Assembly Bill 6 – Authored by Rep. Mike Kuglitsch (R-New Berlin)
Senate Bill 10 – Authored by Sen. Randy Hopper (R-Fond du Lac)
Status
Assembly Bill 6 has been referred to the Assembly Committee on Jobs, Economy and Small Business on January 25, 2011.
Senate Bill 10 has been referred to the Senate Committee on Public Health, Human Services and Revenue on January 21, 2011.
This legislation failed to be enacted into law during the 2011-2012 legislative session.
Summary
Assembly Bill 6 and Senate Bill 10 propose to reverse the changes made to the taxation of capital gains in the 2009-11 state budget bill. The legislation would restore the income tax exclusion for capital gains to 60 percent within the taxable year 2012 for the sale of farm assets held more than one year. The legislation would also increase the capital gains exclusion to 80 percent in taxable year 2013 and increase it again to 100 percent for taxable year 2014 and beyond.
Background
Under current law (from the 2009-11 biennial state budget), there is an income tax exclusion for individuals, fiduciaries, members of limited liability companies and partnerships and shareholders of tax-option corporations for 30 percent of the net long-term capital gains realized from the sale of assets held more than one year and the sale of all assets acquired from a decedent, and an exclusion for 60 percent of such gains realized from the sale of farm assets held more than one year and the sale of all farm assets acquired from a decedent.
For taxable year 2012, this bill reverses the changes made to the taxation of capital gains in the last state budget and restores the income tax exclusion for capital gains to 60 percent of the net long-term capital gains realized from the sale of assets held more than one year and the sale of all assets acquired from a decedent and repeals the separate 60 percent exclusion for farm assets.
For taxable year 2013, the bill increases this capital gains exclusion to 80 percent, and increases it to 100 percent for taxable year 2014 and beyond.
Position – SUPPORT