On March 24, 2014, Wisconsin Gov. Scott Walker signed S.B. 1 which provides tax relief in excess of $500 million. S.B. 1 makes a number of changes to accomplish this tax relief, primarily by reducing personal income taxes and property taxes.
S.B. 1 provides broad personal income tax relief by reducing the lowest of Wisconsin’s four income tax brackets by 0.4 percent. This 0.4 percent reduction applies to the lowest income bracket in Wisconsin’s bracketed progressive tax system.
S.B. 1 also cuts property taxes by approximately $406 million by changing how the state’s technical colleges are funded. This would amount to a property tax reduction of approximately $100 on the median-valued Wisconsin home.
In addition to these tax cuts, Gov. Walker instructed the Secretary of the Department of Revenue to reduce the state’s income tax withholding table rates by $323 million. While this move does not reduce taxes, Wisconsin workers will see larger net paychecks (albeit lower tax refunds on their returns).
In all, this tax cut package will provide approximately $859 million in tax relief through fiscal year 2015.