JK&MES:jlg:jf
1999 - 2000 LEGISLATURE
September 14, 1999 - Introduced by Representatives Hahn, Kestell, Rhoades,
Ladwig, Hundertmark, Reynolds, Pettis, Lassa, Kelso, Waukau, Skindrud,
Freese, Sykora, Hasenohrl, Urban, Stone, Musser, Plouff, F. Lasee, Kedzie,
Plale, Owens, Gunderson, Seratti, Klusman, Goetsch, Olsen, Colon,
Ainsworth, Petrowski, Nass, Staskunas, Ryba, Brandemuehl, Jeskewitz,
Underheim, Huebsch, Meyerhofer
and Jensen, cosponsored by Senators
Drzewiecki, Wirch, Darling, Plache, Huelsman, Lazich, Schultz, Roessler
and Welch. Referred to Joint survey committee on Tax Exemptions.
AB456,1,4 1An Act to amend 71.05 (6) (b) 20. (intro.) and 71.07 (5) (a) 15.; and to create
271.05 (6) (b) 29. of the statutes; relating to: creating an individual income tax
3subtract modification for amounts spent on medical insurance premiums by
4certain individuals.
Analysis by the Legislative Reference Bureau
Under current law, there is an individual income tax deduction for 50% of the
amount paid by a person for a medical care insurance policy that covers the person,
his or her spouse and the person's dependents if the person's employer pays no
amount of money toward the person's medical care insurance.
This bill creates an individual income tax deduction for 100% of the amount
paid by an individual for a medical care insurance policy that covers the individual,
his or her spouse and the individual's dependents if the individual, other than a
self-employed person, has no employer or if the individual's employer pays no
amount of money toward the individual's medical care insurance.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
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:
AB456, s. 1
1Section 1. 71.05 (6) (b) 20. (intro.) of the statutes is amended to read:
AB456,2,62 71.05 (6) (b) 20. (intro.) For taxable years beginning on or after January 1,
31995, and before January 1, 2000, an amount paid by a person who is the employe
4of another person if the person's employer pays no amount of money toward the
5person's medical care insurance, for medical care insurance for the person, his or her
6spouse and the person's dependents, calculated as follows:
AB456, s. 2 7Section 2. 71.05 (6) (b) 29. of the statutes is created to read:
AB456,2,138 71.05 (6) (b) 29. For taxable years beginning after December 31, 1999, an
9amount paid by an individual, other than a person to whom subd. 19. applies, who
10has no employer or who is the employe of another person if the individual's employer
11pays no amount of money toward the individual's medical care insurance, for medical
12care insurance for the individual, his or her spouse and the individual's dependents,
13calculated as follows:
AB456,2,2214 a. One hundred percent of the amount paid by the individual for medical care
15insurance. In this subdivision, "medical care insurance" means a medical care
16insurance policy that covers the individual, his or her spouse and the individual's
17dependents and provides surgical, medical, hospital, major medical or other health
18service coverage, and includes payments made for medical care benefits under a
19self-insured plan, but "medical care insurance" does not include hospital indemnity
20policies or policies with ancillary benefits such as accident benefits or benefits for loss
21of income resulting from a total or partial inability to work because of illness,
22sickness or injury.
AB456,2,2523 b. From the amount calculated under subd. 29. a., subtract the amounts
24deducted from gross income for medical care insurance in the calculation of federal
25adjusted gross income.
AB456,3,12
1c. For an individual who is a nonresident or part-year resident of this state,
2multiply the amount calculated under subd. 29. a. or b., by a fraction the numerator
3of which is the individual's wages, salary, tips, unearned income and net earnings
4from a trade or business that are taxable by this state and the denominator of which
5is the individual's total wages, salary, tips, unearned income and net earnings from
6a trade or business. In this subd. 29. c., for married persons filing separately "wages,
7salary, tips, unearned income and net earnings from a trade or business" means the
8separate wages, salary, tips, unearned income and net earnings from a trade or
9business of each spouse, and for married persons filing jointly "wages, salary, tips,
10unearned income and net earnings from a trade or business" means the total wages,
11salary, tips, unearned income and net earnings from a trade or business of both
12spouses.
AB456,3,1513 d. Reduce the amount calculated under subd. 29. a., b. or c. to the individual's
14aggregate wages, salary, tips, unearned income and net earnings from a trade or
15business that are taxable by this state.
AB456, s. 3 16Section 3. 71.07 (5) (a) 15. of the statutes is amended to read:
AB456,3,2217 71.07 (5) (a) 15. The amount claimed as a deduction for medical care insurance
18under section 213 of the Internal Revenue Code that is exempt from taxation under
19s. 71.05 (6) (b) 17. to 20. and 29. and the amount claimed as a deduction for a
20long-term care insurance policy under section 213 (d) (1) (D) of the Internal Revenue
21Code, as defined in section 7702B (b) of the Internal Revenue Code that is exempt
22from taxation under s. 71.05 (6) (b) 26.
AB456, s. 4 23Section 4. Initial applicability.
AB456,3,2424 (1) This act first applies to taxable years beginning on January 1, 2000.
AB456,3,2525 (End)
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