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LRB-2009/1
JK:kjf
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
Rural Issues.
SB765,1,4 1An Act to repeal 20.835 (1) (e), 79.095, 121.06 (4) and 121.90 (2) (am) 2.; to
2amend
70.11 (39), 70.17 (1), 73.06 (3), 121.004 (6), 121.15 (4) (a), 174.06 (5),
3174.065 (3), 174.08 (1), 198.10 (1) and 200.13 (2); and to create 70.135 of the
4statutes; 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
property.
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:
SB765,1 1Section 1. 20.835 (1) (e) of the statutes is repealed.
SB765,2 2Section 2. 70.11 (39) of the statutes is amended to read:
SB765,2,123 70.11 (39) Computers. If the owner of the property fulfills the requirements
4under s. 70.35, mainframe computers, minicomputers, personal computers,
5networked personal computers, servers, terminals, monitors, disk drives, electronic
6peripheral equipment, tape drives, printers, basic operational programs, systems
7software, and prewritten software. The exemption under this subsection does not
8apply to custom software, fax machines, copiers, equipment with embedded
9computerized components or telephone systems, including equipment that is used
10to 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.
SB765,3 13Section 3. 70.135 of the statutes is created to read:
SB765,2,16 1470.135 Personal property tax; sunset. (1) Personal property placed in
15service on or after January 1, 2016, is not subject to the property tax imposed under
16this chapter.
SB765,2,20 17(2) Subject to the exemptions under ss. 70.11 and 70.111, personal property
18placed in service before January 1, 2016, is subject to the property tax imposed under
19this chapter based on the property's depreciated value as reported under s. 70.35 or
20as determined by the department of revenue.
SB765,3,5
1(3) Beginning with the assessments as of January 1, 2020, no personal property
2is subject to the property tax imposed under this chapter, except that real property
3that was assessed as personal property prior to January 1, 2020, and real property
4that is placed in service on or after January 1, 2020, that would have been assessed
5as personal property prior to January 1, 2020, shall be assessed as real property.
SB765,4 6Section 4. 70.17 (1) of the statutes is amended to read:
SB765,3,167 70.17 (1) Real property shall be entered in the name of the owner, if known to
8the assessor, otherwise to the occupant thereof if ascertainable, and otherwise
9without any name. The person holding the contract or certificate of sale of any real
10property contracted to be sold by the state, but not conveyed, shall be deemed the
11owner for such purpose. The undivided real estate of any deceased person may be
12entered to the heirs of such person without designating them by name. The real
13estate of an incorporated company shall be entered in the same manner as that of an
14individual. Improvements on leased lands may, including all permanent fixtures,
15shall
be assessed either as real property or personal property, but leased lands are
16not subject to liens for any unpaid taxes on the improvements
.
SB765,5 17Section 5. 73.06 (3) of the statutes is amended to read:
SB765,4,818 73.06 (3) The department of revenue, through its supervisors of equalization,
19shall examine and test the work of assessors during the progress of their assessments
20and ascertain whether any of them is assessing property at other than full value or
21is omitting property subject to taxation from the roll. The department and such
22supervisors shall have the rights and powers of a local assessor for the examination
23of persons and property and for the discovery of property subject to taxation. If any
24property has been omitted or not assessed according to law, they shall bring the same
25to the attention of the local assessor of the proper district and if such local assessor

1shall neglect or refuse to correct the assessment they shall report the fact to the board
2of review. If it discovers errors in identifying or valuing property that is exempt
3under s. 70.11 (39) or (39m), the department shall change the specification of the
4property as taxable or exempt and shall change the value of the property. All
5disputes between the department, municipalities and property owners about the
6taxability 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
8by using the procedures under s. 70.995 (8).
SB765,6 9Section 6. 79.095 of the statutes is repealed.
SB765,7 10Section 7. 121.004 (6) of the statutes is amended to read:
SB765,4,1511 121.004 (6) Net cost. The "net cost" of a fund means the gross cost of that fund
12minus all nonduplicative revenues and other financing sources of that fund except
13property taxes, and general aid, and aid received under s. 79.095 (4). In this
14subsection, "nonduplicative revenues" includes federal financial assistance under 20
15USC 236
to 245, to the extent permitted under federal law and regulations.
SB765,8 16Section 8. 121.06 (4) of the statutes is repealed.
SB765,9 17Section 9. 121.15 (4) (a) of the statutes is amended to read:
SB765,4,1918 121.15 (4) (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).
SB765,10 20Section 10. 121.90 (2) (am) 2. of the statutes is repealed.
SB765,11 21Section 11. 174.06 (5) of the statutes is amended to read:
SB765,5,222 174.06 (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,
24to whom they are assessed, the name, number, sex, spayed or unspayed, neutered or

1unneutered, breed and color of each dog. The listing official shall make in triplicate
2a list of the owners of all dogs assessed.
SB765,12 3Section 12. 174.065 (3) of the statutes is amended to read:
SB765,5,64 174.065 (3) Collection of delinquent dog license taxes. Delinquent dog
5license taxes may be collected in the same manner as provided for small claims in s.
674.55 and
ch. 799 for the collecting of personal property taxes.
SB765,13 7Section 13. 174.08 (1) of the statutes is amended to read:
SB765,5,158 174.08 (1) Except as provided in sub. (2), every collecting official shall pay all
9dog license taxes to the town, village, or city treasurer or other tax collecting officer
10who shall deduct any additional tax that may have been levied by the municipal
11governing body and pay the remainder to the county treasurer at the time settlement
12is made with the county treasurer for collections of personal property taxes, and shall
13at the same time report in writing to the county clerk the licenses issued. The report
14shall be in the form prescribed by the department, and the forms shall be furnished
15by the county clerks.
SB765,14 16Section 14. 198.10 (1) of the statutes is amended to read:
SB765,5,2217 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

19the district shall be subject to taxation in and by the district for a direct annual tax
20sufficient to pay the interest on any indebtedness of the district, and to pay and
21discharge the principal of the indebtedness within 20 years from the time of
22contracting the indebtedness.
SB765,15 23Section 15. 200.13 (2) of the statutes is amended to read:
SB765,6,824 200.13 (2) Tax levy. The commission may levy a tax upon the taxable property
25in the district as equalized by the department of revenue for state purposes for the

1purpose of carrying out and performing duties under this subchapter but the amount
2of any such tax in excess of that required for maintenance and operation and for
3principal and interest on bonds or promissory notes shall not exceed, in any one year,
4one mill for each dollar of the district's equalized valuation, as determined under s.
570.57. The tax levy may be spread upon the respective real estate and personal
6property tax rolls of the city, village and town areas included in the district taxes, and
7shall not be included within any limitation on county or municipality taxes. Such
8moneys when collected shall be paid to the treasurer of such district.
SB765,16 9Section 16. Initial applicability.
SB765,6,1010 (1) This act first applies to the property tax assessments as of January 1, 2016.
SB765,17 11Section 17. Effective date.
SB765,6,1212 (1) This act takes effect on January 1, 2016.
SB765,6,1313 (End)
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