LRB-1742/1
MES:kjf
2019 - 2020 LEGISLATURE
February 4, 2019 - Introduced by Senators Marklein, Stroebel, Kooyenga,
Kapenga, Craig, Darling, Feyen, Fitzgerald, Jacque, LeMahieu, Testin,
Tiffany, Wanggaard, Bernier and Roth, cosponsored by Representatives
Vos, Steineke, Nygren, Macco, Katsma, Allen, August, Ballweg, Born,
Brandtjen, Brooks, Dittrich, Duchow, Edming, Felzkowski, Gundrum,
Horlacher, Hutton, Jagler, James, Kerkman, Knodl, Krug, Kuglitsch,
Kulp, Kurtz, Loudenbeck, Magnafici, Murphy, Mursau, Novak, Oldenburg,
Ott, Petersen, Petryk, Plumer, Pronschinske, Quinn, Ramthun, Rodriguez,
Rohrkaste, Sanfelippo, Schraa, Skowronski, Snyder, Sortwell, Spiros,
Stafsholt, Steffen, Summerfield, Swearingen, Tauchen, Thiesfeldt, Tittl,
Tranel, Tusler, VanderMeer, Vorpagel, Wichgers, Wittke and Zimmerman.
Referred to Committee on Agriculture, Revenue and Financial Institutions.
SB18,1,4 1An Act to amend 71.05 (22) (dp) 1., 71.05 (22) (dp) 2. and 71.05 (22) (dt); and to
2create
71.05 (22) (dq) and 71.64 (9) (b) 3. of the statutes; relating to: increasing
3the maximum deduction under the individual income tax sliding scale standard
4deduction.
Analysis by the Legislative Reference Bureau
This bill increases the maximum individual income tax sliding scale standard
deduction (SSSD) by 20.6 percent for each type of income tax filer, and modifies each
of the phaseout percentages so they are closer together. These changes first apply
to taxable year 2020. The indexing provisions that apply to the current SSSD
continue to apply to the new standard deduction amounts.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
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:
SB18,1 5Section 1. 71.05 (22) (dp) 1. of the statutes is amended to read:
SB18,3,5
171.05 (22) (dp) 1. Except as provided in par. (f), and subject to subd. 2., for
2taxable years beginning after December 31, 1999, and before January 1, 2020, the
3Wisconsin standard deduction is whichever of the following amounts is appropriate.
4For a single individual who has a Wisconsin adjusted gross income of less than
5$10,380, the standard deduction is $7,200. For a single individual who has a
6Wisconsin adjusted gross income of at least $10,380, the standard deduction is the
7amount obtained by subtracting from $7,200 12 percent of Wisconsin adjusted gross
8income in excess of $10,380 but not less than $0. For a head of household who has
9a Wisconsin adjusted gross income of less than $10,380, the standard deduction is
10$9,300. For a head of household who has a Wisconsin adjusted gross income of at
11least $10,380, the standard deduction is the amount obtained by subtracting from
12$9,300 22.515 percent of Wisconsin adjusted gross income in excess of $10,380, but
13not less than $0, until the adjusted gross income amount at which the standard
14deduction is equal to the standard deduction for a single individual at the same
15adjusted gross income amount. For a head of household who has a Wisconsin
16adjusted gross income of more than this amount, the standard deduction shall be
17calculated as if the head of household were a single individual. For a married couple
18filing jointly that has an aggregate Wisconsin adjusted gross income of less than
19$14,570, the standard deduction is $12,970. For a married couple filing jointly that
20has an aggregate Wisconsin adjusted gross income of at least $14,570, the standard
21deduction is the amount obtained by subtracting from $12,970 19.778 percent of
22aggregate Wisconsin adjusted gross income in excess of $14,570 but not less than $0.
23For a married individual filing separately who has a Wisconsin adjusted gross
24income of less than $6,920, the standard deduction is $6,160. For a married
25individual filing separately who has a Wisconsin adjusted gross income of at least

1$6,920, the standard deduction is the amount obtained by subtracting from $6,160
219.778 percent of Wisconsin adjusted gross income in excess of $6,920 but not less
3than $0. The secretary of revenue shall prepare a table under which deductions
4under this subdivision shall be determined. That table shall be published in the
5department's instructional booklets.
SB18,2 6Section 2. 71.05 (22) (dp) 2. of the statutes is amended to read:
SB18,3,227 71.05 (22) (dp) 2. Except as provided in par. (f), for taxable years beginning
8after December 31, 2015, and before January 1, 2020, the Wisconsin standard
9deduction is whichever of the following amounts is appropriate. For a married couple
10filing jointly that has an aggregate Wisconsin adjusted gross income of less than
11$21,360, the standard deduction is $19,010. For a married couple filing jointly that
12has an aggregate Wisconsin adjusted gross income of at least $21,360, the standard
13deduction is the amount obtained by subtracting from $19,010 19.778 percent of
14aggregate Wisconsin adjusted gross income in excess of $21,360 but not less than $0.
15For a married individual filing separately who has a Wisconsin adjusted gross
16income of less than $10,140, the standard deduction is $9,030. For a married
17individual filing separately who has a Wisconsin adjusted gross income of at least
18$10,140, the standard deduction is the amount obtained by subtracting from $9,030
1919.778 percent of Wisconsin adjusted gross income in excess of $10,140 but not less
20than $0. The secretary of revenue shall prepare a table under which deductions
21under this subdivision shall be determined. That table shall be published in the
22department's instructional booklets.
SB18,3 23Section 3. 71.05 (22) (dq) of the statutes is created to read:
SB18,5,324 71.05 (22) (dq) Deduction limits, 2020 and thereafter. Except as provided in par.
25(f), for taxable years beginning after December 31, 2019, the Wisconsin standard

1deduction is whichever of the following amounts is appropriate. For a single
2individual who has a Wisconsin adjusted gross income of less than $18,790, the
3standard deduction is $13,360. For a single individual who has a Wisconsin adjusted
4gross income of at least $18,790, the standard deduction is the amount obtained by
5subtracting from $13,360 12.300 percent of Wisconsin adjusted gross income in
6excess of $18,790 but not less than $0. For a head of household who has a Wisconsin
7adjusted gross income of less than $18,790, the standard deduction is $17,260. For
8a head of household who has a Wisconsin adjusted gross income of at least $18,790,
9the standard deduction is the amount obtained by subtracting from $17,260 21.952
10percent of Wisconsin adjusted gross income in excess of $18,790, but not less than $0,
11until the adjusted gross income amount at which the standard deduction is equal to
12the standard deduction for a single individual at the same adjusted gross income
13amount. For a head of household who has a Wisconsin adjusted gross income of more
14than this amount, the standard deduction shall be calculated as if the head of
15household were a single individual. For a married couple filing jointly that has an
16aggregate Wisconsin adjusted gross income of less than $27,120, the standard
17deduction is $24,740. For a married couple filing jointly that has an aggregate
18Wisconsin adjusted gross income of at least $27,120, the standard deduction is the
19amount obtained by subtracting from $24,740 19.284 percent of aggregate Wisconsin
20adjusted gross income in excess of $27,120 but not less than $0. For a married
21individual filing separately who has a Wisconsin adjusted gross income of less than
22$12,880, the standard deduction is $11,750. For a married individual filing
23separately who has a Wisconsin adjusted gross income of at least $12,880, the
24standard deduction is the amount obtained by subtracting from $11,750 19.284
25percent of Wisconsin adjusted gross income in excess of $12,880 but not less than $0.

1The secretary of revenue shall prepare a table under which deductions under this
2paragraph shall be determined. That table shall be published in the department's
3instructional booklets.
SB18,4 4Section 4. 71.05 (22) (dt) of the statutes is amended to read:
SB18,5,255 71.05 (22) (dt) Standard deduction indexing, 2001 and thereafter. For taxable
6years beginning after December 31, 2000, the dollar amounts of the standard
7deduction that is allowable under par. pars. (dp) and (dq) and all of the dollar
8amounts of Wisconsin adjusted gross income under par. pars. (dp) and (dq) shall be
9increased each year by a percentage equal to the percentage change between the U.S.
10consumer price index for all urban consumers, U.S. city average, for the month of
11August of the previous year and the U.S. consumer price index for all urban
12consumers, U.S. city average, for the month of August 1999, as determined by the
13federal department of labor, except that for taxable years beginning after December
1431, 2011, the adjustment may occur only if the resulting amount is greater than the
15corresponding amount that was calculated for the previous year, and except that the
16base year for the adjustments to the dollar amounts of the standard deduction and
17all of the dollar amounts of Wisconsin adjusted gross income under par. (dp) 2. shall
18be 2015, and except that the base year for the adjustments to the dollar amounts of
19the standard deduction and all of the dollar amounts of Wisconsin adjusted gross
20income under par. (dq) shall be 2019
. Each amount that is revised under this
21paragraph shall be rounded to the nearest multiple of $10 if the revised amount is
22not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount
23shall be increased to the next higher multiple of $10. The department of revenue
24shall annually adjust the changes in dollar amounts required under this paragraph
25and incorporate the changes into the income tax forms and instructions.
SB18,5
1Section 5. 71.64 (9) (b) 3. of the statutes is created to read:
SB18,6,42 71.64 (9) (b) 3. Not later than January 1, 2020, the department shall adjust the
3withholding tables to reflect the changes in the standard deduction limits under s.
471.05 (22) (dq).
SB18,6,55 (End)
Loading...
Loading...