LRB-1067/1
MES:jld:jf
2001 - 2002 LEGISLATURE
February 19, 2001 - Introduced by Representatives Powers, Gronemus, Balow,
Pettis, Kreuser, Hoven, Albers, Townsend, Sykora
and Seratti, cosponsored
by Senators Darling, Huelsman and Roessler. Referred to Committee on
Ways and Means.
AB140,1,2 1An Act to amend 71.52 (6) of the statutes; relating to: modifying the definition
2of "income" under the homestead tax credit.
Analysis by the Legislative Reference Bureau
Under current law, the definition of "income" under the homestead tax credit
is the sum of Wisconsin adjusted gross income (AGI) and a number of items that are
not otherwise includable in Wisconsin AGI, such as certain public assistance
payments, nontaxable interest received on state and municipal bonds and certain
retirement benefits.
Under the bill, the definition of "income" for homestead credit purposes, as it
applies to certain pensions and annuities, is modified such that nontaxable
recoveries of a claimant's investment in a pension or annuity is excluded from the
definition of "income" and only the taxable portion of the pension or annuity is
included.
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:
AB140, s. 1 3Section 1. 71.52 (6) of the statutes is amended to read:
AB140,3,164 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the
5following amounts, to the extent not included in Wisconsin adjusted gross income:

1maintenance payments (except foster care maintenance and supplementary
2payments excludable under section 131 of the internal revenue code Internal
3Revenue Code
), support money, cash public assistance (not including credit granted
4under this subchapter and amounts under s. 46.27), cash benefits paid by counties
5under s. 59.53 (21), retirement benefits excludable under s. 71.05 (1) (a), the gross
6amount of any pension or annuity (including railroad retirement benefits and
7veterans disability pensions
, all payments received under the federal social security
8act and veterans disability pensions), nontaxable interest received from the federal
9government or any of its instrumentalities, nontaxable interest received on state or
10municipal bonds, worker's compensation, unemployment insurance, the gross
11amount of "loss of time" insurance, compensation and other cash benefits received
12from the United States for past or present service in the armed forces, scholarship
13and fellowship gifts or income, capital gains, gain on the sale of a personal residence
14excluded under section 121 of the internal revenue code Internal Revenue Code,
15dividends, income of a nonresident or part-year resident who is married to a
16full-year resident, housing allowances provided to members of the clergy, the
17amount by which a resident manager's rent is reduced, nontaxable income of an
18American Indian, nontaxable income from sources outside this state and nontaxable
19deferred compensation
, life insurance proceeds received on account of the death of
20the insured, and compensation for injuries or sickness excluded under section 104
21of the Internal Revenue Code
. Intangible drilling costs, depletion allowances and
22depreciation, including first-year depreciation allowances under section 179 of the
23internal revenue code Internal Revenue Code, amortization, contributions to
24individual retirement accounts under section 219 of the internal revenue code,
25contributions to Keogh plans,
net operating loss carry-forwards and capital loss

1carry-forwards deducted in determining Wisconsin adjusted gross income shall be
2added to "income". "Income" does not include gifts from natural persons, cash
3reimbursement payments made under title XX of the federal social security act,
4surplus food or other relief in kind supplied by a governmental agency, the gain on
5the sale of a personal residence deferred under section 1034 of the internal revenue
6code
Internal Revenue Code or nonrecognized gain from involuntary conversions
7under section 1033 of the internal revenue code Internal Revenue Code. Amounts
8not included in adjusted gross income but added to "income" under this subsection
9in a previous year and repaid may be subtracted from income for the year during
10which they are repaid. Scholarship and fellowship gifts or income that are included
11in Wisconsin adjusted gross income and that were added to household income for
12purposes of determining the credit under this subchapter in a previous year may be
13subtracted from income for the current year in determining the credit under this
14subchapter. A marital property agreement or unilateral statement under ch. 766 has
15no effect in computing "income" for a person whose homestead is not the same as the
16homestead of that person's spouse.
AB140, s. 2 17Section 2. Initial applicability.
AB140,3,2118 (1) This act first applies to taxable years beginning on January 1 of the year
19in which this subsection takes effect, except that if this subsection takes effect after
20July 31 this act first applies to taxable years beginning on January 1 of the year
21following the year in which this subsection takes effect.
AB140,3,2222 (End)
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