WISCONSIN VETERANS AND SURVIVING SPOUSES PROPERTY TAX CREDIT

Transcription

1 WISCONSIN VETERANS AND SURVIVING SPOUSES PROPERTY TAX CREDIT Information, Request Form, and Instructions Contents Property Tax Credit for Veterans and Surviving Spouses... 2 Procedures... 3 Form Completion Checklist... 4 WDVA 2097 Form... 5 Statutory Citations... 6 WDVA B0106 (02/07)

2 WISCONSIN VETERANS AND SURVIVING SPOUSES PROPER OPERTY TAX CREDIT Property Tax Credit for Veterans and Surviving Spouses Overview. Under s (6e) 1 the Wisconsin Veterans and Surviving Spouses Property Tax Credit program provides a refundable property tax credit for the primary residence (in state) via the state income tax form for: Eligible veterans who have a 100% VA basic service connected disability rating and are age 65 or older. The unremarried surviving spouse of an eligible veteran. The unremarried surviving spouse of a veteran who entered active duty as a Wisconsin resident, died in the line of duty, and was a Wisconsin resident at the time of death. The eligible individual must apply to the Wisconsin Department of Veterans Affairs for certification in accordance with the procedures in this brochure, and will include the certification with their state income tax form. Eligibility. An eligible veteran or an eligible unremarried surviving spouse may claim the Wisconsin Veterans and Surviving Spouses Property Tax Credit. (Note: Those claiming the Wisconsin Veterans and Surviving Spouses Property Tax Credit, may not also claim the school property tax credit, homestead credit, farmland tax relief credit, or farmland preservation credit.) Eligible Veteran. An eligible veteran means an individual who is at least 65 years of age and who is verified by the Wisconsin Department of Veterans Affairs as meeting all of the following conditions: Served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated in the U.S. armed forces. Was a resident of Wisconsin at the time of entry into active service. Is currently a resident of Wisconsin for purposes of receiving veterans benefits under ch. 45, Wis. Stats. Has a basic service connected disability rating of 100% under 38 USC 1114 or Note: Not all disability calculations which might seem to add up to 100% will qualify for this benefit. Ratings for individual disabling conditions that add up to 100% using merely simple arithmetic (i.e., 60% + 30% + 20% = 110%) do not qualify. The rating must be formally awarded by the federal VA based on evaluating the conditions according to the VA schedule for rating disabilities. These ratings which are based on the VA schedule are called schedular ratings. To qualify for the tax credit a veteran must meet all of the qualifications including a schedular rating for one or more service connected disabilities of 100%. Where the schedular rating of 100% is based on more than one service connected disability it is called a combined schedular rating and would also qualify for the tax credit. Individual Unemployability is not sufficient to qualify. Veterans who have a service connected disability with a schedular rating of at least 60%, or two or more service connected disability conditions where one condition has Page 2 at least a 40% schedular rating and the combined schedular rating for all conditions is at least 70% may be compensated at the 100% rate due to Individual Unemployability (I.U.) if the rating agency determines the veteran is unable to secure or follow a substantially gainful occupation as a result of service connected disabilities. I.U. is only an administrative adjustment in compensation and does not replace schedular ratings. To qualify for the tax credit, veterans must have a schedular rating (or combined schedular rating) of 100%; the administrative adjustment reflecting compensation paid at the 100% rate due to Individual Unemployability is not a schedular rating and does not qualify for the tax credit. The rating submitted must be the most recent one. Example 1: Veteran A has three service connected disability conditions, with an 80% schedular rating, a 60% schedular rating, and 40% schedular rating. The VA has awarded the veteran a combined schedular rating of 100% for the three service connected disabilities, based on the VA schedule for rating disabilities. Veteran A meets the other eligibility requirements for the Property Tax Credit. Veteran A qualifies for the credit. Example 2: Veteran B has three service connected disability conditions, with a 60% schedular rating, a 30% schedular rating, and a 20% schedular rating. The VA has awarded the veteran a combined schedular rating of 80% for the three service connected disabilities. Notwithstanding the 80% combined schedular rating, Veteran B is granted an administrative adjustment due to Individual Unemployability and is paid the 100% compensation rate for his service connected disabilities. Veteran B meets the other eligibility requirements for the

3 Property Tax Credit. However, because the underlying combined schedular rating is 80%, Veteran B does not qualify for the credit despite being paid at 100% compensation rate for I.U. Eligible Unremarried Surviving Spouse. An eligible unremarried surviving spouse means an unremarried surviving spouse of one of the following, as verified by the Wisconsin Department of Veterans Affairs: An individual who had served on active duty in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces, who was a resident of Wisconsin at the time of entry into active service, and who, while a resident of Wisconsin, died while on active duty. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of Wisconsin at the time of entry into active service; who was at least 65 years of age at the time of his or her death or would have been 65 years of age at the close of the year in which the death occurred; who was a resident of Wisconsin at the time of his or her death; and who had a basic service connected disability rating of 100% under 38 USC 1114 or An individual who had served in the National Guard or a reserve component of the U.S. armed forces, who was a resident of Wisconsin at the time of entry into that service, and who, while a resident of Wisconsin, died in the line of duty while on active or inactive duty for training purposes. Computing the Credit. The credit is equal to the property taxes paid during the year on the veteran s or unremarried surviving spouse s principal dwelling in Wisconsin. The credit is based on real property taxes, exclusive of special assessments, delinquent interest, and charges for service. Property taxes that constitute a trade or business expense may not be included. If the principal dwelling is sold during the taxable year, the property taxes for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale. If not provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to months of ownership. Please note that principal dwelling means any dwelling and the land surrounding it that is reasonably necessary for use of the dwelling as a primary dwelling. It may include a part of a multi dwelling or multi purpose building and a part of the land upon which it is built that is used as the primary dwelling. Please note as well that property taxes includes monthly parking permit fees in respect to a principal dwelling collected under s (3)(c). ii The credit must be claimed within 4 years of the unextended due date of the return. Married Veterans. If property is owned by an eligible veteran and his/her spouse as joint tenants, tenants in common, or as marital property and they are filing a joint return, the credit is based on 100% of property taxes paid on the principal dwelling. If, on the other hand, property is owned by an eligible veteran and his/her spouse as joint tenants, tenants in common, or as marital property and they are filing separate returns, each spouse may claim the credit based on their respective Page 3 ownership interest in the eligible veteran s principal dwelling. Property Owned Jointly with One or More Persons. If you own your principal residence jointly with only your spouse, see Married Veterans above. If you own your principal residence jointly with one or more persons other than your spouse, you may only take the credit according to the percentage of your ownership. Procedures Before claiming the credit, you must request verification from the Wisconsin Department of Veterans Affairs indicating that you qualify for the credit. Use Form WDVA 2097 (which you can find in this brochure) to submit your request to the Department of Veterans Affairs. Be sure to include all required documentation as follows: DD Form 214, Certificate of Release or Discharge from Active Duty. WDVA 0001 (if eligibility for benefits has not been established previously). Certified death certificate (if the veteran s unremarried surviving spouse is the applicant). Certified marriage certificate (if the veteran s unremarried surviving spouse is the applicant). The most recent Federal VA basic service connected disability rating notification letter which must show a combined schedular rating of 100%. The Form WDVA 0001 is available from your county veterans service officer or on the Internet at You may submit these forms and your award letter directly to:

4 Wisconsin Department of Veterans Affairs, 30 W. Mifflin St., P.O. Box 7843, Madison, WI Unless there has been a change in your status, you only need to request verification of your eligibility the first year you file for the credit. If you qualify, the Wisconsin Department of Veterans Affairs will then send you a verification of your eligibility. If you are determined to be eligible by the Wisconsin Department of Veterans Affairs, attach a copy of your property tax bill and a copy of the verification received from the Wisconsin Department of Veterans Affairs to your State of Wisconsin tax return. (Unless there has been a change in your status, you may use a copy of the same verification in succeeding years.) Even if you owe no income tax, you must still file a State of Wisconsin income tax return in order to receive a refund of the property tax credit. If you owe no income taxes, then the full amount of the property taxes paid will be refunded to you. If you have an income tax liability, the full amount of the property taxes paid, minus the amount of income tax due, will be refunded to you. If, on the other hand, you are determined to be ineligible for the tax credit, the Wisconsin Department of Veterans Affairs will inform you as to why you are ineligible and will provide you with your rights to appeal the determination. FORM COMPLETION CHECKLIST TO COMPLETE YOUR REQUEST FOR CERTIFICATION BE SURE YOU SUBMIT THE FOLLOWING ITEMS TO WDVA WDVA 2097 Request for Certification for Property Tax Credit. DD Form 214. WDVA 0001 (if not submitted previously). Certified Death Certificate (if the veteran s unremarried surviving spouse is the applicant). Certified Marriage Certificate (if the veteran s unremarried surviving spouse is the applicant). Most Recent Federal VA Basic Service Connected Disability Rating Notification Letter. Page 4

5 Wisconsin Statutes Chapter 45 STATE OF WISCONSIN, DEPARTMENT OF VETERANS AFFAIRS 30 West Mifflin Street, P.O. Box 7843, Madison, WI (608) FAX (608) REQUEST FOR CERTIFICATION FOR WISCONSIN VETERANS AND SURVIVING SPOUSES PROPERTY TAX CREDIT Personal information you provide may be used for secondary purposes [Privacy Law, s.15.04(1)(m)]. The provision of your social security number is voluntary. Failure to provide your social security number may result in an information processing delay. Instructions: All those requesting certification for veterans property tax credit must complete this form in full and attach required documentation as follows: 1) DD Form 214, Certificate of Release or Discharge from Active Duty; 2) WDVA 0001 (if the veteran has not previously established eligibility for benefits); 3) certified death certificate (if the veteran is deceased); 4) certified marriage certificate (if the veteran is deceased); 5) Federal VA basic service-connected disability rating notification letter. Mail this application and the appropriate supporting documents to: Wisconsin Dept. of Veterans Affairs, Attn: Wisconsin Veterans Property Tax Credit, 30 W. Mifflin St., P.O. Box 7843, Madison, WI Requester Name (Print) Date of Birth Address Social Security Number City, State, Zip Code I am requesting certification for Veterans Property Tax Credit based on my status as: Veteran (myself) Unremarried Surviving Spouse I am the unremarried surviving spouse of: Full Name of Veteran Veteran's Social Security Number Veteran s Date of Birth Veteran s Date of Death Under penalty of law, I attest by my signature that all of the information I have provided on this and related documents is true and complete to the best of my knowledge. I agree to inform WDVA of any change in the circumstances upon which this application is based. Signature Date WDVA 2097 (11/05) W:\Templates\WDVA_2097_Request_Cert_Veterans_Property_Tax_Credit.doc Page 5

6 Statutory Citations i s (6e) Veterans and Surviving Spouses Property Tax Credit (a) Definitions. In this subsection: 1. Claimant means an eligible unremarried surviving spouse, an eligible veteran, or an eligible spouse who files a claim under this subsection. m. Eligible spouse means the spouse of an eligible veteran who files a separate return. 2. Eligible unremarried surviving spouse means an unremarried surviving spouse of one of the following, as verified by the department of veterans affairs: a. An individual who had served on active duty in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces, who was a resident of this state at the time of entry into that active service, and who, while a resident of this state, died while on active duty. b. An individual who had served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated as part of the U.S. armed forces; who was a resident of this state at the time of entry into that active service; who was at least 65 years of age at the time of his or her death or would have been 65 years of age at the close of the year in which the death occurred; who was a resident of this state at the time of his or her death; and who had a service-connected disability rating of 100 percent under 38 USC 1114 or c. An individual who had served in the national guard or a reserve component of the U.S. armed forces, who was a resident of this state at the time of entry into that service, and who, while a resident of this state, died in the line of duty while on active or inactive duty for training purposes. 3. Eligible veteran means an individual who is at least 65 years of age and who is verified by the department of veterans affairs as meeting all of the following conditions: a. Served on active duty under honorable conditions in the U.S. armed forces or in forces incorporated in the U.S. armed forces. b. Was a resident of this state at the time of entry into that active service. c. Is currently a resident of this state for purposes of receiving veterans benefits under ch. 45. d. Has a service-connected disability rating of 100 percent under 38 USC 1114 or Principal dwelling has the meaning given in sub. (9) (a) Property taxes means real and personal property taxes, exclusive of special assessments, delinquent interest, and charges for service, paid by a claimant, and the claimant s spouse if filing a joint return, on the eligible veteran s or unremarried surviving spouse s principal dwelling in this state during the taxable year for which credit under this subsection is claimed, less any property taxes paid which are properly includable as a trade or business expense under section 162 of the Internal Revenue Code. If the principal dwelling on which the taxes were paid is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned by spouses as marital property, property taxes is that part of property taxes paid that reflects the ownership percentage of the claimant, except that this limitation does not apply to spouses who file a joint return. If the principal dwelling is sold during the taxable year, the property taxes for the seller and buyer shall be the amount of the tax prorated to each in the closing agreement pertaining to the sale or, if not so provided for in the closing agreement, the tax shall be prorated between the seller and buyer in proportion to months of their respective ownership. Property taxes includes monthly parking permit fees in respect to a principal dwelling collected under s (3) (c). (b) Filing claims. Subject to the limitations provided in this subsection, a claimant may claim as a credit against the tax imposed under s the amount of the claimant s property taxes. If the allowable amount of the claim exceeds the income taxes otherwise due on the claimant s income, the amount of the claim not used as an offset against those taxes shall be certified by the department of revenue to the department of administration for payment to the Page 6 claimant by check, share draft, or other draft from the appropriation under s (2) (em). (c) Limitations. 1. No credit may be allowed under this subsection unless it is claimed within the time period under s (2). 2. No credit may be allowed under this subsection if the individual, or the individual s spouse, files a claim under sub. (3m) or (9) or subch. VIII or IX that relates to the same taxable year for which a claim is made under this subsection. 3. If an eligible veteran and an eligible spouse file separate returns, each spouse may claim a credit under this subsection based on their respective ownership interest in the eligible veteran s principal dwelling. (d) Administration. Subsection (9e) (d), to the extent that it applies to the credit under that subsection, applies to the credit under this subsection. ii s (3) (c) 1. In addition to the license fee provided in pars. (a) and (b), each licensing authority shall collect from each mobile home occupying space or lots in a park in the licensing authority, except from mobile homes that constitute improvements to real property under s (1) and from recreational mobile homes and camping trailers as defined in s (19), a monthly parking permit fee computed as follows: a. On January 1, the assessor shall determine the total fair market value of each mobile home in the taxation district subject to the monthly parking permit fee. b. The fair market value, determined under subd. 1. a., minus the taxexempt household furnishings thus established, shall be equated to the general level of assessment for the prior year on other real and personal property in the district. c. The value of each mobile home, determined under subd. 1. b., shall be multiplied by the general property gross tax rate, less any credit rate for the property tax relief credit, established on the preceding year s assessment of general property.

7 d. The total annual parking permit fee, computed under subd. 1. c., shall be divided by 12 and shall represent the monthly mobile home parking permit fee. 2. The monthly parking permit fee is applicable to mobile homes moving into the tax district any time during the year. The park operator shall furnish information to the tax district clerk and the assessor on mobile homes added to the park within 5 days after their arrival, on forms prescribed by the department of revenue. As soon as the assessor receives the notice of an addition of a mobile home to a park, the assessor shall determine its fair market value and notify the clerk of that determination. The clerk shall equate the fair market value established by the assessor and shall apply the appropriate tax rate, divide the annual parking permit fee thus determined by 12 and notify the mobile home owner of the monthly fee to be collected from the mobile home owner. Liability for payment of the fee begins on the first day of the next succeeding month and continues for the months in which the mobile home remains in the tax district. 3. A new monthly parking permit fee and a new valuation shall be established each January and shall continue for that calendar year. 7. No monthly parking permit fee may be imposed for any space occupied by a mobile home accompanied by an automobile for an accumulating period not to exceed 60 days in any 12 months if the occupants of the mobile home are tourists or vacationists. Exemption certificates in duplicate shall be accepted by the treasurer of the licensing authority from qualified tourists or vacationists in lieu of monthly mobile home parking permit fees. 8. The credit under s (9) (bm), as it applies to the principal dwelling on a parcel of taxable property, applies to the estimated fair market value of a mobile home that is the principal dwelling of the owner. The owner of the mobile home shall file a claim for the credit with the treasurer of the municipality in which the property is located. To obtain the credit under s (9) (bm), the owner shall attest on the claim that the mobile home is the owner s principal dwelling. The treasurer shall reduce the owner s parking permit fee by the amount of any allowable credit. The treasurer shall furnish notice of all claims for credits filed under this subdivision to the department of revenue as provided under s (1m). 4. The valuation established is subject to review as are other values established under ch. 70. If the board of review reduces a valuation on which previous monthly payments have been made the tax district shall refund past excess fee payments. 5. The monthly parking permit fee shall be paid by the mobile home owner to the local taxing authority on or before the 10th of the month following the month for which the parking permit fee is due. 6. The licensee of a park is liable for the monthly parking permit fee for any mobile home occupying space in the park as well as the owner and occupant of the mobile home occupying space. A municipality, by ordinance, may require the mobile home park operator to collect the monthly parking permit fee from the mobile home owner. Page 7