2015 - 2016 LEGISLATURE
March 12, 2015 - Introduced by Representatives Riemer, Meyers, Barca, Berceau,
Billings, Bowen, Brostoff, Considine, Genrich, Goyke, Hebl, Hesselbein,
Hintz, Johnson, Jorgensen, Kahl, Kolste, Mason, Milroy, Ohnstad, Pope,
Sargent, Sinicki, Spreitzer, Subeck, C. Taylor, Zamarripa and Zepnick,
cosponsored by Senators Ringhand, Erpenbach, Hansen, Harris Dodd,
Lassa, C. Larson, Miller, Vinehout and Wirch. Referred to Committee on
Ways and Means.
1An Act to amend
71.54 (1) (g) (intro.), 71.54 (2) (b) 4. and 71.54 (2m); and to
71.54 (1) (h) and 71.54 (2) (b) 5. of the statutes; relating to: restoring
3indexing provisions to the homestead tax credit.
Analysis by the Legislative Reference Bureau
Under current law, the homestead tax credit formula factors (maximum
income, maximum property taxes, and income threshold) are not indexed for
inflation after 2010. This bill amends those provisions and restores the indexing
provisions of the former law. Under the bill, the homestead tax credit formula factors
would be indexed for inflation for taxable year 2014 and beyond.
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:
71.54 (1) (g) (intro.) of the statutes is amended to read:
(g) 2012 and thereafter to 2014.
(intro.) The amount of any claim filed 6
in 2012 and thereafter to 2014
and based on property taxes accrued or rent 7
constituting property taxes accrued during the previous year is limited as follows:
71.54 (1) (h) of the statutes is created to read:
(h) 2015 and thereafter.
Subject to sub. (2m), the amount of any claim 3
filed in 2015 and thereafter and based on property taxes accrued or rent constituting 4
property taxes accrued during the previous year is limited as follows:
1. If the household income was $8,060 or less in the year to which the claim 6
relates, the claim is limited to 80 percent of the property taxes accrued or rent 7
constituting property taxes accrued or both in that year on the claimant's homestead.
2. If the household income was more than $8,060 in the year to which the claim 9
relates, the claim is limited to 80 percent of the amount by which the property taxes 10
accrued or rent constituting property taxes accrued or both in that year on the 11
claimant's homestead exceeds 8.785 percent of the household income exceeding 12
3. No credit may be allowed if the household income of a claimant exceeds 14
71.54 (2) (b) 4. of the statutes is amended to read:
(b) 4. In calendar years 2011 or any subsequent calendar year to 2013
71.54 (2) (b) 5. of the statutes is created to read:
(b) 5. Subject to sub. (2m), in calendar year 2014 or any subsequent 20
calendar year, $1,460.
71.54 (2m) of the statutes is amended to read:
71.54 (2m) Indexing for inflation;
2010 2014 and thereafter.
(a) For calendar 23
years beginning after December 31, 2009, and before January 1, 2011 2013
, the dollar 24
amounts of the threshold income under sub. (1) (f)
1. and 2., the maximum 25
household income under sub. (1) (f) (h)
3. and the maximum property taxes under
sub. (2) (b) 3. 5.
shall be increased each year by a percentage equal to the percentage 2
change between the U.S. consumer price index for all urban consumers, U.S. city 3
average, for the 12-month average of the U.S. consumer price index for the month 4
of August of the year before the previous year through the month of July of the 5
previous year and the U.S. consumer price index for all urban consumers, U.S. city 6
average, for the 12-month average of the U.S. consumer price index for August 2007 7
through July 2008, as determined by the federal department of labor, except that the 8
adjustment may occur only if the percentage is a positive number. Each amount that 9
is revised under this paragraph shall be rounded to the nearest multiple of $10 if the 10
revised amount is not a multiple of $10 or, if the revised amount is a multiple of $5, 11
such an amount shall be increased to the next higher multiple of $10. The 12
department of revenue shall annually adjust the changes in dollar amounts required 13
under this paragraph and incorporate the changes into the income tax forms and 14
(b) The department of revenue shall annually
adjust the slope under sub. (1) 16(f) (h)
2. such that, as a claimant's income increases from the threshold income as 17
calculated under par. (a), to an amount that exceeds the maximum household income 18
as calculated under par. (a), the credit that may be claimed is reduced to $0 and the 19
department of revenue shall incorporate the changes into the income tax forms and 20