LRB-3847/1
MES&JK:cmh&kmg:mrc
October 1999 Special Session
1999 - 2000 LEGISLATURE
October 29, 1999 - Introduced by
Committee on Rules, by request of Governor
Tommy G. Thompson. Referred to Joint committee on Finance.
AB1,1,5
1An Act to repeal 71.07 (9) (b) 3.;
to amend 71.07 (9) (g);
to create 20.835 (2) (am)
2and 77.64 of the statutes; and
to affect 1999 Wisconsin Act 9, section
9143 (3g);
3relating to: creating a tax rebate for individuals, repealing the school property
4tax rent credit, reducing the amount that is available under the school levy tax
5credit and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates a onetime sales tax rebate for individuals. Under the bill, and
subject to a number of conditions and limitations, a claimant may claim, or is eligible
to receive, a check if the claimant meets one of the following eligibility criteria:
1. The individual was a full-year resident of Wisconsin in 1998 and either has
filed a 1998 Wisconsin income tax return or 1998 homestead credit claim or did not
file such a return or claim but does file a form to be prepared by the department of
revenue (DOR).
2. The individual was a part-year resident of Wisconsin in 1998 and either has
filed a 1998 Wisconsin income tax return or did not file such a return but does file
a form to be prepared by DOR.
3. The individual was a nonresident of this state in 1998 but does file a form
to be prepared by DOR.
The amount of the rebate ranges from $190 to $500, based on the individual's
or couple's 1998 Wisconsin adjusted gross income (WAGI) and filing status, or is
calculated by DOR based on the form that is filed by claimants who did not file an
income tax return or homestead credit claim. The amount of a part-year resident's
rebate is based on the individual's WAGI. A nonresident who can document at least
$20 of sales taxes paid to Wisconsin in 1998 may claim a rebate of 30.4% of sales taxes
paid in that year, up to a maximum rebate of $354.
Under the bill, the amount of a rebate for which a claimant is otherwise eligible
is offset against outstanding tax liabilities owed to the state. In addition, the rebate
may not be claimed by an individual who was claimed as a dependent on another
individual's 1998 federal income tax return. If an individual who was a resident and
filed a 1998 Wisconsin income tax return or 1998 homestead credit becomes deceased
after he or she filed his or income tax or homestead credit return, the amount of
rebate for which the claimant is eligible must be paid to the claimant's estate.
If DOR is unable to locate an individual or married couple who is eligible to
receive the rebate by December 31, 2000, or if an individual or couple who is issued
a check does not cash the check by December 31, 2000, the right to the rebate lapses.
Under current law, the nonrefundable individual income tax school property
tax credit may be claimed for taxable years beginning before January 1, 2001. For
taxable year 1999, the credit that may be claimed is 16.4% of the first $2,000 of
property taxes accrued or rent constituting property taxes, or 16.4% of the first
$1,000 of property taxes or rent constituting property taxes for a married person
filing separately. For taxable year 2000, the credit that may be claimed is 10% of the
first $2,000 of property taxes accrued or rent constituting property taxes, or 10% of
the first $1,000 of property taxes or rent constituting property taxes for a married
person filing separately. Under this bill, the school property tax credit may not be
claimed for taxable years beginning after December 31, 1998.
Under current law, the amount to be expended for the school levy property tax
credit in 2001 is increased by $60,000,400. This bill repeals that increase.
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:
AB1, s. 1
1Section
1. 20.835 (2) (am) of the statutes is created to read:
AB1,2,32
20.835
(2) (am)
Onetime sales tax rebate. A sum sufficient to pay the aggregate
3claims approved under s. 77.64.
AB1,3,2
171.07
(9) (g) No new claim may be filed under this subsection for a taxable year
2that begins after December 31,
2000 1998.
AB1, s. 4
3Section
4. 77.64 of the statutes is created to read:
AB1,3,4
477.64 Onetime sales tax rebate. (1) Definitions. In this subsection:
AB1,3,65
(a) "Claimant" means an individual who is eligible under sub. (3) to receive or
6claim a rebate under this section.
AB1,3,77
(b) "Department" means the department of revenue.
AB1,3,98
(c) "Nonresident" means an individual who was not a resident of this state for
9any part of 1998.
AB1,3,1110
(d) "Part-year resident" means an individual who was a resident of this state
11for some part of 1998.
AB1,3,1312
(e) "Resident" means an individual who was a full-year resident of this state
13in 1998.
AB1,3,18
14(2) Claims. Subject to the limitations and conditions under sub. (5) a claimant
15may claim, or is eligible to receive, a rebate that is calculated under sub. (4). The
16department shall certify the amount of the rebate for which the claimant is eligible
17to the department of administration for payment to the claimant by check, share
18draft or other draft paid from the appropriation under s. 20.835 (2) (am).
AB1,3,21
19(3) Eligibility. (a) An individual who was a resident and who filed a 1998
20Wisconsin income tax return or 1998 homestead credit claim is eligible to receive a
21rebate under sub. (2).
AB1,4,222
(b) An individual who was a resident and who did not file a 1998 Wisconsin
23income tax return or 1998 homestead credit claim by October 15, 1999, is eligible to
24receive a rebate under sub. (2) only if the individual files a claim with the department
25not later than June 30, 2000. The claim shall be filed on a form prepared by the
1department not later than 60 days after the effective date of this paragraph ....
2[revisor inserts date].
AB1,4,83
(c) An individual who was a part-year resident and who filed a 1998 Wisconsin
4income tax return or a married couple, of whom one of the spouses was a part-year
5resident and the other spouse was either a part-year resident or a resident, and who
6filed a 1998 Wisconsin income tax return, is eligible to receive a rebate under sub.
7(2), calculated by the department based on the individual's or couple's Wisconsin
8adjusted gross income.
AB1,4,179
(d) An individual who was a part-year resident and who did not file a 1998
10Wisconsin income tax return by October 15, 1999, or a married couple, of whom one
11of the spouses was a part-year resident and the other spouse was either a part-year
12resident or a resident, and who did not file a 1998 Wisconsin income tax return by
13October 15, 1999, is eligible to receive a rebate under sub. (2), calculated by the
14department, only if the individual or couple files a claim with the department not
15later than June 30, 2000. The claim shall be filed on a form prepared by the
16department not later than 60 days after the effective date of this paragraph ....
17[revisor inserts date].
AB1,4,2418
(e) An individual who was a nonresident is eligible to receive a rebate under
19sub. (2) if the individual files a claim with the department not later than 30 days after
20the effective date of this paragraph .... [revisor inserts date]. The claim shall be filed
21on a form prepared by the department. The form shall require a nonresident to
22document his or her sales taxes paid to Wisconsin in 1998, and the documented
23amount must be at least $20 for a nonresident to be eligible to receive a rebate under
24sub. (2).
AB1,5,4
1(4) Calculation. (a) A claimant who is a resident and married and filed a joint
21998 Wisconsin income tax return or 1998 homestead credit claim, or a claimant who
3filed a 1998 Wisconsin income tax return as a head of household, shall be eligible for
4a rebate in one of the following amounts:
AB1,5,65
1. If the couple's or head of household's 1998 Wisconsin adjusted gross income
6is not more than $25,000, $337.
AB1,5,87
2. If the couple's or head of household's 1998 Wisconsin adjusted gross income
8is more than $25,000 but not more than $50,000, $345.
AB1,5,109
3. If the couple's or head of household's 1998 Wisconsin adjusted gross income
10is more than $50,000 but not more than $75,000, $362.
AB1,5,1211
4. If the couple's or head of household's 1998 Wisconsin adjusted gross income
12is more than $75,000 but not more than $100,000, $380.
AB1,5,1413
5. If the couple's or head of household's 1998 Wisconsin adjusted gross income
14is more than $100,000 but not more than $200,000, $414.
AB1,5,1615
6. If the couple's or head of household's1998 Wisconsin adjusted gross income
16is more than $200,000 but not more than $500,000, $457.
AB1,5,1817
7. If the couple's or head of household's1998 Wisconsin adjusted gross income
18is more than $500,000, $500.
AB1,5,2219
(b) A claimant who is a resident and single and filed a 1998 Wisconsin income
20tax return or 1998 homestead credit claim, or who is a resident and married and filed
21a separate 1998 Wisconsin income tax return, shall be eligible for a rebate in one of
22the following amounts:
AB1,5,2423
1. If the individual's 1998 Wisconsin adjusted gross income is not more than
24$25,000, $190.
AB1,6,2
12. If the individual's 1998 Wisconsin adjusted gross income is more than
2$25,000 but not more than $50,000, $198.
AB1,6,43
3. If the individual's 1998 Wisconsin adjusted gross income is more than
4$50,000 but not more than $75,000, $216.
AB1,6,65
4. If the individual's 1998 Wisconsin adjusted gross income is more than
6$75,000 but not more than $100,000, $233.
AB1,6,87
5. If the individual's 1998 Wisconsin adjusted gross income is more than
8$100,000 but not more than $200,000, $267.