Property Tax Credits

State-specific program rule PropertyTaxCreditType indicates whether a state has property tax credits that are modeled by TRIM3's State Tax model. Up to three credits can be specified for each state. The total amount of property tax credits is saved as micro-level variable StatePropertyTaxCredit.

Three points are important to note. First, although these options are state-specific, they can be turned on for any state at any time. (Eg, the Wisconsin State School Property Tax Credit can be turned on for Arkansas). Second, these options make use of other program rules to hold numbers needed in the calculations. The program rules required to implement each option are described in the discussions below. Finally, the value specified in PropertyTaxes is kept as a single value when using CPS input data and converted to the midpoiint of the range when using ACS dat. For more information about the difference see the data dictionary.

• Wisconsin School Property Tax Credit
• Wisconsin Homestead Credit
• Wisconsin Farm Property Tax Relief Credit

Wisconsin School Property Tax Credit

If the option "Wisconsin School Property Tax Credit" is selected then the rules PropertyTaxes, Rent, RenterSchoolPropTaxCreditRate_WI, OwnerSchoolPropTaxCreditRate_WI, SchoolPropTaxCreditMaxJoint_WI and SchoolPropTaxCreditMaxSingle_WI must have values.

The credit is equal to Rent * RenterSchoolPropTaxCreditRate_WI + PropertyTaxes * OwnerSchoolPropTaxCreditRate_WI capped at the appropriate max -- SchoolPropTaxCreditMaxJoint_WI for joint filers and SchoolPropTaxCreditMaxSingle_WI for single and head of household filers. Note that Wisconsin does not allow combined separate filing. Also note that the rate specified in RenterSchoolPropTaxCreditRate_WI is for the "heat included" version of the credit.

Wisconsin Homestead Credit

If the option "Wisconsin Homestead Credit" is selected then the rules PropertyTaxes, Rent, NumDependents, MonthlyTANFUnitBenefit, HomesteadCreditHhldIncome_WI, HomesteadCreditHhldIncome2_WI, HomesteadCreditDepAllowance_WI, HomesteadCreditRateRent_WI, HomesteadCreditMaxPropTax_WI, HomesteadCreditMax_WI, HomesteadCreditRate_WI, HomesteadCreditTableAMax_WI, HomesteadCreditTableABase_WI, HomesteadCreditTableARate_WI, HomesteadCreditPartRate_WI and HomesteadCreditMonthlyTANFMax_WI must have values.

A unit is eligibile for this credit if PropertyTaxes are greater than zero, the head is age 18 or older, MonthlyTANFUnitBenefit does not exceed HomesteadCreditMonthlyTANFMax_WI in all months and the unit rents or owns their own residence (the Household variable Tenure is equal to 1 or 2).

Income for the unit is equal to HomesteadCreditHhldIncome_WI summed for the head and spouse plus HomesteadCreditHhldIncome2_WI summed for the head, spouse and dependent children. From this amount, the value HomesteadCreditDepAllowance_WI * NumDependents is subtracted to arrive at the final income amount used in determining the credit.

For eligible units, the homestead credit is calculated as follows:

Eligible units participate in the homestead credit, if the random number RandomNumHomestead_WI is smaller than the participation rate specified in the alignment rule HomesteadCreditPartRate_WI. By default, HomesteadCreditPartRate_WI is set to 1 and all eligible units participate.

Wisconsin Farm Property Tax Relief Credit

If the option "Wisconsin Farm Property Tax Relief Credit" is selected then the rules FarmSelfEmploymentWages, FarmPropTaxCreditRate_WI, FarmPropTaxCreditGrossFarmProfits_WI and FarmPropTaxCreditMax_WI must have values.

A unit is eligible for this credit if FarmSelfEmploymentWages is greater than FarmPropTaxCreditGrossFarmProfits_WI and LastDetailedIndustry2002 is equal to 170 or 180.

The farm property tax relief credit is equal to PropertyTaxes capped at FarmPropTaxCreditMax_WI times FarmPropTaxCreditRate_WI.