2017 - 2018 LEGISLATURE
May 30, 2017 - Introduced by Representatives Riemer,
Berceau, Bowen, Brostoff, Considine, Genrich, Goyke, Hesselbein,
Kessler, Kolste, Mason, Milroy, Pope, Sargent, Shankland, Sinicki, C.
Taylor, Vruwink, Wachs and Zepnick, cosponsored by Senators Ringhand,
Carpenter, Erpenbach, Hansen, Johnson and Wirch. Referred to Committee
on Ways and Means.
1An Act to amend
71.54 (1) (g) (intro.), 71.54 (2) (b) 4. and 71.54 (2m); and to
71.54 (1) (h) and 71.54 (2) (b) 5. of the statutes; relating to: increasing
3the maximum income, maximum property taxes, and threshold income under
4the homestead tax credit and indexing the credit for inflation.
Analysis by the Legislative Reference Bureau
Under this bill, for claims filed in 2018 and thereafter, the homestead tax credit
maximum property taxes or rent constituting property taxes that a claimant may use
in calculating his or her credit are increased from $1,460 to $1,976, the maximum
income is increased from $24,680 to $33,389, and the threshold income is increased
from $8,000 to $10,902. The maximum credit is also increased from $1,168 to $1,581.
Under the formula as calculated under the bill, as a claimant's income exceeds
$10,902, the credit is phased out until the credit equals zero when income exceeds
$33,389. Under this bill, using the formula in the bill (80 percent of the property
taxes accrued or rent constituting property taxes accrued) for claimants whose
household income is $10,902 or less, the credit that may be claimed ranges from $10
to $1,581. Also under the bill, the homestead tax credit formula factors are all
indexed for inflation for taxable year 2018 and beyond.
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:
71.54 (1) (g) (intro.) of the statutes is amended to read:
(g) 2012 and thereafter to 2017.
(intro.) The amount of any claim filed 3
in 2012 and thereafter to 2017
and based on property taxes accrued or rent 4
constituting property taxes accrued during the previous year is limited as follows:
71.54 (1) (h) of the statutes is created to read:
(h) 2018 and thereafter.
Subject to sub. (2m), the amount of any claim 7
filed in 2018 and thereafter and based on property taxes accrued or rent constituting 8
property taxes accrued during the previous year is limited as follows:
1. If the household income was $10,902 or less in the year to which the claim 10
relates, the claim is limited to 80 percent of the property taxes accrued or rent 11
constituting property taxes accrued or both in that year on the claimant's homestead.
2. If the household income was more than $10,902 in the year to which the claim 13
relates, the claim is limited to 80 percent of the amount by which the property taxes 14
accrued or rent constituting property taxes accrued or both in that year on the 15
claimant's homestead exceeds 8.787 percent of the household income exceeding 16
3. No credit may be allowed if the household income of a claimant exceeds 18
71.54 (2) (b) 4. of the statutes is amended to read:
(b) 4. In calendar years 2011 or any subsequent calendar year to 2016
71.54 (2) (b) 5. of the statutes is created to read:
(b) 5. Subject to sub. (2m), in calendar year 2017 or any subsequent 3
calendar year, $1,976.
71.54 (2m) of the statutes is amended to read:
71.54 (2m) Indexing for inflation;
2010 2018 and thereafter.
(a) For calendar 6
years beginning after December 31, 2009, and before January 1, 2011 2017
, the dollar 7
amounts of the threshold income under sub. (1) (f)
1. and 2., the maximum 8
household income under sub. (1) (f) (h)
and the maximum property taxes under 9
sub. (2) (b) 3. 5.
shall be increased each year by a percentage equal to the percentage 10
change between the U.S. consumer price index for all urban consumers, U.S. city 11
average, for the 12-month average of the U.S. consumer price index for the month 12
of August of the year before the previous year through the month of July of the 13
previous year and the U.S. consumer price index for all urban consumers, U.S. city 14
average, for the 12-month average of the U.S. consumer price index for August 2007 152015
through July 2008 2016
, as determined by the federal department of labor, 16
except that the adjustment may occur only if the percentage is a positive number. 17
Each amount that is revised under this paragraph shall be rounded to the nearest 18
multiple of $10 if the revised amount is not a multiple of $10 or, if the revised amount 19
is a multiple of $5, such an amount shall be increased to the next higher multiple of 20
$10. The department of revenue shall annually adjust the changes in dollar amounts 21
required under this paragraph and incorporate the changes into the income tax 22
forms and instructions.
(b) The department of revenue shall annually
adjust the slope under sub. (1) 24(f) (h)
2. such that, as a claimant's income increases from the threshold income as 25
calculated under par. (a), to an amount that exceeds the maximum household income
as calculated under par. (a), the credit that may be claimed is reduced to $0 and the 2
department of revenue shall incorporate the changes into the income tax forms and 3