Legislation Will Eliminate State Tax on HSAs
January 24, 2011
For Immediate Release
Madison– Governor Scott Walker today signed Act 1, which eliminates the state tax on HSAs. It is the first legislation signed by Governor Walker. It was passed with bipartisan support garnering 66 votes in the Assembly and 21 votes in the Senate.
“Improving Wisconsin’s economic environment is the top priority for my administration and an issue that both parties should agree on,” said Governor Scott Walker. “I’m pleased that the first bill we signed enjoyed bipartisan support. Eliminating state taxes on HSAs will make health care more affordable for employees and lower costs for employers, helping create an economic environment that encourages job creation. Senators Alberta Darling and Luther Olsen, and Representatives Bob Ziegelbauer and Dean Kaufert deserve special recognition for their leadership on this issue.”
The legislation aligns Wisconsin law with federal law and allows tax deductible contributions to and withdrawals from health savings accounts. Under existing federal law, individuals may make tax-deductible contributions to health savings accounts and withdraw the money tax-free to cover routine and preventative medical care.
When Governor Walker was sworn in, he immediately called a special session to open Wisconsin for business and create a job-friendly environment. The special session includes legislation aimed at cutting taxes, controlling the cost of health care, enacting tort reform, improving the rules and regulation process, and reforming the Department of Commerce.