AB 1028

This bill allows counties and municipalities to impose a local income tax on certain taxpayers by adopting an ordinance and having the ordinance approved by the electors of the county or municipality. Under the bill, a county or municipality may impose a tax on Wisconsin taxable income in excess of $1,000,000 for individuals and married couples who file jointly, or $500,000 for married individuals who file separately, if any of the following conditions are met:

1. The individual, or spouse if married filing jointly, resides in the county or municipality for at least 30 days during the taxable year.

2. The individual, or spouse if married filing jointly, owns residential property in the county or municipality for at least 30 days during the taxable year.

3. The individual, or spouse if married filing jointly, is physically present for employment purposes in the county or municipality for at least 30 days during the taxable year. If more than one county, or more than one municipality, qualify to tax an individual under this condition, only the county or municipality in which the individual, or spouse, is physically present for the greatest number of days may impose the tax.

The bill requires the county or municipality to specify in the ordinance both the rate of tax and the first taxable year in which the tax will be imposed. The bill specifies that if the ordinance is approved in the spring, the tax may be imposed no earlier than the taxable year in which the ordinance is approved, and if the ordinance is approved in the fall, the tax may be imposed no earlier than the following taxable year.

Under the bill, the local income tax is due on the day the state income tax return is due, without extension. Also, the bill requires that the county or municipality provide a credit for any local income tax paid on the same income to a locality in another state.