LRB-3658/1
MES:kjf:pg
2005 - 2006 LEGISLATURE
September 15, 2005 - Introduced by Representative Loeffelholz, cosponsored by
Senator Leibham. Referred to Committee on Veterans Affairs.
AB668,1,2
1An Act to amend 71.07 (6e) (a) 5. of the statutes;
relating to: expanding
2eligibility for the veterans and surviving spouses property tax credit.
Analysis by the Legislative Reference Bureau
Under current law as created in the the budget bill,
2005 Wisconsin Act 25,
there exists a refundable individual income tax credit that may be claimed by certain
U.S. armed forces veterans and by the unremarried surviving spouses of certain
veterans or members of the national guard or reserves. The amount of the credit that
may be claimed is the amount of property taxes paid by a claimant on the claimant's
principal dwelling in the year to which the claim relates. Because the credit is
refundable, if the amount of the credit for which the claimant is eligible exceeds the
claimant's tax liability, the excess amount of the credit is paid to the claimant by
check.
Under this bill, the eligibility for the credit is expanded to ensure that if a
principal dwelling is owned jointly by spouses or as marital property, where only one
of the spouses is an eligible veteran, the credit may be claimed for the full amount
of taxes paid on the principal dwelling.
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:
AB668,2,193
71.07
(6e) (a) 5. "Property taxes" means real and personal property taxes,
4exclusive of special assessments, delinquent interest, and charges for service, paid
5by a claimant on the claimant's principal dwelling in this state during the taxable
6year for which credit under this subsection is claimed, less any property taxes paid
7which are properly includable as a trade or business expense under section
162 of the
8Internal Revenue Code. If the principal dwelling on which the taxes were paid is
9owned by 2 or more persons or entities as joint tenants or tenants in common
or is
10owned by spouses as marital property, "property taxes" is that part of property taxes
11paid that reflects the ownership percentage of the claimant
, except that this
12limitation does not apply to spouses who own the principal dwelling jointly or as
13marital property. If the principal dwelling is sold during the taxable year, the
14"property taxes" for the seller and buyer shall be the amount of the tax prorated to
15each in the closing agreement pertaining to the sale or, if not so provided for in the
16closing agreement, the tax shall be prorated between the seller and buyer in
17proportion to months of their respective ownership. "Property taxes" includes
18monthly parking permit fees in respect to a principal dwelling collected under s.
1966.0435 (3) (c).
AB668,2,2121
(1) This act first applies to taxable years beginning on January 1, 2005.
