Homestead Credit

State

Wisconsin

Year

2007

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

The benefit is a refundable state income tax credit for property taxes paid. It is determined by 2 brackets. For those with income at or below $8,000, the credit is 80% of taxes paid, up to a maximum of $1,450 of taxes for a maximum credit of $1,160. For those with income above $8,000 but less than $24,500, the credit is equal to 80% of the amount by which property taxes exceed 8.788% of household income in excess of $8,000.

How is Benefit Disbursed

Credit to the income tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Renter

Other Criteria

Description of Eligibility Criteria

The individual must be a homeowner or renter and must be over 18 years of age but not claimed as a dependent during the year the to which the claim relates, unless the claimant is 62 years of age or older. The claimant must have resided in the property for a year when filing the claim. The income ceiling is $24,500 for households.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

Benefits is refundable if the credit exceeds the taxpayer’s state tax liability.

Enrollment Data

In 2007, the state received 236,070 claims costing $119,409,021, with an average benefit of $512.

Record ID

WI101_RR07

Footnotes

For renters, property taxes are assumed to be 20% of rent if heat is included or 25% of rent if heat is not included in the rent. In computing household income, a claimant may deduct $250 for each dependent living with the claimant.

Sources

Wis. Stat. § 71.07 (4) (in effect for 2007); Wis. Stat. § 71.51 ~ § 71.55 (in effect for 2007)
The Homestead Tax Credit Program: Summary for FY2008 (2009), Wisconsin Department of Revenue [http://www.revenue.wi.gov/ra/08hmsted.pdf Accessed 12/31/2009]
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