imposing an estate tax

Wisconsin Legislature: AB1029: Bill Text

Skip navigation

Home

Documents

Senate

Assembly

Committees

Service Agencies

Docs

Options

Help

2025 Biennium

Statutes

Admin. Rules

Indices

Miscellaneous

Archives

Home

Bill, Rule, and Appointment Histories

Senators

Representatives

Committees

Text of Introduced Proposals

Amendment Text

Acts

Veto Messages

Enrolled Bills

Votes

Assembly and Senate Floor Calendars

Schedule of Committee Activities

Assembly and Senate Journals

Committee Records (ROCPs)

Legislative Rules

All Session-Related Documents

Subject Index to Acts

Subject Index to Legislation

Subject Index to Journals

Author Index to Legislation

Subject Index to Clearinghouse Rules

Miscellaneous Budget Documents

Executive Orders

Rulings of the Chair

Wisconsin Supreme Court Rules

Opinions of the Attorney General

Town Law Forms

Law

Districts

Session

Drafting Files

Feeds

Preferences

Show tree

Hide tree

Feedback

Help

Home

Senate Home

Senators

Committees

Session

Chief Clerk

Sergeant at Arms

Civics Education

Human Resources
Assembly Home

Representatives

Committees

Session

Chief Clerk

Sergeant at Arms

Human Resources
Schedule

Joint

Senate

Assembly

Study
Legislative Audit Bureau

Legislative Council

Legislative Fiscal Bureau

Legislative Human Resources Office

Legislative Reference Bureau

Legislative Technology Services Bureau

Menu
»
2025
»
Related Documents
»
Proposal Text
»
AB1029: Bill Text

Up

Up

2025 - 2026 LEGISLATURE
LRB-5376/1
EKL:cdc&skw
2025 ASSEMBLY BILL 1029
February 6, 2026 - Introduced by Representatives
Clancy
,
Madison
,
Hong
,
Phelps
,
Tenorio
,
Moore Omokunde
,
Rivera-Wagner
and
Sinicki
, cosponsored by Senator
Larson
. Referred to Committee on Ways and Means.
AB1029,1,3
1
An Act

to amend
20.913 (1) (b), 71.14 (2), 71.93 (7), 71.93 (8) (b) 5. and 73.12
2
(5);
to repeal and recreate
chapter 72 of the statutes;
relating to:
imposing
3
an estate tax.
Analysis by the Legislative Reference Bureau
This bill imposes an estate tax on transfers of property that take place upon an individual’s death. The bill applies to deaths occurring after October 31, 2026.
Under the bill, the tax is imposed on the value of the decedent’s Wisconsin taxable estate. The Wisconsin taxable estate is the decedent’s federal gross estate, excluding any property with a situs outside Wisconsin, decreased by certain federal estate tax deductions, regardless of whether they were claimed for federal purposes, and excluding the value of qualifying farmland. Under the bill, qualifying farmland is real property that is primarily used for farming, is valued at no more than $15,000,000 at the time of the decedent’s death, and is inherited by qualifying family members who continuously hold it for at least 10 years.
The bill imposes the estate tax using a graduated rate structure that is based on the highest marginal tax rate for the federal estate tax, which is 40 percent, and the amount of the federal estate tax exclusion, which is $15,000,000, adjusted annually for inflation, plus any unused federal exclusion amount of a predeceased spouse. Specifically, the bill taxes the Wisconsin taxable estate as follows:
1. The amount of the estate that is valued at less than one-third of the federal exclusion amount is not taxed.
2. The amount of the estate that is valued at one-third to two-thirds of the federal exclusion amount is taxed at the rate of 6.67 percent, which is one-sixth of the highest federal marginal rate.
3. The amount of the estate that is valued at two-thirds to the full amount of the federal exclusion amount is taxed at the rate of 13.33 percent, which is one-third of the highest federal marginal rate.
4. The amount of the estate that is valued at the federal exclusion amount or greater is taxed at the rate of 20 percent, which is one-half of the highest federal marginal rate.
The bill provides that if the federal exclusion amount is reduced or repealed, the estate tax will be imposed using the federal exclusion amount that applied in the taxable year immediately prior to the reduction or repeal.
The bill generally requires that an estate tax return be filed within nine months of the decedent’s death and full payment of the tax be made at that time as well. If qualifying farmland excluded from the estate at the time of the decedent’s death is sold or developed within the 10-year period during which qualifying family members must hold the farmland, the estate tax is imposed on the full value at the time of sale or development and is due within six months. Under the bill, the failure to file a estate tax return is subject to a penalty equal to the lesser of 5 percent of the tax due or $500 and, if tax is not paid when due, interest is charged at 12 percent.
Prior law imposed an estate tax that was structured to take advantage of a federal estate tax credit for state death taxes, which had the effect of reducing the amount of estate tax paid to the federal government by the amount paid to the state. The federal government sunsetted and eventually repealed the credit. Wisconsin’s estate tax is sunsetted for deaths occurring after December 31, 2012, unless federal law is modified to provide a federal estate tax credit for state death taxes. The bill eliminates the prior estate tax provisions, including the provision that would have revived the tax.
While the bill eliminates the prior estate tax, the bill generally contains tax administration provisions similar to those that applied under prior law, including provisions relating to the Department of Revenue’s collection authority, confidentiality protections for the estate tax return and related information, the jurisdiction of circuit courts to handle disputes, and the ability of DOR to use an arbitration panel to handle residency disputes among Wisconsin and other states.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB1029,1
1
Section

1
.
20.913 (1) (b) of the statutes is amended to read:
AB1029,3,4
2
20.913
(1)
(b)
Excess tax payments.
Taxes collected in excess of lawful
1
taxation, when claims therefor have been established as provided in ss. 71.30 (4),
2
71.74 (13), 71.75, 71.89 (1),
72.24

72.43 (5)
, 74.35, 74.37, 76.13 (3), 76.39, 76.84,
3
78.19, 78.68 (10), 78.75, 78.80 (1m), 139.092, 139.25 (1), 139.36, 139.365 and 139.39
4
(4).
AB1029,2
5
Section

2
.
71.14 (2) of the statutes is amended to read:
AB1029,3,13
6
71.14
(2)
A trust created at death by will, contract, declaration of trust or
7
implication of law by a decedent who at the time of death was a resident of this state
8
shall be considered resident at the domicile of the decedent at the time of the
9
decedent’s death until transferred by the court having jurisdiction under s.
72.27

10
72.49
to another court’s jurisdiction. After jurisdiction is transferred, the trust
11
shall be considered resident at the place to which jurisdiction is transferred. The
12
hearing to transfer jurisdiction shall be held only after giving written notice to the
13
department of revenue under s. 879.05.
AB1029,3
14
Section

3
.
71.93 (7) of the statutes is amended to read:
AB1029,3,19
15
71.93
(7)

Exchange of information.
Information relative to changes to any
16
debt certified shall be exchanged promptly by each agency. Setoff of refunds and
17
reduction of disbursements against debts certified by agencies, and any report of
18
the setoff or reduction to state agencies, is not a violation of ss. 71.78,
72.06

72.51
,
19
77.61 (5), 78.80 (3), and 139.38 (6).
AB1029,4
20
Section

4
.
71.93 (8) (b) 5. of the statutes is amended to read:
AB1029,4,2
21
71.93
(8)
(b) 5. The department may collect debts and assess interest on
22
delinquent amounts under this paragraph in the same manner that it collects taxes
23
and assesses interest under ss. 71.82 (2), 71.91, 71.92, and 73.03 (20). The
24
department’s use of tax returns and related information to collect debts under this
1
paragraph is not a violation of s. 71.78,
72.06

72.51
, 77.61 (5), 78.80 (3), or 139.38
2
(6).
AB1029,5
3
Section

5
.
Chapter 72 of the statutes is repealed and recreated to read:
AB1029,4,5
4
CHAPTER 72
5
ESTATE TAX
AB1029,4,6
6
72.40 Definitions.
In this chapter:
AB1029,4,9
7
(1)
“Death tax” means an estate, inheritance, succession, legacy, or transfer
8
tax that is imposed by another state, a territory, or the District of Columbia because
9
of death or in contemplation of death.
AB1029,4,10
10
(2)
“Department” means the department of revenue.
AB1029,4,13
11
(3)
“Distributee” means a person to whom property is transferred by reason of
12
the death, or in contemplation of the death, of a decedent, other than in payment of
13
a claim.
AB1029,4,15
14
(4)
“Estate” means all property of a decedent transferred by reason of the
15
decedent’s death or in contemplation of the decedent’s death.
AB1029,4,17
16
(5)
“Federal estate tax” means the tax imposed under ch. 11 of the Internal
17
Revenue Code.
AB1029,4,19
18
(6)
“Personal representative” means a person to whom a court has granted
19
letters to administer a decedent’s estate.
AB1029,4,20
20
(7)
“Situs” means any of the following:
AB1029,4,22
21
(a) With respect to real property, the state or country in which the property is
22
located.
AB1029,5,3
23
(b) With respect to tangible personal property, the state or country in which
24
the property is normally kept or located at the time of a decedent’s death or, in the
1
case of a gift of tangible personal property made within 3 years of death, the state or
2
country in which the property is normally kept or located at the time the gift is
3
made.
AB1029,5,7
4
(c) With respect to intangible personal property, the state or country in which
5
the decedent is domiciled at the time of death or, in the case of a gift of intangible
6
personal property made within 3 years of death, the state or country in which the
7
decedent is domiciled at the time the gift is made.
AB1029,5,11
8
(d) Notwithstanding pars. (a) and (b), if a nonresident decedent has an
9
ownership interest in a pass-through entity that owns real or tangible personal
10
property, the situs of the property is determined as if the property is personally
11
owned by the decedent and the pass-through entity does not exist.
AB1029,5,15
12
(8)
“Wisconsin gross estate” means the decedent’s gross estate, as defined in
13
section
2031
of the Internal Revenue Code and as required to be determined and
14
valued for federal estate tax purposes, but excluding any property with a situs
15
outside this state.
AB1029,5,19
16
72.41 Estate tax imposed.

(1)

Tax imposed
. An estate tax is imposed on
17
the following transfers of property that is subject to the federal estate tax,
18
regardless of whether the federal estate tax is imposed, and that has a taxable situs
19
in this state:
AB1029,5,20
20
(a) The transfer is from a decedent who dies while a resident of this state.
AB1029,6,2
21
(b) The transfer is from a decedent who dies while not a resident of this state
22
and the property is within the jurisdiction of this state, except that a transfer of a
23
nonresident decedent’s intangible personal property is not subject to tax if, at the
24
time of the death, the state of the decedent’s residence allows a like exemption for
1
intangible personal property in favor of this state’s residents or does not impose a
2
death tax.
AB1029,6,6
3
(2)
Taxable estate
. The tax imposed under sub. (1) is equal to the value of
4
the Wisconsin taxable estate multiplied by the rate applicable under sub. (3). The
5
value of the Wisconsin taxable estate shall be equal to the value of the Wisconsin
6
gross estate with the following modifications:
AB1029,6,11
7
(a) Decreased by the deductions allowed to the estate under sections
2053
,
8
2054
,
2055
, and
2056
of the Internal Revenue Code, regardless of whether the
9
estate makes the deductions for federal tax purposes. No amount may be deducted
10
under this paragraph for foreign taxes under section 2053 (d) of the Internal
11
Revenue Code.
AB1029,6,12
12
(b) Decreased by the exclusion provided under s. 72.42.
AB1029,6,14
13
(3)
Rate of tax
. (a) Subject to par. (b), the value of the Wisconsin taxable
14
estate, as determined under sub. (2), shall be taxed at the following rates:
AB1029,6,17
15
1. For any amount that is less than one-third of the applicable exclusion
16
amount determined in the taxable year under section 2010 (c) (2) of the Internal
17
Revenue Code, the rate is 0.
AB1029,6,21
18
2. For any amount that is at least one-third, but less than two-thirds, of the
19
applicable exclusion amount determined in the taxable year under section
2010
(c)
20
(2) of the Internal Revenue Code, the rate is equal to one-sixth of the highest
21
marginal rate under section
2001
(c) of the Internal Revenue Code.
AB1029,7,2
22
3. For any amount that is at least two-thirds of, but less than, the applicable
23
exclusion amount determined in the taxable year under section 2010 (c) (2) of the
1
Internal Revenue Code, the rate is equal to one-third of the highest marginal rate
2
under section
200
1 (c) of the Internal Revenue Code.
AB1029,7,6
3
4. For any amount that is at least equal to the applicable exclusion amount
4
determined in the taxable year under section 2010 (c) (2) of the Internal Revenue
5
Code, the rate is equal to one-half of the highest marginal rate under section
2001

6
(c) of the Internal Revenue Code.
AB1029,7,13
7
(b) If, in a taxable year, the basic exclusion amount in section
2010
(c) (3) (A)
8
of the Internal Revenue Code is less than $15,000,000, or if section
2010
(c) (2) or (3)
9
of the Internal Revenue Code is repealed or made inoperable, the applicable
10
exclusion amount in par. (a) 1., 2., 3., and 4. shall be determined using the basic
11
exclusion amount in section
2010
(c) (3) of the Internal Revenue Code that applies
12
for federal estate tax purposes in the taxable year immediately prior to the
13
reduction, repeal, or inoperability.

Down

Down

/2025/related/proposals/ab1029

true

proposaltext

/2025/related/proposals/ab1029

proposaltext/2025/REG/AB1029

proposaltext/2025/REG/AB1029

section

true

Menu
»
2025
»
Related Documents
»
Proposal Text
»
AB1029: Bill Text

×

Details for

PDF view

Link
(Permanent link)

Bookmark this location

View toggle

Go to top of document

Search in this chapter

Search in this section

Search in this agency

Search in this chapter group

Search in this chapter

Search in this section

Cross references for section

Acts affecting this section

References to this

1970 Statutes Annotations

Appellate Court Citations

Administrative Code Index

Reference lines

Clear highlighting