BillTrack50 logo
Free Signup Login
Bill

Bill > AB1028

WI AB1028

WI AB1028
Authorizing counties and municipalities to impose local income taxes on high-income taxpayers and making an appropriation. (FE)

summary

Introduced
02/06/2026
In Committee
02/06/2026
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

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 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. For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

AI Summary

This bill allows counties and municipalities in Wisconsin to impose a local income tax on high-income taxpayers, defined as individuals or married couples with "Wisconsin taxable income" (income as defined by state tax law) exceeding $1,000,000, or $500,000 for individuals filing separately. To implement this tax, a county or municipality must pass an ordinance, which then needs approval from voters in a referendum. The tax can only be applied if the taxpayer resides in, owns residential property in, or is physically present for employment in the taxing locality for at least 30 days during the tax year; if multiple localities qualify based on physical presence for employment, only the one with the most days applies. The ordinance must specify the tax rate and the first year it will be effective, with different timelines for approval in spring versus fall elections. The local income tax would be due on the same date as the state income tax return, and localities must provide a credit for any similar local income tax paid to another state. The bill also makes an appropriation, meaning it allocates funds, to the Department of Revenue for administering this new local income tax, with a portion of the collected tax revenue going to the department for this purpose and the rest distributed to the enacting counties and municipalities.

Committee Categories

Budget and Finance

Sponsors (8)

Last Action

Read first time and referred to Committee on Ways and Means (on 02/06/2026)

bill text

bill summary

Loading...

bill summary

Loading...
Loading...