Senate Majority Leader Devin LeMahieu (R-Oostburg) told reporters on Wednesday ahead of a floor session that he hadn’t spoken recently with Gov. Tony Evers or Assembly Speaker Robin Vos (R-Rochester) about property tax relief proposals. LeMahieu speaks at a 2023 press conference with Vos (left) and other Assembly Republicans standing behind him. (Wisconsin Examiner photo)

Senate Republicans are not on the same page as Assembly Republicans and Gov. Tony Evers when it comes to how to use the projected $2.5 billion state surplus to provide tax relief to Wisconsinites. 

Senate Majority Leader Devin LeMahieu (R-Oostburg) told reporters on Wednesday ahead of a floor session that he hadn’t spoken recently with Evers or Assembly Speaker Robin Vos (R-Rochester) about property tax relief proposals. Vos told reporters on Tuesday that he was negotiating with Evers on a property tax proposal and was backing off a demand to repeal the partial veto that extended school revenue limit increases for 400 years. 

LeMahieu said his caucus was working on fine tuning its own proposal.

“When you have a surplus, you want to give it back to the people who are paying taxes in Wisconsin, the hard working families of Wisconsin,” LeMahieu said.

Hours later, LeMahieu announced the introduction of SB 1, which would provide rebate payments of up to $1,000 to taxpayers, and SB 995, which would provide a sum sufficient appropriation for the proposal. 

“You and your family know how to spend your hard-earned dollars best, not the state government,” LeMahieu said in a statement. “So, whether you need more room in your budget for groceries, or if Governor Evers’ 400-year veto sent your property tax bill through the roof, the State Senate intends to vote next week to return the surplus to the people who created it in the first place: you, the taxpayers.”

Wisconsin leaders are debating ways to provide some financial relief to residents in the aftermath of a significant jump in property tax bills in December. The hikes were fueled by a state budget that increases school revenue limits while keeping state general aid flat — pushing education costs onto local taxpayers — as well as voter approval of school district referendum requests. Further property tax hikes are expected if there is no action from policymakers.

The Senate bill would provide a one-time rebate to taxpayers who filed a Wisconsin individual income tax return in tax year 2024 and owed for that year. It would provide a rebate of $1,000 for joint married filers and a $500 rebate for other individuals. 

The Department of Revenue (DOR) would make the payments without the taxpayers having to take any further action and they would need to be made by Sept. 15, 2026. The rebate would not exceed the amount of the taxpayer’s 2024 net income tax liability.

The bill will receive a public hearing Thursday afternoon in the Senate Agriculture and Revenue committee. The committee chair, Sen. Patrick Testin (R-Stevens Point), called the 400-year veto “irresponsible” and said Republicans “know that many families across Wisconsin are struggling financially” and they believe their proposal “will go a long way toward reducing the tax burden on our residents.”

Asked about the new proposal, Evers’ spokesperson Britt Cudaback referred the Wisconsin Examiner back to a statement she made on Tuesday. 

“The governor’s been clear that any bipartisan bill on property taxes must include investments to ensure our K-12 schools receive the resources they need and were promised in the state budget,” Cudaback said. “We look forward to hearing back from Republican leaders regarding whether they will support the governor’s plan that both addresses property taxes and invests in our kids and our schools.” 

According to emails shared by Cudaback, Evers has proposed to Republican lawmakers a bill that would pair funding for schools with tax relief. The proposal would include $200 million, including $80 million to bring the special education reimbursement rate to 42% in 2026 and $120 million to bring it to 45% in 2027, as well as $450 million in 2027 in general school aids to buy out the projected statewide school property tax levy.

In exchange, Republicans would get $550 million for the school levy tax credit to help with property tax relief and $97.3 million in 2027 for tax exempt cash tips. 

According to the email, Evers was willing to discuss changes to the 400-year veto but only if Republicans would “approve a significant and ongoing state investment in K-12 schools, including, at minimum, closing the gap in special education funding from the 2025-27 Biennial Budget and making special education aid a sum sufficient appropriation,” meaning it would cover all special ed costs at the set rate, unlike a “sum certain” appropriation which is a limited pot of money regardless of increased expenses.

“However, we understand from our conversation that neither of the two leaders would like to have discussions about the 400-year veto,” Madden wrote in the email. 

While Vos may not be set on eliminating the partial veto, LeMahieu told CBS58 on Wednesday that the veto would need to be repealed to do anything on property tax relief.