LRB-0784/1
MES:wlj:rs
2007 - 2008 LEGISLATURE
January 8, 2007 - Introduced by Senators Kedzie, Darling, Roessler, Kanavas, A.
Lasee, Lazich
and Schultz, cosponsored by Representatives Lothian, Nass,
Boyle, Ziegelbauer, Jeskewitz, Kerkman, Gundrum, Pridemore, Gunderson,
Hahn, Musser, Nerison, Vukmir, Suder, Van Roy, Davis, Vos, LeMahieu,
Albers, Nygren, Townsend, Bies
and Ott. Referred to Joint Survey
Committee on Tax Exemptions.
SB4,1,3 1An Act to amend 71.03 (2) (a) 1. and 71.05 (23) (b) 3.; and to create 71.05 (23)
2(b) 4. and 71.05 (23) (b) 5. of the statutes; relating to: increasing the amount
3of the individual income tax personal exemption for certain older taxpayers.
Analysis by the Legislative Reference Bureau
Under current law, an individual income tax personal exemption exists in the
amount of $700 for each taxpayer who is required to file an income tax return and
$700 for the taxpayer's spouse, except if the spouse is filing separately or as a head
of household. A taxpayer may also claim a $700 exemption for each dependent for
whom he or she is entitled to claim an exemption under the Internal Revenue Code.
In general, an additional exemption of $250 may be claimed by a taxpayer who has
reached the age of 65 before the close of the taxable year to which his or her tax return
relates.
This bill increases the additional exemption that may be claimed by taxpayers
who reach the age of 70 or 75 before the close of the taxable year to which his or her
tax return relates. Under the bill, in general, an additional exemption of $300 may
be claimed by a taxpayer who has reached the age of 70 before the close of the taxable
year to which his or her tax return relates and an additional exemption of $350 may
be claimed by a taxpayer who has reached the age of 75 before the close of the taxable
year to which his or her tax return relates.
This bill will be referred to the Joint Survey Committee on Tax Exemptions for
a detailed analysis, which will be printed as an appendix to this 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:
SB4, s. 1 1Section 1. 71.03 (2) (a) 1. of the statutes is amended to read:
SB4,2,122 71.03 (2) (a) 1. Every individual domiciled in this state during the entire
3taxable year who has a gross income at or above a threshold amount which shall be
4determined annually by the department of revenue. The threshold amounts shall
5be determined for categories of individuals based on filing status and age, and shall
6include categories for single individuals; individuals who file as a head of household;
7married couples who file jointly; and married persons who file separately. The
8threshold amounts shall also be determined by taking into account the exemption
9amounts in s. 71.05 (23) (b) 1., 3., 4., and 5.
The department of revenue shall establish
10a threshold amount for each category of individual at an amount at which no
11individual in that category whose gross income is below that amount has a state
12income tax liability.
SB4, s. 2 13Section 2. 71.05 (23) (b) 3. of the statutes is amended to read:
SB4,2,1914 71.05 (23) (b) 3. An Except for a taxpayer or his or her spouse who claims the
15exemption under subd. 4. or 5., an
additional exemption of $250 if the taxpayer has
16reached the age of 65 before the close of the taxable year to which his or her tax return
17relates and $250 for the taxpayer's spouse if he or she has reached the age of 65 before
18the close of the taxable year to which his or her tax return relates, except if the spouse
19is filing separately or as a head of household.
SB4, s. 3 20Section 3. 71.05 (23) (b) 4. of the statutes is created to read:
SB4,3,6
171.05 (23) (b) 4. Except for a taxpayer or his or her spouse who claims the
2exemption under subd. 5., an additional exemption of $300 if the taxpayer has
3reached the age of 70 before the close of the taxable year to which his or her tax return
4relates and $300 for the taxpayer's spouse if he or she has reached the age of 70 before
5the close of the taxable year to which his or her tax return relates, except if the spouse
6is filing separately or as a head of household.
SB4, s. 4 7Section 4. 71.05 (23) (b) 5. of the statutes is created to read:
SB4,3,128 71.05 (23) (b) 5. An additional exemption of $350 if the taxpayer has reached
9the age of 75 before the close of the taxable year to which his or her tax return relates
10and $350 for the taxpayer's spouse if he or she has reached the age of 75 before the
11close of the taxable year to which his or her tax return relates, except if the spouse
12is filing separately or as a head of household.
SB4, s. 5 13Section 5. Initial applicability.
SB4,3,1714 (1) This act first applies to taxable years beginning on January 1 of the year
15in which this subsection takes effect, except that if this subsection takes effect after
16July 31 this act first applies to taxable years beginning on January 1 of the year
17following the year in which this subsection takes effect.
SB4,3,1818 (End)
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