AB838: Bill Text

LRB-4133/1

MES:bjk:md

2009 - 2010 LEGISLATURE

2009 Assembly BILL 838

March 11, 2010 - Introduced by Representatives Davis, Kerkman, Nerison, Bies, Brooks, Gunderson, Knodl, Lothian, Spanbauer, Townsend and Vos, cosponsored by Senators Schultz and Olsen. Referred to Joint Committee on Finance.

AB838,1,4 An Act to amend 71.08 (1) (intro.) and 71.10 (4) (i); and to create 20.835 (2) (cb) and 71.07 (5p) of the statutes; relating to: creating a refundable individual income tax credit for property taxes paid on a principal dwelling that is destroyed by a natural or man-made disaster and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill creates a refundable individual income tax credit that is equal to the amount of property taxes that an individual paid in the taxable year to which the claim relates on the claimant's principal dwelling that was destroyed by fire, flood, or other natural or man-made disaster.

No individual may claim the tax credit if the individual's principal dwelling is destroyed by the claimant's negligent or intentional act. In addition, no claim may be made for an amount that is, or will be, reimbursed under an insurance policy.

Because the credit is refundable, if the amount of the credit exceeds the individual's tax liability, the state will issue a check to the individual for the excess amount.

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:

AB838, s. 1 Section 1. 20.835 (2) (cb) of the statutes is created to read:

AB838,2,3 20.835 (2) (cb) Destroyed principal dwelling tax credit. A sum sufficient to pay the claims approved under s. 71.07 (5p).

AB838, s. 2 Section 2. 71.07 (5p) of the statutes is created to read:

AB838,2,6 71.07 (5p) Destroyed principal dwelling tax credit. (a) Definitions. In this subsection:

AB838,2,7 1. "Claimant" means an individual who files a claim under this subsection.

AB838,2,9 2. "Destroyed" means a condition so damaged as to make a principal dwelling uninhabitable.

AB838,2,14 3. "Principal dwelling" means any dwelling that is owned and the land surrounding it that is reasonably necessary for use of the dwelling as a primary dwelling of the claimant and may include a part of a multidwelling or multipurpose building and a part of the land upon which it is built that is used as the claimant's primary dwelling.

AB838,2,15 4. "Property taxes" has the meaning given in s. 71.07 (9) (a) 3.

AB838,2,25 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 the amount of property taxes the claimant paid in the taxable year to which the claim relates on the claimant's principal dwelling that was destroyed by fire, flood, or other natural or man-made disaster in the year to which the claim relates. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (cb).

AB838,3,3 (c) Limitations. 1. No claim may be allowed under this subsection if the principal dwelling to which the claim relates was destroyed by the claimant's negligent or intentional act.

AB838,3,6 2. No credit may be claimed under this subsection for any amounts for which the claimant received, or will receive, payment or reimbursement under an insurance policy.

AB838,3,8 3. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

AB838,3,10 (d) Administration. Subsection (5m) (d), as it applies to the credit under that subsection, applies to the credit under this subsection.

AB838, s. 3 Section 3. 71.08 (1) (intro.) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB838,3,22 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust, or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2dy), (3m), (3n), (3p), (3q), (3r), (3s), (3t), (3w), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (5p), (6), (6e), (8r), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n), (3t), and (3w), 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1dy), (2m), (3), (3n), (3t), and (3w), 71.57 to 71.61, and 71.613 and subch. VIII and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

AB838, s. 4 Section 4. 71.10 (4) (i) of the statutes, as affected by 2009 Wisconsin Act 28, is amended to read:

AB838,4,12 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m),, dairy manufacturing facility investment credit under s. 71.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment credit under s. 71.07 (3r), film production services credit under s. 71.07 (5f), film production company investment credit under s. 71.07 (5h), destroyed principal dwelling tax credit under s. 71.07 (5p), veterans and surviving spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 71.07 (3w), beginning farmer and farm asset owner tax credit under s. 71.07 (8r), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

AB838, s. 5 Section 5. Initial applicability.

AB838,4,17 (1) This act 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 this act first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.

AB838,4,18 (End)