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SB 1012

Relating to: interest rates on late, nondelinquent taxes and on overpayments. (FE)

2025-2026 Regular Session Introduced by Howard Marklein and 1 co-sponsor

SB 1012 adjusts Wisconsin's interest rates on late tax payments and overpayments, with fiscal implications for state revenue and taxpayer costs.

Failed to pass pursuant to Senate Joint Resolution 1
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WeVote Research Nonpartisan
Bill Summary · SB 1012

Legislative bill overview

SB 1012 modifies Wisconsin's tax code provisions governing interest rates charged on late tax payments and interest paid on tax overpayments. The bill adjusts these rates, which are typically tied to federal rates or statutory formulas. These changes affect both taxpayers who owe additional taxes and those receiving refunds from overpayments.

Why is this important

Interest rate adjustments on tax accounts have direct financial consequences for Wisconsin residents and businesses. Changes to late-payment interest rates affect the cost of owing taxes, while overpayment interest rate changes determine how much taxpayers receive back when they've overpaid. The fiscal estimate suggests measurable revenue or expenditure implications for the state budget.

Potential points of contention

  • Revenue impact: Lowering late-payment interest rates reduces state revenue from tax enforcement, while raising overpayment rates increases state expenditures—affecting which direction the state's bottom line moves
  • Fairness between taxpayers and state: Taxpayers who pay late benefit from lower interest costs, but this may be seen as reducing incentives for timely payment versus those who comply
  • Economic effects: Interest rate changes on overpayments influence cash flow for businesses and individuals awaiting refunds, with implications for working capital and consumer spending

Compiled from official sources — confirm details with the bill’s official record.

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