Taxes

• About the issue
• Why does this matter to people with disabilities?
• Are there any proposals that would make a change in this issue?
• Who can I contact with my questions?
• Background Information For This Issue

About the issue: (Top of page)

Taxes pay for services that everyone uses or might need, such as police and fire protection, roads, and public education. There are several types of taxes. Individuals and corporations pay taxes and fees to the federal government to pay for services such as defense of the nation or the national parks system. A portion of taxes collected by the federal government are distributed to state and local governments to help pay for specific services. Income taxes, sales taxes, and fees collected by the state government are distributed to counties and local governments. County and local governments collect property and sales taxes to pay for services.

Deciding who pays taxes, how much they pay, and where the money goes is one of the biggest responsibilities of elected officials.

Why does this matter to people with disabilities? (Top of page)

People with disabilities pay taxes, however, they also benefit from taxes paid by other people. Taxes pay for Medicaid, vocational rehabilitation, employment, transportation and other programs people with disabilities need to live. Changes made to the tax structure can either reduce or expand the amount of services available to people.

Are there any proposals that would make a change in this issue? (Top of page)

• Assembly Bill 24 - Depreciation Calculation
  This bill prohibits DHFS from adding any amounts claimed for depreciation to an individual's net taxable farm or self-employment income for purposes of determining whether an individual meets the income limits for BadgerCare or for MA under the AFDC-relat [More on Assembly Bill 24 ]
  Outcome: Introduced and sent to committee, but no action was taken by the end of the session.
• Assembly Bill 47 - Health Savings Account
  This is a companion bill to Senate Bill 18. It creates a non-refundable individual income tax credit for certain amounts relating to health savings accounts that may be deducted from, or are exempt from, federal income taxes. [More on Assembly Bill 47 ]
  Outcome: Introduced in the Assembly, hearing held, amended in health committee and passed out of committee, sent to rules committee, amended and passed out of committee. Passed by the Assembly and sent to the Senate, where it failed to get out of committee.
• Assembly Bill 77 - Distributing Property Tax Credits
  This bill changes the way school levy property tax credits, the lottery and gaming property tax credits are distributed. They would be sent first to counties. The county then distributes to each municipality and taxing jurisdiction located in the county [More on Assembly Bill 77 ]
  Outcome: Hearings held in both the Assembly and Senate. Passed out of committees in both houses and Joint Finance Committee. Passed both the full Assembly and Senate. Signed into law on 3-27-08. Became Act 190.
• Assembly Bill 87 - Homestead Tax Credit
  This bill would change the definition of income under the homestead tax credit. It would exclude income from a Roth individual retirement account. [More on Assembly Bill 87 ]
  Outcome: Referred to Assembly Ways and Means Committee. Never left the committee.
• Assembly Bill 149 - Estate Tax
  This would eliminate the estate tax as of January 1, 2007. [More on Assembly Bill 149 ]
  Outcome: Hearing held in the Assembly. Passed out of committee and referred to Joint Finance Committee. Failed to get out of that committee.
• Assembly Bill 190 - Income Tax Rates
  This bill reduces the four income tax rates for most taxpayers beginning in 2007. [More on Assembly Bill 190 ]
  Outcome: Hearing held in the Assembly. Passed out of committee and referred to the Joint Finance Committee. Failed to get out of that committee.
• Assembly Bill 237 - Soft Drink Tax
  This bill creates a tax on the sale at wholesale of soft drinks sold in this state and creates the dental access trust fund. The revenue generated from the tax is put into the dental access trust fund. Moneys put into the dental access trust fund are us [More on Assembly Bill 237 ]
  Outcome: Referred to the Assembly Health and Healthcare Reform Committee. Failed to get out of committee.
• Assembly Bill 244 - Personal Property Tax
  This bill eliminates the property tax on personal property. The bill also eliminates the state aid payments to taxing jurisdictions based on the value of computers and computer-related equipment that are exempt from the personal property tax and that are [More on Assembly Bill 244 ]
  Outcome: Hearing held in the Assembly. Failed to get out of committee.
• Assembly Bill 430 - Tax Exemption for Nonprescription Drugs
  This bill creates a sales tax exemption for nonprescription drugs. [More on Assembly Bill 430 ]
  Outcome: Referred to Assembly committee on Ways and Means. Failed to get out of committee.
• Joint Assembly Bill 18 - Uniformity Clause
  This proposed constitutional amendment would change the "uniformity clause," permitting the legislature to tax principal property of homeowners differently than other property. It would make it possible to target property tax relief to individuals. [More on Joint Assembly Bill 18 ]
  Outcome: Failed to get out of the assembly committee on Ways and Means.
• Joint Assembly Bill 35 - School Funding
  This resolution calls for changing the way public schools are funded. Supporters are commited to developing a new financing formula. [More on Joint Assembly Bill 35 ]
  Outcome: Failed to get out of the Assembly committee on Education reform.
• Joint Assembly Bill 39 - Property Tax Levy Rates
  This is a proposed state constitutional amendment. It would except from the requirement of the "uniformity clause" parts of cities, villages, towns, counties, and school districts added by attachments to school districts, consolidations, and boundary cha [More on Joint Assembly Bill 39 ]
  Outcome: Hearing held in the Assembly. Passed out of committee, passed by the full Assembly, and referred to the Senate. Hearing held in the Senate. Passed out of committee. Failed to be voted on by the full Senate.
• Joint Senate Bill 27 - School Funding
  This is a companion resolution to AJR 35. It calls for developing a new funding formula for public schools. [More on Joint Senate Bill 27 ]
  Outcome: Referred to the Senate committee on Education. Hearing held. Failed to get out of committee.
• Senate Bill 18 - Health Savings Accounts
  This is a companion bill to Assembly Bill 47. It creates a non-refundable individual income tax credit for certain amounts relating to health savings accounts that may be deducted from, or are exempt from, federal income taxes. [More on Senate Bill 18 ]
  Outcome: Failed to get out of the Senate committee on Health and Human Services.
• Senate Bill 40 - Biennial Budget
  This bill is Gov. Doyle's proposed budget. It covers all state spending and revenue. [More on Senate Bill 40 ]
  Outcome: This bill was signed into law on 10-26-07 and became Act 20.
• Senate Bill 68 - Estate Tax
  This bill eliminates the state estate tax beginning January 1, 2007. [More on Senate Bill 68 ]
  Outcome: Referred to Joint Committee on Tax Exemptions. Failed to get out of committee.
• Senate Bill 87 - Insurance Deduction
  This bill creates an individual income tax deduction for 100 percent of the amount paid for a medical insurance policy that covers the individual, his or her spouse, and the individual's dependents if the individual's employer pays a portion of the cost o [More on Senate Bill 87 ]
  Outcome: Referred to Joint Committee on Tax Exemptions. Failed to get out of committee.
• Senate Bill 117 - Soft Drink Tax
  This bill would tax the sale of soft drinks and soft drink syrups at the wholesale and manufacturing points. This tax would create a dental access trust fund. This fund would be used to increase fees paid to dentists serving patients using Medical Assis [More on Senate Bill 117 ]
  Outcome: Failed to get out of Senate committee on Health and Human Services.
• Senate Bill 221 - Special Olympics Tax Checkoff
  This bill creates an individual income tax checkoff for the Special Olympics corporation in Wisconsin. [More on Senate Bill 221 ]
  Outcome: Hearing held in the Senate, passed out of committee, sent to the Joint Finance committee. Failed to get out of that committee.

Who can I contact with my questions? (Top of page)

John Shaw
Wisconsin Council on Developmental Disabilities
201 W. Washington Avenue
Madison WI 53703-2796
Phone: Voice (608) 266-7707; TDD (608) 266-6660
Email: shawj2@dhfs.state.wi.us
Fax: (608) 267-3906

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Background Information For This Issue (Top of page)

• Fiscal Bureau's Report on Amending State Sales Tax