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Bill

AB 1026

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

2025-2026 Regular Session Introduced by Elijah Behnke and 8 co-sponsors

Wisconsin bill modifies interest rates on late tax payments and overpayment refunds, affecting tax compliance costs and state revenue collection.

Failed to pass pursuant to Senate Joint Resolution 1
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Bill Summary · AB 1026

Legislative bill overview

AB 1026 modifies Wisconsin's interest rate structure for late tax payments and tax overpayments. The bill adjusts how interest accrues on nondelinquent taxes that are paid after the due date and on refunds owed to taxpayers, likely changing the rates or calculation methods currently in statute.

Why is this important

Interest rates on late taxes and overpayments directly affect both individual taxpayers and businesses in Wisconsin. Changes to these rates can influence tax compliance behavior, state revenue collection, and the cost of doing business, while also affecting how quickly taxpayers receive refunds on overpayments.

Potential points of contention

  • Rate direction unclear: Without the fiscal estimate details available, it's unknown whether rates are increasing (benefiting the state but costing taxpayers) or decreasing (reducing state revenue but helping taxpayers)
  • Business vs. individual impact: Different tax-paying groups may be affected asymmetrically, raising fairness questions about whose burden increases or decreases
  • Interaction with economic conditions: During economic downturns, higher late-payment interest rates may disproportionately burden struggling taxpayers and small businesses

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

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