SB449: Bill Text

LRB-1842/1

JK&MES:jld:jf

2003 - 2004 LEGISLATURE

2003 Senate BILL 449

February 10, 2004 - Introduced by Senators Welch, Roessler and Lassa, cosponsored by Representatives Olsen, Musser, Albers, Gunderson, Hines and McCormick. Referred to Committee on Homeland Security, Veterans and Military Affairs and Government Reform.

SB449,1,4 An Act to amend 71.08 (1) (intro.) and 71.10 (4) (i); and to create 20.835 (2) (cb) and 71.07 (5d) of the statutes; relating to: creating a refundable individual income tax credit for sales and use taxes paid to replace damaged or destroyed tangible personal property and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill creates a refundable individual income tax credit that is equal to the amount of the sales and use taxes that an individual paid in the taxable year to which the claim relates on the purchase of tangible personal property that the individual purchased to replace tangible personal property that was damaged or destroyed by fire, flood, or natural disaster. No person may claim the tax credit unless the governor declares a state of emergency or disaster with regards to the county, city, village, or town in which the damaged or destroyed tangible personal property was located and the total value of all of the claimant's damaged or destroyed tangible personal property exceeds $4,999. If the amount of the credit exceeds the individual's tax liability, the state will issue a check to the individual for the excess amount.

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:

SB449, s. 1 Section 1. 20.835 (2) (cb) of the statutes is created to read:

SB449,2,3 20.835 (2) (cb) Damaged tangible personal property credit. A sum sufficient to make the payments under s. 71.07 (5d).

SB449, s. 2 Section 2. 71.07 (5d) of the statutes is created to read:

SB449,2,6 71.07 (5d) Damaged tangible personal property credit. (a) Definition. In this subsection, "claimant" means an individual who files a claim under this subsection.

SB449,2,17 (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 the amount of any sales taxes imposed under s. 77.52 and use taxes imposed under s. 77.53 that the claimant paid in the taxable year to which the claim relates on the purchase of tangible personal property that the claimant purchased to replace tangible personal property that was damaged or destroyed by fire, flood, or natural disaster. If the allowable amount of the claim under this subsection exceeds the income taxes otherwise due on the claimant's income, the amount of the claim that is not used to offset those taxes shall be certified by the department of revenue to the department of administration for payment by check, share draft, or other draft drawn from the appropriation under s. 20.835 (2) (cb).

SB449,2,19 (c) Limitations. 1. No claim may be allowed under this subsection unless all of the following apply:

SB449,2,22 a. The governor declares a state of emergency or disaster with regards to the county, city, village, or town in which the damaged or destroyed tangible personal property was located.

SB449,2,25 b. The total value of all of the claimant's damaged or destroyed tangible personal property exceeds $4,999 and the claimant submits evidence of such value with the return.

SB449,3,10 2. For a claimant who is a nonresident or 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 nonresidents or part-year residents 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.

SB449,3,12 3. No credit may be allowed under this subsection unless it is claimed within the time period under s. 71.75 (2).

SB449,3,14 (d) Administration. Subsection (5m) (d), as it applies to the credit under that subsection, applies to the credit under this subsection.

SB449, s. 3 Section 3. 71.08 (1) (intro.) of the statutes, as affected by 2003 Wisconsin Act 99, is amended to read:

SB449,3,25 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), (3t), (5d), (6), and (9e), 71.28 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), and (3t) and 71.47 (1dd), (1de), (1di), (1dj), (1dL), (1ds), (1dx), (1fd), (2m), (3), and (3t) 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:

SB449, s. 4 Section 4. 71.10 (4) (i) of the statutes is amended to read:

SB449,4,7 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), damaged tangible personal property credit under s. 71.07 (5d), earned income tax credit under s. 71.07 (9e), estimated tax payments under s. 71.09, and taxes withheld under subch. X.

SB449, s. 5 Section 5. Initial applicability.

SB449,4,12 (1) This act first applies to taxable years beginning on January 1 of the year in which this subsection takes effect, except that if this subsection takes effect after July 31 this act first applies to taxable years beginning on January 1 of the year following the year in which this subsection takes effect.

SB449,4,13 (End)