LRB-3841/3
MES:cjs&jlg&ksh:km
1999 - 2000 LEGISLATURE
February 17, 2000 - Introduced by Representatives Powers, Ainsworth, Black,
Brandemuehl, Gronemus, Ladwig, Musser, Olsen, Ward
and Pettis,
cosponsored by Senators Roessler and Drzewiecki. Referred to Committee on
Ways and Means.
AB763,1,2 1An Act to amend 71.52 (6) of the statutes; relating to: modifying the definition
2of "income" under the homestead tax credit.
Analysis by the Legislative Reference Bureau
Under current law, "income" is defined under the homestead tax credit as the
sum of Wisconsin adjusted gross income (AGI) and a number of other items, to the
extent that the other items are not included in Wisconsin AGI, such as certain public
assistance payments, nontaxable interest received on state and municipal bonds and
certain retirement benefits. One of the retirement benefits that is currently included
in the definition of income is the gross amount of any pension or annuity.
Under the bill, the definition of "income" for homestead credit purposes, as it
applies to certain pensions and annuities, is modified such that nontaxable
recoveries of a claimant's investment in a pension or annuity is excluded from the
definition of "income" and only the taxable portion of the pension or annuity is
included.
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:
AB763, s. 1 3Section 1. 71.52 (6) of the statutes is amended to read:
AB763,3,17
171.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the
2following amounts, to the extent not included in Wisconsin adjusted gross income:
3maintenance payments (except foster care maintenance and supplementary
4payments excludable under section 131 of the internal revenue code Internal
5Revenue Code
), support money, cash public assistance (not including credit granted
6under this subchapter and amounts under s. 46.27), cash benefits paid by counties
7under s. 59.53 (21), retirement benefits under s. 71.05 (1) (a), the gross amount of any
8pension or annuity (including
railroad retirement benefits and veterans disability
9pensions
, all payments received under the federal social security act and veterans
10disability pensions)
Social Security Act, nontaxable interest received from the
11federal government or any of its instrumentalities nontaxable interest received on
12state or municipal bonds, worker's compensation, unemployment insurance, the
13gross amount of "loss of time" insurance, compensation and other cash benefits
14received from the United States for past or present service in the armed forces,
15scholarship and fellowship gifts or income, capital gains, gain on the sale of a
16personal residence excluded under section 121 of the internal revenue code Internal
17Revenue Code
, dividends, income of a nonresident or part-year resident who is
18married to a full-year resident, housing allowances provided to members of the
19clergy, the amount by which a resident manager's rent is reduced, nontaxable income
20of an American Indian, nontaxable income from sources outside this state and
21nontaxable deferred compensation life insurance proceeds received on account of the
22insured
. Intangible drilling costs, depletion allowances and depreciation, including
23first-year depreciation allowances under section 179 of the internal revenue code
24Internal Revenue Code, amortization, contributions to individual retirement
25accounts under section 219 of the internal revenue code, contributions to Keogh

1plans,
net operating loss carry-forwards and capital loss carry-forwards deducted
2in determining Wisconsin adjusted gross income shall be added to "income".
3"Income" does not include gifts from natural persons, cash reimbursement payments
4made under title XX of the federal social security act Social Security Act, surplus food
5or other relief in kind supplied by a governmental agency, the gain on the sale of a
6personal residence deferred under section 1034 of the internal revenue code Internal
7Revenue Code
or nonrecognized gain from involuntary conversions under section
81033 of the internal revenue code Internal Revenue Code. Amounts not included in
9adjusted gross income but added to "income" under this subsection in a previous year
10and repaid may be subtracted from income for the year during which they are repaid.
11Scholarship and fellowship gifts or income that are included in Wisconsin adjusted
12gross income and that were added to household income for purposes of determining
13the credit under this subchapter in a previous year may be subtracted from income
14for the current year in determining the credit under this subchapter. A marital
15property agreement or unilateral statement under ch. 766 has no effect in computing
16"income" for a person whose homestead is not the same as the homestead of that
17person's spouse.
AB763, s. 2 18Section 2. Initial applicability.
AB763,3,2219 (1) This act first applies to taxable years beginning on January 1 of the year
20in which this subsection takes effect, except that if this subsection takes effect after
21July 31, this act first applies to taxable years beginning on January 1 of the year
22following the year in which this subsection takes effect.
AB763,3,2323 (End)
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