Month: August 2021

On Friday, the Wisconsin Department of Revenue (DOR) released its annual Equalized Values Report. The report shows Wisconsin’s total statewide equalized property value as of January 1, 2021, was $654 billion, a 7% increase over the prior year; growth occurred in all property classifications. Equalized values are based on data from January 1, 2020 to January 1, 2021.

Report highlights:

• Change in Equalized Value = $41.6 billion, a 7% increase from 2020
o $31.1 billion due to market value increases (5%)
o $10.1 billion due to new construction (2%)

Equalized Values are calculated annually and used to ensure statewide fairness and equity in property tax distribution. The Equalized Value represents an estimate of a taxation district’s total taxable value and provides for the fair apportionment of school district and county levies to each municipality. Changes in Equalized Value do not necessarily translate into a change in property taxes.

The U.S. Senate is poised to pass a roughly $1 trillion bipartisan infrastructure bill on Tuesday, capping off a lengthy, days-long debate. Majority Leader Charles Schumer (D-N.Y.), wrapping up the chamber’s work for the day, said it had “come to an agreement” and that the Senate will vote on passing the bill at 11 a.m. on Tuesday.

The bill, which includes approximately $550 billion in new spending, is substantially smaller than the plan initially outlined by President Biden earlier this year. But it includes new funding for things such as roads, bridges, rail, water and broadband.

Once the Senate passes the bipartisan bill, Democrats are expected to move directly to taking up the budget resolution that greenlights and includes instructions on drafting a $3.5 trillion spending package later this year.

Democrats are using the budget rules to pass both the resolution and the subsequent spending bill without GOP votes.

On Friday, the U.S. Department of Education (Department) announced a final extension of the pause on student loan repayment, interest, and collections until January 31, 2022. The Department believes this additional time and a definitive end date will allow borrowers to plan for the resumption of payments and reduce the risk of delinquency and defaults after restart. The Department will continue its work to transition borrowers smoothly back into repayment, including by improving student loan servicing.

“The payment pause has been a lifeline that allowed millions of Americans to focus on their families, health, and finances instead of student loans during the national emergency,” said U.S. Secretary of Education Miguel Cardona. “As our nation’s economy continues to recover from a deep hole, this final extension will give students and borrowers the time they need to plan for restart and ensure a smooth pathway back to repayment. It is the Department’s priority to support students and borrowers during this transition and ensure they have the resources they need to access affordable, high quality higher education.”

The Department will begin notifying borrowers about this final extension in the coming days, and it will release resources and information about how to plan for payment restart as the end of the pause approaches.

Groups spent $18 million to lobby the Capitol during the first six months of the year, a slight uptick from the last time a budget was before lawmakers, according to a WisPolitics.com check of lobbying reports.

Though interest groups spent $132,651 more during the first part of 2021, they put in 2,830 fewer hours lobbying with the Capitol still under COVID-related restrictions for much of the period. The spending includes not only time spent in the Capitol but communications as well as preparation for lobbying such as research or studies that go into their efforts.

The usual suspects topped spending on lobbying expenses during the period, including Wisconsin Manufacturers & Commerce at No. 1 with $404,539 spent. The Wisconsin Realtors Association was No. 2 for spending at $391,026.

Rounding out the top five in spending over the first half of 2021 were: the Wisconsin Hospital Association, $367,778; Wisconsin Farm Bureau Federation, $238,309; and Wisconsin Insurance Alliance, $203,319.

The top five were largely the same as for the first half of 2019 with one exception: the Wisconsin Credit Union League was No. 4 during the first half of that year, but dropped to No. 15 to start this session.

The Centers for Disease Control and Prevention (CDC) on Tuesday issued a moratorium on evictions targeting areas of the country with high levels of COVID-19 transmission, extending an eviction ban for much of the nation just days after a blanket moratorium had expired.

The CDC order applies to counties experiencing significant levels of virus spread, defined by the agency as 50 to 100 cases per 100,000 people. A congressional source said the order will likely apply to roughly 90 percent of the renter population in the U.S. The order will expire on October 3.

President Biden acknowledged at a news conference earlier Tuesday that the CDC order may not hold up in court. But he argued it would minimally buy time for state and local governments to distribute aid to renters and landlords.

The Supreme Court upheld the CDC’s moratorium, reversing a ruling from a federal appeals court on June 29, but warned that a further extension of the ban beyond its July 31 deadline would exceed the agency’s authority unless Congress passed a law to expand it.

The state’s largest organization representing physicians is urging all health care facilities to require their employees be vaccinated against COVID-19.

Several health care systems in Wisconsin already require vaccinations for their employees, including SSM Health, the Mayo Clinic Health System, Ascension Wisconsin, Children’s Wisconsin and the Medical College of Wisconsin.

Last week, dozens of national health care organizations, including the American Medical Association, issued a similar call for all health care and long-term care providers to mandate vaccination for employees.

“Health care needs to continue to lead the fight against COVID-19,” Letzer said. “The only hope to beat this virus is through a significant increase in vaccinations. Mandates similar to what we already have in place for measles or influenza are needed. It’s time for all health care employers to lead by example, do the right thing and take this necessary next step.”

Last Thursday, the IRS updated frequently asked questions (FAQs) on the paid sick and family leave tax credits under the American Rescue Plan Act of 2021 (ARP). The updates clarify that eligible employers can claim the credits for providing leave to employees to accompany a family or household member or certain other individuals to obtain immunization relating to COVID-19 or to care for a family or household member or certain other individuals recovering from the immunization.

The paid sick and family leave credits reimburse eligible employers for the cost of providing paid sick and family leave for reasons related to COVID-19. The revised FAQs make clear this includes leave taken by employees to care for certain individuals to obtain immunization relating to COVID-19 or to recover from immunization relating to COVID-19. This new reason for paid sick or family leave also applies for the comparable credits for self-employed individuals.

The paid sick and family leave tax credits under the ARP are similar to those put in place by the Families First Coronavirus Response Act (FFCRA), as amended and extended by the COVID-related Tax Relief Act of 2020 (Tax Relief Act), under which certain employers could receive tax credits for providing paid sick or family leave that met the requirements of the Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act (as added by FFCRA). The tax credits under the FFCRA, as amended and extended by the Tax Relief Act, covered leave taken beginning April 1, 2020, through March 31, 2021. The ARP amends and extends these credits to leave taken beginning April 1, 2021, through September 30, 2021.

The FAQs include information on how eligible employers may claim the paid sick and family leave credits, including how to file for and compute the applicable credit amounts, and how to receive advance payments for and refunds of the credits. Under the ARP, eligible employers, including businesses and tax-exempt organizations with fewer than 500 employees and certain governmental employers, may claim tax credits for qualified leave wages and certain other wage-related expenses (such as health plan expenses and certain collectively bargained benefits).

Self-employed individuals may claim comparable credits on the Form 1040, U.S. Individual Income Tax Return.