Amendment ASA1-AB577

LRBs0275/2

MES:kmg:kjf

2001 - 2002 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 2001 ASSEMBLY BILL 577

January 16, 2002 - Offered by Committee on Ways and Means.

AB577-ASA1,1,4 An Act to renumber and amend 71.07 (9) (b) 1.; to amend 71.07 (9) (a) 3., 71.07 (9) (b) 2. and 71.07 (9) (b) 5.; and to create 71.07 (9) (b) 1. a. and b. of the statutes; relating to: authorizing claims under the school property tax rent credit for property taxes paid in the year before the year in which they are due.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB577-ASA1, s. 1 Section 1. 71.07 (9) (a) 3. (intro.) of the statutes is created to read:

AB577-ASA1,1,6 71.07 (9) (a) 3. (intro.) "Property taxes" means one of the following:

AB577-ASA1, s. 2 Section 2. 71.07 (9) (a) 3. of the statutes is renumbered 71.07 (9) (a) 3. a. and amended to read:

AB577-ASA1,2,12 71.07 (9) (a) 3. a. "Property taxes" means For taxable years beginning before January 1, 2002, real and personal property taxes, exclusive of special assessments, delinquent interest, and charges for service, paid by a claimant on the claimant's principal dwelling during the taxable year for which credit under this subsection is claimed, less any property taxes paid which are properly includable as a trade or business expense under section 162 of the internal revenue code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, "property taxes" is that part of property taxes paid that reflects the ownership percentage of the claimant. If the principal dwelling is sold during the taxable year, the "property taxes" for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to the months of their respective ownership. "Property In this subd. 3. a., "property taxes" includes monthly parking permit fees in respect to a principal dwelling collected under s. 66.0435 (3) (c).

AB577-ASA1, s. 3 Section 3. 71.07 (9) (a) 3. b. of the statutes is created to read:

AB577-ASA1,3,8 71.07 (9) (a) 3. b. For taxable years beginning after December 31, 2001, real and personal property taxes, exclusive of special assessments, delinquent interest, and charges for service, paid by a claimant on the claimant's principal dwelling during the taxable year for which credit under this subsection is claimed and the real and personal property taxes, exclusive of special assessments, delinquent interest, and charges for service paid during that same calendar year by a claimant on the claimant's principal dwelling during the year before the taxable year in which such taxes are due if those payments in the previous year were not used in calculating the credit under this subsection, less any property taxes paid which are properly includable as a trade or business expense under section 162 of the Internal Revenue Code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, "property taxes" is that part of property taxes paid that reflects the ownership percentage of the claimant. If the principal dwelling is sold during the taxable year, the "property taxes" for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to the months of their respective ownership. In this subd. 3. b., "property taxes" includes monthly parking permit fees in respect to a principal dwelling collected under s. 66.0435 (3) (c).

AB577-ASA1, s. 4 Section 4. 71.07 (9) (b) 1. of the statutes is amended to read:

AB577-ASA1,3,14 71.07 (9) (b) 1. Subject to the limitations under this subsection and except as provided in subds. 2., 4. and, 5., and 6., a claimant may claim as a credit against, but not to exceed the amount of, taxes under s. 71.02, 10% of the first $2,000 of property taxes or rent constituting property taxes, or 10% of the first $1,000 of property taxes or rent constituting property taxes of a married person filing separately.

AB577-ASA1, s. 5 Section 5. 71.07 (9) (b) 6. of the statutes is created to read:

AB577-ASA1,3,23 71.07 (9) (b) 6. For taxable years beginning after December 31, 2001, if a claimant's property taxes that are paid in one calendar year constitute taxes paid by the claimant during the taxable year for which the credit is claimed and taxes paid by the claimant during the year before the taxable year in which such taxes are due if those payments in the previous year were not used in calculating the credit under this subsection, the claimant may claim in one taxable year the amount calculated under subd. 5., based on the claimant's filing status, for each taxable year for which the taxes have been paid.

AB577-ASA1, s. 6 Section 6. Initial applicability.

AB577-ASA1,4,4 (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.

AB577-ASA1,4,5 (End)