Signed by Governor Tony Evers

Vote Smart's Synopsis:

Vote to pass a bill that amends various sections of state tax code.

Highlights:

• Reduces the amount of the payment to the political subdivision in the following year by an amount equal to the amount of the penalized excess (Sec. 5).

• Specifies if the city does not file the report within 60 days of the date on the notice, except as provided in this subdivision, the department will charge the city a fee of $100 per day for each day that the report is past due, up to a maximum penalty of $6,000 per report (Sec. 7).

• Specifies if the department of revenue does not receive the fee imposed on a municipality by March 31 of each year, the department will reduce the distribution made to the municipality by the amount of the fee (Sec. 14).

• Specifies if the individual is single and the individual’s federal adjusted gross income in the year to which the subtraction relates is less than $20,200, the maximum subtraction is $100 for each week that payments are received or the amount of disability pay reported as income, whichever is less (Sec. 28).

• Exempts for taxable years beginning after December 31, 2020, up to $5,000 of payments or distributions received each year by an individual from a qualified retirement plan under the Internal Revenue Code or an individual retirement account if all of the following conditions apply (Sec. 35):

• The individual is at least 65 years of age before the close of the taxable year to which the exemption claim relates.

• If the individual is single or files as head of household, his or her federal adjusted gross income in the year to which the exemption claim relates is less than $15,000.

• If the individual is married and is a joint filer, the couple’s federal adjusted gross income in the year to which the exemption claim relates is less than $30,000.

• If the individual is married and files a separate return, the sum of both spouses’ federal adjusted gross income in the year to which the exemption claim relates is less than $30,000.

• Specifies “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code enacted after December 31, 2020 (Sec. 45-3).

• Requires the transferor to file a claim for more than one taxable year on a form prescribed by the Department of Revenue to compute all years of the credit at the time of the transfer request (Sec. 66).

• Specifies “earned income” does not include the following (Sec. 89):

• Any amount received as a pension or annuity;

• Any amount to which section 871 (a) of the Internal Revenue Code applies;

• Any amount received for services provided by an individual while the individual is an inmate at a penal institution;

• Any amount received for service performed in work activities to which the claimant is assigned under any state program under the Social Security Act (Sec. 89).

• Prohibits a tax from being included on a form submitted under sub. (1) if the tax was levied on a property within a tax incremental district (Sec. 100).

Full Bill Text