LRB-3984/1
MES:kmg:jf
2001 - 2002 LEGISLATURE
November 6, 2001 - Introduced by Senators Harsdorf, Schultz, Huelsman,
Roessler, Darling
and Lazich, cosponsored by Representatives Stone,
Ziegelbauer, J. Fitzgerald, Kestell, Meyerhofer, Black, Musser, Sykora,
Carpenter, Ainsworth, Ryba, Ladwig, Gundrum, Pettis, Duff, Seratti,
Gunderson, Grothman, Krawczyk, D. Meyer, Staskunas, Gard, Loeffelholz,
Lippert, Plale, Ott, Nass, Jeskewitz, Vrakas, Petrowski, McCormick, Kedzie,
Hahn, Leibham, Townsend
and Huber. Referred to Committee on
Universities, Housing, and Government Operations.
SB308,1,6 1An Act to renumber and amend 71.07 (9) (b) 1.; to amend 71.07 (9) (a) 3., 71.07
2(9) (b) 2. and 71.07 (9) (b) 5.; and to create 71.07 (9) (am) and 71.07 (9) (b) 1.
3a. and b. of the statutes; relating to: authorizing claims under the school
4property tax rent credit for property taxes paid in the year before the year in
5which they are due and authorizing such claims, for property taxes paid, for the
6year to which the taxes relate.
Analysis by the Legislative Reference Bureau
Under current law, the school property tax rent credit may be claimed by an
individual for property taxes paid on the claimant's principal dwelling, or rent
constituting property taxes paid on the claimant's principal dwelling, during the
taxable year for which the credit is claimed. For taxable years beginning after
December 31, 1999, the credit, which may be claimed up to the amount of the
claimant's tax liability, is 12% of the first $2,500 of property taxes, or rent
constituting property taxes, paid or 12% of the first $1,250 of property taxes, or rent
constituting property taxes, paid by a married person filing separately. Generally,
no credit may be claimed for taxable year 1999.
For taxable years beginning before January 1, 1998, the credit, which may be
claimed up to the amount of the claimant's tax liability, is 10% of the first $2,000 of
property taxes, or rent constituting property taxes, paid or 10% of the first $1,000 of
property taxes, or rent constituting property taxes, paid by a married person filing

separately. For taxable year 1998, however, the credit, which may be claimed up to
the amount of the claimant's tax liability, is 14% of the first $2,500 of property taxes,
or rent constituting property taxes, paid or 14% of the first $1,250 of property taxes,
or rent constituting property taxes, paid by a married person filing separately.
Under this bill, either the credit may also be claimed in one year for property
taxes paid for two taxable years in one year or the credit may be claimed for the year
to which the property taxes relate if the claimant pays property taxes for two taxable
years in one year.
For further information see the state and local 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:
SB308, s. 1 1Section 1. 71.07 (9) (a) 3. of the statutes is amended to read:
SB308,2,162 71.07 (9) (a) 3. "Property taxes" means, except as provided in par. (am), real and
3personal property taxes, exclusive of special assessments, delinquent interest and
4charges for service, paid by a claimant on the claimant's principal dwelling during
5the taxable year for which credit under this subsection is claimed, less any property
6taxes paid which are properly includable as a trade or business expense under
7section 162 of the internal revenue code. If the principal dwelling on which the taxes
8were paid is owned by 2 or more persons or entities as joint tenants or tenants in
9common or is owned by spouses as marital property, "property taxes" is that part of
10property taxes paid that reflects the ownership percentage of the claimant. If the
11principal dwelling is sold during the taxable year the "property taxes" for the seller
12and buyer shall be the amount of the tax prorated to each in the closing agreement
13pertaining to the sale or, if not so provided for in the closing agreement, the tax shall
14be prorated between the seller and buyer in proportion to months of their respective
15ownership. "Property taxes" includes monthly parking permit fees in respect to a
16principal dwelling collected under s. 66.0435 (3) (c).
SB308, s. 2 17Section 2. 71.07 (9) (am) of the statutes is created to read:
SB308,3,8
171.07 (9) (am) Notwithstanding the definition of "property taxes" in par. (a) 1.,
2under which property taxes are defined to mean, generally, real and personal
3property taxes paid by a claimant on the claimant's principal dwelling during the
4taxable year for which credit under this subsection is claimed, if a claimant's
5property taxes are for 2 years and are paid in one year the claimant may claim the
6credit under this subsection for the year to which the property taxes relate if the
7claimant does not claim in one year the credit paid for both years as allowed under
8par. (b) 1. a. or b. or under par. (b) 5.
SB308, s. 3 9Section 3. 71.07 (9) (b) 1. of the statutes is renumbered 71.07 (9) (b) 1. (intro.)
10and amended to read:
SB308,3,1611 71.07 (9) (b) 1. (intro.) Subject to the limitations under this subsection and
12except as provided in subds. 2., 4. and 5., a claimant may claim as a credit against,
13but not to exceed the amount of, taxes under s. 71.02, 10% of the first $2,000 of
14property taxes or rent constituting property taxes, or 10% of the first $1,000 of
15property taxes or rent constituting property taxes of a married person filing
16separately., except as follows:
SB308, s. 4 17Section 4. 71.07 (9) (b) 1. a. and b. of the statutes are created to read:
SB308,3,2218 71.07 (9) (b) 1. a. If a claimant's property taxes are for 2 years, do not include
19a taxable year that begins after December 31, 1997, and before January 1, 1999, and
20are paid in one year, 10% of the first $2,000 of property taxes for each taxable year
21or 10% of the first $1,000 of property taxes for each year of a married person filing
22separately.
SB308,4,523 b. If a claimant's property taxes are for 2 years, include a taxable year that
24begins after December 31, 1997, and before January 1, 1999, and are paid in one year,
2514% of the first $2,500 of property taxes for the taxable year that begins after

1December 31, 1997, and before January 1, 1999, and 10% of the first $2,000 of
2property taxes for the other taxable year or 14% of the first $1,250 of property taxes
3for the taxable year that begins after December 31, 1997, and before January 1, 1999,
4and 10% of the first $1,000 of property taxes for the other taxable year of a married
5person filing separately.
SB308, s. 5 6Section 5. 71.07 (9) (b) 2. of the statutes is amended to read:
SB308,4,127 71.07 (9) (b) 2. Subject to the limitations under this subsection, a claimant may
8claim as a credit against, but not to exceed the amount of, taxes under s. 71.02, the
9amounts specified in the proposal under 1997 Wisconsin Act 237, section 9256 (2c),
10except that, if a claimant's property taxes are for 2 taxable years, including the
11taxable year to which this subdivision applies, and are paid in one year, the claimant
12may claim the amount calculated under subd. 1. b
.
SB308, s. 6 13Section 6. 71.07 (9) (b) 5. of the statutes is amended to read:
SB308,4,2114 71.07 (9) (b) 5. For taxable years beginning after December 31, 1999, subject
15to the limitations under this subsection a claimant may claim as a credit against, but
16not to exceed the amount of, taxes under s. 71.02, 12% of the first $2,500 of property
17taxes or rent constituting property taxes, or 12% of the first $1,250 of property taxes
18or rent constituting property taxes of a married person filing separately, except that,
19if a claimant's property taxes are for 2 years and are paid in one year, the claimant
20may claim 12% of the first $2,500 of property taxes for each taxable year or 12% of
21the first $1,250 of property taxes for each year of a married person filing separately
.
SB308, s. 7 22Section 7. Initial applicability.
SB308,5,223 (1) This act first applies to taxable years beginning on January 1 of the year
24in which this subsection takes effect, except that if this subsection takes effect after

1July 31 this act first applies to taxable years beginning on January 1 of the year
2following the year in which this subsection takes effect.
SB308,5,33 (End)
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