SB1049: Bill Text

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB1049,1 Section 1. 71.06 (1q) (a) of the statutes is amended to read:

SB1049,3,3 71.06 (1q) (a) On all taxable income from $0 to $7,500, 4.40 percent, except that for taxable years beginning after December 31, 2013, and before January 1, 2022, 4.0 percent, and for taxable years beginning after December 31, 2021, 2.15 percent.

SB1049,2 Section 2. 71.06 (1q) (b) of the statutes is amended to read:

SB1049,3,8 71.06 (1q) (b) On all taxable income exceeding $7,500 but not exceeding $15,000, 5.84 percent, except that for taxable years beginning after December 31, 2018, and before January 1, 2022, 5.21 percent , and for taxable years beginning after December 31, 2021, 2.85 percent.

SB1049,3 Section 3. 71.06 (1q) (c) of the statutes is amended to read:

SB1049,3,13 71.06 (1q) (c) On all taxable income exceeding $15,000 but not exceeding $225,000, 6.27 percent, except that for taxable years beginning after December 31, 2020, and before January 1, 2022, 5.30 percent , and for taxable years beginning after December 31, 2021, 3.20 percent.

SB1049,4 Section 4. 71.06 (1q) (d) of the statutes is amended to read:

SB1049,3,16 71.06 (1q) (d) On all taxable income exceeding $225,000, 7.65 percent, except that for taxable years beginning after December 31, 2021, 4.50 percent.

SB1049,5 Section 5. 71.06 (2) (i) 1. of the statutes is amended to read:

SB1049,3,21 71.06 (2) (i) 1. On all taxable income from $0 to $10,000, 4.40 percent, except that for taxable years beginning after December 31, 2013, and before January 1, 2022, 4.0 percent, and for taxable years beginning after December 31, 2021, 2.15 percent.

SB1049,6 Section 6. 71.06 (2) (i) 2. of the statutes is amended to read:

SB1049,4,2 71.06 (2) (i) 2. On all taxable income exceeding $10,000 but not exceeding $20,000, 5.84 percent, except that for taxable years beginning after December 31, 2018, and before January 1, 2022, 5.21 percent , and for taxable years beginning after December 31, 2021, 2.85 percent.

SB1049,7 Section 7. 71.06 (2) (i) 3. of the statutes is amended to read:

SB1049,4,7 71.06 (2) (i) 3. On all taxable income exceeding $20,000 but not exceeding $300,000, 6.27 percent, except that for taxable years beginning after December 31, 2020, and before January 1, 2022, 5.30 percent , and for taxable years beginning after December 31, 2021, 3.20 percent.

SB1049,8 Section 8. 71.06 (2) (i) 4. of the statutes is amended to read:

SB1049,4,10 71.06 (2) (i) 4. On all taxable income exceeding $300,000, 7.65 percent, except that for taxable years beginning after December 31, 2021, 4.50 percent.

SB1049,9 Section 9. 71.06 (2) (j) 1. of the statutes is amended to read:

SB1049,4,14 71.06 (2) (j) 1. On all taxable income from $0 to $5,000, 4.40 percent, except that for taxable years beginning after December 31, 2013, and before January 1, 2022, 4.0 percent, and for taxable years beginning after December 31, 2021, 2.15 percent.

SB1049,10 Section 10. 71.06 (2) (j) 2. of the statutes is amended to read:

SB1049,4,19 71.06 (2) (j) 2. On all taxable income exceeding $5,000 but not exceeding $10,000, 5.84 percent, except that for taxable years beginning after December 31, 2018, and before January 1, 2022, 5.21 percent , and for taxable years beginning after December 31, 2021, 2.85 percent.

SB1049,11 Section 11. 71.06 (2) (j) 3. of the statutes is amended to read:

SB1049,4,24 71.06 (2) (j) 3. On all taxable income exceeding $10,000 but not exceeding $150,000, 6.27 percent, except that for taxable years beginning after December 31, 2020, and before January 1, 2022, 5.30 percent , and for taxable years beginning after December 31, 2021, 3.20 percent.

SB1049,12 Section 12. 71.06 (2) (j) 4. of the statutes is amended to read:

SB1049,5,2 71.06 (2) (j) 4. On all taxable income exceeding $150,000, 7.65 percent, except that for taxable years beginning after December 31, 2021, 4.50 percent.

SB1049,13 Section 13. 73.03 (77) of the statutes is created to read:

SB1049,5,14 73.03 (77) (a) To reduce individual income tax rates as provided under this paragraph. If the amount of taxes submitted to the department and deposited into the general fund in any taxable year exceeds the estimated amount of such taxes for the corresponding fiscal year under the applicable biennial budget act, the department shall determine how much the individual income tax rates listed in each bracket under s. 71.06 shall be reduced for the immediately succeeding taxable year in order to decrease individual income tax revenue for that taxable year by the excess amount. The department shall reduce the individual income tax rates listed in each bracket under s. 71.06 in proportion to the share of gross tax attributable to each of the tax brackets. The reduced rates determined under this paragraph shall carry forward to subsequent taxable years.

SB1049,5,19 (b) The reduction of the tax rates under par. (a) first applies to the taxable year beginning after December 31, 2022, and before January 1, 2024, if the amount of tax revenue submitted to the department and deposited into the general fund in that taxable year exceeds the estimated amount of such taxes for the corresponding fiscal year under the 2023-25 biennial budget act.

SB1049,5,24 (c) No later than October 15 of each year, the secretary of revenue shall certify and report the determinations made under par. (a) to the secretary of the department of administration, the governor, the joint committee on finance, and the legislative audit bureau and specify with that certification and report that the new tax rates take effect for the immediately succeeding taxable year.

SB1049,6,9 (d) The legislative audit bureau shall review the determinations reported under par. (c) and report its findings to the joint legislative audit committee and the joint committee on finance no later than November 1 of each year. If the legislative audit bureau's review of the determinations reported under par. (c) results in a different calculation of the tax rates than that made under par. (a), the joint committee on finance shall determine which tax rates to apply for the immediately succeeding taxable year, and report its determination to the governor, the secretary of administration, and the secretary of revenue no later than November 10 of each year.

SB1049,6,15 (e) Notwithstanding s. 16.518 (3) (a), the secretary of administration may not make a transfer to the budget stabilization fund in any fiscal year corresponding to a taxable year for which a tax rate reduction applies under this subsection. Any rate reduction under this subsection may not cause the general fund balance on June 30 of the fiscal year corresponding to the taxable year to be less than the general fund balance that is required under s. 20.003 (4) for that fiscal year.

SB1049,6,16 (End)