Keeping property taxes low is a top priority for the REALTORS in Wisconsin – not just now, but always. Wisconsin currently has one of the highest tax burdens in the country. Last week the Joint Committee on Finance (JFC) completed its work amending the state budget. The budget (as amended by the Committee) contained the largest tax reform package in more than a decade. Because of federal aid and robust tax increases, Wisconsin has a historic surplus, which the legislature will return to taxpayers with over $3.4 billion in tax relief. The WMC (Wisconsin Manufacturers & Commerce) published a list of items in the JFC- amended budget. The budget will be sent to Governor Evers for signature.
- Individual Income Tax Cut: JFC proposed reducing the third individual income tax bracket ($23,900 – $263,480) from 6.27 to 5.3 percent, cutting taxes $2.3 billion, and saving the average Wisconsin family $900 over the biennium.
- Updating Income Tax Withholding Tables: JFC proposed updating income tax withholding tables, which have not been updated since 2014, and would result in a one-time tax cut of $331.2 million.
- Property Tax: JFC proposed reducing property taxes by approximately $650 million over the biennium by requiring schools and technical college districts to reduce their levy in exchange for additional state aid holding them harmless.
- Personal Property Tax: JFC proposed setting aside $200 million in the second year of the biennium to transfer to local governments to hold them harmless if the personal property tax is repealed. Committees in both houses of the legislature will be holding hearings on legislation to repeal the personal property tax this week.
- Research and Development Tax Credit: JFC proposed increasing the refundable portion of the R&D tax credit from 10 percent to 15 percent costing approximately $5 million.
- Unemployment Insurance Tax: JFC proposed no increase in UI taxes and providing the Unemployment Insurance Trust Fund with $120 million over the biennium to hold the fund harmless.
*content from WMC Tax Policy Update