MADISON, Wis. (AP) - The state Assembly has approved a bill that would require online vendors like Amazon to collect and remit sales taxes from third-party sellers in perpetuity, a move that would trigger income tax cuts.
Under the bill, revenue from the tax collections would be used to cover reductions in the lowest- and second-lowest income tax brackets. According to the Legislative Fiscal Bureau, taxpayers could expect an average reduction of $27 for tax year 2019 and an average reduction of $59 in tax year 2020 under the new rates.
The Assembly passed the bill Thursday afternoon on a voice vote. The measure goes next to the state Senate.
Coupled with an income tax cut plan Republicans inserted in the state budget, taxpayers could expect a total annual reduction of $91 in 2019 and $124 in 2020.
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This story has been updated to correct that the bill would reduce the bottom two tax brackets and correct the average reductions.
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