AB 564

Under current law, an eligible veteran or surviving spouse may claim a

refundable income tax credit equal to the amount of property taxes the claimant paid

during the year on his or her principal dwelling in Wisconsin. Current law does not

expressly address the treatment of renters. The Department of Revenue allows an

eligible veteran or surviving spouse who is a renter to claim the credit if the claimant

is required to pay the property taxes under the rental agreement or other written

agreement with the landlord and pays the property taxes directly to the municipality.

Under this bill, an eligible veteran or surviving spouse may claim the credit in

an amount equal to his or her rent constituting property taxes. The bill defines “rent

constituting property taxes" to mean a specified percentage of the rent paid by the

claimant during the year for the use of a principal dwelling as housing. The specified

percentage is 20 percent if heat is included in the rent and 25 percent if heat is not

included.