Analysis by the Legislative Reference Bureau
This bill creates a refundable individual income tax credit for an increase in the
property taxes that a person who has reached age 65 pays for a primary residence
owned in this state. The credit amount is calculated as the difference between the
property taxes levied on the claimant's primary residence in the year to which the
claim relates and those property taxes in the base year.
Under the bill, the “base year” is the most recent of either of the following years:
1) if a claimant has not moved to a different primary residence after first claiming
the credit, the year immediately before the year in which the claimant first claimed
the credit or 2) if a claimant moves to a different primary residence after first
claiming the credit, the first year for which property taxes are levied on that different
primary residence for the claimant. To claim the credit, the claimant must have paid
the property taxes that are the basis of the calculation. The maximum credit for a
taxable year allowed under the bill is $500.
Because the credit is refundable, if the amount of the claim for which a claimant
is eligible exceeds the claimant's tax liability, the difference will be paid to the
claimant by check.

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:
AB235,1 1Section 1. 20.835 (2) (fm) of the statutes is created to read:
AB235,2,32 20.835 (2) (fm) Elder property tax increase credit. A sum sufficient to pay the
3claims approved under s. 71.07 (11).
AB235,2 4Section 2. 71.07 (9) (cm) of the statutes is created to read:
AB235,2,75 71.07 (9) (cm) No credit may be allowed under this subsection for an amount
6of property taxes claimed as a credit under sub. (11) that relates to the same taxable
7year for which a claim is made under this subsection.
AB235,3 8Section 3. 71.07 (11) of the statutes is created to read:
AB235,2,109 71.07 (11) Elder property tax increase credit. (a) Definitions. In this
10subsection:
AB235,2,1111 1. “Base year” means the most recent of any of the following years:
AB235,2,1412 a. If the claimant has not moved to a different principal dwelling after first
13filing a claim under this subsection, the year immediately preceding the year in
14which the claimant first files a claim under this subsection.
AB235,2,1715 b. If a claimant moves to a different principal dwelling after the year in which
16the claimant first files a claim under this subsection, the first year for which the
17claimant has property taxes levied on that different principal dwelling.
AB235,2,2118 2. “Claimant” means an individual who has reached age 65 by December 31 of
19the taxable year to which the claim relates, or an individual and his or her spouse
20filing a joint return, either of whom has reached age 65 by December 31 of the taxable
21to which the claim relates, and who files a claim under this subsection.
AB235,3,1
13. “Household” means an individual and his or her spouse.
AB235,3,72 4. “Principal dwelling” means a dwelling that is owned and used by the
3claimant as a primary dwelling for the entire taxable year for which the credit under
4this subsection is claimed and the land surrounding it that is reasonably necessary
5for use of the dwelling as a primary dwelling, including a part of a multidwelling or
6multipurpose building and a part of the land upon which it is built that is used as
7the claimant's primary dwelling.
AB235,3,238 5. “Property taxes” means the real and personal property taxes, exclusive of
9special assessments, delinquent interest, and charges for service, paid by a claimant,
10and the claimant's spouse if filing a joint return, levied on the claimant's principal
11dwelling in this state less any property taxes levied that are properly includable as
12a trade or business expense under section 162 of the Internal Revenue Code. If the
13principal dwelling on which the taxes were paid is owned by 2 or more persons or
14entities as joint tenants or tenants in common or is owned by spouses as marital
15property, “property taxes" is that part of property taxes paid that reflects the
16ownership percentage of the claimant, except that this limitation does not apply to
17spouses who file a joint return. If the principal dwelling is sold during the taxable
18year, the “property taxes" for the seller and buyer shall be the amount of the tax
19prorated to each in the closing agreement pertaining to the sale or, if not so provided
20for in the closing agreement, the tax shall be prorated between the seller and buyer
21in proportion to months of their respective ownership. “Property taxes” includes
22monthly municipal permit fees with respect to a principal dwelling imposed under
23s. 66.0435 (3) (c).
AB235,4,824 (b) Filing claims. For taxable years beginning after December 31, 2022, and
25subject to the limitations provided in this subsection, a claimant may claim as a

1credit against the tax imposed under s. 71.02 the increase, if any, of the amount of
2the property taxes the claimant is levied in the taxable year to which the claim
3relates from the property taxes the claimant is levied in the base year. If the
4allowable amount of the claim exceeds the income taxes otherwise due on the
5claimant's income, the amount of the claim not used as an offset against those taxes
6shall be certified by the department of revenue to the department of administration
7for payment to the claimant by check, share draft, or other draft from the
8appropriation under s. 20.835 (2) (fm).
AB235,4,109 (c) Limitations. 1. The maximum amount of the credit that a claimant may
10claim under this subsection in a taxable year is $500.
AB235,4,1211 2. No credit may be allowed under this subsection if the claimant has not paid
12the property taxes on the principal dwelling for the years described in par. (b).
AB235,4,1513 3. a. No credit may be allowed under this subsection if the claimant or the
14claimant's spouse files a claim under sub. (6e) that relates to the same taxable year
15for which a claim is made under this subsection.
AB235,4,1816 b. No credit may be allowed under this subsection for an amount of property
17taxes claimed as a credit under sub. (9) or subch. VIII that relates to the same taxable
18year for which a claim is made under this subsection.
AB235,4,2019 4. Except as provided in subd. 6., only one claimant per household per taxable
20year may claim a credit under this subsection.
AB235,4,2221 5. No credit may be allowed under this subsection for property taxes that the
22claimant pays on his or her principal dwelling that is leased to the claimant.
AB235,4,2523 6. If married persons who are eligible to claim the credit under this subsection
24file separate returns, each spouse may claim a credit under this subsection based on
25his or her respective ownership interest in the principal dwelling.
AB235,5,2
17. No credit may be allowed under this subsection unless it is claimed within
2the time period under s. 71.75 (2).
AB235,5,63 (d) Administration. 1. In administering this subsection, the department of
4revenue shall make available suitable forms with instructions for claimants,
5including a form that may be included with, or as a part of, the individual income tax
6form.
AB235,5,87 2. Subsection (9e) (d), to the extent that it applies to the credit under that
8subsection, applies to the credit under this subsection.
AB235,4 9Section 4. 71.10 (4) (i) of the statutes is amended to read:
AB235,5,1810 71.10 (4) (i) The total of claim of right credit under s. 71.07 (1), farmland
11preservation credit under ss. 71.57 to 71.61, farmland preservation credit, 2010 and
12beyond under s. 71.613, homestead credit under subch. VIII, jobs tax credit under s.
1371.07 (3q), business development credit under s. 71.07 (3y), research credit under s.
1471.07 (4k) (e) 2. a., veterans and surviving spouses property tax credit under s. 71.07
15(6e), elder property tax increase credit under s. 71.07 (11), enterprise zone jobs credit
16under s. 71.07 (3w), electronics and information technology manufacturing zone
17credit under s. 71.07 (3wm), earned income tax credit under s. 71.07 (9e), estimated
18tax payments under s. 71.09, and taxes withheld under subch. X.
AB235,5 19Section 5. 71.54 (2s) of the statutes is created to read:
AB235,5,2220 71.54 (2s) Limitation. No credit may be allowed under this subchapter for an
21amount of property taxes claimed as a credit under s. 71.07 (11) that relates to the
22same taxable year for which a claim is made under this subchapter.
AB235,5,2323 (End)
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