AB413: Bill Text

LRB-3239/1

MES:hmh:km

2001 - 2002 LEGISLATURE

2001 Assembly BILL 413

May 18, 2001 - Introduced by Representatives Musser, Rhoades, Schneider, Hundertmark, Sykora, Ryba, Boyle, Wade, Suder, Freese, McCormick, Pettis, Lassa, Hahn, Owens, Turner, Bies, Kreibich, Nass, Jeskewitz, D. Meyer, Friske and Gunderson, cosponsored by Senators M. Meyer, Schultz, Rosenzweig and Darling. Referred to Committee on Veterans and Military Affairs. Referred to Joint survey committee on Tax Exemptions.

AB413,1,3 An Act to create 71.05 (1) (am) and 71.07 (6m) (c) 4. of the statutes; relating to: exempting from income taxation all military income received by active duty personnel and sunsetting the armed forces member tax credit.

Analysis by the Legislative Reference Bureau

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.

For taxable years that begin after December 31, 2000, this bill also exempts from taxation all military income received each year by an individual who is an active duty member of the U.S. armed forces.

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:

AB413, s. 1 Section 1. 71.05 (1) (am) of the statutes is created to read:

AB413,2,7 71.05 (1) (am) Military income. For taxable years that begin after December 31, 2000, all military income received each year by an individual who is on active duty in the Armed Forces of the United States, as that term is used in 26 USC 7701 (a) (15). In this paragraph, "military income" means an amount of basic, special, or incentive pay income, as those terms are used in 37 USC chapters 3 and 5, received by the individual from the federal government.

AB413, s. 2 Section 2. 71.07 (6m) (c) 4. of the statutes is created to read:

AB413,2,10 71.07 (6m) (c) 4. No new claims may be filed under this subsection for taxable years that begin after December 31, 2000.

AB413,2,11 (End)