2017 - 2018 LEGISLATURE
January 30, 2018 - Introduced by Representatives Vruwink, Anderson, Spreitzer,
Sinicki and C. Taylor. Referred to Committee on Ways and Means.
1An Act to amend
71.08 (1) (intro.) and 71.10 (4) (i); and to create
20.835 (2) (cb) 2
and 71.07 (5p) of the statutes; relating to: creating an individual income tax
3credit for certain property tax increases and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates a refundable individual income tax credit for claimants who
are at least 70 and one-half years old and whose federal adjusted gross income is no
more than 2.5 times the federal poverty level in the year to which the claim relates.
The credit amount is calculated as the difference between the claimant's school
district portion of the property tax assessment on his or her principal dwelling in the
year to which the claim relates, and the claimant's school district portion of the
property tax assessment on that same dwelling in the previous year. To be able to
claim the credit, the claimant must have paid the property taxes that are the basis
of the calculation.
Because the credit is refundable, if the amount of the claim exceeds the
claimant's tax liability, the excess amount is refunded to the claimant by check. The
credit may not be claimed by part-year and nonresidents of this state. Under the bill,
no credit may be claimed for any increase in property taxes due to improvements the
claimant makes to the principal dwelling.
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:
20.835 (2) (cb) of the statutes is created to read:
(cb) Property tax increase offset tax credit.
A sum sufficient to pay 3
the claims approved under s. 71.07 (5p).
71.07 (5p) of the statutes is created to read:
71.07 (5p) Property tax increase offset tax credit.
In this 6
1. “Claimant" means an individual, or an individual and his or her spouse, who 8
files a claim under this subsection.
2. “Family income” means the federal adjusted gross income of the claimant 10
and his or her spouse in the year to which the claim relates.
3. “Poverty level” means 2.5 times the poverty level determined in accordance 12
with criteria established by the director of the federal office of management and 13
4. “Principal dwelling" means any dwelling that is owned and the land 15
surrounding it that is reasonably necessary for use of the dwelling as a primary 16
dwelling of the claimant and may include a part of a multidwelling or multipurpose 17
building and a part of the land upon which it is built that is used as the claimant's 18
5. “Property taxes" has the meaning given in sub. (9) (a) 3.
(b) Filing claims.
Subject to the limitations provided in this subsection, a 21
claimant may claim as a credit against the tax imposed under s. 71.02 or 71.08 the
difference between the school district portion of the amount of property taxes the 2
claimant is assessed in the taxable year to which the claim relates on the claimant's 3
principal dwelling and the school district portion of the property taxes the claimant 4
is assessed in the taxable year immediately before the year to which the claim relates 5
on the claimant's principal dwelling, provided the principal dwellings are the same 6
for each taxable year. If the difference between the 2 amounts is positive and if the 7
allowable amount of the claim exceeds the income taxes otherwise due on the 8
claimant's income, the amount of the claim not used as an offset against those taxes 9
shall be certified by the department of revenue to the department of administration 10
for payment to the claimant by check, share draft, or other draft drawn from the 11
appropriation account under s. 20.835 (2) (cb).
1. No claim may be allowed under this subsection if the 13
claimant has not paid the property taxes on the principal dwelling for the years 14
described in par. (b).
2. No credit may be claimed under this subsection for any amount of property 16
taxes related to reassessment of the claimant's principal dwelling that is due to 17
improvements made to the property.
3. No claim may be filed under this subsection unless the claimant has reached 19
the age of 70.5 years in the year to which the claim relates, except that if the claimant 20
is married and filing jointly, at least one of the spouses must have reached the age 21
of 70.5 years in the year to which the claim relates.
4. No claim may be filed under this subsection if the claimant's family income 23
exceeds the poverty level in the year to which the claim relates.
5. No credit may be allowed under this subsection unless it is claimed within 25
the period specified under s. 71.75 (2).
6. No credit may be claimed under this subsection by nonresidents or part-year 2
residents of this state.
Subsection (9e) (d), as it applies to the credit under that 4
subsection, applies to the credit under this subsection.
71.08 (1) Imposition.
(intro.) If the tax imposed on a natural person, married 8
couple filing jointly, trust, or estate under s. 71.02, not considering the credits under 9
ss. 71.07 (1), (2dx), (2dy), (3m), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), 10
(3wm), (3y), (4k), (5b), (5d), (5e), (5f), (5h), (5i), (5j), (5n),
(6), (6e), (8r), (9e), (9m), 11
and (9r), 71.28 (1dx), (1dy), (2m), (3), (3n), (3t), (3w), (3wm), and (3y), 71.47 (1dx), 12
(1dy), (2m), (3), (3n), (3t), (3w), and (3y), 71.57 to 71.61, and 71.613 and subch. VIII 13
and payments to other states under s. 71.07 (7), is less than the tax under this 14
section, there is imposed on that natural person, married couple filing jointly, trust 15
or estate, instead of the tax under s. 71.02, an alternative minimum tax computed 16
(i) The total of claim of right credit under s. 71.07 (1), farmland 20
preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and 21
beyond under s. 71.613, homestead credit under subch. VIII, farmland tax relief 22
credit under s. 71.07 (3m), dairy manufacturing facility investment credit under s. 23
71.07 (3p), jobs tax credit under s. 71.07 (3q), meat processing facility investment 24
credit under s. 71.07 (3r), woody biomass harvesting and processing credit under s. 25
71.07 (3rm), food processing plant and food warehouse investment credit under s.
71.07 (3rn), business development credit under s. 71.07 (3y), research credit under 2
s. 71.07 (4k) (e) 2. a., film production services credit under s. 71.07 (5f), film 3
production company investment credit under s. 71.07 (5h), veterans and surviving 4
spouses property tax credit under s. 71.07 (6e), enterprise zone jobs credit under s. 5
71.07 (3w), property tax increase offset credit under s. 71.07 (5p),
electronics and 6
information technology manufacturing zone credit under s. 71.07 (3wm), beginning 7
farmer and farm asset owner tax credit under s. 71.07 (8r), earned income tax credit 8
under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under 9
(1) This act first applies to taxable years beginning on January 1 of the year 12
in which this subsection takes effect, except that if this subsection takes effect after 13
July 31 this act first applies to taxable years beginning on January 1 of the year 14
following the year in which this subsection takes effect.