AB262: Bill Text

AB262,9 Section 9 . 71.06 (2) (m) of the statutes is created to read:

AB262,6,22 71.06 (2) (m) For joint returns, for taxable years beginning after December 31, 2025, and before January 1, 2027, except as provided under s. 71.06 (4):

AB262,6,23 1. On all taxable income from $0 to $10,000, 1.25 percent.

AB262,6,25 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5 percent.

AB262,7,2 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.5 percent.

AB262,7,3 4. On all taxable income exceeding $300,000, 6 percent.

AB262,10 Section 10 . 71.06 (2) (mm) of the statutes is created to read:

AB262,7,7 71.06 (2) (mm) For married persons filing separately, for taxable years beginning after December 31, 2025, and before January 1, 2027, except as provided under s. 71.06 (4):

AB262,7,8 1. On all taxable income from $0 to $5,000, 1.25 percent.

AB262,7,10 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5 percent.

AB262,7,12 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.5 percent.

AB262,7,13 4. On all taxable income exceeding $150,000, 6 percent.

AB262,11 Section 11 . 71.06 (2) (n) of the statutes is created to read:

AB262,7,16 71.06 (2) (n) For joint returns, for taxable years beginning after December 31, 2026, and before January 1, 2028, except as provided under s. 71.06 (4):

AB262,7,17 1. On all taxable income from $0 to $10,000, 0 percent.

AB262,7,19 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5 percent.

AB262,7,21 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.5 percent.

AB262,7,22 4. On all taxable income exceeding $300,000, 5.20 percent.

AB262,12 Section 12 . 71.06 (2) (nn) of the statutes is created to read:

AB262,8,3 71.06 (2) (nn) For married persons filing separately, for taxable years beginning after December 31, 2026, and before January 1, 2028, except as provided under s. 71.06 (4):

AB262,8,4 1. On all taxable income from $0 to $5,000, 0 percent.

AB262,8,6 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5 percent.

AB262,8,8 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.5 percent.

AB262,8,9 4. On all taxable income exceeding $150,000, 5.20 percent.

AB262,13 Section 13 . 71.06 (2) (o) of the statutes is created to read:

AB262,8,12 71.06 (2) (o) For joint returns, for taxable years beginning after December 31, 2027, except as provided under s. 71.06 (4):

AB262,8,13 1. On all taxable income from $0 to $10,000, 0 percent.

AB262,8,15 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 4.5 percent.

AB262,8,17 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 4.5 percent.

AB262,8,18 4. On all taxable income exceeding $300,000, 4.5 percent.

AB262,14 Section 14 . 71.06 (2) (oo) of the statutes is created to read:

AB262,8,21 71.06 (2) (oo) For married persons filing separately, for taxable years beginning after December 31, 2027, except as provided under s. 71.06 (4):

AB262,8,22 1. On all taxable income from $0 to $5,000, 0 percent.

AB262,8,24 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 4.5 percent.

AB262,9,2 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 4.5 percent.

AB262,9,3 4. On all taxable income exceeding $150,000, 4.5 percent.

AB262,15 Section 15. 71.06 (2e) (a) of the statutes is amended to read:

AB262,9,25 71.06 (2e) (a) For taxable years beginning after December 31, 1998, and before January 1, 2000, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1m) and (2) (c) and (d), and for taxable years beginning after December 31, 1999, and before January 1, 2024, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1n), (1p) (a) to (c), (1q) (a) and (b), and (2) (e), (f), (g) 1. to 3., (h) 1. to 3., (i) 1. and 2., and (j) 1. and 2., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2000, and before January 1, 2002, the dollar amount in the top bracket under subs. (1p) (c) and (d), (2) (g) 3. and 4. and (h) 3. and 4. shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1999, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB262,16 Section 16. 71.06 (2e) (b) of the statutes is amended to read:

AB262,10,13 71.06 (2e) (b) For taxable years beginning after December 31, 2009, and before January 1, 2024, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1p) (d), (1q) (c), and (2) (g) 4., (h) 4., (i) 3., and (j) 3., and the dollar amount in the top bracket under subs. (1p) (e), (1q) (d), and (2) (g) 5., (h) 5., (i) 4., and (j) 4., shall be increased each year by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that for taxable years beginning after December 31, 2011, the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB262,17 Section 17 . 71.06 (2e) (be) of the statutes is created to read:

AB262,10,24 71.06 (2e) (be) 1. For taxable years beginning after December 31, 2023, and before January 1, 2025, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1r) (a) 1. and 2. and (2) (k) 1. and 2. and (km) 1. and 2., shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB262,11,11 2. For taxable years beginning after December 31, 2023, and before January 1, 2025, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1r) (a) 3. and (2) (k) 3. and (km) 3., and the dollar amount in the top bracket under subs. (1r) (a) 4. and (2) (k) 4. and (km) 4., shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB262,18 Section 18 . 71.06 (2e) (bm) of the statutes is created to read:

AB262,11,22 71.06 (2e) (bm) 1. For taxable years beginning after December 31, 2024, and before January 1, 2026, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1r) (b) 1. and 2. and (2) (L) 1. and 2. and (Lm) 1. and 2. shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB262,12,8 2. For taxable years beginning after December 31, 2024, and before January 1, 2026, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1r) (b) 3. and (2) (L) 3. and (Lm) 3., and the dollar amount in the top bracket under subs. (1r) (b) 4. and (2) (L) 4. and (Lm) 4., shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB262,19 Section 19 . 71.06 (2e) (bs) of the statutes is created to read:

AB262,12,19 71.06 (2e) (bs) 1. For taxable years beginning after December 31, 2025, and before January 1, 2027, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1r) (c) 1. and 2. and (2) (m) 1. and 2. and (mm) 1. and 2., shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB262,13,5 2. For taxable years beginning after December 31, 2025, and before January 1, 2027, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1r) (c) 3. and (2) (m) 3. and (mm) 3., and the dollar amount in the top bracket under subs. (1r) (c) 4. and (2) (m) 4. and (mm) 4., shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB262,20 Section 20 . 71.06 (2e) (bt) of the statutes is created to read:

AB262,13,16 71.06 (2e) (bt) 1. For taxable years beginning after December 31, 2026, and before January 1, 2028, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1r) (d) 1. and 2. and (2) (n) 1. and 2. and (nn) 1. and 2., shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB262,14,2 2. For taxable years beginning after December 31, 2026, and before January 1, 2028, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1r) (d) 3. and (2) (n) 3. and (nn) 3., and the dollar amount in the top bracket under subs. (1r) (d) 4. and (2) (n) 4. and (nn) 4., shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB262,21 Section 21 . 71.06 (2e) (bu) of the statutes is created to read:

AB262,14,13 71.06 (2e) (bu) 1. For taxable years beginning after December 31, 2027, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1r) (e) 1. and 2. and (2) (o) 1. and 2. and (oo) 1. and 2., shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 1997, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB262,14,23 2. For taxable years beginning after December 31, 2027, the maximum dollar amount in each tax bracket, and the corresponding minimum dollar amount in the next bracket, under subs. (1r) (e) 3. and (2) (o) 3. and (oo) 3., and the dollar amount in the top bracket under subs. (1r) (e) 4. and (2) (o) 4. and (oo) 4., shall be increased by a percentage equal to the percentage change between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2008, as determined by the federal department of labor, except that the adjustment may occur only if the resulting amount is greater than the corresponding amount that was calculated for the previous year.

AB262,22 Section 22. 71.06 (2m) of the statutes is amended to read:

AB262,15,4 71.06 (2m) Rate changes. If a rate under sub. (1), (1m), (1n), (1p), (1q), (1r), or (2) changes during a taxable year, the taxpayer shall compute the tax for that taxable year by the methods applicable to the federal income tax under section 15 of the Internal Revenue Code.

AB262,23 Section 23. 71.06 (2s) (d) of the statutes is amended to read:

AB262,15,18 71.06 (2s) (d) For taxable years beginning after December 31, 2000, and before January 1, 2024, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1p), (1q), and (2) (g), (h), (i), and (j) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “ adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1p), (1q), and (2) (g), (h), (i), and (j) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB262,24 Section 24 . 71.06 (2s) (e) of the statutes is created to read:

AB262,16,7 71.06 (2s) (e) For taxable years beginning after December 31, 2023, and before January 1, 2025, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1r) (a) and (2) (k) and (km) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “ adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1r) (a) and (2) (k) and (km) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB262,25 Section 25 . 71.06 (2s) (f) of the statutes is created to read:

AB262,16,21 71.06 (2s) (f) For taxable years beginning after December 31, 2024, and before January 1, 2026, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1r) (b) and (2) (L) and (Lm) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “ adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1r) (b) and (2) (L) and (Lm) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB262,26 Section 26 . 71.06 (2s) (g) of the statutes is created to read:

AB262,17,10 71.06 (2s) (g) For taxable years beginning after December 31, 2025, and before January 1, 2027, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1r) (c) and (2) (m) and (mm) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “ adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1r) (c) and (2) (m) and (mm) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB262,27 Section 27 . 71.06 (2s) (h) of the statutes is created to read:

AB262,17,24 71.06 (2s) (h) For taxable years beginning after December 31, 2026, and before January 1, 2028, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1r) (d) and (2) (n) and (nn) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “ adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1r) (d) and (2) (n) and (nn) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB262,28 Section 28 . 71.06 (2s) (i) of the statutes is created to read:

AB262,18,13 71.06 (2s) (i) For taxable years beginning after December 31, 2027, with respect to nonresident individuals, including individuals changing their domicile into or from this state, the tax brackets under subs. (1r) (e) and (2) (o) and (oo) shall be multiplied by a fraction, the numerator of which is Wisconsin adjusted gross income and the denominator of which is federal adjusted gross income. In this paragraph, for married persons filing separately “adjusted gross income" means the separate adjusted gross income of each spouse, and for married persons filing jointly “adjusted gross income" means the total adjusted gross income of both spouses. If an individual and that individual's spouse are not both domiciled in this state during the entire taxable year, the tax brackets under subs. (1r) (e) and (2) (o) and (oo) on a joint return shall be multiplied by a fraction, the numerator of which is their joint Wisconsin adjusted gross income and the denominator of which is their joint federal adjusted gross income.

AB262,29 Section 29 . 71.06 (4) of the statutes is created to read:

AB262,18,24 71.06 (4) Phase-in adjustments. (a) Notwithstanding subs. (1q), (1r), (2), and (2e), the rates and brackets, as adjusted under sub. (2s), for taxable years beginning after December 31, 2024, shall not take effect in any taxable year if in the preceding fiscal year general fund tax collections, as indicated by the department's preliminary actual general fund tax collection report, are less than the amount of general fund tax collections reported for fiscal year 2019-20, multiplied by the percentage change, if not negative, between the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August of the previous year and the U.S. consumer price index for all urban consumers, U.S. city average, for the month of August 2020, as determined by the federal department of labor.

AB262,19,15 (b) In any taxable year beginning after December 31, 2024, if in the preceding fiscal year general fund tax collections, as indicated by the department's preliminary actual general fund tax collection report, are less than the amount determined under par. (a), the rates and brackets shall be the rates and brackets in effect for the previous taxable year, as adjusted under sub. (2s), and the department shall delay the implementation of the rates and brackets for taxable years beginning after December 31, 2024, accordingly. For each taxable year beginning after December 31, 2024, the department shall make the determination under par. (a) no later than September 1 following the close of the preceding fiscal year. If the department determines that that a reduction in rates, as provided under subs. (1r) and (2) (k) to (oo), shall take effect for the following taxable year, the department shall shall update the individual income tax withholding tables under s. 71.64 (9) to reflect the tax rates, brackets, and sliding scale standard deduction that are in effect on January 1 of the corresponding taxable year. Rate reductions determined under this subsection occur successively.

AB262,30 Section 30. 71.125 (1) of the statutes is amended to read:

AB262,19,20 71.125 (1) Except as provided in sub. (2), the tax imposed by this chapter on individuals and the rates under s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) shall apply to the Wisconsin taxable income of estates or trusts, except nuclear decommissioning trust or reserve funds, and that tax shall be paid by the fiduciary.

AB262,31 Section 31. 71.125 (2) of the statutes is amended to read:

AB262,20,2 71.125 (2) Each electing small business trust, as defined in section 1361 (e) (1) of the Internal Revenue Code, is subject to tax at the highest rate under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r), whichever taxable year is applicable, on its income as computed under section 641 of the Internal Revenue Code, as modified by s. 71.05 (6) to (12), (19) and (20).

AB262,32 Section 32. 71.17 (6) of the statutes is amended to read:

AB262,20,7 71.17 (6) Funeral trusts. If a qualified funeral trust makes the election under section 685 of the Internal Revenue Code for federal income tax purposes, that election applies for purposes of this chapter and each trust shall compute its own tax and shall apply the rates under s. 71.06 (1), (1m), (1n), (1p), or (1q), or (1r).

AB262,33 Section 33. 71.64 (9) (b) (intro.) of the statutes is amended to read:

AB262,20,12 71.64 (9) (b) (intro.) The department shall from time to time adjust the withholding tables to reflect any changes in income tax rates, any applicable surtax or any changes in dollar amounts in s. 71.06 (1), (1m), (1n), (1p), (1q), (1r), and (2) resulting from statutory changes, except as follows:

AB262,34 Section 34. 71.67 (5) (a) of the statutes is amended to read:

AB262,20,19 71.67 (5) (a) Wager winnings. A person holding a license to sponsor and manage races under s. 562.05 (1) (b) or (c) shall withhold from the amount of any payment of pari-mutuel winnings under s. 562.065 (3) (a) or (3m) (a) an amount determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r) if the amount of the payment is more than $1,000.

AB262,35 Section 35. 71.67 (5m) of the statutes is amended to read:

AB262,21,2 71.67 (5m) Withholding from payments to purchase assignment of lottery prize. A person that purchases an assignment of a lottery prize shall withhold from the amount of any payment made to purchase the assignment the amount that is determined by multiplying the amount of the payment by the highest rate applicable to individuals under s. 71.06 (1) (a) to (c), (1m), (1n), (1p), or (1q), or (1r). Subsection (5) (b), (c) and (d), as it applies to the amounts withheld under sub. (5) (a), applies to the amount withheld under this subsection.

AB262,21,3 (End)