Assembly Bill 1227 proposes the creation of a refundable income tax credit for senior citizens in Wisconsin who pay property taxes on their principal dwelling. Specifically, the bill allows individuals aged 65 and older, with an annual household income of no more than $24,500 and an assessed dwelling value of no more than $300,000, to claim a credit equal to 75% of the property taxes paid. The bill stipulates that those claiming this credit cannot also claim other property tax credits, such as the school property tax credit or the homestead credit. If the credit exceeds the claimant's tax liability, the excess amount will be refunded to the claimant.

To implement this credit, the bill creates new statutory sections, including 20.835 (2) (fm) for appropriations and 71.07 (8d) detailing the definitions and eligibility criteria for the credit. Additionally, it amends section 71.10 (4) (i) to include the new senior citizen property tax credit among other existing credits. The bill outlines specific limitations on eligibility, including restrictions on joint claims and the requirement for timely filing. The Department of Revenue will be responsible for administering the credit and providing necessary forms and instructions to claimants.