JK:cdc

2019 - 2020 LEGISLATURE

2019 Senate BILL 818

February 12, 2020 - Introduced by Senators Marklein, Bernier and Testin, cosponsored by Representatives Tranel, Novak, Petryk, Pronschinske, Tauchen, Magnafici, Summerfield, Kitchens, Oldenburg, Plumer, Ballweg, Schraa, Krug, Skowronski and Tusler. Referred to Committee on Agriculture, Revenue and Financial Institutions.

SB818,1,7 An Act to amend 71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4., 71.30 (3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10. and 71.49 (1) (f); to repeal and recreate 71.05 (6) (a) 15., 71.10 (4) (i), 71.21 (4) (a), 71.26 (2) (a) 4., 71.30 (3) (f), 71.34 (1k) (g), 71.45 (2) (a) 10. and 71.49 (1) (f); and to create 20.835 (2) (bh), 71.07 (8s), 71.28 (8s) and 71.47 (8s) of the statutes; relating to: an income tax credit for the property taxes paid on agricultural buildings and improvements and making an appropriation.

Analysis by the Legislative Reference Bureau

This bill creates an income and franchise tax credit equal to approximately 66 percent of the taxes levied on buildings and other improvements, not including residential property, that are located in this state and used exclusively for farming. The credit is limited to $7,500 for an individual, entity, or married couple filing jointly. In addition, in order to claim the credit, the claimant must have at least $35,000 in annual gross income from farming. The person will receive a refund if the amount of the credit exceeds the person's tax liability.

The bill also allows a taxpayer to claim the credit for 2020 online in the manner determined by DOR rather than file a tax return to claim the credit. Claiming the credit online for 2020 does not relieve the taxpayer of the taxpayer's obligation to otherwise file a return for that year.

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:

SB818,1 Section 1. 20.835 (2) (bh) of the statutes is created to read:

SB818,2,3 20.835 (2) (bh) Farm buildings credit. A sum sufficient to make the payments under ss. 71.07 (8s), 71.28 (8s), and 71.47 (8s).

SB818,2 Section 2. 71.05 (6) (a) 15. of the statutes is amended to read:

SB818,2,11 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3p), (3q), (3r), (3rm), (3rn), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5f), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), (8r), (8s), and (10) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

SB818,3 Section 3 . 71.05 (6) (a) 15. of the statutes, as affected by 2019 Wisconsin Act 54 and 2019 Wisconsin Act .... (this act), is repealed and recreated to read:

SB818,2,19 71.05 (6) (a) 15. Except as provided under s. 71.07 (3p) (c) 5., the amount of the credits computed under s. 71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n), (5e), (5i), (5j), (5k), (5r), (5rm), (6n), (8s), and (10) and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership's, company's, or tax-option corporation's income under s. 71.21 (4) or 71.34 (1k) (g).

SB818,4 Section 4. 71.07 (8s) of the statutes is created to read:

SB818,2,21 71.07 (8s) Farm buildings credit. (a) Definitions. In this subsection:

SB818,3,2 1. “Agricultural land” means land that is assessed as agricultural land under s. 70.32 (2) (a) 4.