SB278: Bill Text

7. The bill creates a special committee to be called the Commission on Municipal Employer Health Care Coverage Costs (MEHCC), which consists of the governor or his or her designee; the secretary of revenue or his or her designee; the secretary of administration or his or her designee; one member of the assembly, appointed by the speaker of the assembly; one member of the senate, appointed by the president of the senate; one member who represents labor organizations, appointed by the governor; and one member who represents the public interest, appointed by the governor. Under the bill, MEHCC must study the feasibility of allowing all local government and school district employers to provide their employees with health insurance coverage under the health care coverage plan for state employees that is administered by the Group Insurance Board and must report its findings and recommendations no later than December 31, 2004.

8. The bill creates a special committee to be called the Commission on State and Local Tax Structure, which consists of members appointed by the governor. The commission must study this state's state and local tax structure and determine the tax burden, by income category, on Wisconsin residents and must report its findings and recommendations no later than January 1, 2005.

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:

SB278, s. 1 Section 1. 16.406 of the statutes is created to read:

SB278,4,12 16.406 Request to issue certain general obligation debt. Annually, on or before September 1, but not after 2005, the department shall prepare an estimate of the net balances of the general fund for the fiscal year corresponding with the year in which the department makes an estimate under this section. Copies of the estimates shall be provided to the cochairpersons of the joint committee on finance and to the legislative fiscal bureau. If the estimated net general fund balance for the fiscal year, as certified by the department, is less than the estimated net general fund balance for that fiscal year as shown in the most recent schedule under s. 20.005 (1), the secretary of administration may request that the building commission refund the whole or any part of any unpaid indebtedness used to finance tax-supported or self-amortizing facilities from moneys appropriated under s. 20.866 (2) (xe).

SB278, s. 2 Section 2. 20.835 (2) (e) of the statutes is created to read:

SB278,4,15 20.835 (2) (e) Senior citizen tax credit. A sum sufficient to pay the claims approved under s. 71.07 (8m).

SB278, s. 3 Section 3. 20.835 (3) (c) of the statutes is created to read:

SB278,4,18 20.835 (3) (c) Municipal purpose levy credit. A sum sufficient to make payments under s. 79.155.

SB278, s. 4 Section 4. 20.835 (3) (c) of the statutes, as created by 2003 Wisconsin Act .... (this act), is repealed.

SB278, s. 5 Section 5. 20.866 (2) (xe) of the statutes is amended to read:

SB278,5,15 20.866 (2) (xe) Building commission; refunding tax-supported and self-amortizing general obligation debt incurred before June 30, 2003 2005. From the capital improvement fund, a sum sufficient to refund the whole or any part of any unpaid indebtedness used to finance tax-supported or self-amortizing facilities. The state may contract public debt in an amount not to exceed $75,000,000 $425,000,000 for this purpose. Such indebtedness shall be construed to include any premium and interest payable with respect thereto. Debt incurred by this paragraph shall be incurred before June 30, 2003 2005, but only pursuant to a request by the secretary of administration under s. 16.406, and shall be repaid under the appropriations providing for the retirement of public debt incurred for tax-supported and self-amortizing facilities in proportional amounts to the purposes for which the debt was refinanced.

SB278, s. 6 Section 6. 71.07 (8m) of the statutes is created to read:

SB278,5,17 71.07 (8m) Senior citizen tax credit. (a) Definitions. In this subsection:

SB278,5,24 1. "Claimant" means an individual who files a claim under this subsection, is at least 65 years old in the year to which the claim relates, and who resides in and owns his or her principal dwelling, which must be located in this state. If 2 individuals of a household are able to meet the qualifications for a claimant, they may determine between them as to who the claimant is. If they are unable to agree, the matter shall be referred to the secretary of revenue and the secretary's decision is final.

SB278,6,2 2. "Household" means a claimant and an individual related to the claimant as husband or wife.

SB278,6,3 3. "Household income" has the meaning given in s. 71.52 (5).

SB278,6,4 4. "Income" has the meaning given in s. 71.52 (6).

SB278,6,11 (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s. 71.02 an amount that is calculated under this paragraph, and if the allowable amount of the claim exceeds the income taxes otherwise due on the claimant's income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the claimant by check, share draft, or other draft from the appropriation under s. 20.835 (2) (e):

SB278,6,13 1. If the claimant's household income is $45,000 or less in the year to which the claim relates, the claimant may claim a credit of $120.

SB278,6,16 2. If the claimant's household income is greater than $45,000 but less than $85,000 in the year to which the claim relates, the claimant may claim a credit calculated as follows:

SB278,6,19 a. Calculate the value of a fraction, the denominator of which is $40,000 and the numerator of which is the difference between the claimant's household income and $45,000.

SB278,6,20 b. Subtract from 1.0 the amount that is calculated under this subd. 2. a.

SB278,6,21 c. Multiply $120 by the amount that is calculated under this subd. 2. b.

SB278,6,23 (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB278,7,8 2. For a claimant who is a part-year resident of this state and who is a single person or a married person filing a separate return, multiply the credit for which the claimant is eligible under par. (b) by a fraction the numerator of which is the individual's Wisconsin adjusted gross income and the denominator of which is the individual's federal adjusted gross income. If a claimant is married and files a joint return, and if the claimant or the claimant's spouse, or both, are part-year residents of this state, or if the claimant's spouse is a nonresident of this state, multiply the credit for which the claimant is eligible under par. (b) by a fraction the numerator of which is the couple's joint Wisconsin adjusted gross income and the denominator of which is the couple's joint federal adjusted gross income.

SB278,7,9 3. Nonresidents of this state are not eligible for the credit under this subsection.

SB278,7,11 4. No credit may be claimed under this subsection if the claimant's household income is $85,000 or more.

SB278,7,13 5. No credit may be claimed under this subsection for a taxable year that begins after December 31, 2003.

SB278,7,14 6. Only one claim may be filed each taxable year per household.

SB278,7,19 (d) Administration. The department may enforce the credit under this subsection and may take any action, conduct any proceeding, and proceed as it is authorized in respect to taxes under this chapter. The income tax provisions in this chapter relating to assessments, refunds, appeals, collection, interest, and penalties apply to the credit under this subsection.

SB278, s. 7 Section 7. 71.08 (1) (intro.) of the statutes is amended to read:

SB278,8,4 71.08 (1) Imposition. (intro.) If the tax imposed on a natural person, married couple filing jointly, trust or estate under s. 71.02, not considering the credits under ss. 71.07 (1), (2dd), (2de), (2di), (2dj), (2dL), (2dr), (2ds), (2dx), (2fd), (3m), (3s), (6), (6s), (8m), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and (3) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m) and (3) and subchs. VIII and IX and payments to other states under s. 71.07 (7), is less than the tax under this section, there is imposed on that natural person, married couple filing jointly, trust or estate, instead of the tax under s. 71.02, an alternative minimum tax computed as follows:

SB278, s. 8 Section 8. 71.10 (4) (i) of the statutes is amended to read:

SB278,8,11 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland preservation credit under subch. IX, homestead credit under subch. VIII, farmland tax relief credit under s. 71.07 (3m), farmers' drought property tax credit under s. 71.07 (2fd), senior citizen tax credit under s. 71.07 (8m), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB278, s. 9 Section 9 . 71.52 (6) of the statutes is amended to read:

SB278,9,25 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the internal revenue code Internal Revenue Code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), except as otherwise provided in this subsection the gross amount of any pension or annuity (including railroad retirement benefits,; all payments received under the federal social security act Social Security Act, except that if such payments represent at least 50% of a claimant's Wisconsin adjusted gross income, any payments received under the Social Security Act in excess of $2,500; and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment insurance, the gross amount of "loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the internal revenue code Internal Revenue Code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the internal revenue code Internal Revenue Code, amortization, contributions to individual retirement accounts under section 219 of the internal revenue code Internal Revenue Code, contributions to Keogh plans, net operating loss carry-forwards and capital loss carry-forwards deducted in determining Wisconsin adjusted gross income shall be added to "income". "Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal social security act Social Security Act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the internal revenue code Internal Revenue Code or nonrecognized gain from involuntary conversions under section 1033 of the internal revenue code Internal Revenue Code. Amounts not included in adjusted gross income but added to "income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter. A marital property agreement or unilateral statement under ch. 766 has no effect in computing "income" for a person whose homestead is not the same as the homestead of that person's spouse.

SB278, s. 10 Section 10 . 71.52 (6) of the statutes, as affected by 2003 Wisconsin Act .... (this act), is amended to read:

SB278,11,24 71.52 (6) "Income" means the sum of Wisconsin adjusted gross income and the following amounts, to the extent not included in Wisconsin adjusted gross income: maintenance payments (except foster care maintenance and supplementary payments excludable under section 131 of the Internal Revenue Code), support money, cash public assistance (not including credit granted under this subchapter and amounts under s. 46.27), cash benefits paid by counties under s. 59.53 (21), except as otherwise provided in this subsection the gross amount of any pension or annuity (including railroad retirement benefits; all payments received under the federal Social Security Act, except that if such payments represent at least 50% of a claimant's Wisconsin adjusted gross income, any payments received under the Social Security Act in excess of $2,500; and veterans disability pensions), nontaxable interest received from the federal government or any of its instrumentalities, nontaxable interest received on state or municipal bonds, worker's compensation, unemployment insurance, the gross amount of "loss of time" insurance, compensation and other cash benefits received from the United States for past or present service in the armed forces, scholarship and fellowship gifts or income, capital gains, gain on the sale of a personal residence excluded under section 121 of the Internal Revenue Code, dividends, income of a nonresident or part-year resident who is married to a full-year resident, housing allowances provided to members of the clergy, the amount by which a resident manager's rent is reduced, nontaxable income of an American Indian, nontaxable income from sources outside this state and nontaxable deferred compensation. Intangible drilling costs, depletion allowances and depreciation, including first-year depreciation allowances under section 179 of the Internal Revenue Code, amortization, contributions to individual retirement accounts under section 219 of the Internal Revenue Code, contributions to Keogh plans, net operating loss carry-forwards and capital loss carry-forwards deducted in determining Wisconsin adjusted gross income shall be added to "income". "Income" does not include gifts from natural persons, cash reimbursement payments made under title XX of the federal Social Security Act, surplus food or other relief in kind supplied by a governmental agency, the gain on the sale of a personal residence deferred under section 1034 of the Internal Revenue Code or nonrecognized gain from involuntary conversions under section 1033 of the Internal Revenue Code. Amounts not included in adjusted gross income but added to "income" under this subsection in a previous year and repaid may be subtracted from income for the year during which they are repaid. Scholarship and fellowship gifts or income that are included in Wisconsin adjusted gross income and that were added to household income for purposes of determining the credit under this subchapter in a previous year may be subtracted from income for the current year in determining the credit under this subchapter. A marital property agreement or unilateral statement under ch. 766 has no effect in computing "income" for a person whose homestead is not the same as the homestead of that person's spouse.

SB278, s. 11 Section 11. 71.54 (2m) of the statutes is created to read:

SB278,12,4 71.54 (2m) Multiplier for 2004. For claims filed in 2005, based on property taxes accrued or rent constituting property taxes accrued during 2004, a claimant may claim a credit under this section in an amount equal to the credit amount that the claimant is eligible for under sub. (1) (f), multiplied by 120 percent.

SB278, s. 12 Section 12 . 71.58 (7) (a) of the statutes is amended to read:

SB278,12,10 71.58 (7) (a) For an individual, means income as defined under s. 71.52 (6), 2001 stats., plus nonfarm business losses, plus amounts under s. 46.27, less net operating loss carry-forwards, less first-year depreciation allowances under section 179 of the internal revenue code and less the first $25,000 of depreciation expenses in respect to the farm claimed by all of the individuals in a household.

SB278, s. 13 Section 13 . 71.58 (7) (a) of the statutes, as affected by 2003 Wisconsin Act .... (this act), is amended to read:

SB278,12,17 71.58 (7) (a) For an individual, means income as defined under s. 71.52 (6), 2001 stats., plus nonfarm business losses, plus amounts under s. 46.27, less net operating loss carry-forwards, less first-year depreciation allowances under section 179 of the internal revenue code and less the first $25,000 of depreciation expenses in respect to the farm claimed by all of the individuals in a household.

SB278, s. 14 Section 14. 74.09 (3) (b) 6. of the statutes is amended to read:

SB278,12,22 74.09 (3) (b) 6. The amount of the credit under s. 79.10 (5) allocable to the property for the previous year and the current year, and the percentage change between those years, and the amount of the credit under s. 79.155 (3) allocable to the property for the current year.

SB278, s. 15 Section 15. 74.09 (3) (b) 6. of the statutes, as affected by 2003 Wisconsin Act .... (this act), is repealed and recreated to read:

SB278,13,3 74.09 (3) (b) 6. The amount of the credit under s. 79.10 (5) allocable to the property for the previous year and the current year, and the percentage change between those years.

SB278, s. 16 Section 16. 79.155 of the statutes is created to read:

SB278,13,5 79.155 Municipal purpose levy credit. (1) Definitions. In this section:

SB278,13,7 (a) "Municipal purpose levy" means the amount of total town, village, or city taxes, excluding total tax increments.

SB278,13,10 (b) "Total tax increments" means total tax increments as defined by rule, and as adjusted, by the department of revenue, based on the total tax increments reported on the statement of taxes filed by the taxation district with the department.

SB278,13,14 (c) "Total town, village, or city taxes" means total town, village, or city taxes as defined by rule, and as adjusted, by the department of revenue, based on the total town, village, or city taxes reported on the statement of taxes filed by the taxation district with the department.

SB278,13,19 (2) Distribution to municipalities. On or before March 28, 2005, each municipality that increases its municipal purpose levy for 2004 by an amount that is 2 percent or less of the amount of the municipality's municipal purpose levy for 2003 shall receive, from the appropriation under s. 20.835 (3) (c), an amount determined as follows:

SB278,13,23 (a) If the municipality's municipal purpose levy for 2004 is the same amount as the municipality's municipal purpose levy for 2003, an amount equal to the amount of the taxes levied by the municipality for municipal purposes in 2004, multiplied by 25 percent.

SB278,14,3 (b) If the municipality increased its municipal purpose levy for 2004 by an amount that is greater than 0 percent, but not more than 2 percent, of the amount of the municipality's municipal purpose levy for 2003, an amount equal to the amount of the taxes levied by the municipality for municipal purposes in 2004, multiplied by 12.5 percent.

SB278,14,12 (3) Credit against tax liability. (a) For the property tax assessments as of January 1, 2004, every property taxpayer in a municipality that is eligible for a distribution under sub. (2) shall receive a tax credit in an amount determined by applying the percentage of the amount of the value of the property assessed to the taxpayer to the amount of the distribution to be made to the municipality under sub. (2), except that no taxpayer may receive a credit that is greater than the total amount of property taxes to be paid on each parcel for which tax is levied for that year by that taxpayer. The credit under this paragraph shall reduce the property taxes otherwise payable by the taxpayer.

SB278,14,14 (b) On or before March 1, 2005, each taxation district shall notify the department of revenue of the total amount of credits allocated under par. (a).

SB278,14,18 (4) Corrections. (a) If the department of administration or the department of revenue determines by June 30, 2005, that there was an overpayment in the distribution to a municipality under sub. (2), the overpayment shall be corrected by reducing the amount of the municipality's subsequent payment under s. 79.035.

SB278,14,22 (b) If the department of administration or the department of revenue determines by June 30, 2005, that there was an underpayment in the distribution to a municipality under sub. (2), the underpayment shall be corrected by increasing the amount of the municipality's subsequent payment under s. 79.035.

SB278,14,24 (5) Appropriation. The amount that is estimated to be expended from the appropriation under s. 20.835 (3) (c) is $350,000,000 in the 2004-05 fiscal year.

SB278, s. 17 Section 17. 79.155 of the statutes, as created by 2003 Wisconsin Act .... (this act), is repealed.

SB278, s. 18 Section 18. 234.623 (5) of the statutes is amended to read:

SB278,15,6 234.623 (5) The participant earned no more than $20,000 $33,500 in income, as defined under s. 71.52 (5), in the year prior to the year in which the property taxes or special assessments for which the loan is made are due.

SB278, s. 19 Section 19. 234.625 (1) of the statutes is amended to read:

SB278,15,19 234.625 (1) The authority shall enter into agreements with participants and their co-owners to loan funds to pay property taxes and special assessments on their qualifying dwelling units. The maximum loan under ss. 234.621 to 234.626 in any one year is limited to the lesser of $2,500 $3,200 or the amount obtained by adding the property taxes levied on the qualifying dwelling unit for the year for which the loan is sought, the special assessments levied on the dwelling unit, and the interest and penalties for delinquency attributable to the property taxes or special assessments. Loans shall bear interest at a rate equal to the prime lending rate at the time the rate is set, as reported by the federal reserve board in federal reserve statistical release H. 15, plus 1%. The executive director shall set the rate no later than October 15 of each year, and that rate shall apply to loans made in the following year.

SB278, s. 20 Section 20. Nonstatutory provisions.

SB278,15,21 (1) Commission on municipal employer health care coverage costs.

SB278,15,23 (a) In this subsection, "municipal employer" has the meaning given in section 111.70 (1) (j) of the statutes.

SB278,16,3 (b) There is created a special committee to be called the commission on municipal employer health care coverage costs. The commission shall consist of the following members:

SB278,16,4 1. The governor or his or her designee.

SB278,16,5 2. The secretary of revenue or his or her designee.

SB278,16,6 3. The secretary of administration or his or her designee.

SB278,16,7 4. One member of the assembly, appointed by the speaker of the assembly.

SB278,16,8 5. One member of the senate, appointed by the president of the senate.

SB278,16,10 6. One member who represents labor organizations, as defined in section 111.70 (1) (h) of the statutes, appointed by the governor.

SB278,16,11 7. One member who represents the public interest, appointed by the governor.

SB278,16,13 (c) The governor shall call the first meeting of the commission and the commission, at that meeting, shall select a chairperson.

SB278,16,14 (d) The department of administration shall do all of the following:

SB278,16,15 1. Provide all necessary administrative support services to the commission.

SB278,16,19 2. Reimburse members of the commission for their actual and necessary expenses incurred in carrying out their functions from the appropriation under section 20.505 (4) (ba) of the statutes, within the budget of the committee authorized under section 16.40 (14) of the statutes.

SB278,16,22 (e) The commission shall study the feasibility of allowing municipal employers to provide their employees with health insurance coverage under section 40.51 (6) of the statutes.

SB278,17,2 (f) No later than December 31, 2004, the commission shall report its findings and recommendations to the governor, and to the legislature in the manner provided in section 13.172 (2) of the statutes. Upon submittal of its report, the commission ceases to exist.

SB278,17,6 (2) Date of school aid calculation. Notwithstanding section 121.15 (4) (b) of the statutes, the department of public instruction shall calculate the total amount of school aid that each school district will receive in the 2003-04 school year by November 1, 2003.

SB278,17,10 (3) Date of levy amount. Notwithstanding section 120.12 (3) and (4) of the statutes, each school board of a common or union high school district shall determine the amount necessary to be levied under section 120.12 (3) and (4) of the statutes for the 2003-04 school year by November 30, 2003.

SB278,17,11 (4) Commission on state and local tax structure.