Assembly Bill 1029 proposes the imposition of an estate tax on property transfers occurring upon an individual's death, applicable to deaths after October 31, 2026. The tax will be based on the value of the decedent's Wisconsin taxable estate, which is defined as the federal gross estate minus certain deductions and excluding qualifying farmland. The bill establishes a graduated tax rate structure, with rates ranging from 0% for estates valued at less than one-third of the federal exclusion amount to 20% for estates valued at or above the exclusion amount. Additionally, if the federal exclusion amount is reduced or repealed, the estate tax will be calculated based on the exclusion amount from the previous taxable year.

The bill also repeals and recreates Chapter 72 of the statutes, which governs estate tax provisions, and eliminates prior estate tax provisions that were dependent on a federal estate tax credit that has since been repealed. It maintains tax administration provisions similar to those in previous law, including the Department of Revenue's collection authority and confidentiality protections for estate tax returns. Notably, the bill includes amendments to various sections of the statutes, such as replacing references to certain sections and updating definitions related to estate tax administration.

Statutes affected:
Bill Text: 20.913(1)(b), 20.913, 71.14(2), 71.14, 71.93(7), 71.93, 71.93(8)(b)5