LRB-0083/1
JS&MES&PG:mfd:kat
1997 - 1998 LEGISLATURE
February 24, 1998 - Introduced by Representative Black. Referred to Committee
on Ways and Means.
AB824,1,6 1An Act to renumber and amend 79.10 (5) (a); to amend 20.835 (3) (q), 71.07
2(3m) (c) 1., 71.07 (9) (b), 71.28 (2m) (c) 1., 71.47 (2m) (c) 1., 79.10 (7m) (b) 1. a.,
379.10 (11) (b) and 79.14; and to create 20.835 (3) (c) of the statutes; relating
4to:
the funding for the property tax credits and general school aid, increasing
5the farmland tax relief credit, increasing the school property tax credit for
6renters and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, total payments of the school levy tax credit are $469,305,000
in 1997. Under this bill, the total payments of that credit are $319,305,000
thereafter.
This bill provides that the amount to be distributed as general school aid in the
1997-98 fiscal year will be no more than $2,713,095,700.
Under current law, the school property tax credit may be claimed by certain
individuals. The credit is nonrefundable, meaning that the amount of the credit that
may be claimed may equal, but may not exceed, the amount of income taxes for which
the claimant would otherwise be liable. Generally, the credit that may be claimed
is calculated as an amount of up to 10% of the first $2,000 of property taxes paid, or
rent constituting property taxes that is paid.
Under this bill, the credit that may be claimed by renters is increased, and is
calculated as an amount of up to 17% of the first $2,000 of rent constituting property
taxes that is paid.

Under current law, the farmland tax relief credit may be claimed by individuals
and corporations if the farmland to which the claim relates meets certain acreage
and gross farm profits requirements. The credit is refundable, meaning that if the
amount of the credit to which the claimant is entitled exceeds the claimant's tax
liability, the difference is refunded to the claimant by check. In general, a claimant
under current law may claim a credit of 10% of the property taxes accrued on the
farmland in the taxable year to which the claim relates, up to a maximum claim of
$1,000, except that the amount of the credit and the amount of the farmland
preservation credit to which the claimant may also be entitled may not exceed 95%
of the property taxes accrued on the farm.
Under this bill, the farmland tax relief credit that may be claimed is 50% of the
property taxes accrued on the farmland in the taxable year to which the claim
relates. The $1,000 maximum credit is repealed.
Under current law, the funds available for payments of the lottery credit are the
lottery proceeds and interest minus certain expenditures. This bill adds
$861,000,000 in general purpose revenue to the amount of funds available for
payments of that credit.
For further information see the state and local 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:
AB824, s. 1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
AB824, s. 2 3Section 2. 20.835 (3) (c) of the statutes is created to read:
AB824,2,54 20.835 (3) (c) Lottery credit supplement. The amounts in the schedule to make
5payments under s. 79.10 (5).
AB824, s. 3 6Section 3. 20.835 (3) (q) of the statutes is amended to read:
AB824,3,5
120.835 (3) (q) Lottery credit. From the lottery fund, a sum sufficient all existing
2and projected lottery proceeds and interest for the fiscal year of the distribution, less
3the amount estimated to be expended under par. (r), sub. (2) (q) and ss. 20.455 (2) (r)
4and 20.566 (2) (r), and less the required reserve under s. 20.003 (5),
to make the
5payments under s. 79.10 (5).
AB824, s. 4 6Section 4. 71.07 (3m) (c) 1. of the statutes is amended to read:
AB824,3,117 71.07 (3m) (c) 1. Any claimant may claim against taxes otherwise due under
8this chapter 10% 50% of the property taxes accrued in the taxable year to which the
9claim relates, up to a maximum claim of $1,000, except that the credit under this
10subsection plus the credit under subch. IX may not exceed 95% of the property taxes
11accrued on the farm.
AB824, s. 5 12Section 5. 71.07 (9) (b) of the statutes is amended to read:
AB824,3,1713 71.07 (9) (b) Subject to the limitations under this subsection, a claimant may
14claim as a credit against, but not to exceed the amount of, taxes under s. 71.02, 10%
15of the first $2,000 of property taxes or 17% of the first $2,000 of rent constituting
16property taxes, or 10% of the first $1,000 of property taxes or 17% of the first $1,000
17of
rent constituting property taxes of a married person filing separately.
AB824, s. 6 18Section 6. 71.28 (2m) (c) 1. of the statutes is amended to read:
AB824,3,2319 71.28 (2m) (c) 1. Any claimant may claim against taxes otherwise due under
20this chapter 10% 50% of the property taxes accrued in the taxable year to which the
21claim relates, up to a maximum claim of $1,000, except that the credit under this
22subsection plus the credit under subch. IX may not exceed 95% of the property taxes
23accrued on the farm.
AB824, s. 7 24Section 7. 71.47 (2m) (c) 1. of the statutes is amended to read:
AB824,4,5
171.47 (2m) (c) 1. Any claimant may claim against taxes otherwise due under
2this chapter 10% 50% of the property taxes accrued in the taxable year to which the
3claim relates, up to a maximum claim of $1,000, except that the credit under this
4subsection plus the credit under subch. IX may not exceed 95% of the property taxes
5accrued on the farm.
AB824, s. 8 6Section 8. 79.10 (5) (a) of the statutes is renumbered 79.10 (5) and amended
7to read:
AB824,4,138 79.10 (5) Lottery credit. Each municipality shall receive, from the
9appropriation appropriations under s. 20.835 (3) (c) and (q), an amount determined
10by multiplying the school tax rate by the estimated fair market value, not exceeding
11the value determined under sub. (11), of every parcel of taxable property on which
12a principal dwelling is located in the municipality and for which a claim for the credit
13under sub. (9) (bm) is made by the owner of the principal dwelling.
AB824, s. 9 14Section 9. 79.10 (7m) (b) 1. a. of the statutes is amended to read:
AB824,4,1915 79.10 (7m) (b) 1. a. The amount determined under sub. (5) with respect to
16claims filed for which the town, village or city has furnished notice under sub. (1m)
17by March 1 shall be distributed from the appropriation appropriations under s.
1820.835 (3) (c) and (q) by the department of administration on the 4th Monday in
19March.
AB824, s. 10 20Section 10. 79.10 (11) (b) of the statutes is amended to read:
AB824,5,821 79.10 (11) (b) Before October 16, the department of administration shall
22determine the total funds available for distribution under the lottery credit in the
23following year and shall inform the joint committee on finance of that total. Total
24funds available for distribution shall be all existing and projected lottery proceeds
25and interest for the fiscal year of the distribution, less the amount estimated to be

1expended under ss. 20.455 (2) (r), 20.566 (2) (r) and 20.835 (2) (q) and (3) (r) and less
2the required reserve under s. 20.003 (5)
are the amounts in the appropriation
3accounts under s. 20.835 (3) (c) and (q) for the fiscal year of the distribution
. The joint
4committee on finance may revise the total amount to be distributed if it does so at
5a meeting that takes place before November 1. If the joint committee on finance does
6not schedule a meeting to take place before November 1, the total determined by the
7department of administration shall be the total amount estimated to be distributed
8under the lottery credit in the following year.
AB824, s. 11 9Section 11. 79.14 of the statutes is amended to read:
AB824,5,12 1079.14 School levy tax credit. The appropriation under s. 20.835 (3) (b) is
11$319,305,000 in 1994, 1995 and 1996 and is, $469,305,000 in 1997 and $319,305,000
12thereafter.
AB824, s. 12 13Section 12. Nonstatutory provisions.
AB824,5,1714 (1) General school aid. Notwithstanding section 20.001 (3) (d) of the statutes
15and sections 20.255 (2) (ac) and 121.15 (3m) of the statutes, in the 1997-98 fiscal year
16the amount distributed from the appropriation under section 20.255 (2) (ac) of the
17statutes shall be no more than $2,713,095,700.
AB824, s. 13 18Section 13. Initial applicability; revenue.
AB824,5,2119 (1) Lottery credit. The treatment of sections 20.835 (3) (c) and (q) and 79.10
20(5) (a), (7m) (b) 1. a. and (11) (b) of the statutes first applies to payments made during
211998.
AB824,5,2422 (2) Farmland tax relief credit. The treatment of sections 71.07 (3m) (c) 1.,
2371.28 (2m) (c) 1. and 71.47 (2m) (c) 1. of the statutes first applies to taxable years
24beginning on January 1 of the year in which this subsection takes effect.
AB824,6,3
1(3) School property tax credit. The treatment of section 71.07 (9) (b) of the
2statutes first applies to taxable years beginning on January 1 of the year in which
3this subsection takes effect.
AB824,6,44 (End)
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