LRB-2169/1
MES:jld:km
2001 - 2002 LEGISLATURE
May 3, 2001 - Introduced by Representatives Wasserman, Gundrum, Berceau,
Gronemus, La Fave, Lassa, Musser, Ryba, Shilling, Sykora
and
Morris-Tatum. Referred to Joint survey committee on Tax Exemptions.
AB369,1,3 1An Act to create 71.05 (6) (b) 34. of the statutes; relating to: creating an
2individual income tax subtract modification for certain amounts of federal
3adjusted gross income.
Analysis by the Legislative Reference Bureau
This bill creates a subtract modification that exempts from taxation the first
$25,000 of an individual's federal adjusted gross income (FAGI), if the individual is
single or is a married person who files a separate income tax return. The exemption
is the first $50,000 of FAGI for a married couple that files a joint return. The amount
of the exemption is reduced for nonresidents or part-year residents of this state. For
nonresidents and part-year residents, the exempt amount is obtained by
multiplying the applicable amount of the exemption by a fraction that is calculated
by dividing the amount of the individual's or married couple's income that is taxable
by this state by the individual's or married couple's total income.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
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:
AB369, s. 1
1Section 1. 71.05 (6) (b) 34. of the statutes is created to read:
AB369,2,42 71.05 (6) (b) 34. a. Subject to subd. 34. c., for a single individual or for a married
3individual who files a separate return, the first $25,000 of the individual's federal
4adjusted gross income.
AB369,2,65 b. Subject to subd. 34. c., for a married couple that files a joint return, the first
6$50,000 of the married couple's federal adjusted gross income.
AB369,2,197 c. For an individual, or married couple, to whom subd. 34. a. or b. applies and
8who is a nonresident or part-year resident of this state, multiply the applicable
9amount under subd. 34. a. or b. by a fraction the numerator of which is the
10individual's or married couple's wages, salary, tips, unearned income, and net
11earnings from a trade or business that are taxable by this state and the denominator
12of which is the individual's total wages, salary, tips, unearned income, and net
13earnings from a trade or business. In this subd. 34. c., for married persons filing
14separately "wages, salary, tips, unearned income, and net earnings from a trade or
15business" means the separate wages, salary, tips, unearned income, and net earnings
16from a trade or business of each spouse, and for married persons filing jointly "wages,
17salary, tips, unearned income, and net earnings from a trade or business" means the
18total wages, salary, tips, unearned income, and net earnings from a trade or business
19of both spouses.
AB369, s. 2 20Section 2. Initial applicability.
AB369,2,2421 (1) This act first applies to taxable years beginning on January 1 of the year
22in which this subsection takes effect, except that if this subsection takes effect after
23July 31 this act first applies to taxable years beginning on January 1 of the year
24following the year in which this subsection takes effect.
AB369,2,2525 (End)
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