LRB-0230/2
MES:cjs:rs
2001 - 2002 LEGISLATURE
January 16, 2001 - Introduced by Representatives Ziegelbauer, Huber, Kreuser,
La Fave, F. Lasee, Plale, Plouff, Staskunas, Steinbrink
and Wasserman,
cosponsored by Senators Plache, Lazich and Roessler. Referred to
Committee on Ways and Means.
AB25,1,3 1An Act to create 71.07 (5m) (bm), 71.07 (6) (as) and 71.07 (9) (bm) of the statutes;
2relating to: indexing for inflation the working families tax credit, the married
3couples tax credit, and the school property tax credit.
Analysis by the Legislative Reference Bureau
Under the current law individual income tax system, the sliding scale standard
deduction and the tax brackets are indexed for inflation. Current law also contains
a number of tax credits that are based on statutorily set dollar amounts.
This bill indexes for inflation the following individual income tax credits: the
working families tax credit, the married couples tax credit, and the school property
tax credit. The indexing provisions created in the bill first apply to taxable years
beginning after December 31, 2000, except for the provision relating to the married
couples tax credit, which first applies to taxable years beginning after December 31,
2001.
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:
AB25, s. 1 4Section 1. 71.07 (5m) (bm) of the statutes is created to read:
AB25,2,14
171.07 (5m) (bm) Indexing for inflation. For taxable years beginning after
2December 31, 2000, the dollar amounts relating to the denominator of a fraction
3under par. (b), and all of the dollar amounts of Wisconsin adjusted gross income
4under par. (b), shall be increased each year by a percentage equal to the percentage
5change between the U.S. consumer price index for all urban consumers, U.S. city
6average, for the month of August of the previous year and the U.S. consumer price
7index for all urban consumers, U.S. city average, for the month of August 1999, as
8determined by the federal department of labor. Each amount that is revised under
9this paragraph shall be rounded to the nearest multiple of $10 if the revised amount
10is not a multiple of $10 or, if the revised amount is a multiple of $5 and not a multiple
11of $10, such an amount shall be increased to the next higher multiple of $10. The
12department of revenue shall annually adjust the changes in dollar amounts required
13under this paragraph and incorporate the changes into the income tax forms and
14instructions.
AB25, s. 2 15Section 2. 71.07 (6) (as) of the statutes is created to read:
AB25,3,216 71.07 (6) (as) For taxable years beginning after December 31, 2001, the dollar
17amounts under par. (am) 2. d., shall be increased each year by a percentage equal to
18the percentage change between the U.S. consumer price index for all urban
19consumers, U.S. city average, for the month of August of the previous year and the
20U.S. consumer price index for all urban consumers, U.S. city average, for the month
21of August 2000, as determined by the federal department of labor. Each amount that
22is revised under this paragraph shall be rounded to the nearest multiple of $10 if the
23revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5
24and not a multiple of $10, such an amount shall be increased to the next higher
25multiple of $10. The department of revenue shall annually adjust the changes in

1dollar amounts required under this paragraph and incorporate the changes into the
2income tax forms and instructions.
AB25, s. 3 3Section 3. 71.07 (9) (bm) of the statutes is created to read:
AB25,3,154 71.07 (9) (bm) For taxable years beginning after December 31, 2000, the dollar
5amounts under par. (b) 5. shall be increased each year by a percentage equal to the
6percentage change between the U.S. consumer price index for all urban consumers,
7U.S. city average, for the month of August of the previous year and the U.S. consumer
8price index for all urban consumers, U.S. city average, for the month of August 1999,
9as determined by the federal department of labor. Each amount that is revised under
10this paragraph shall be rounded to the nearest multiple of $10 if the revised amount
11is not a multiple of $10 or, if the revised amount is a multiple of $5 and not a multiple
12of $10, such an amount shall be increased to the next higher multiple of $10. The
13department of revenue shall annually adjust the changes in dollar amounts required
14under this paragraph and incorporate the changes into the income tax forms and
15instructions.
AB25,3,1616 (End)
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