2015 - 2016 LEGISLATURE
February 23, 2016 - Introduced by Senators Stroebel,
Tiffany, Nass, Lasee,
Harsdorf, Vukmir and Kapenga, cosponsored by Representatives Kulp,
Jarchow, Craig, Jacque, Sanfelippo, Macco, Gannon, Katsma, Kremer,
Tittl, Kleefisch, Horlacher, Hutton, Swearingen, Quinn, Skowronski and
Duchow. Referred to Committee on Revenue, Financial Institutions, and
1An Act to repeal
20.835 (1) (e), 79.095, 121.06 (4) and 121.90 (2) (am) 2.; to
70.11 (39), 70.17 (1), 73.06 (3), 121.004 (6), 121.15 (4) (a), 174.06 (5), 3
174.065 (3), 174.08 (1), 198.10 (1) and 200.13 (2); and to create
70.135 of the 4
statutes; relating to: eliminating the personal property tax.
Analysis by the Legislative Reference Bureau
This bill eliminates the property tax on personal property beginning in 2020.
The bill also eliminates, in 2016, the state aid payments to taxing jurisdictions based
on the value of computers and computer-related equipment that are exempt from the
personal property tax and that are located in the taxing jurisdictions.
Under the bill, personal property placed in service on or after January 1, 2016,
is not subject to the property tax. Personal property placed in service before January
1, 2016, is subject to the property tax based on the actual depreciated value of the
Beginning with the assessments as of January 1, 2020, no personal property is
subject to the property tax. Under the bill, real property that was assessed as
personal property prior to January 1, 2020, will be assessed as real property and real
property placed in service on or after January 1, 2020, that would have been assessed
as personal property prior to that date will be assessed as real property.
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:
20.835 (1) (e) of the statutes is repealed.
70.11 (39) of the statutes is amended to read:
70.11 (39) Computers.
If the owner of the property fulfills the requirements 4
under s. 70.35, mainframe computers, minicomputers, personal computers, 5
networked personal computers, servers, terminals, monitors, disk drives, electronic 6
peripheral equipment, tape drives, printers, basic operational programs, systems 7
software, and prewritten software. The exemption under this subsection does not 8
apply to custom software, fax machines, copiers, equipment with embedded 9
computerized components or telephone systems, including equipment that is used 10
to provide telecommunications services, as defined in s. 76.80 (3).
For the purposes
11of s. 79.095, the exemption under this subsection does not apply to property that is
12otherwise exempt under this chapter.
70.135 of the statutes is created to read:
1470.135 Personal property tax; sunset.
Personal property placed in 15
service on or after January 1, 2016, is not subject to the property tax imposed under 16
Subject to the exemptions under ss. 70.11 and 70.111, personal property 18
placed in service before January 1, 2016, is subject to the property tax imposed under 19
this chapter based on the property's depreciated value as reported under s. 70.35 or 20
as determined by the department of revenue.
Beginning with the assessments as of January 1, 2020, no personal property 2
is subject to the property tax imposed under this chapter, except that real property 3
that was assessed as personal property prior to January 1, 2020, and real property 4
that is placed in service on or after January 1, 2020, that would have been assessed 5
as personal property prior to January 1, 2020, shall be assessed as real property.
70.17 (1) of the statutes is amended to read:
Real property shall be entered in the name of the owner, if known to 8
the assessor, otherwise to the occupant thereof if ascertainable, and otherwise 9
without any name. The person holding the contract or certificate of sale of any real 10
property contracted to be sold by the state, but not conveyed, shall be deemed the 11
owner for such purpose. The undivided real estate of any deceased person may be 12
entered to the heirs of such person without designating them by name. The real 13
estate of an incorporated company shall be entered in the same manner as that of an 14
individual. Improvements on leased lands may, including all permanent fixtures,
be assessed either
as real property or personal property, but leased lands are
16not subject to liens for any unpaid taxes on the improvements
73.06 (3) of the statutes is amended to read:
The department of revenue, through its supervisors of equalization, 19
shall examine and test the work of assessors during the progress of their assessments 20
and ascertain whether any of them is assessing property at other than full value or 21
is omitting property subject to taxation from the roll. The department and such 22
supervisors shall have the rights and powers of a local assessor for the examination 23
of persons and property and for the discovery of property subject to taxation. If any 24
property has been omitted or not assessed according to law, they shall bring the same 25
to the attention of the local assessor of the proper district and if such local assessor
shall neglect or refuse to correct the assessment they shall report the fact to the board 2
of review. If it discovers errors in identifying or valuing property that is exempt 3
under s. 70.11 (39) or (39m), the department shall change the specification of the 4
property as taxable or exempt and shall change the value of the property. All 5
disputes between the department, municipalities and property owners about the 6
taxability or value of property that is reported under s. 79.095 (2) (a) that is exempt
7under s. 70.11 (39) or (39m)
or of the property under s. 70.995 (12r) shall be resolved 8
by using the procedures under s. 70.995 (8).
79.095 of the statutes is repealed.
121.004 (6) of the statutes is amended to read:
121.004 (6) Net cost.
The "net cost" of a fund means the gross cost of that fund 12
minus all nonduplicative revenues and other financing sources of that fund except 13
property taxes, and
general aid, and aid received under s. 79.095 (4)
. In this 14
subsection, "nonduplicative revenues" includes federal financial assistance under 20
, to the extent permitted under federal law and regulations.
121.06 (4) of the statutes is repealed.
121.15 (4) (a) of the statutes is amended to read:
(a) In this subsection, "state aid" has the meaning given in s. 121.90 19
(2) except that it excludes aid paid to school districts under s. 79.095 (4)
121.90 (2) (am) 2. of the statutes is repealed.
174.06 (5) of the statutes is amended to read:
174.06 (5) Records.
The listing official shall enter in the records for personal
23property assessments, or
in a separate record,
all dogs in the district subject to tax, 24
to whom they are assessed, the name, number, sex, spayed or unspayed, neutered or
unneutered, breed and color of each dog. The listing official shall make in triplicate 2
a list of the owners of all dogs assessed.
174.065 (3) of the statutes is amended to read:
174.065 (3) Collection of delinquent dog license taxes.
Delinquent dog 5
license taxes may be collected in the same manner as provided for small claims
ch. 799 for the collecting of personal property taxes
174.08 (1) of the statutes is amended to read:
Except as provided in sub. (2), every collecting official shall pay all 9
dog license taxes to the town, village, or city treasurer or other tax collecting officer 10
who shall deduct any additional tax that may have been levied by the municipal 11
governing body and pay the remainder to the county treasurer at the time settlement 12
is made with the county treasurer for collections of personal
property taxes, and shall 13
at the same time report in writing to the county clerk the licenses issued. The report 14
shall be in the form prescribed by the department, and the forms shall be furnished 15
by the county clerks.
198.10 (1) of the statutes is amended to read:
198.10 (1) Taxable property, taxes.
All real property situated in and all
18personal property the situs of which for purposes of general property taxation is in 19
the district shall be subject to taxation in and by the district for a direct annual tax 20
sufficient to pay the interest on any indebtedness of the district, and to pay and 21
discharge the principal of the indebtedness within 20 years from the time of 22
contracting the indebtedness.
200.13 (2) of the statutes is amended to read:
200.13 (2) Tax levy.
The commission may levy a tax upon the taxable property 25
in the district as equalized by the department of revenue for state purposes for the
purpose of carrying out and performing duties under this subchapter but the amount 2
of any such tax in excess of that required for maintenance and operation and for 3
principal and interest on bonds or promissory notes shall not exceed, in any one year, 4
one mill for each dollar of the district's equalized valuation, as determined under s. 5
70.57. The tax levy may be spread upon the respective real estate and personal 6
property tax rolls of the city, village and town areas included in the district taxes, and 7
shall not be included within any limitation on county or municipality taxes. Such 8
moneys when collected shall be paid to the treasurer of such district.
(1) This act first applies to the property tax assessments as of January 1, 2016.
(1) This act takes effect on January 1, 2016.