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LRB-2081/1
JK:kjf
2017 - 2018 LEGISLATURE
April 24, 2017 - Introduced by Representatives Kulp, Knodl, Kremer, Jarchow,
Skowronski, Gannon, Jacque, Hutton, Edming, R. Brooks, Kleefisch,
Murphy, Tusler, Thiesfeldt, Ott, Krug, Quinn, August, Ripp, Brandtjen and
Sanfelippo, cosponsored by Senators Stroebel, Craig, Lasee, Wanggaard,
LeMahieu, Kapenga, Nass, Feyen, Marklein and Harsdorf. Referred to
Committee on Ways and Means.
AB277,1,4 1An Act to renumber and amend 79.095 (4); to amend 70.17 (1), 121.004 (6),
2121.15 (4) (a) and 121.90 (2) (am) 2.; and to create 20.835 (1) (f), 70.042, 70.17
3(3), 79.095 (4) (b) and 79.096 of the statutes; relating to: eliminating the
4personal property tax and making an appropriation.
Analysis by the Legislative Reference Bureau
This bill eliminates the personal property tax in 2018. Under the bill,
improvements on leased land will be assessed as real property.
Under current law, taxing jurisdictions are reimbursed by the state for the loss
of personal property tax revenue as a result of the exemption for computers and
computer-related equipment. Under the bill, taxing jurisdictions are reimbursed by
the state for the loss of personal property tax revenue.
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB277,1 5Section 1. 20.835 (1) (f) of the statutes is created to read:
AB277,2,2
120.835 (1) (f) State aid; personal property tax phase-out. A sum sufficient to
2make the state aid payments under s. 79.096.
AB277,2 3Section 2. 70.042 of the statutes is created to read:
AB277,2,6 470.042 Personal property tax sunset. No personal property is subject to
5taxation under this chapter beginning with the property tax assessments as of
6January 1, 2018.
AB277,3 7Section 3. 70.17 (1) of the statutes is amended to read:
AB277,2,168 70.17 (1) Real property shall be entered in the name of the owner, if known to
9the assessor, otherwise to the occupant thereof if ascertainable, and otherwise
10without any name. The person holding the contract or certificate of sale of any real
11property contracted to be sold by the state, but not conveyed, shall be deemed the
12owner for such purpose. The undivided real estate of any deceased person may be
13entered to the heirs of such person without designating them by name. The real
14estate of an incorporated company shall be entered in the same manner as that of an
15individual. Improvements Except as provided in sub. (3), improvements on leased
16lands may be assessed either as real property or personal property.
AB277,4 17Section 4. 70.17 (3) of the statutes is created to read:
AB277,2,2318 70.17 (3) Beginning with the property tax assessments as of January 1, 2018,
19improvements on leased lands shall be assessed as real property. If improvements,
20but not the underlying land, are leased to a person other than the landowner or if the
21improvements are owned by a person other than the landowner, the assessor may
22create a separate tax parcel for the improvements and assess the improvements as
23real property to the lessee or owner of the improvements.
AB277,5 24Section 5. 79.095 (4) of the statutes is renumbered 79.095 (4) (a) and amended
25to read:
AB277,3,9
179.095 (4) (a) The department shall calculate the payments due each taxing
2jurisdiction under this section by multiplying the full value as of the January 1 of the
3preceding year of the property that is exempt under s. 70.11 (39) and (39m) and that
4is located in the jurisdiction by the full-value gross tax rate of the jurisdiction for the
5preceding year. The Subject to par. (b), the department shall certify the amount of
6the payment due each taxing jurisdiction to the department of administration, which
7shall make the payments on or before the 4th Monday in July. For purposes of ch.
8121, school districts shall treat the payments made in July under this subsection as
9if they had been received in the previous school year.
AB277,6 10Section 6. 79.095 (4) (b) of the statutes is created to read:
AB277,3,1311 79.095 (4) (b) Beginning in 2018, and in each year thereafter, each taxing
12jurisdiction shall receive a payment under this subsection equal to the amount
13determined under par. (a) for that taxing jurisdiction in 2017.
AB277,7 14Section 7. 79.096 of the statutes is created to read:
AB277,3,18 1579.096 State aid; personal property. (1) Beginning in 2018, and in each
16year thereafter, the department of revenue shall pay to each taxing jurisdiction an
17amount equal to the amount of revenue loss incurred by the taxing jurisdiction in
182018 as a result of s. 70.042, as determined by the department.
AB277,3,21 19(2) Each taxing jurisdiction shall report to the department of revenue, in the
20time and manner determined by the department, any information the department
21considers necessary to administer this section.
AB277,8 22Section 8. 121.004 (6) of the statutes is amended to read:
AB277,4,223 121.004 (6) Net cost. The “net cost" of a fund means the gross cost of that fund
24minus all nonduplicative revenues and other financing sources of that fund except
25property taxes, general aid, and aid received under s. ss. 79.095 (4) and 79.096. In

1this subsection, “nonduplicative revenues" includes federal financial assistance
2under 20 USC 236 to 245, to the extent permitted under federal law and regulations.
AB277,9 3Section 9. 121.15 (4) (a) of the statutes is amended to read:
AB277,4,64 121.15 (4) (a) In this subsection, “state aid" has the meaning given in s. 121.90
5(2) except that it excludes aid paid to school districts under s. ss. 79.095 (4) and
679.096
.
AB277,10 7Section 10. 121.90 (2) (am) 2. of the statutes is amended to read:
AB277,4,98 121.90 (2) (am) 2. Amounts under s. ss. 79.095 (4) and 79.096 for the current
9school year.
AB277,4,1010 (End)
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