Month: February 2021

Governor Tony Evers wants to allow counties to be able to double their existing sales tax and allow larger municipalities to impose a new half-cent sales tax, if local voters approve.

Under the plan, school districts that have offered and will continue to offer more hours of in-person instruction will receive a larger percentage of federal coronavirus aid than schools that have remained virtual. The measure was approved on a party-line vote of 11-4, with Republicans voting in favor and Democrats against, and will immediately go into effect.

Budget committee co-chairs Rep. Mark Born, R-Beaver Dam, and Sen. Howard Marklein, R-Spring Green, both argued the GOP plan will send more money to districts that have “done the right thing” during the pandemic.

“I believe our kids need to be in school for their benefit and society’s benefit,” Marklein said.  Marklein also argued districts that have provided in-person instruction over the last several months have incurred costs for things like transportation and cleaning supplies that districts exclusively offering virtual instruction have not.

Republicans on the committee pointed to statistics about rising suicide rates and mental health crises among students during the pandemic, as well as spikes in substance abuse and domestic violence. Democrats on the committee argued it is inappropriate to financially penalize schools that have chosen to offer exclusively virtual instruction during the pandemic.

“Districts that were doing the right thing were actually listening to those in the medical community and the scientists who said, ‘Close your doors, don’t be open,'” said Sen. Jon Erpenbach, D-West Point.

Wisconsin will receive about $686 million from the federal government for K-12 schools under Congress’ coronavirus response bill passed last year. Under the federal bill, about 90 percent of those funds will be distributed based on the number of low-income students in each school district, without input from state administrations or lawmakers.

However, Congress gave states discretion over how to spend the remaining 10 percent of the funds, roughly $69 million in Wisconsin.

Gov. Tony Evers’ next two-year budget will include a proposal to legalize recreational marijuana as part of plan to generate more than $165 million each year for rural schools and underserved communities.

The proposal to tax and regulate marijuana similar to alcohol sales is likely to be shot down by the Republican-controlled Legislature, which has opposed efforts to legalize marijuana in the past. Thirty-six states have passed laws legalizing medical marijuana and 15 states are regulating recreational use of marijuana, including neighboring states Michigan and Illinois.

Some Republican lawmakers have supported legislation to legalize medical marijuana in recent years, including now Sen. Mary Felzkowski, R-Tomahawk, and Sen. Kathy Bernier, R-Chippewa Falls.

Bernier said Sunday that she’s open to legalizing medical marijuana and decriminalizing small amounts of the drug, noting it may have potential to help people break their addiction to drugs like methamphetamine or heroin. She said she’s willing to work with Evers, but also indicated his past efforts to decriminalize marijuana were a thinly veiled effort to legalize recreational weed.

Bernier called the governor’s proposal “divisive.”

“The bottom line is, he knows, I know, we know that the Republican Legislature is not going to legalize marijuana, per se,” said Bernier. “So, let’s talk about the things we can do, and work together.”

On Friday, the Internal Revenue Service (IRS) posted updated FAQs about recent legislation that extended and amended tax relief to certain small- and mid-sized employers under the Families First Coronavirus Response Act (FFCRA).

The FAQs are available at COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs.

The updates to the FAQs cover how the COVID-related Tax Relief Act of 2020, enacted December 27, 2020, extends the availability of the tax credits created by the FFCRA to eligible employers for paid sick and family leave provided through March 31, 2021, as well as other amendments to the credits.

The paid sick and family leave credits, which previously were available only until the end of 2020, have been extended for periods of leave taken through March 31, 2021.

In addition, an eligible employer can receive the paid sick leave credit for employees who are unable to work due to caring for someone with coronavirus or caring for a child because the child’s school or place of care is closed, or the paid childcare provider is unavailable due to the coronavirus. Eligible employers may claim the credit for paid sick leave provided to an employee for up to two weeks (up to 80 hours) at 2/3 the employee’s regular rate of pay, or up to $200 per day and $2,000 in total.

Employers are also entitled to a paid family leave credit for paid family leave provided to an employee equal to 2/3 of the employee’s regular pay, up to $200 per day and $10,000 in total. Up to 10 weeks of qualifying leave can be counted towards the family leave credit.

Eligible employers are entitled to immediately receive a credit in the full amount of the paid sick leave and family leave plus related health plan expenses and the employer’s share of Medicare tax on the leave provided through March 31, 2021. The refundable credit is applied against certain employment taxes on wages paid to all employees.

Eligible employers may claim the credits on their federal employment tax returns (e.g., Form 941, Employer’s Quarterly Federal Tax Return), but they can benefit more quickly from the credits by reducing their federal employment tax deposits. If there are insufficient federal employment taxes to cover the amount of the credits, an eligible employer may request an advance payment of the credits from the IRS by submitting a Form 7200, Advance Payment of Employer Credits Due to COVID-19.