LRB-2614/2
MES:jld:rs
2007 - 2008 LEGISLATURE
July 19, 2007 - Introduced by Representatives Nelson, Fields, Soletski, A. Ott,
Sheridan, Parisi, Berceau, Hilgenberg, Grigsby, Hintz
and Boyle. Referred
to Committee on Ways and Means.
AB458,1,2 1An Act to amend 71.52 (6) of the statutes; relating to: modifying the definition
2of income under the homestead tax credit.
Analysis by the Legislative Reference Bureau
Under current law, the definition of "income" under the homestead tax credit
is the sum of Wisconsin adjusted gross income (AGI) and a number of items that are
not otherwise includable in Wisconsin AGI, such as certain public assistance
payments, nontaxable interest received on state and municipal bonds, and certain
retirement benefits.
Under this bill, the definition of "income" under the homestead tax credit is
modified such that any amount of a special assessment imposed by a municipality,
which is any city, village, or town, and paid by a claimant, may be subtracted from
income in determining the claimant's homestead tax credit.
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:
AB458, s. 1 3Section 1. 71.52 (6) of the statutes is amended to read:
AB458,3,184 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the
5following amounts, to the extent not included in Wisconsin adjusted gross income:

1maintenance payments (except foster care maintenance and supplementary
2payments excludable under section 131 of the internal revenue code Internal
3Revenue Code
), support money, cash public assistance (not including credit granted
4under this subchapter and amounts under s. 46.27), cash benefits paid by counties
5under s. 59.53 (21), the gross amount of any pension or annuity (including railroad
6retirement benefits, all payments received under the federal social security act and
7veterans disability pensions), nontaxable interest received from the federal
8government or any of its instrumentalities, nontaxable interest received on state or
9municipal bonds, worker's compensation, unemployment insurance, the gross
10amount of "loss of time" insurance, compensation and other cash benefits received
11from the United States for past or present service in the armed forces, scholarship
12and fellowship gifts or income, capital gains, gain on the sale of a personal residence
13excluded under section 121 of the internal revenue code Internal Revenue Code,
14dividends, income of a nonresident or part-year resident who is married to a
15full-year resident, housing allowances provided to members of the clergy, the
16amount by which a resident manager's rent is reduced, nontaxable income of an
17American Indian, nontaxable income from sources outside this state and nontaxable
18deferred compensation. Intangible drilling costs, depletion allowances and
19depreciation, including first-year depreciation allowances under section 179 of the
20internal revenue code Internal Revenue Code, amortization, contributions to
21individual retirement accounts under section 219 of the internal revenue code
22Internal Revenue Code, contributions to Keogh plans, net operating loss
23carry-forwards and capital loss carry-forwards deducted in determining Wisconsin
24adjusted gross income shall be added to "income". "Income" does not include gifts
25from natural persons, cash reimbursement payments made under title XX of the

1federal social security act, surplus food or other relief in kind supplied by a
2governmental agency, the gain on the sale of a personal residence deferred under
3section 1034 of the internal revenue code Internal Revenue Code or nonrecognized
4gain from involuntary conversions under section 1033 of the internal revenue code
5Internal Revenue Code. Amounts not included in adjusted gross income but added
6to "income" under this subsection in a previous year and repaid may be subtracted
7from income for the year during which they are repaid. Scholarship and fellowship
8gifts or income that are included in Wisconsin adjusted gross income and that were
9added to household income for purposes of determining the credit under this
10subchapter in a previous year may be subtracted from income for the current year
11in determining the credit under this subchapter. Any amount of a special assessment
12that is imposed by a municipality under s. 66.0701 or 66.0703, not including interest
13or penalties, and paid by a claimant in the year to which his or her claim under this
14subchapter relates, may be subtracted from income in determining the credit under
15this subchapter, except that notwithstanding s. 71.58 (7) (a) this provision does not
16apply to the definition of "income" under s. 71.58 (7).
A marital property agreement
17or unilateral statement under ch. 766 has no effect in computing "income" for a
18person whose homestead is not the same as the homestead of that person's spouse.
AB458, s. 2 19Section 2. Initial applicability.
AB458,3,2320 (1) This act first applies to claims filed for taxable years beginning on January
211 of the year in which this subsection takes effect, except that if this subsection takes
22effect after July 31 this act first applies to claims filed for taxable years beginning
23on January 1 of the year following the year in which this subsection takes effect.
AB458,3,2424 (End)
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