AB411: Bill Text

LRB-2467/1

MES:jld:rs

2001 - 2002 LEGISLATURE

2001 Assembly BILL 411

May 18, 2001 - Introduced by Representatives Schneider, Musser, Kreuser, Gunderson, Townsend and Petrowski, cosponsored by Senator Schultz, by request of John Ellingson. Referred to Committee on Veterans and Military Affairs. Referred to Joint survey committee on Tax Exemptions.

AB411,1,4 An Act to create 71.05 (6) (b) 34. and 71.07 (6m) (c) 4. of the statutes; relating to: creating an individual income tax exemption for military income received by certain members of the U.S. armed forces and sunsetting the armed forces member tax credit.

Analysis by the Legislative Reference Bureau

For taxable years beginning after December 31, 2000, this bill exempts from taxation all military income received from the federal government by an individual who is on active duty in the U.S. armed forces and who is stationed outside of this state.

Under current law, the armed forces member tax credit allows an active duty member of the U.S. armed forces to claim a nonrefundable individual income tax credit of up to $200 in military income received each year from the federal government for services performed while the claimant is stationed outside of the United States. Because the credit is nonrefundable, no amount will be paid to the claimant by check if the credit he or she is due exceeds his or her tax liability.

Under this bill, no new claims may be made for the credit for taxable years that begin after December 31, 2000.

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 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:

AB411, s. 1 Section 1. 71.05 (6) (b) 34. of the statutes is created to read:

AB411,2,6 71.05 (6) (b) 34. For taxable years that begin after December 31, 2000, any amount of basic, special, or incentive pay income, as those terms are used in 37 USC chapters 3 and 5, received from the federal government by an individual who is on active duty in the U.S. armed forces, as defined in 26 USC 7701 (a) (15), and who is stationed outside of this state.

AB411, s. 2 Section 2. 71.07 (6m) (c) 4. of the statutes is created to read:

AB411,2,9 71.07 (6m) (c) 4. No new claims may be filed under this subsection for taxable years that begin after December 31, 2000.

AB411,2,10 (End)