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LRBs0061/1
JK:kjf
2017 - 2018 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 277
May 9, 2017 - Offered by Representative Kulp.
AB277-ASA1,1,8 1An Act to repeal 70.35, 70.36 (1m) and 70.47 (15); to renumber and amend
266.0602 (2) and 79.095 (4); to amend 70.11 (39), 70.11 (39m), 70.17 (1), 70.36
3(1), 70.36 (2), 70.36 (3), 70.995 (12) (a), 71.07 (5n) (a) 5. a., 71.07 (5n) (a) 9.
4(intro.), 71.07 (5n) (a) 9. a., 71.28 (5n) (a) 5. a., 71.28 (5n) (a) 9. (intro.), 71.28
5(5n) (a) 9. a., 121.004 (6), 121.15 (4) (a) and 121.90 (2) (am) 2.; and to create
620.835 (1) (f), 66.0602 (2) (b), 70.042, 70.17 (3), 71.07 (5n) (a) 9. am., 71.28 (5n)
7(a) 9. am., 79.095 (4) (b) and 79.096 of the statutes; relating to: eliminating the
8personal property tax and making an appropriation.
Analysis by the Legislative Reference Bureau
This substitute amendment eliminates the personal property tax in 2018.
Under the substitute amendment, 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 substitute amendment, taxing

jurisdictions are reimbursed by the state for the loss of personal property tax
revenue.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB277-ASA1,1 1Section 1. 20.835 (1) (f) of the statutes is created to read:
AB277-ASA1,2,32 20.835 (1) (f) State aid; personal property tax phase-out. A sum sufficient to
3make the state aid payments under s. 79.096.
AB277-ASA1,2 4Section 2 . 66.0602 (2) of the statutes is renumbered 66.0602 (2) (a) and
5amended to read:
AB277-ASA1,2,146 66.0602 (2) (a) Except as provided in subs. (3), (4), and (5), no political
7subdivision may increase its levy in any year by a percentage that exceeds the
8political subdivision's valuation factor. The Except as provided in par. (b), the base
9amount in any year, to which the limit under this section applies, shall be the actual
10levy for the immediately preceding year. In determining its levy in any year, a city,
11village, or town shall subtract any tax increment that is calculated under s. 59.57 (3)
12(a), 60.85 (1) (L), or 66.1105 (2) (i). The base amount in any year, to which the limit
13under this section applies, may not include any amount to which sub. (3) (e) 8.
14applies.
AB277-ASA1,3 15Section 3 . 66.0602 (2) (b) of the statutes is created to read:
AB277-ASA1,2,2016 66.0602 (2) (b) For purposes of par. (a), in 2018, and in each year thereafter, the
17base amount to which the limit under this section applies is the actual levy for the
18immediately preceding year, plus the amount of the payment under s. 79.096, and
19the actual levy is the base amount multiplied by the valuation factor, minus the
20amount of the payment under s. 79.096.
AB277-ASA1,4 21Section 4 . 70.042 of the statutes is created to read:
AB277-ASA1,3,5
170.042 Personal property tax sunset. No personal property is subject to
2taxation under this chapter beginning with the property tax assessments as of
3January 1, 2018. A taxing jurisdiction may include the most recent valuation of
4personal property located in the taxing jurisdiction for purposes of complying with
5debt limitations applicable to the jurisdiction.
AB277-ASA1,5 6Section 5 . 70.11 (39) of the statutes is amended to read:
AB277-ASA1,3,167 70.11 (39) Computers. If the owner of the property fulfills the requirements
8under s. 70.35, mainframe
Mainframe computers, minicomputers, personal
9computers, networked personal computers, servers, terminals, monitors, disk
10drives, electronic peripheral equipment, tape drives, printers, basic operational
11programs, systems software, and prewritten software. The exemption under this
12subsection does not apply to custom software, fax machines, copiers, equipment with
13embedded computerized components or telephone systems, including equipment
14that is used to provide telecommunications services, as defined in s. 76.80 (3). For
15the purposes of s. 79.095, the exemption under this subsection does not apply to
16property that is otherwise exempt under this chapter.
AB277-ASA1,6 17Section 6 . 70.11 (39m) of the statutes is amended to read:
AB277-ASA1,3,2018 70.11 (39m) If the owner of the property fulfills the requirements under s.
1970.35, cash
Cash registers and fax machines, excluding fax machines that are also
20copiers.
AB277-ASA1,7 21Section 7 . 70.17 (1) of the statutes is amended to read:
AB277-ASA1,4,522 70.17 (1) Real property shall be entered in the name of the owner, if known to
23the assessor, otherwise to the occupant thereof if ascertainable, and otherwise
24without any name. The person holding the contract or certificate of sale of any real
25property contracted to be sold by the state, but not conveyed, shall be deemed the

1owner for such purpose. The undivided real estate of any deceased person may be
2entered to the heirs of such person without designating them by name. The real
3estate of an incorporated company shall be entered in the same manner as that of an
4individual. Improvements Except as provided in sub. (3), improvements on leased
5lands may be assessed either as real property or personal property.
AB277-ASA1,8 6Section 8 . 70.17 (3) of the statutes is created to read:
AB277-ASA1,4,127 70.17 (3) Beginning with the property tax assessments as of January 1, 2018,
8improvements on leased lands shall be assessed as real property. If improvements,
9but not the underlying land, are leased to a person other than the landowner or if the
10improvements are owned by a person other than the landowner, the assessor may
11create a separate tax parcel for the improvements and assess the improvements as
12real property to the lessee or owner of the improvements.
AB277-ASA1,9 13Section 9 . 70.35 of the statutes is repealed.
AB277-ASA1,10 14Section 10 . 70.36 (1) of the statutes is amended to read:
AB277-ASA1,4,2315 70.36 (1) Any person in this state owning or holding any personal property that
16is subject to assessment, individually or as agent, trustee, guardian, personal
17representative, assignee, or receiver or in some other representative capacity, who
18intentionally makes a false statement to the assessor of that person's assessment
19district or to the board of review of the assessment district with respect to the
20property, or who omits any property from any return required to be made under s.
2170.35,
with the intent of avoiding the payment of the just and proportionate taxes on
22the property, shall forfeit the sum of $10 for every $100 or major fraction of $100 so
23withheld from the knowledge of the assessor or board of review.
AB277-ASA1,11 24Section 11 . 70.36 (1m) of the statutes is repealed.
AB277-ASA1,12 25Section 12 . 70.36 (2) of the statutes is amended to read:
AB277-ASA1,5,8
170.36 (2) It is hereby made the duty of the district attorney of any county, upon
2complaint made to the district attorney by the assessor or by a member of the board
3of review of the assessment district in which it is alleged that property has been so
4withheld from the knowledge of such assessor or board of review, or not included in
5any return required by s. 70.35,
to investigate the case forthwith and bring an action
6in the name of the state against the person, firm or corporation so complained of. All
7forfeitures collected under the provisions of this section shall be paid into the
8treasury of the taxation district in which such property had its situs for taxation.
AB277-ASA1,13 9Section 13 . 70.36 (3) of the statutes is amended to read:
AB277-ASA1,5,1410 70.36 (3) The word assessor whenever used in ss. 70.35 and 70.36 this section
11shall, in 1st class cities, be deemed to refer also to the commissioner of assessments
12of any such city and, where applicable, shall be deemed also to refer to the
13department of revenue responsible for the manufacturing property assessment
14under s. 70.995.
AB277-ASA1,14 15Section 14 . 70.47 (15) of the statutes is repealed.
AB277-ASA1,15 16Section 15 . 70.995 (12) (a) of the statutes is amended to read:
AB277-ASA1,6,1317 70.995 (12) (a) The department of revenue shall prescribe a standard
18manufacturing property report form that shall be submitted annually for each real
19estate parcel and each personal property account on or before March 1 by all
20manufacturers whose property is assessed under this section. The report form shall
21contain all information considered necessary by the department and shall include,
22without limitation, income and operating statements, fixed asset schedules and a
23report of new construction or demolition. Failure to submit the report shall result
24in denial of any right of redetermination by the state board of assessors or the tax
25appeals commission. If any property is omitted or understated in the assessment roll

1in any of the next 5 previous years, the assessor shall enter the value of the omitted
2or understated property once for each previous year of the omission or
3understatement. The assessor shall affix a just valuation to each entry for a former
4year as it should have been assessed according to the assessor's best judgment. Taxes
5shall be apportioned and collected on the tax roll for each entry, on the basis of the
6net tax rate for the year of the omission, taking into account credits under s. 79.10.
7In the case of omitted property, interest shall be added at the rate of 0.0267 percent
8per day for the period of time between the date when the form is required to be
9submitted and the date when the assessor affixes the just valuation. In the case of
10underpayments determined after an objection under s. 70.995 (8) (d), interest shall
11be added at the average annual discount interest rate determined by the last auction
12of 6-month U.S. treasury bills before the objection per day for the period of time
13between the date when the tax was due and the date when it is paid.
AB277-ASA1,16 14Section 16 . 71.07 (5n) (a) 5. a. of the statutes is amended to read:
AB277-ASA1,6,2215 71.07 (5n) (a) 5. a. “Manufacturing property factor" means a fraction, the
16numerator of which is the average value of the claimant's real and personal property
17assessed under s. 70.995 and personal property that would have been assessed under
18s. 70.995, 2015 stats., as determined by the department
, owned or rented and used
19in this state by the claimant during the taxable year to manufacture qualified
20production property, and the denominator of which is the average value of all the
21claimant's real and personal property owned or rented during the taxable year and
22used by the claimant to manufacture qualified production property.
AB277-ASA1,17 23Section 17 . 71.07 (5n) (a) 9. (intro.) of the statutes is amended to read:
AB277-ASA1,6,2524 71.07 (5n) (a) 9. (intro.) “Qualified production property" means either any of
25the following:
AB277-ASA1,18
1Section 18. 71.07 (5n) (a) 9. a. of the statutes is amended to read:
AB277-ASA1,7,42 71.07 (5n) (a) 9. a. Tangible personal property manufactured in whole or in part
3by the claimant on real property that is assessed as manufacturing property under
4s. 70.995.
AB277-ASA1,19 5Section 19 . 71.07 (5n) (a) 9. am. of the statutes is created to read:
AB277-ASA1,7,96 71.07 (5n) (a) 9. am. Tangible personal property manufactured in whole or in
7part by the claimant on personal property that would have been assessed as
8manufacturing property under s. 70.995, 2015 stats., as determined by the
9department.
AB277-ASA1,20 10Section 20 . 71.28 (5n) (a) 5. a. of the statutes is amended to read:
AB277-ASA1,7,1811 71.28 (5n) (a) 5. a. “Manufacturing property factor" means a fraction, the
12numerator of which is the average value of the claimant's real and personal property
13assessed under s. 70.995 and personal property that would have been assessed under
14s. 70.995, 2015 stats., as determined by the department
, owned or rented and used
15in this state by the claimant during the taxable year to manufacture qualified
16production property, and the denominator of which is the average value of all the
17claimant's real and personal property owned or rented during the taxable year and
18used by the claimant to manufacture qualified production property.
AB277-ASA1,21 19Section 21 . 71.28 (5n) (a) 9. (intro.) of the statutes is amended to read:
AB277-ASA1,7,2120 71.28 (5n) (a) 9. (intro.) “Qualified production property" means either any of
21the following:
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