2013 - 2014 LEGISLATURE
August 23, 2013 - Introduced by Representatives Riemer, Smith, Mason, Hintz,
Jorgensen, Goyke, Bewley, Bernard Schaber, Sinicki, Berceau, Zepnick,
Richards, Wright, Pope, Genrich, C. Taylor, Young, Pasch, Kahl, Wachs,
Clark, Ohnstad, Barnes, Hebl, Vruwink, Milroy, Sargent, Billings and
Barca, cosponsored by Senator T. Cullen. Referred to Joint Committee on
1An Act to repeal
71.54 (1) (g) and 71.54 (2) (b) 4.; and to amend
71.54 (1) (f) 2
(intro.), 71.54 (2) (b) 3. and 71.54 (2m) of the statutes; relating to: restoring
3indexing provisions to the homestead tax credit.
Analysis by the Legislative Reference Bureau
Under current law, the homestead tax credit formula factors (maximum
income, maximum property taxes, and income threshold) are not indexed for
inflation after 2010. This bill repeals those provisions and restores former law.
Under the bill, the homestead tax credit formula factors would be indexed for
inflation for 2013 and beyond.
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:
71.54 (1) (f) (intro.) of the statutes is amended to read:
(f) 2001 to 2011 and thereafter.
(intro.) Subject to sub. (2m), the 6
amount of any claim filed in 2001 to 2011 and thereafter
and based on property taxes
accrued or rent constituting property taxes accrued during the previous year is 2
limited as follows:
71.54 (1) (g) of the statutes is repealed.
71.54 (2) (b) 3. of the statutes is amended to read:
(b) 3. Subject to sub. (2m), in calendar
years 1990 to 2010 year 1990
6or any subsequent calendar year
71.54 (2) (b) 4. of the statutes is repealed.
71.54 (2m) of the statutes is amended to read:
71.54 (2m) Indexing for inflation;
2010 2013 and thereafter.
(a) For calendar 10
years beginning after December 31, 2009, and before January 1, 2011 2012
, the dollar 11
amounts of the threshold income under sub. (1) (f) 1. and 2., the maximum household 12
income under sub. (1) (f) 3. and the maximum property taxes under sub. (2) (b) 3. shall 13
be increased each year by a percentage equal to the percentage change between the 14
U.S. consumer price index for all urban consumers, U.S. city average, for the 15
12-month average of the U.S. consumer price index for the month of August of the 16
year before the previous year through the month of July of the previous year and the 17
U.S. consumer price index for all urban consumers, U.S. city average, for the 18
12-month average of the U.S. consumer price index for August 2007 through July 19
2008, as determined by the federal department of labor, except that the adjustment 20
may occur only if the percentage is a positive number. Each amount that is revised 21
under this paragraph shall be rounded to the nearest multiple of $10 if the revised 22
amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an 23
amount shall be increased to the next higher multiple of $10. The department of 24
revenue shall annually adjust the changes in dollar amounts required under this 25
paragraph and incorporate the changes into the income tax forms and instructions.
(b) The department of revenue shall annually
adjust the slope under sub. (1) 2
(f) 2. such that, as a claimant's income increases from the threshold income as 3
calculated under par. (a), to an amount that exceeds the maximum household income 4
as calculated under par. (a), the credit that may be claimed is reduced to $0 and the 5
department of revenue shall incorporate the changes into the income tax forms and 6