LRB-3748/1
MES/JK/RAC:kjf:jf
2005 - 2006 LEGISLATURE
September 28, 2005 - Introduced by Senators S. Fitzgerald, Kanavas and Leibham,
cosponsored by Representatives
Loeffelholz, Gard and
J. Fitzgerald.
Referred to Committee on Veterans, Homeland Security, Military Affairs,
Small Business and Government Reform.
SB347,1,3
1An Act to amend 71.07 (6e) (a) 1. and 71.07 (6e) (a) 5.; and
to create 71.07 (6e)
2(a) 1m. and 71.07 (6e) (c) 3. of the statutes;
relating to: expanding eligibility
3for the veterans and surviving spouses property tax credit.
Analysis by the Legislative Reference Bureau
Under current law as created in the budget bill,
2005 Wisconsin Act 25, there
exists a refundable individual income tax credit that may be claimed by certain U.S.
armed forces veterans and by the unremarried surviving spouses of certain veterans
or members of the national guard or reserves. The amount of the credit that may be
claimed is the amount of property taxes paid by a claimant on the claimant's
principal dwelling in the year to which the claim relates. Because the credit is
refundable, if the amount of the credit for which the claimant is eligible exceeds the
claimant's tax liability, the excess amount of the credit is paid to the claimant by
check.
Under this bill, the eligibility for the credit is expanded to ensure that if a
principal dwelling is owned jointly by spouses or as marital property, where only one
of the spouses is an eligible veteran, the credit may be claimed for the full amount
of taxes paid on the principal dwelling. Also under the bill, if an eligible veteran and
his or her spouse file separate tax returns, each spouse may claim a percentage of the
credit based on his or her ownership interest in the eligible veteran's principal
dwelling.
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:
SB347,2,43
71.07
(6e) (a) 1. "Claimant" means an eligible unremarried surviving spouse
4or, an eligible veteran
, or an eligible spouse who files a claim under this subsection.
SB347, s. 2
5Section
2. 71.07 (6e) (a) 1m. of the statutes is created to read:
SB347,2,76
71.07
(6e) (a) 1m. "Eligible spouse" means the spouse of an eligible veteran who
7files a separate return.
SB347,3,510
71.07
(6e) (a) 5. "Property taxes" means real and personal property taxes,
11exclusive of special assessments, delinquent interest, and charges for service, paid
12by a claimant,
and the claimant's spouse if filing a joint return, on the
claimant's 13eligible veteran's or unremarried surviving spouse's principal dwelling in this state
14during the taxable year for which credit under this subsection is claimed, less any
15property taxes paid which are properly includable as a trade or business expense
16under section
162 of the Internal Revenue Code. If the principal dwelling on which
17the taxes were paid is owned by 2 or more persons or entities as joint tenants or
18tenants in common or is owned by spouses as marital property, "property taxes" is
19that part of property taxes paid that reflects the ownership percentage of the
20claimant
, except that this limitation does not apply to spouses who file a joint return.
21If the principal dwelling is sold during the taxable year, the "property taxes" for the
1seller and buyer shall be the amount of the tax prorated to each in the closing
2agreement pertaining to the sale or, if not so provided for in the closing agreement,
3the tax shall be prorated between the seller and buyer in proportion to months of
4their respective ownership. "Property taxes" includes monthly parking permit fees
5in respect to a principal dwelling collected under s. 66.0435 (3) (c).
SB347, s. 4
6Section
4. 71.07 (6e) (c) 3. of the statutes is created to read:
SB347,3,97
71.07
(6e) (c) 3. If an eligible veteran and an eligible spouse file separate
8returns, each spouse may claim a credit under this subsection based on their
9respective ownership interest in the eligible veteran's principal dwelling.
SB347,3,12
11(1) Exemption from certain legislative rules of proceedings. Section 20.003
12(4) of the statutes does not apply to the actions of the legislature in enacting this act.
SB347,3,1414
(1) This act first applies to taxable years beginning on January 1, 2005.
