This bill creates a new method of calculating the credit. Under the bill, for taxable years beginning on or after January 1, 1995, and within certain guidelines, the department of revenue (DOR) determines the amount of a credit that may be claimed, based on a percentage of the federal EITC for which the claimant is eligible. The total amount that may be paid for all eligible claims is $60,300,000 in 1996 and $65,800,000 in 1997.
*** Analysis from -2635/2 ***
Under current law, the top marginal rate of income taxation for single individuals, certain fiduciaries and heads of households is 6.93% of all taxable income exceeding $15,000. For married persons filing jointly, the top rate is 6.93% of all taxable income exceeding $20,000 and for married persons filing separately, the top rate is 6.93% of all taxable income exceeding $10,000.
For taxable years beginning on or after January 1, 1996, this bill changes the top marginal rate for all individuals, certain fiduciaries, heads of households and married persons to 6.87%, but the tax brackets remain unchanged.
*** Analysis from -2593/1 ***
Under current law, a school property tax credit may be claimed by certain individuals and is calculated as an amount of up to 10% of the first $2,000 of property taxes paid, or rent constituting property taxes that is paid. The credit is nonrefundable, meaning that the amount of the credit that may be claimed may equal, but may not exceed, the amount of income taxes for which the claimant would otherwise be liable.
Under this bill the credit that may be claimed, generally, is calculated as an amount of up to a percentage equal to the current top marginal individual income tax rate for individual filers multiplied by the first $2,000 of property taxes paid, or rent constituting property taxes that is paid.
*** Analysis from -1204/3 ***
Other taxation
This bill discontinues any property tax exemption that may be available to an organization that offers a health maintenance organization (HMO) plan or a limited service health organization (LSHO) plan (2 types of fixed payment health insurance plans). The bill also discontinues any income or franchise tax exemption that may be applied to income derived by an organization from a HMO or LSHO plan.
*** Analysis from -0804/1 ***
This bill discontinues the sales tax exemption for telephone companies' central office equipment.
*** Analysis from -1064/3 ***
Under current law, car line companies (companies that lease railroad cars to railroads) are taxed on the basis of their gross earnings. Under this bill, they are instead taxed on the basis of the value of their equipment. The bill also discontinues the tax on sleeping car companies (companies that lease only certain kinds of railroad cars to railroads).
*** Analysis from -0245/4 ***
Under current law, DOR may collect from persons who owe delinquent taxes, fees, interest or penalties a fee of $25 or 4.5% of the amount owed, whichever is greater, for each of the person's delinquent accounts. Under this bill, the fee is $35 or 6.5% of the amount owed, whichever is greater.
*** Analysis from -0215/2 ***
Under current law, all corporations and insurers that are required to file an income tax or franchise tax return are required to pay a temporary recycling surcharge. Under this bill, all corporations and insurers that are required to file an income tax or franchise tax return and that have at least $4,000 in total receipts from all activities for the taxable year are required to pay the temporary recycling surcharge.
*** Analysis from -2136/3 ***
Transportation
Under current law, the office of the commissioner of railroads (OCR) regulates railroad activities in Wisconsin. This bill eliminates OCR, effective July 1, 1996, and provides for the elimination or transfer of its functions as follows:
1. OCR is currently authorized to regulate railroads to prevent "unreasonable or unjustly discriminatory" rates and inadequate services within the state. The bill eliminates this authority.
2. Currently, before constructing any new track in the state, a railroad must have a certificate, which is issued by OCR only after a hearing and a finding of "public convenience and necessity". Under this bill, the certificate is issued by the department of transportation (DOT), the hearing is discretionary and the public convenience and necessity standard is abolished.
3. Under current law, OCR may order railroads to install protective devices at crossings or make other safety improvements and may determine the type of grade crossing used where a railroad intersects a street or another railroad. This bill transfers this authority to DOT and authorizes DOT to issue orders in these matters without a hearing, based on investigation and application of safety, programming and cost allocation criteria promulgated by rule. The bill provides for review of DOT orders in these matters by the division of hearings and appeals in the department of administration.
4. OCR is currently assigned various other functions relating to railroads. In most cases, those regulatory functions not eliminated in the bill are transferred to DOT and functions having the character of contested case resolution are transferred to the division. The bill requires the division to give due weight to the experience, technical competence and specialized knowledge of DOT in transportation hearings and reviews.
5. The bill transfers certain functions of OCR relating to railroad organization to the department of revenue (DOR).
*** Analysis from -2240/3 ***
Veterans and military Affairs
Current law allows the department of veterans affairs (DVA), subject to building commission approval, to construct and operate veterans cemeteries in northwestern and southeastern Wisconsin. This bill allows a veteran who died while on active duty, and his or her children and surviving spouse who has not remarried, who were residents of this state at the time of their deaths, to be buried in these cemeteries. The bill also allows a veteran who was discharged or released from active duty under conditions other than dishonorable, and the veteran's children and spouse who has not remarried, who were residents at the time of their deaths, to be buried at these cemeteries.
*** Analysis from -2234/1 ***
This bill increases from $4,500 to $5,000 the maximum economic assistance loan that DVA may grant to a veteran for the purchase of a business, the construction of a garage, the education of the veteran or his or her children or to provide essential economic assistance.
*** Analysis from -2235/1 ***
Under current law, a veteran is eligible for reimbursement for some of the costs related to correspondence courses and part-time study taken within the state from educational institutions that meet certain federal requirements. Under limited circumstances, a veteran may receive reimbursement for a course taken outside the state from an educational institution that is accredited by the North Central Association of Colleges and Schools or an equivalent accrediting association. Under this bill, the same criteria apply for out-of-state schools and in-state schools (educational institutions that meet certain federal requirements).
*** Analysis from -2236/3 ***
Under current law, a county with a full-time county veterans' service officer is eligible for a state grant of up to $5,000. If the county has a part-time county veterans' service officer the maximum grant is $500. This bill provides grants to counties for full-time county veterans' service officers composed of production incentive awards and basic awards. The bill requires DVA to promulgate rules regarding the production incentive awards. The basic awards must be based on the population of the county, with the smallest counties receiving a grant of $8,500 and the largest counties eligible for a grant of $13,000. The grants for part-time county veterans' service officers are unchanged.
*** Analysis from -2237/2 ***
Under current law, a veteran is eligible to receive up to $3,000 for retraining to obtain gainful employment. A veteran is eligible if he or she is enrolled in an institution of higher education or enrolled in an on-the-job training program, meets financial assistance criteria, is unemployed or has received a notice of loss of employment and DVA has determined that the veteran's retraining program could result in gainful employment. This bill adds veterans who are underemployed to those veterans who are eligible to apply for a retraining grant.
*** Analysis from -2241/1 ***
This bill raises the general obligation bonding authority for the veterans mortgage loan program by $170,000,000.
*** Analysis from -2515/1 ***
This bill increases the minimum amount that state veterans organizations receive for providing claims services for veterans from $2,500 to $5,000 and the maximum amount from $15,000 to $20,000. The bill also permits DVA to make additional payments to these organizations based on the percentage of initial claims filed with the U.S. department of veterans affairs.
*** Analysis from -1728/5 ***
Currently, a national guard member may submit an application for a tuition grant no later than 6 months after completion of a course. Under this bill, a national guard member must submit an application for a grant within 90 days after completion of the course. The bill also reduces the tuition grant from 50% of the actual tuition to 40% of the actual tuition. In addition, the bill requires DVA to sell the national guard armory located in Whitefish Bay in Milwaukee County and use the proceeds from the sale to provide tuition grants to national guard members equal to 10% of the actual tuition paid by the members.
*** Analysis from -1726/1 ***
Currently, the national guard receives money from the transportation fund to provide, at the direction of the governor, emergency medical services and helicopter transportation for persons involved in accidents. This bill eliminates that program.
This bill will be referred to the joint survey committee on tax exemptions for a detailed analysis, which will be printed as an appendix to this bill.
This bill will be referred to the joint survey committee on retirement systems for a detailed analysis, 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:
(End)
