71.54 (2m) of the statutes is created to read:
71.54 (2m) Indexing for inflation, 2003 and thereafter.
(a) For taxable years 9
beginning after December 31, 2002, the dollar amounts of the maximum income 10
under sub. (1) (f) 3. and the maximum property taxes under sub. (2) (b) 3. shall be 11
increased each year by a percentage equal to the percentage change between the U.S. 12
consumer price index for all urban consumers, U.S. city average, for the month of 13
August of the previous year and the U.S. consumer price index for all urban 14
consumers, U.S. city average, for the month of August 2001, as determined by the 15
federal department of labor. Each amount that is revised under this paragraph shall 16
be rounded to the nearest multiple of $10 if the revised amount is not a multiple of 17
$10 or, if the revised amount is a multiple of $5, such an amount shall be increased 18
to the next higher multiple of $10. The department of revenue shall annually adjust 19
the changes in dollar amounts required under this paragraph and incorporate the 20
changes into the income tax forms and instructions.
(b) The department of revenue shall annually adjust the slope under sub. (1) 22
(f) 2. such that as a claimant's income increases from $8,000 to an amount that 23
exceeds the maximum income as calculated under par. (a), the credit that may be
claimed is reduced to $0 and the department of revenue shall incorporate the changes 2
into the income tax forms and instructions.