AB237: Bill Text

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB237, s. 1 Section 1. 13.39 of the statutes is created to read:

AB237,3,2 13.39 Expenditure of moneys from the budget stabilization fund. (1) Except as provided in sub. (2), at least two-thirds of the members of each house of the legislature must approve any bill authorizing the expenditure of moneys from the budget stabilization fund.

AB237,3,7 (2) The legislature may not approve any bill authorizing the expenditure of moneys from the budget stabilization fund if the expenditure of moneys would cause the balance of the budget stabilization fund to fall below 3% of the estimated expenditures from the general fund during the fiscal year, as reported in the summary, as defined in s. 16.518 (1).

AB237, s. 2 Section 2. 16.518 (title) of the statutes is amended to read:

AB237,3,10 16.518 (title) Transfers to the budget stabilization fund and the cash building projects fund.

AB237, s. 3 Section 3. 16.518 (3) (a) of the statutes is amended to read:

AB237,3,17 16.518 (3) (a) Subject to par. (b), if the amount of moneys projected to be deposited in the general fund during the fiscal year that are designated as "Taxes" in the summary is less than the amount of such moneys actually deposited in the general fund during the fiscal year, the secretary shall annually transfer from the general fund to the budget stabilization fund 50% 100% of the amount calculated under sub. (2).

AB237, s. 4 Section 4. 16.518 (3) (b) 1. of the statutes is amended to read:

AB237,3,22 16.518 (3) (b) 1. If the balance of the budget stabilization fund on June 30 of the fiscal year is at least equal to 5% 11% of the estimated expenditures from the general fund during the fiscal year, as reported in the summary, the secretary may not make the transfer under par. (a).

AB237, s. 5 Section 5. 20.875 (2) (r) of the statutes is created to read:

AB237,4,3 20.875 (2) (r) Budget stabilization fund transfer for tax relief. A sum sufficient equal to the amount certified to the secretary of administration under s. 71.07 (7m) (d), to fund the tax credit under s. 71.07 (7m).

AB237, s. 6 Section 6. 25.60 of the statutes is amended to read:

AB237,4,13 25.60 Budget stabilization fund. There is created a separate nonlapsible trust fund designated as the budget stabilization fund, consisting of moneys transferred to the fund from the general fund under s. 16.518 (3). Moneys in the budget stabilization fund may be used only for the purpose of providing state revenue stability during periods of below-normal economic activity when actual state revenues are lower than estimated revenues as provided in the summary, as defined in s. 16.518 (1), for the purpose of paying principal and interest on public debt contracted under subchs. I and IV of ch. 18, and for the purpose of the tax credit under s. 71.07 (7m).

AB237, s. 7 Section 7. 71.07 (7m) of the statutes is created to read:

AB237,4,16 71.07 (7m) Budget stabilization fund tax credit. (a) Definitions. In this subsection:

AB237,4,18 1. "Claimant" means an individual taxpayer who is eligible for, and claims, the credit under sub. (9).

AB237,4,21 2. "Credit percentage" means an amount calculated by the department by dividing the amount certified under par. (c) 1. by the sum of all projected claims under the credit under sub. (9) in the year to which the claim relates.

AB237,4,25 (b) Filing claims. Subject to the limitations and conditions 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, an amount determined by the department under par. (c).

AB237,5,5 (c) Determination of credit amount. 1. Not later than September 1 each year, the secretary of administration shall certify to the secretary of revenue the amount that is in the budget stabilization fund under s. 25.60 that exceeds 8% of the estimated expenditures from the general fund during the fiscal year, as reported in the summary, as defined in s. 16.518 (1).

AB237,5,7 2. If the amount of the certification is $100,000,000 or less, the amount that may be claimed in that taxable year is zero.

AB237,5,15 3. If the amount of the certification exceeds $100,000,000, the department shall determine the credit percentage for that taxable year. The credit amount shall be determined by multiplying the amount that a claimant claimed under the credit under sub. (9) by the credit percentage, but shall be modified so that the certified amount in the budget stabilization fund greater than 8% of the estimated expenditures from the general fund during the fiscal year, as reported in the summary, as defined in s. 16.518 (1), is expended as fully as possible and that the credit amount for each claimant is rounded down to the nearest whole dollar amount.

AB237,5,20 (d) Certification of amounts claimed. No later than August 15 of the year following the year in which the department determines a credit amount under par. (c) 3., the department shall determine the amount of revenue lost because of credits claimed in the taxable year to which that credit amount relates. The amount of revenue lost shall be certified to the secretary of administration.

AB237,5,22 (e) Limitations and conditions. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB237,5,24 2. Part-year residents and nonresidents of this state are not eligible for the credit under this subsection.

AB237,6,2 (f) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection.

AB237, s. 8 Section 8. 71.10 (4) (dt) of the statutes is created to read:

AB237,6,4 71.10 (4) (dt) Budget stabilization fund tax credit under s. 71.07 (7m).

AB237, s. 9 Section 9. Initial applicability.

AB237,6,11 (1) Budget stabilization fund tax credit. The treatment of sections 71.07 (7m) and 71.10 (4) (dt) of the statutes first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31 the treatment of sections 71.07 (7m) and 71.10 (4) (dt) of the statutes first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.

AB237,6,12 (End)