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February 14, 2020 - Introduced by Senators Fitzgerald, Roth and Darling,
cosponsored by Representatives Vos, Steineke and Nygren. Referred to Joint
Committee on Finance.
SB821,1,9 1An Act to renumber 70.111 (27) (b); to renumber and amend 79.096 (1) and
279.096 (2) (a); to amend 16.518 (title), 16.518 (3) (b) 1., 71.05 (22) (dp) (title),
371.05 (22) (dp) 1., 71.05 (22) (dp) 2., 71.05 (22) (dt), 71.05 (22) (f) 4. b. and 79.096
4(3); and to create 16.518 (4), 70.111 (27) (b) 2., 71.05 (22) (dq), 79.096 (1) (b),
579.096 (2) (a) 1. and 79.096 (2) (a) 2. of the statutes; relating to: a property tax
6exemption for all machinery, tools, and patterns; a reduction of state general
7obligation and variable rate debt supported by general purpose revenue; and
8increasing the maximum deduction under the individual income tax sliding
9scale standard deduction.
Analysis by the Legislative Reference Bureau
Personal property tax exemption
Machinery, tools, and patterns, not including such items used in
manufacturing, are exempt from the personal property tax under current law and
the state reimburses the taxing jurisdictions where this property is located for the
the loss of property tax revenue. The reimbursement amount is based on the
assessed value of such property in the last year in which the property was taxable.
This bill exempts all other machinery, tools, and patterns from the personal
property tax and reimburses the taxing jurisdictions where this property is located

for the the loss of property tax revenue, based on the 2019 assessed values of such
property. The bill also clarifies that following the termination of a tax incremental
district the amount that would have been paid to the tax incremental district under
current law and under the bill is distributed to the other applicable taxing
jurisdictions.
Sliding scale standard deduction
This bill increases the maximum individual income tax sliding scale standard
deduction (SSSD) by 13.2 percent for each type of income tax filer, increases the
income levels for beginning the deduction phaseout by 11.4 percent, and modifies
each of the phaseout percentages so they are closer together. These changes first
apply to taxable year 2020. The indexing provisions that apply to the current SSSD
continue to apply to the new standard deduction amounts.
Debt reduction
Under current law, the secretary of administration annually calculates the
difference between the amount of tax revenues projected to be deposited in the
general fund during the fiscal year and the amount of tax revenues actually
deposited in the general fund during the fiscal year. If the projected amount is less
than the amount of tax revenues actually deposited in the general fund during the
fiscal year, i.e., there is a surplus, the secretary of administration is required to
transfer from the general fund to the budget stabilization fund 50 percent of the
surplus.
However, current law further provides that if the balance of the budget
stabilization fund on June 30 of the fiscal year is at least equal to five percent of the
estimated expenditures from the general fund during the fiscal year, the secretary
may not make the transfer to the budget stabilization fund.
Under this bill, if the secretary of administration does not make a transfer to
the budget stabilization fund because the balance of the budget stabilization fund on
June 30 of the fiscal year is at least equal to five percent of the estimated
expenditures from the general fund during the fiscal year, 50 percent of the surplus
must be used to reduce the state's general obligation and variable rate debt
supported by general purpose revenue.
The bill further requires that the state's general obligation and variable rate
debt supported by general purpose revenue be reduced by $100,000,000 in the
2020-21 fiscal year.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state and local 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:
SB821,1
1Section 1. 16.518 (title) of the statutes is amended to read:
SB821,3,3 216.518 (title) Transfers to the budget stabilization fund; general
3obligation and variable rate debt reduction
.
SB821,2 4Section 2. 16.518 (3) (b) 1. of the statutes is amended to read:
SB821,3,95 16.518 (3) (b) 1. If the balance of the budget stabilization fund on June 30 of
6the fiscal year is at least equal to 5 percent of the estimated expenditures from the
7general fund during the fiscal year, as reported in the summary, the secretary may
8not make the transfer under par. (a) but shall certify to the building commission for
9purposes of sub. (4) 50 percent of the amount calculated under sub. (2)
.
SB821,3 10Section 3 . 16.518 (4) of the statutes is created to read:
SB821,3,1611 16.518 (4) In the fiscal year following each fiscal year for which the secretary
12certifies an amount to the building commission under sub. (3) (b) 1., the secretary
13shall, in coordination with the building commission and from the appropriate
14general purpose revenue debt service appropriations, reduce by that certified
15amount unpaid indebtedness in which general obligation or variable rate debt is paid
16from general purpose revenue.
SB821,4 17Section 4. 70.111 (27) (b) of the statutes is renumbered 70.111 (27) (b) 1.
SB821,5 18Section 5. 70.111 (27) (b) 2. of the statutes is created to read:
SB821,3,2019 70.111 (27) (b) 2. Beginning with the property tax assessments as of January
201, 2020, machinery, tools, and patterns that are not exempt under subd. 1.
SB821,6 21Section 6. 71.05 (22) (dp) (title) of the statutes is amended to read:
SB821,3,2222 71.05 (22) (dp) (title) Deduction limits, 2000 and thereafter to 2019 .
SB821,7 23Section 7. 71.05 (22) (dp) 1. of the statutes is amended to read:
SB821,5,324 71.05 (22) (dp) 1. Except as provided in par. (f), and subject to subd. 2., for
25taxable years beginning after December 31, 1999, and before January 1, 2020, the

1Wisconsin standard deduction is whichever of the following amounts is appropriate.
2For a single individual who has a Wisconsin adjusted gross income of less than
3$10,380, the standard deduction is $7,200. For a single individual who has a
4Wisconsin adjusted gross income of at least $10,380, the standard deduction is the
5amount obtained by subtracting from $7,200 12 percent of Wisconsin adjusted gross
6income in excess of $10,380 but not less than $0. For a head of household who has
7a Wisconsin adjusted gross income of less than $10,380, the standard deduction is
8$9,300. For a head of household who has a Wisconsin adjusted gross income of at
9least $10,380, the standard deduction is the amount obtained by subtracting from
10$9,300 22.515 percent of Wisconsin adjusted gross income in excess of $10,380, but
11not less than $0, until the adjusted gross income amount at which the standard
12deduction is equal to the standard deduction for a single individual at the same
13adjusted gross income amount. For a head of household who has a Wisconsin
14adjusted gross income of more than this amount, the standard deduction shall be
15calculated as if the head of household were a single individual. For a married couple
16filing jointly that has an aggregate Wisconsin adjusted gross income of less than
17$14,570, the standard deduction is $12,970. For a married couple filing jointly that
18has an aggregate Wisconsin adjusted gross income of at least $14,570, the standard
19deduction is the amount obtained by subtracting from $12,970 19.778 percent of
20aggregate Wisconsin adjusted gross income in excess of $14,570 but not less than $0.
21For a married individual filing separately who has a Wisconsin adjusted gross
22income of less than $6,920, the standard deduction is $6,160. For a married
23individual filing separately who has a Wisconsin adjusted gross income of at least
24$6,920, the standard deduction is the amount obtained by subtracting from $6,160
2519.778 percent of Wisconsin adjusted gross income in excess of $6,920 but not less

1than $0. The secretary of revenue shall prepare a table under which deductions
2under this subdivision shall be determined. That table shall be published in the
3department's instructional booklets.
SB821,8 4Section 8 . 71.05 (22) (dp) 2. of the statutes is amended to read:
SB821,5,205 71.05 (22) (dp) 2. Except as provided in par. (f), for taxable years beginning
6after December 31, 2015, and before January 1, 2020, the Wisconsin standard
7deduction is whichever of the following amounts is appropriate. For a married couple
8filing jointly that has an aggregate Wisconsin adjusted gross income of less than
9$21,360, the standard deduction is $19,010. For a married couple filing jointly that
10has an aggregate Wisconsin adjusted gross income of at least $21,360, the standard
11deduction is the amount obtained by subtracting from $19,010 19.778 percent of
12aggregate Wisconsin adjusted gross income in excess of $21,360 but not less than $0.
13For a married individual filing separately who has a Wisconsin adjusted gross
14income of less than $10,140, the standard deduction is $9,030. For a married
15individual filing separately who has a Wisconsin adjusted gross income of at least
16$10,140, the standard deduction is the amount obtained by subtracting from $9,030
1719.778 percent of Wisconsin adjusted gross income in excess of $10,140 but not less
18than $0. The secretary of revenue shall prepare a table under which deductions
19under this subdivision shall be determined. That table shall be published in the
20department's instructional booklets.
SB821,9 21Section 9 . 71.05 (22) (dq) of the statutes is created to read:
SB821,7,222 71.05 (22) (dq) Deduction limits, 2020 and thereafter. Except as provided in par.
23(f), for taxable years beginning after December 31, 2019, the Wisconsin standard
24deduction is whichever of the following amounts is appropriate. For a single
25individual who has a Wisconsin adjusted gross income of less than $17,760, the

1standard deduction is $12,510. For a single individual who has a Wisconsin adjusted
2gross income of at least $17,760, the standard deduction is the amount obtained by
3subtracting from $12,510 12.193 percent of Wisconsin adjusted gross income in
4excess of $17,760 but not less than $0. For a head of household who has a Wisconsin
5adjusted gross income of less than $17,760, the standard deduction is $16,170. For
6a head of household who has a Wisconsin adjusted gross income of at least $17,760,
7the standard deduction is the amount obtained by subtracting from $16,170 22.154
8percent of Wisconsin adjusted gross income in excess of $17,760, but not less than $0,
9until the adjusted gross income amount at which the standard deduction is equal to
10the standard deduction for a single individual at the same adjusted gross income
11amount. For a head of household who has a Wisconsin adjusted gross income of more
12than this amount, the standard deduction shall be calculated as if the head of
13household were a single individual. For a married couple filing jointly that has an
14aggregate Wisconsin adjusted gross income of less than $25,610, the standard
15deduction is $23,170. For a married couple filing jointly that has an aggregate
16Wisconsin adjusted gross income of at least $25,610, the standard deduction is the
17amount obtained by subtracting from $23,170 19.461 percent of aggregate Wisconsin
18adjusted gross income in excess of $25,610 but not less than $0. For a married
19individual filing separately who has a Wisconsin adjusted gross income of less than
20$12,160, the standard deduction is $11,000. For a married individual filing
21separately who has a Wisconsin adjusted gross income of at least $12,160, the
22standard deduction is the amount obtained by subtracting from $11,000 19.461
23percent of Wisconsin adjusted gross income in excess of $12,160 but not less than $0.
24The secretary of revenue shall prepare a table under which deductions under this

1paragraph shall be determined. That table shall be published in the department's
2instructional booklets.
SB821,10 3Section 10 . 71.05 (22) (dt) of the statutes is amended to read:
SB821,7,244 71.05 (22) (dt) Standard deduction indexing, 2001 and thereafter. For taxable
5years beginning after December 31, 2000, the dollar amounts of the standard
6deduction that is allowable under par. pars. (dp) and (dq) and all of the dollar
7amounts of Wisconsin adjusted gross income under par. pars. (dp) and (dq) shall be
8increased each year by a percentage equal to the percentage change between the U.S.
9consumer price index for all urban consumers, U.S. city average, for the month of
10August of the previous year and the U.S. consumer price index for all urban
11consumers, U.S. city average, for the month of August 1999, as determined by the
12federal department of labor, except that for taxable years beginning after December
1331, 2011, the adjustment may occur only if the resulting amount is greater than the
14corresponding amount that was calculated for the previous year, and except that the
15base year for the adjustments to the dollar amounts of the standard deduction and
16all of the dollar amounts of Wisconsin adjusted gross income under par. (dp) 2. shall
17be 2015, and except that the base year for the adjustments to the dollar amounts of
18the standard deduction and all of the dollar amounts of Wisconsin adjusted gross
19income under par. (dq) shall be 2019
. Each amount that is revised under this
20paragraph shall be rounded to the nearest multiple of $10 if the revised amount is
21not a multiple of $10 or, if the revised amount is a multiple of $5, such an amount
22shall be increased to the next higher multiple of $10. The department of revenue
23shall annually adjust the changes in dollar amounts required under this paragraph
24and incorporate the changes into the income tax forms and instructions.
SB821,11 25Section 11. 71.05 (22) (f) 4. b. of the statutes is amended to read:
SB821,8,2
171.05 (22) (f) 4. b. The standard deduction that may be claimed by an individual
2under par. (dm) or, (dp), or (dq), based on the individual's filing status.
SB821,12 3Section 12. 79.096 (1) of the statutes is renumbered 79.096 (1) (a) and
4amended to read:
SB821,8,95 79.096 (1) (a) Beginning in 2019, and in each year thereafter, the department
6of administration shall pay to each taxing jurisdiction, as defined in s. 79.095 (1) (c),
7an amount equal to the property taxes levied on the items of personal property
8described under s. 70.111 (27) (b) 1. for the property tax assessments as of January
91, 2017.
SB821,13 10Section 13. 79.096 (1) (b) of the statutes is created to read:
SB821,8,1511 79.096 (1) (b) Beginning in 2021, and in each year thereafter, the department
12of administration shall pay to each taxing jurisdiction, as defined in s. 79.095 (1) (c),
13an amount equal to the property taxes levied on the items of personal property
14described under s. 70.111 (27) (b) 2. for the property tax assessments as of January
151, 2019.
SB821,14 16Section 14. 79.096 (2) (a) of the statutes is renumbered 79.096 (2) (a) (intro.)
17and amended to read:
SB821,8,2218 79.096 (2) (a) (intro.) Each municipality shall report to the department of
19revenue, in the time and manner determined by the department, the amount of the
20property taxes levied on the items of personal property described under s. 70.111 (27)
21(b) for the property tax assessments as of January 1, 2017,
following on behalf of the
22municipality and on behalf of other taxing jurisdictions.:
SB821,15 23Section 15. 79.096 (2) (a) 1. of the statutes is created to read:
SB821,8,2524 79.096 (2) (a) 1. Items of personal property described under s. 70.111 (27) (b)
251. for the property tax assessments as of January 1, 2017.
SB821,16
1Section 16. 79.096 (2) (a) 2. of the statutes is created to read:
SB821,9,32 79.096 (2) (a) 2. Items of personal property described under s. 70.111 (27) (b)
32. for the property tax assessments as of January 1, 2019.
SB821,17 4Section 17 . 79.096 (3) of the statutes is amended to read:
SB821,9,125 79.096 (3) Each taxing jurisdiction shall attribute to each tax incremental
6district within the taxing jurisdiction the district's proportionate share of the amount
7the taxing jurisdiction receives under sub. (1), except that, with regard to amounts
8received under sub. (1) (a),
this subsection does not apply after the district closes.
9The amount that would have been paid to a tax incremental district under sub. (1)
10(b) shall be distributed to the municipality and applicable taxing jurisdictions in the
11year following the termination of the tax incremental district and in each year
12thereafter.
SB821,18 13Section 18. Nonstatutory provisions.
SB821,9,1814 (1) In the 2020-21 fiscal year, the secretary of administration shall, in
15coordination with the building commission and from the appropriate general
16purpose revenue debt service appropriations, reduce by $100,000,000 unpaid
17indebtedness in which general obligation or variable rate debt is paid from general
18purpose revenue.
SB821,9,1919 (End)
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