Amendment AA22-AA2-ASA1-AB133

LRBb1494/2

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1999 - 2000 LEGISLATURE

ASSEMBLY AMENDMENT 22, TO ASSEMBLY AMENDMENT 2, TO ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 1999 ASSEMBLY BILL 133

June 29, 1999 - Offered by Representatives Krug, Wood and Richards.

AB133-ASA1-AA2-AA22,1,1 At the locations indicated, amend the amendment as follows:

AB133-ASA1-AA2-AA22,1,2 1. Page 36, line 20: delete lines 20 and 21.

AB133-ASA1-AA2-AA22,1,3 2. Page 37, line 3: delete lines 3 to 6.

AB133-ASA1-AA2-AA22,1,4 3. Page 39, line 5: delete lines 5 to 17.

AB133-ASA1-AA2-AA22,1,5 4. Page 40, line 3: delete lines 3 and 4.

AB133-ASA1-AA2-AA22,1,6 5. Page 40, line 4: after that line insert:

AB133-ASA1-AA2-AA22,1,7 "265m. Page 265, line 3: after that line insert: - See PDF for table

AB133-ASA1-AA2-AA22,1,8 6. Page 56, line 10: delete lines 10 to 23.

AB133-ASA1-AA2-AA22,1,9 7. Page 60, line 5: delete lines 5 to 24.

AB133-ASA1-AA2-AA22,2,1 8. Page 61, line 1: delete lines 1 to 23.

AB133-ASA1-AA2-AA22,2,2 9. Page 62, line 1: delete lines 1 to 10 and substitute:

AB133-ASA1-AA2-AA22,2,3 "291m. Page 395, line 4: after that line insert:

AB133-ASA1-AA2-AA22,2,4 " Section 609s. 20.835 (2) (e) of the statutes is created to read:

AB133-ASA1-AA2-AA22,2,6 20.835 (2) (e) Property tax refund credit. A sum sufficient to pay the claims approved under s. 71.07 (7m).".".

AB133-ASA1-AA2-AA22,2,7 10. Page 93, line 22: delete lines 22 and 23.

AB133-ASA1-AA2-AA22,2,8 11. Page 94, line 1: delete lines 1 to 25.

AB133-ASA1-AA2-AA22,2,9 12. Page 95, line 1: delete lines 1 to 13.

AB133-ASA1-AA2-AA22,2,10 13. Page 243, line 8: after that line insert:

AB133-ASA1-AA2-AA22,2,12 "594m. Page 841, line 25: delete the material beginning with that line and ending with page 847, line 6, and substitute:

AB133-ASA1-AA2-AA22,2,13 " Section 1703e. 71.06 (2e) of the statutes is amended to read:

AB133-ASA1-AA2-AA22,3,3 71.06 (2e) Bracket indexing. For taxable years beginning after December 31, 1998, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2) (c) and (d) shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the year before the previous year 1997, as determined by the federal department of labor. Each amount that is revised under this subsection shall be rounded to the nearest multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount shall be increased to the next higher multiple of $10. The department of revenue shall annually adjust the changes in dollar amounts required under this subsection and incorporate the changes into the income tax forms and instructions.".".

AB133-ASA1-AA2-AA22,3,5 14. Page 243, line 9: delete the material beginning with that line and ending with page 244, line 4.

AB133-ASA1-AA2-AA22,3,6 15. Page 244, line 22: after that line insert:

AB133-ASA1-AA2-AA22,3,8 "597m. Page 849, line 18: delete the material beginning with that line and ending with page 850, line 6.".

AB133-ASA1-AA2-AA22,3,9 16. Page 247, line 2: after that line insert:

AB133-ASA1-AA2-AA22,3,10 "599g. Page 850, line 3: after that line insert:

AB133-ASA1-AA2-AA22,3,11 " Section 1715m. 71.07 (7m) of the statutes is created to read:

AB133-ASA1-AA2-AA22,3,12 71.07 (7m) Property tax refund credit. (a) Definitions. In this subsection:

AB133-ASA1-AA2-AA22,3,14 1. "Claimant" means an individual, or a married couple that files a joint return or that files separate returns, who files a claim under this subsection.

AB133-ASA1-AA2-AA22,3,15 2. "Department" means the department of revenue.

AB133-ASA1-AA2-AA22,3,17 3. "Household" means a claimant and an individual related to the claimant as husband or wife.

AB133-ASA1-AA2-AA22,3,19 4. "Household income" means all Wisconsin adjusted gross income received by all persons of a household in a calendar year while members of the household.

AB133-ASA1-AA2-AA22,3,20 5. "Income" means Wisconsin adjusted gross income.

AB133-ASA1-AA2-AA22,4,2 6. "Principal dwelling" means any dwelling, whether owned or rented, and the land surrounding it that is reasonably necessary for use of the dwelling as a primary dwelling of the claimant and may include a part of a multidwelling or multipurpose building and a part of the land upon which it is built that is used as the claimant's primary dwelling.

AB133-ASA1-AA2-AA22,4,17 7. "Property taxes" means real and personal property taxes, exclusive of special assessments, delinquent interest and charges for service, paid by a claimant on the claimant's principal dwelling during the taxable year for which credit under this subsection is claimed, less any property taxes paid which are properly includable as a trade or business expense under section 162 of the Internal Revenue Code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, "property taxes" is that part of property taxes paid that reflects the ownership percentage of the claimant. If the principal dwelling is sold during the taxable year the "property taxes" for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to the months of their respective ownership. "Property taxes" includes monthly parking permit fees in respect to a principal dwelling collected under s. 66.058 (3) (c).

AB133-ASA1-AA2-AA22,5,3 8. "Rent constituting property taxes" means 25% of rent if heat is not included, or 20% of rent if heat is included, paid during the taxable year for which credit is claimed under this subsection, at arm's length, for the use of a principal dwelling and contiguous land, excluding any payment for domestic, food, medical or other services which are unrelated to use of the dwelling as housing, less any rent paid that is properly includable as a trade or business expense under the Internal Revenue Code. "Rent" includes space rental paid to a landlord for parking a mobile home. Rent shall be apportioned among the occupants of a principal dwelling according to their respective contribution to the total amount of rent paid. "Rent" does not include rent paid for the use of housing which was exempt from property taxation, except housing for which payments in lieu of taxes were made under s. 66.40 (22).

AB133-ASA1-AA2-AA22,5,11 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02, up to the amount of those taxes, one of the amounts calculated under this paragraph; except that if the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income, and if the claimant's household income is less than $50,000, the amount of the claim not used as an offset against those taxes shall be certified by the department to the department of administration for payment to the claimant by check, share draft or other draft from the appropriation under s. 20.835 (2) (e):

AB133-ASA1-AA2-AA22,5,15 1. If the claimant is single or is married and files a joint income taxES return and if the claimant's income is less than $8,000 in the year to which the claim relates, 80% of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling.

AB133-ASA1-AA2-AA22,5,19 2. If the claimant is married and files a separate income tax return and if the claimant's income is less than $4,000 in the year to which the claim relates, 80% of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling.

AB133-ASA1-AA2-AA22,5,24 3. If the claimant is single or is married and files a joint income tax return and if the claimant's income is at least $8,000 but less than $21,000 in the year to which the claim relates, a percentage of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling that is calculated as follows:

AB133-ASA1-AA2-AA22,6,3 a. Calculate the value of a fraction, the denominator of which is $13,000 and the numerator of which is the difference between $21,000 and the claimant's household income.

AB133-ASA1-AA2-AA22,6,4 b. Subtract from 1.0 the amount that is calculated under subd. 3. a.

AB133-ASA1-AA2-AA22,6,6 c. Subtract the percentage of property taxes accrued in subd. 5. from the percentage of property taxes accrued in subd. 1.

AB133-ASA1-AA2-AA22,6,8 d. Multiply the percentage determined under subd. 3. c. by the number calculated under subd. 3. b.

AB133-ASA1-AA2-AA22,6,10 e. Subtract from the percentage of property taxes accrued in subd. 1. the amount calculated in subd. 3. d.

AB133-ASA1-AA2-AA22,6,15 4. If the claimant is married and files a separate income tax return and if the claimant's income is at least $4,000 but less than $10,500 in the year to which the claim relates, a percentage of the property taxes accrued or rent constituting property taxes accrued or both in that year on the claimant's principal dwelling that is calculated as follows: