February 20, 2008

 

Darling Pleased State Will Not Tax Federal Rebate Checks

MADISON… Senator Alberta Darling (R-River Hills) was pleased to learn today the state Department of Revenue (DOR) has decided to follow her suggestion to not tax the federal rebate checks that are expected to begin arriving in mailboxes this spring. 

Darling wrote a letter to DOR Secretary Roger Ervin on February 1st encouraging the Department to opt in favor of exempting these rebates from the state income tax.  Ervin responded with a letter that reads, in part, “…the Department of Revenue does not intend to treat the federal tax rebate as income taxable to Wisconsin.”

“The purpose of the federal rebate checks is to spark consumer spending and economic activity,” said Darling.  “That objective would’ve been impeded had the state decided to confiscate a portion of these federal tax rebates.  This rebate money belongs to the taxpayers, not state government.”

The President signed legislation on February 13th that would return tax rebates ranging from $300 to $1,200 to 130 million Americans.