SB512: Bill Text

LRB-3611/1

MES:jld:rs

2011 - 2012 LEGISLATURE

2011 Senate BILL 512

February 24, 2012 - Introduced by Senators Holperin, King, Hansen, Schultz and Taylor, cosponsored by Representatives Turner, Pope-Roberts, Ringhand, Bies and Kaufert. Referred to Committee on Economic Development and Veterans and Military Affairs.

SB512,1,3 An Act to amend 71.07 (6e) (a) 4. of the statutes; relating to: changing the calculation of the veterans and surviving spouses property tax credit as it relates to a claimant's principal dwelling.

Analysis by the Legislative Reference Bureau

Under current law, the veterans and surviving spouses property tax credit 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 (collectively, "veterans"). The credit is refundable. If the amount of the credit for which a claimant is eligible exceeds the claimant's income tax liability, the excess amount of the credit is paid to the claimant by check.

In general, the credit may be currently claimed in an amount equal to the property taxes paid by the claimant on the veteran's principal dwelling in the year to which the claim relates. The term "principal dwelling" is defined as any dwelling and the land surrounding it that is reasonably necessary for use of the dwelling as a primary dwelling of the claimant. Consistent with a similar definition that is used in calculating the homestead tax credit, the Department of Revenue interprets the part of the definition of principal dwelling relating to "the land surrounding it that is reasonably necessary for use of the dwelling as a primary dwelling" to be not more than one acre of land.

This bill changes the part of the definition of principal dwelling relating to the land surrounding the dwelling to be not more than three acres of land.

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:

SB512, s. 1 Section 1. 71.07 (6e) (a) 4. of the statutes is amended to read:

SB512,2,7 71.07 (6e) (a) 4. "Principal dwelling" has the meaning given in sub. (9) (a) 2. means any dwelling, whether owned or rented, and the land surrounding it, not exceeding 3 acres, that is reasonably necessary for use of the dwelling as a primary dwelling of the claimant and may include a part of a multidwelling or multipurpose building and a part of the land upon which it is built that is used as the claimant's primary dwelling.

SB512, s. 2 Section 2. Initial applicability.

SB512,2,12 (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.

SB512,2,13 (End)