SB632: Bill Text

Individual income taxes

Generally, under current law, individuals who are required to file federal income tax returns are required to file state income tax returns in conformity with federal filing deadlines. Under certain circumstances, an extension of the time to file a Wisconsin income tax return may be granted, although the taxpayer must pay the Wisconsin tax that is otherwise due in the manner applicable to federal income taxes under the internal revenue code. Taxes payable upon the filing of the return are not delinquent during the period of extension, but are subject to 12% interest during the extension period.

Under this bill, the 12% interest that is normally due on such taxes is not due, for taxable years 1995 and 1996, for persons who served in support of Operation Balkan Endeavor, or a successor operation, or for persons who served in Croatia, Bosnia and Herzegovina, Serbia, Macedonia, Montenegro, Hungary, Austria, Slovakia, Czech Republic or Slovenia, or for certain other persons who served outside the United States in certain operations related to Operation Balkan Endeavor.

The bill exempts from state income taxes any amount of compensation received from the federal government by a person who is a member of a reserve component of the U.S. armed forces, and is below the grade of commissioned officer, for services performed for Operation Balkan Endeavor, and up to $500 per month of compensation received from the federal government by a person who is a member of a reserve component of the U.S. armed forces, and is a commissioned officer, for services performed for Operation Balkan Endeavor.

In addition, no taxpayer to whom such an income tax exemption applies is, in general, subject to any penalty or interest that may otherwise be imposed on such a taxpayer while the taxpayer is in the Operation Balkan Endeavor theater of operations and for 180 days after the taxpayer leaves the Operation Balkan Endeavor theater of operations.

Motor vehicle registrations and operator's licenses

Current law extends the expiration date of the operator's license or motor vehicle registration of any person whose operator's license or motor vehicle registration will expire while that person is serving in the U.S. armed forces in the Middle East as part of Operation Desert Shield or Desert Storm. The extension delays the expiration date until 30 days after the operator or registrant completes his or her military service in the Middle East as part of those operations.

This bill grants these extensions, for an indeterminable duration, to any military service person while that person is on active duty and absent from this state. The extensions terminate on the date that the service person returns to this state or 90 days after the person is discharged from active duty, whichever is earlier.

Coverage for state health insurance

Under current law, with exceptions, if an employe who is covered under the state group health insurance plan (state plan) is activated to serve in the U.S. military (the U.S. army, navy, air force, marine corps, coast guard or maritime service), he or she is eligible for continued coverage under the state plan after he or she leaves state employment if certain conditions are met.

This bill extends eligibility and employer contributions toward premium payments under the state plan for an employe who is on an unpaid leave of absence and who is activated for federal military duty as a participant in or in support of Operation Balkan Endeavor or a successor operation if, at the time that the employe is activated for the military duty, the employe is covered under and receiving employer contributions toward the health insurance premium payments under the state plan and is either a member of the Wisconsin national guard; a member of a reserve component of the U.S. armed forces; or an individual who is recalled to active military duty from inactive reserve status who had been either discharged from active duty, discharged from a unit of the Wisconsin national guard or a reserve component of the U.S. armed forces or retired from active military service.

In addition, the bill specifies that the rights granted to an employe under the bill to obtain extended coverage and receive extended employer contributions under the state plan apply to the employe "regardless of whether the eligible employe is unrepresented or represented by a labor organization".

Veterans; Bosnia eligibility

The bill adds to those persons eligible for veterans benefits those persons who served for 90 days or more in support of Operation Balkan Endeavor or in countries involved in the Bosnian conflict (Austria, Bosnia and Herzegovina, Croatia, Czech Republic, Hungary, Macedonia, Motenegro, Serbia, Slovakia and Slovenia), under an active duty order and honorable conditions between December 1, 1995, and the ending date of Operation Balkan Endeavor.

Veterans; service conditions

Under current law, veterans are usually eligible for veterans benefits if they serve under honorable conditions or, in some cases, under conditions other than dishonorable. This bill allows veterans to receive veterans benefits if they serve under honorable conditions and provides that veterans who are eligible for general federal veteran benefits are considered to have served under honorable conditions.

Veterans; cemeteries

The bill makes the eligibility conditions for burial at both veterans cemeteries identical and expands the eligibility to include veterans who entered service from Wisconsin and died while on active duty regardless of their residency at the time of death, their spouses and dependent children and veterans who served under honorable conditions who were residents at the time of death regardless of where they entered service and their spouses and dependent children. The bill exempts the veterans cemeteries from certain regulations that apply to for-profit cemeteries.

Veterans; bonding

The bill gives the department of veterans affairs authority to pay off remaining bonds from a 1981 revenue bond issue.

Veterans; period of residency

Under current law, a veteran must be a resident of this state for 10 years to obtain benefits if he or she was not a resident at the time of entry or reentry into the armed forces. The bill reduces that period to 5 consecutive years after the veteran completes service and, if a veteran meets that criteria, the veteran does not have to reestablish that he or she meets the durational residency requirement when applying for other veteran benefits.

Veterans; miscellaneous

Current law includes as the dependent of a veteran, for eligibility purposes, any child of any age in full attendance at a school. This bill limits those children to children under the age of 26.

The bill changes the reimbursement for university or technical college tuition and fees from 35% to 50% as of July 1, 1997.

The bill removes the specific prohibition against using mortgage loan proceeds for home improvements to construct a deck, patio, fireplace or fencing or to obtain landscaping or appliances. The bill removes the current income limit of $47,500 for home improvement loans.

Current law generally limits those who may be appointed as county veterans' service officers (CVSO) or assistants to those Wisconsin residents who served in certain specified war periods or crises for 90 days. This bill allows any Wisconsin resident who served under honorable conditions in the U.S. armed forces for 2 consecutive years, to be a CVSO. If a veteran was discharged for hardship, due to a reduction in force, for a service-connected disability or for the good of the service, the veteran is eligible to be a CVSO, regardless of the time served.

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.

For further information see the state and local 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:

SB632, s. 1 Section 1. 20.485 (2) (yg) of the statutes is created to read:

SB632,5,4 20.485 (2) (yg) Acquisition of 1981 revenue bond mortgages. A sum sufficient to acquire the outstanding mortgages issued with the proceeds of the 1981 veterans home loan revenue bond issuance.

SB632, s. 2 Section 2. 25.36 (1) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

SB632,6,2 25.36 (1) Except as provided in sub. (2), all moneys appropriated or transferred by law shall constitute the veterans trust fund which shall be used exclusively for the purchase of mortgages issued with the proceeds of the 1981 veterans home loan revenue bond issuance in an amount sufficient to retire that bond issue or for the veterans programs under ss. 20.485 (2) (m), (mn), (tm), (u), (v), (vo), (w), (z) and (zm), 45.01, 45.25, 45.351 (1) and (2), 45.353, 45.356, 45.357, 45.396, 45.397 and 45.43 (7) and administered by the department of veterans affairs, including all moneys received from the federal government for the benefit of veterans or their dependents; all moneys paid as interest on and repayment of loans under the post-war rehabilitation fund; soldiers rehabilitation fund, veterans housing funds as they existed prior to July 1, 1961; all moneys paid as interest on and repayment of loans under this fund; all moneys paid as expenses for, interest on and repayment of veterans trust fund stabilization loans; all mortgages issued with the proceeds of the 1981 veterans home loan revenue bond issuance purchased with moneys in the veterans trust fund; and all gifts of money received by the board of veterans affairs for the purposes of this fund.

SB632, s. 3 Section 3. 45.01 of the statutes is amended to read:

SB632,6,11 45.01 Wisconsin veterans museum; space for. The department of administration shall provide suitable space for the purpose of a memorial hall, designated as the Wisconsin veterans museum, dedicated to the men and women of Wisconsin who served in the armed forces of the United States in the civil war of 1861 to 1865 or in any subsequent wars, as enumerated in s. 45.35 (5) (a) to (g) (e), or in Bosnia, Grenada, Lebanon, Panama, Somalia or a Middle East crisis under s. 45.34, and the department of veterans affairs shall operate and conduct the Wisconsin veterans museum.

SB632, s. 4 Section 4. 45.015 of the statutes is created to read:

SB632,6,16 45.015 Eligibility for benefits. Any person whose service on active duty with the U.S. armed forces or in forces incorporated as part of the U.S. armed forces makes that person eligible for general U.S. department of veterans affairs benefits shall be considered to have served under honorable conditions for purposes of this chapter.

SB632, s. 5 Section 5. 45.16 of the statutes is amended to read:

SB632,7,12 45.16 Burial allowance. Each county veterans' service officer shall cause to be interred in a decent and respectable manner in any cemetery in this state, other than those used exclusively for the burial of paupers, the body of any person who served in any war of the United States, in the Korean conflict, in the Vietnam war, under section 1 of executive order 10957, dated August 10, 1961, or had service that entitled the person to receive the armed forces expeditionary medal, established by executive order 10977 on December 4, 1961, the Vietnam service medal established by executive order 11231 on July 8, 1965, the navy expeditionary medal or the marine corps expeditionary medal or who served in Bosnia, Grenada, Lebanon, Panama, Somalia or a Middle East crisis under s. 45.34 and who was discharged under honorable conditions after 90 days or more of active service, in the U.S. armed forces, or if having served less than 90 days was honorably discharged for a disability incurred in line of duty and who was living in the county at the time of death, and who dies not leaving sufficient means to defray the necessary expenses of a decent burial, or under financial circumstances that would distress the person's family to pay the expenses of the burial, and the body of a spouse or surviving spouse of the person who dies not leaving such means or under the same financial circumstances and who was living in the county at the time of death, at an expense to the county of not more than $300 in addition to the burial allowance payable under laws administered by the U.S. department of veterans affairs.

SB632, s. 6 Section 6. 45.25 (2) (b) of the statutes is amended to read:

SB632,7,20 45.25 (2) (b) The individual served on active duty , except service on active duty for training purposes, under honorable conditions other than dishonorable in the U.S. armed forces for 2 continuous years or more or the full period of the individual's initial service obligation, whichever is less. An individual discharged for reasons of hardship or a service-connected disability or released due to a reduction in the U.S. armed forces prior to the completion of the required period of service is eligible, regardless of the actual time served.

SB632, s. 7 Section 7. 45.25 (2) (d) of the statutes is amended to read:

SB632,8,6 45.25 (2) (d) The individual is a resident at the time of application for the tuition and fee reimbursement program and was a Wisconsin resident at the time of entry or reentry into service or for the 5-year period immediately preceding application for the tuition and fee reimbursement program was a resident for any consecutive 5-year period after completing service on active duty and before the time of application. If a person applying for a benefit under this section meets that 5-consecutive-year residency requirement, the department may not require the person to reestablish that he or she meets the 5-consecutive-year residency requirement when he or she later applies for any other benefit under this chapter that requires a 5-consecutive-year residency.

SB632, s. 8 Section 8. 45.25 (3) (a) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

SB632,8,19 45.25 (3) (a) An individual who meets the requirements under sub. (2), upon satisfactory completion of an undergraduate semester in any institution or center within the university of Wisconsin system or a semester at any technical college district school under ch. 38, may be reimbursed for up to 35% 50% of the individual's tuition and fees, other than textbooks and other costs, charged by the institution, center or school, or the difference between the individual's tuition and fees and the grants or scholarships, including those made under s. 21.49, that the individual receives specifically for the payment of the tuition or fees, whichever is less. Reimbursement is available only for tuition and fees that are part of a curriculum that is relevant to a degree in a particular course of study at the institution, center or school.

SB632, s. 9 Section 9. 45.34 (title) of the statutes is amended to read:

SB632,8,22 45.34 (title) Lebanon, Grenada, Middle East crisis, Panama, Bosnia and Somalia.

SB632, s. 10 Section 10. 45.34 (5) of the statutes is created to read:

SB632,9,5 45.34 (5) Service in Bosnia. A person shall be considered to have served in Bosnia if the person served for 90 days or more in support of Operation Balkan Endeavor or served for 90 days or more in Austria, Bosnia and Herzegovina, Czech Republic, Croatia, Hungary, Macedonia, Montenegro, Serbia including the autonomous provinces of Kosovo and Vojvodina, Slovakia or Slovenia, or in territorial waters adjacent to any of those countries, under all of the following conditions:

SB632,9,7 (a) Under an active duty order, an involuntary extension of an active duty order or a unit assignment order.

SB632,9,8 (b) Under honorable conditions.

SB632,9,11 (c) Between December 1, 1995, and the ending date of Operation Balkan Endeavor or a successor operation, as established by the department of veterans affairs by rule.

SB632, s. 11 Section 11. 45.35 (5) (title) of the statutes is amended to read:

SB632,9,13 45.35 (5) (title) Veteran defined; benefit.

SB632, s. 12 Section 12. 45.35 (5) (intro.) of the statutes is renumbered 45.35 (5) (a) (intro.) and amended to read:

SB632,9,20 45.35 (5) (a) (intro.) "Veteran" as used in this chapter, except in s. 45.37 and unless otherwise modified, means any person who has served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces, except service on active duty for training purposes, and who meets the following conditions:

SB632,9,22 1. a. Has served in Bosnia, Grenada, Lebanon, Panama, Somalia or a Middle East crisis under s. 45.34 or whose service.

SB632,9,24 b. Was entitled the veteran to receive the armed forces expeditionary medal, established by executive order 10977 on December 4, 1961, the Vietnam service medal established by executive order 11231 on July 8, 1965, the navy expeditionary medal or the marine corps expeditionary medal or any person who served.

SB632,10,8 c. Has served for 90 days or more during a war period as enumerated under pars. (a) to (h) par. (e) or under section 1 of executive order 10957 dated August 10, 1961, or if having served less than 90 days was honorably discharged for a service-connected disability or for a disability subsequently adjudicated to have been service connected or died in service, who is either a resident of and living in this state at the time of making application or is deceased, and whose.

SB632,10,12 2. a. His or her selective service local board, if any, and home of record at time of entry or reentry into active service as shown on the veteran's report of separation from the U.S. armed forces for a qualifying period were in this state or who was either;.

SB632,10,14 b. Was a resident of this state at the time of entry or reentry into active duty or has.

SB632,10,21 c. Has been a resident of this state for at least 10 years next preceding the veteran's any consecutive 5-year period after completing service on active duty and before his or her application or death. If a person applying for a benefit under this subchapter meets that 5-consecutive-year residency requirement, the department may not require the person to reestablish that he or she meets the 5-consecutive-year residency requirement when he or she later applies for any other benefit under this chapter that requires a 5-consecutive-year residency.

SB632,10,25 (b) If the person had more than one qualifying term of service under par. (a) 1., at least one term of service must have been under honorable conditions or have been terminated by an honorable discharge for the purpose of establishing eligibility under this section and s. 45.37 (1a).

SB632,11,3 (c) Veterans who are otherwise eligible and who are serving on active duty in the U.S. armed forces need not be living in this state on date of application to qualify for benefits from the department.

SB632,11,11 (d) The benefits available to veterans are also available to the unremarried surviving spouses and minor or dependent children of deceased veterans if the unremarried surviving spouses or minor or dependent children are residents of and living in this state at the time of making application. Any person whose service on active duty with the U.S. armed forces or in forces incorporated as part of the U.S. armed forces makes the person eligible for general U.S. department of veterans affairs benefits shall be deemed to have served under honorable conditions for the purpose of this subsection and s. 45.37 (1a).

SB632,11,12 (e) The following are designated as war periods:

SB632, s. 13 Section 13. 45.35 (5) (a) to (h) of the statutes are renumbered 45.35 (5) (e) 1. to 8.

SB632, s. 14 Section 14. 45.35 (5) (a) 1. (intro.) and 2. (intro.) of the statutes are created to read:

SB632,11,18 45.35 (5) (a) 1. (intro.) The person is a resident of and living in this state at the time of making application, or is deceased, and meets one of the following conditions:

SB632,11,20 2. (intro.) The person is a resident of and living in this state at the time of making application or is deceased, and meets one of the following conditions:

SB632, s. 15 Section 15. 45.35 (5m) of the statutes is renumbered 45.35 (5m) (a), and 45.35 (5m) (a) 2., as renumbered, is amended to read:

SB632,12,3 45.35 (5m) (a) 2. Any child of the veteran under 18 years of age, or under the age of 26 if in full attendance at a recognized school of instruction, or of any age if incapable of self-support by reason of mental or physical disability. "Child" as used in this section means any natural child, any legally adopted child, any stepchild or child if a member of the veteran's household or any nonmarital child if the veteran acknowledges paternity or the same has been otherwise established.

SB632, s. 16 Section 16. 45.35 (5m) (b) of the statutes is created to read:

SB632,12,10 45.35 (5m) (b) For purposes of defining "dependent" under this subsection, "veteran" includes a person who served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces, who was a resident of this state at the time of entry or reentry into active duty and who died while on active duty if that death was not the result of the veteran's wilful misconduct.

SB632, s. 17 Section 17. 45.358 (1) of the statutes, as created by 1995 Wisconsin Act 27, is renumbered 45.358 (1) (intro.) and amended to read:

SB632,12,13 45.358 (1) (title) Definition Definitions. (intro.) In this section, "veteran":

SB632,12,15 (b) "Veteran" means a person who has served on active duty in the U.S. armed forces.

SB632, s. 18 Section 18. 45.358 (1) (a) of the statutes is created to read:

SB632,12,20 45.358 (1) (a) "Dependent child" means any natural or adoptive child under 18 years of age, or under the age of 26 if in full attendance at a recognized school of instruction, or of any age if the child is unmarried and incapable of self-support by reason of mental or physical disability.

SB632, s. 19 Section 19. 45.358 (2) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

SB632,13,7 45.358 (2) Construction and operation of cemeteries. Subject to authorization under ss. 13.48 (10) and 20.924 (1), the department of veterans affairs may construct and operate veterans cemeteries in northwestern and southeastern Wisconsin and may employ such personnel as are necessary for the proper management of the cemeteries. The department may acquire, by gift, purchase or condemnation, lands necessary for the purposes of the cemeteries. Title to the properties shall be taken in the name of this state. Every deed of conveyance shall be immediately recorded in the office of the proper register of deeds and thereafter filed with the secretary of state. All cemeteries operated by the department are exempt from the requirements of ss. 157.061 to 157.70 and 440.90 to 440.95.

SB632, s. 20 Section 20. 45.358 (3) of the statutes, as created by 1995 Wisconsin Act 27, is amended to read:

SB632,13,11 45.358 (3) Eligibility. The following persons are eligible for burial at a cemetery constructed and operated under sub. (2) or s. 45.37 (15):

SB632,13,16 (a) A veteran who died while on active duty or who was discharged or released from active duty in the U.S. armed forces under honorable conditions and who was a resident of this state at the time of his or her entry or reentry into active service and his or her dependent children and unremarried surviving spouse who are residents of this state at the time of their deaths.

SB632,13,21 (b) A veteran who was discharged or released from active duty in the U.S. armed forces under honorable conditions other than dishonorable and who was a resident of this state at the time of his or her death and his or her dependent children and unremarried surviving spouse who are residents of this state at the time of their deaths.

SB632,13,25 (c) The spouse or dependent child of a veteran who is serving an on active duty at the time of the spouse's or dependent child's death if the veteran was a resident of this state at the time of the veteran's entry or reentry into active service and if the spouse was a resident of this state at the time of the spouse's death.

SB632,14,5 (d) The spouse or dependent child of a veteran if the veteran was a resident of this state at the time of his or her entry or reentry into active service and was discharged or released from active duty in the U.S. armed forces under honorable conditions other than dishonorable and if the veteran and spouse were residents of this state at the time of the spouse's death.