Wisconsin Democratic Gov. Tony Evers signed A.B. 1038 into law Wednesday. The measure, which was approved by the state Assembly and Senate earlier the same day, conforms Wisconsin law to tax changes made by Congress in the Coronavirus Aid, Relief and Economic Security Act
, including exempting retirement distributions from penalties subject to a number of conditions. It also creates additional deductions for individual charitable contributions and suspends limits on certain individual and corporate charitable deductions.Evers, in a letter sent Wednesday to Assembly Speaker Robin Vos, R-Rochester, and Senate President Roger Roth, R-Appleton, said the law is a step in the right direction, but more must be done.
"This legislation includes many of the provisions I included in my proposals to address COVID-19 in Wisconsin, but I am disappointed this bill will arrive on my desk missing critical components that would help provide necessary support for families, businesses, farmers and communities across our state," Evers said.
One such proposal would have increased the state's earned income tax credit to 11% of the federal credit from 4% for filers with one dependent child and to 14% from 11% for filers with two children, according to a package released April 2. He also proposed allowing counties to issue bonds with maturities up to 10 years to replace funds lost due to coronavirus.
The COVID relief bill also conforms state law to a few other CARES Act's provisions, including the treatment of paycheck protection loans to businesses and employees under the U.S. Small Business Administration's loan guarantee program from Feb. 15 through June 30, according to the text. A portion of those loans could be forgiven on a tax-free basis if certain conditions are met. Other provisions include providing an income exclusion for certain student loan principal and interest payments made by employers on behalf of employees made from March 28 through Dec. 31.
The law also allows localities to waive interest and penalties for property tax installment payments due and payable after April 1 through Oct. 1. County boards need to adopt a resolution authorizing waivers and establish a general or case-by-case find of hardship, according to the law's text. Evers, in his package, had proposed letting municipalities allow taxpayers three or more installments to pay their 2020 property taxes.
The Department of Revenue's secretary is allowed to waive interest and penalties for general fund and transportation fund taxes that accrue during the health emergency if the due date falls within that period and the person's failure to pay on time is determined to be a result of the pandemic, according to the law.
Municipalities are allowed to publish a notice that the boards of review for property tax assessment can adjourn regardless of whether the 2020 assessment roll is complete, according to bill text.
Under current law, municipal boards of review are required to hear objections to local property tax assessments in the 45-day period beginning in April, but no sooner than the seven days after the property tax assessment roll is open for public review.
The law also removes a restriction on filing claims unless a taxpayer has paid their property taxes on time. Under the new law, the restriction does not apply to taxes due and payable in 2020 if paid by Oct. 1 or by any installment date on which the taxes are due after Oct. 1.
Representatives for Evers, Vos and Roth did not not immediately respond to requests for comment Thursday.
--Editing by Vincent Sherry.
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