SB508: Bill Text

LRB-0839/2

MES:kjf:ph

2009 - 2010 LEGISLATURE

2009 Senate BILL 508

February 2, 2010 - Introduced by Senators Taylor, Coggs and Carpenter, cosponsored by Representatives Toles, Fields, Berceau, Zepnick and Sinicki. Referred to Committee on Health, Health Insurance, Privacy, Property Tax Relief, and Revenue.

SB508,1,3 An Act to create 71.05 (6) (b) 47. of the statutes; relating to: exempting from income taxation certain employer-paid fringe benefits for mass transit expenses.

Analysis by the Legislative Reference Bureau

This bill creates an individual income tax exemption for the cost of a public transportation pass provided by an employer to an employee, or for the money paid by an employer to an employee to purchase such a pass, of up to $115 per month. Under current federal law, for taxable years beginning in 2008, such passes, or funds to pay for such passes, provided to an employee that have a value of $115 per month or less are exempt from the income tax. This federal exemption applies for Wisconsin purposes.

This bill first applies to taxable years beginning on January 1, 2011, except that if the bill takes effect after July 31, 2011, it first applies to taxable years beginning on January 1, 2012.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the 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:

SB508, s. 1 Section 1. 71.05 (6) (b) 47. of the statutes is created to read:

SB508,2,5 71.05 (6) (b) 47. Any amount paid by an employer to an employee for the purchase of a public transportation pass, token, or fare card, or the value of such a pass, token, or fare card provided by an employer to an employee, up to $115 per month.

SB508, s. 2 Section 2. Initial applicability.

SB508,2,9 (1) This act first applies to taxable years beginning on January 1, 2011, except that if this subsection takes effect after July 31, 2011, this act first applies to taxable years beginning on January 1, 2012.

SB508,2,10 (End)