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Wisconsin Assembly passes bills to exempt tips and overtime from taxes

Assembly Speaker Robin Vos (R-Rochester) told reporters ahead of the session that his caucus was seeking to address affordability with the legislation. (Photo by Baylor Spears/Wisconsin Examiner).

The Wisconsin Assembly — seeking to align state policy with Trump administration initiatives — passed bills Thursday to exempt overtime pay and tips from income tax. Lawmakers also passed bills to make English the official language of the state as well as school related bills.

Assembly Speaker Robin Vos (R-Rochester) told reporters ahead of the session that his caucus was seeking to address affordability with the legislation, though Democratic lawmakers argued the bills would not help address the issue in an effective way.

AB 38 would implement an income tax exemption for cash tips paid to an employee that would sunset in 2028. President Donald Trump signed a law in July to allow workers to deduct up to $25,000 in tips annually from their federal taxable income. Those earning more than $150,000 aren’t eligible for the deduction. 

The Wisconsin bill would apply the same policy when it comes to the state income tax. The deduction would apply to tips whether paid by cash or credit. 

Bill coauthor Rep. Ron Tusler (R-Harrison) said the tips tax cut is for the working and middle class. The bill passed 61-33 with a handful of Democrats joining Republicans. Rep. Lee Snodgrass (D-Appleton) and Rep. Robyn Vining (D-Wauwatosa) abstained from the vote.

“Tips are primarily earned by the working class and the lower middle class and tips should never have been taxed. A tip is a gift, it’s not income,” Tusler said. “Tips are not mandatory; they are a way to say thank you to someone.”

Tusler told reporters that his legislation wasn’t permanent because legislators want to “watch and see how it works out.” 

“I think it would be a great idea for it to become permanent someday. I hope it does,” Tusler said.  

Tusler also called on the Department of Revenue (DOR) to “get to work right away” should the bill become law to ensure it has forms ready. 

“This bill is going to pass, and it’s going to get signed by the governor, but if the Department of Revenue doesn’t get ready for that, they will not have their forms ready for the tip earners come tax time. Those tip earners will wind up paying their taxes for 2025 and then they’ll have to refile their taxes to pay it to get their tip refund back. That’s not something we should be asking working-class and middle-class taxpayers to do.”

Evers told reporters Monday that he is open to looking at Republican proposals to eliminate taxes on overtime and tips but wants to consider more “universal” forms of tax relief. He has proposed property tax relief as well as exempting certain items from the sales tax including diapers and over-the-counter medications. 

Rep. Ryan Clancy (D-Milwaukee) tried to introduce an amendment to bring tipped employees, who can make a minimum wage of $2.33, up to the minimum wage of $7.25. He said it would’ve helped raise the standard of living for workers across the state. 

“Restaurant workers, hotel cleaners, bartenders, and too many other Wisconsin workers still rely on the inconsistent generosity of their customers just to survive. This is a terrible system that primarily benefits bosses and corporations – it’s also rife for abuse, leading to frequent unethical and sometimes illegal behavior like forced pooling of tips, assigning of non-tipped work assignments to tipped employees, and outright tip theft by bosses and managers,” Clancy said in a statement. 

His amendment was rejected by Republican lawmakers.

The Assembly also passed AB 461 in a 61-35 vote. It would create an income tax subtraction for certain overtime compensation. Single filers could claim up to $12,500 per year under the subtraction, while joint filers could claim up to $25,000. Unlike the “no tax on tips” bill, this policy change would be permanent.

Bill coauthor Rep. Paul Melotik (R-Grafton) noted that overtime work can be essential to communities and also take a toll on family life. He said the bill would help support the “hard-working people of Wisconsin, who put out extra effort… whether it’s nurses working double shifts, deputies filling in on weekends, line workers staying late to meet production goals or service employees keeping the doors open.  

Bill to make English the official language.

AB 377 would make English Wisconsin’s official language and allow state agencies to use artificial intelligence translation tools instead of providing an interpreter to people during court proceedings.

The bill passed 51-43. Rep. Jessie Rodriguez (R-Oak Creek) voted with Democratic lawmakers against the bill.

Rep. Priscilla Prado (D-Milwaukee), who chairs the Wisconsin Hispanic Legislative Caucus, delivered her opposition to the bill in Spanish — telling lawmakers that after that they could “use Google to translate that.” Prado stood again later to deliver her remarks in English, saying she would help lawmakers out.

“You want to make it legal to use AI as a translator, which might be useful for ordering lunch, but certainly not sufficient for legal hearings, official forms and civil rights — not to mention that this implementation of AI would, quite literally, take jobs away from Wisconsinites who work as translators,” Prado said. “If efficiency were the goal, we would be talking about improving language access, not political symbolism. Wisconsin does not lose its identity because Spanish or another language is spoken. What it does lose is credibility when it ignores a substantial part of its population.” 

Rep. Nate Gustafson (R-Ormo) said he didn’t think the bill was stripping people of their identity, but would instead give people a “tool in the toolbox.” 

“It allows our legal system to move efficiently and forward instead of waiting on, let’s say, a limited pool of resources that aren’t there again,” Gustafson said. “We have declining birth rate. Our absolute workforce  is obviously diminished at this point, but we’re still reliant on people at the end of the day. There is a point where we need to give the people who are doing these jobs the tools to be more efficient.”

Bill coauthor Rep. Dave Murphy (R-Hortonville), speaking after Prado, said the speech represented a failure to communicate as most people in the Assembly did not understand what she said.

“One of the important things about having an official language for society is language draws people together, and I think it’s really important to give a society cohesiveness with people that speak the same language. Now, that doesn’t mean that this bill in some way makes it illegal, or you know, somehow, impeaches your ability to to speak another language, however  I think we are making a mistake here that if you speak English in the society — it’s a huge advantage to you.” 

School revenue and lunches

AB 457, coauthored by Rep. Amanda Nedweski (R-Pleasant Prairie) and Sen. Rob Hutton (R-Brookfield), would require Wisconsin school districts’ financial reports to the Department of Public Instruction on time before they are able to go to referendum. It passed 52-44 with Republicans for and Democrats against. 

The bill was introduced in response to Milwaukee Public Schools’ financial scandal where the district was months late in submitting financial documents to the state. The news was unveiled just weeks after voters had approved a historic referendum for the state’s largest school district.

Rep. Christian Phelps (D-Eau Claire) said that the bill was a “distraction” from other issues that school districts and property taxpayers are facing. 

Wisconsin taxpayers’ December bills included the highest increase since 2018. The increase followed  a controversial line item veto by Gov. Tony Evers , which extended a one-time increases to school revenue limits for the next 400 years. State  lawmakers did not provide additional state aid to schools, pushing many districts to use their additional taxing authority and others to go to referendum to ask local residents to raise their own taxes.

“The Department of Public Instruction is already working through any financial issues that they need to work through with the Milwaukee Public Schools,” Phelps said. “Educators and property taxpayers just are not buying the Republican spin. They can see the impact of what this building has done on the services in our public schools and their property tax bills, so it is frankly a waste of taxpayer-funded time for us to debate this silly bill that isn’t going anywhere.” 

Referencing the acronym for the school district, Nedweski called her bill the MPS bill — saying it  stood for “maximizing public scrutiny.” Nedweski said her bill is “straightforward” and would ensure that school districts are transparent before seeking to raise property taxes. 

“Public trust was shattered,” Nedweski said of the Milwaukee schools financial reporting failure. She also asked whether the outcome of the Milwaukee referendum would have been different if voters had known about the absent financial reports. 

“As property taxes continue to rise thanks to that 400-year Democrat property tax increase, it’s imperative that voters have complete information about the financial outlook of their school district before voting to further raise their own taxes,” Nedweski said. “This bill does not ask school districts to do anything new. It is not one new hoop they have to jump through… They are already supposed to be completing and submitting their financial information on time in accordance with state law.” 

AB 226 would prohibit Wisconsin public schools, independent charter schools, and private schools participating in a parental choice program serving meals that contain certain ingredients. Some of the food additives that would be prohibited include brominated vegetable oil, potassium bromate, propylparaben, azodicarbonamide and red dye No. 3, which can be found in candy, fruit juices and cookies.

The bill is another instance of GOP lawmakers seeking to align state policies with Trump administration efforts. The exclusion of the additives is meant to target “ultra processed foods,” which were one of the top concerns outlined by Health Sec. Robert F. Kennedy and a report the Trump administration commissioned. 

It passed 53-43. A handful of Democrats, including Reps. Deb Andraca (D-Whitefish Bay), Jill Billings (D-La Crosse), Brienne Brown (D-Whitewater) and Renuka Mayadev (D-Madison), voted for the bill, while a handful of Republicans voted against the bill including Reps. Lindee Brill (R-Sheboygan Falls), Joy Goeben (R-Hobart) and Chuck Wichgers (R-Muskego).

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Evers signs bills that make ‘sextortion’ a crime, extend statute of limitations for hiding a corpse

Gov. Tony Evers signed “Bradyn’s Law,” which creates a new crime for sexual extortion and the “Swenson Starkie Act,” which extends the statute of limitations for hiding a corpse. Evers addresses the Legislature in his 2024 State of the State message. (Baylor Spears | Wisconsin Examiner)

Gov. Tony Evers signed two bills this week introduced in response to crimes, including “Bradyn’s Law,” which creates a new crime for sexual extortion and the “Swenson Starkie Act,” which extends the statute of limitations for hiding a corpse. 

AB 201, now 2025 Wisconsin Act 48, was introduced by Rep. Patrick Snyder and Sen. Jesse James after the death of 15-year-old Bradyn Bohn from Kronenwetter, a village outside of Wausau. Bohn died by suicide in March after being targeted online by a perpetrator who convinced him to send photos of himself and told him that he needed to send money or face major consequences. He suffered through hours of threats and was coerced into sending money before his death.

“Today is an important day to remember Bradyn as we honor him and his memory, because now, moving forward, we will be able to hold bad actors responsible for reprehensible behavior, especially when they prey on our kids, and that is so important,” Evers said in a statement. “We wouldn’t be here today without Bradyn’s family and their relentless advocacy to keep kids safe online and hold predators accountable. We will be able to protect more of Wisconsin’s kids because of Bradyn’s family’s efforts to fight back.”

Sexual extortion, or “sextortion” is defined by the Federal Bureau of Investigation as a crime in which “an offender coerces a minor to create and send sexually explicit images or video and then uses that material to extort the victim by threatening to release it.” 

2025 Wisconsin Act 48 makes it a Class I felony to coerce someone to engage in sexual conduct or to produce “an intimate representation” by threatening to injure someone’s property or representation, by threatening to commit violence or by threatening to distribute intimate photos of another person. The crime would be a Class H felony if the victim does any of those acts or is under the age of 18, and a Class G felony if the defendant was previously convicted of a sexually violent offense, the violation was committed during the course of a child abduction or the victim is under age 18 and the defendant is more than four years older than the victim. 

A person can also be prosecuted for felony murder if the person commits extortion and it causes the death of the victim. 

Sexual extortion has become a growing threat in the U.S. in recent years. The FBI observed from October 2022 to March 2023 an increase of more than 20% in reports of financially motivated sextortion incidents involving minor victims. 

From October 2021 to March 2023, the FBI and Homeland Security Investigations received over 13,000 reports of online financial sextortion of minors that included at least 12,600 victims, mostly boys, and led to at least 20 suicides.

Rep. Brent Jacobson (R-Mosinee) said in a statement that the bill is the first step towards “protecting vulnerable Wisconsinites from exploitation.” 

“As technology creates new avenues for exploitation, my colleagues and I have an obligation to make sure our laws protect our constituents, and that Wisconsin parents have the resources and awareness to keep their children safe from harm,” Jacobson said. “We must continue to come together to prevent these heinous crimes from claiming children in our state.”

Statute of limitations for hiding a corpse

SB 423, now 2025 Wisconsin Act 59, extends the statute of limitations for prosecuting the crime of hiding or burying a corpse by specifying that it only begins “once the victim’s remains are found and identified or when the crime occurs, whichever is later.” The current statute of limitations is six years in Wisconsin.

The legislation was introduced by Sen. Van Wanggaard (R-Racine) and Rep. Ron Tusler (R-Harrison) after the case of Starkie Swenson. Swenson disappeared in 1983 but his remains weren’t found until 2021, 38 years later. 

According to the Milwaukee Journal Sentinel, John C. Andrews accepted a plea in the case and was convicted on a charge of homicide by negligent use of a vehicle in 1994 and served 16 months in prison. He refused to reveal where Swenson’s body was. 

Police charged him with hiding a corpse after identifying the remains in 2021, but the charges were dismissed due to the statute of limitations. 

“The killer should’ve faced justice for hiding the remains in an attempt to conceal his crime. However, because of a loophole in Wisconsin law, Starkie’s killer was able to avoid charges,” Tusler said in a statement. “Although we cannot heal the wounds caused by the murder of Starkie Swenson, 2025 Wisconsin Act 59 ensures that no violent criminal will be able to exploit the corpse-hiding loophole again,” Tusler said in a statement.

Notifying parents of sex offenses

AB 74, now 2025 Wisconsin Act 57, requires Wisconsin schools to notify a pupil’s parent or guardian if the pupil is an alleged victim, target or recipient of alleged sex offenses while at school. The law also requires school boards to provide parents and guardians each year with information on their rights to access records regarding school employee discipline.

“Doing everything we can to keep our kids safe at school, at home, and in our communities is a top priority for me, as well as our schools and education professionals, who are frontlines of doing what’s best for our kids every day,” Evers said in a statement. “This bill will strengthen transparency by making sure parents and family members are notified if any misconduct at school affects their kids’ safety or well-being and bolster accountability by ensuring they know what their rights are and what their kids’ rights are.”

Evers signs several other bills this week

Under AB 136, now 2025 Wisconsin Act 55, the penalty for impersonating a peace officer, a firefighter, an emergency medical services practitioner or an emergency medical responder is increased from a Class A misdemeanor to a Class I felony. Sen. Jesse James (R-Thorp) and Rep. Chuck Wichgers (R-Muskego) introduced the legislation this year following an incident in New Berlin.

AB 388, now 2025 Wisconsin Act 75, creates a legal framework to establish a behavioral health hospital in Chippewa Falls using $10 million, which was set aside in the state budget this year to be used for Rogers Behavioral Health. Sen. Jesse James, who coauthored the bill, said in a statement that it “is extremely monumental for the people of northwestern Wisconsin” and provides “a renewed sense of optimism” to the community as it will provide mental health support for children and adults in the area.

Under SB 11, now 2025 Wisconsin Act 79, principals will now be required to allow youth membership organizations, including the Girl Scouts and the Boy Scouts, to schedule at minimum one time to visit their school to encourage students to join their organization. The visit can consist of both spoken and written information on how the organization helps students with educational interests and civic engagement. 

Sen. Rachael Cabral-Guevara (R-Appleton) celebrated Evers signing the bill, saying that the organizations “create more engaged, confident, and community-minded citizens” and the law “ensures the next generation of Wisconsin children will continue to benefit from these life-changing experiences.” She also criticized Evers for vetoing another bill that would have added new requirements on schools related to military recruiters, saying the state should “proudly support our military, not slam the door shut when they’re offering students legitimate career options, which is precisely what the governor did with this veto.”

SB 310, now 2025 Wisconsin Act 61, limits the amount of time covered by an emergency power proclamation by a local government’s chief executive officer to 60 days, unless extended by a local governing body. The bill was part of a controversy surrounding Rep. Sylvia Ortiz-Velez earlier this year who claimed that Milwaukee County Executive David Crowley, who is running for governor, abused his power during the COVID-19 pandemic when he issued emergency orders in 2021.

AB 265, now 2025 Wisconsin Act 56, requires judges to sentence offenders to a minimum of 10 years in prison if convicted of a human trafficking crime and 15 years for a child trafficking crime.

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