AB1048: Bill Text

LRB-5664/2

JK:cdc

2021 - 2022 LEGISLATURE

2021 Assembly BILL 1048

February 17, 2022 - Introduced by Representatives Knodl, Armstrong, Allen, Behnke, Brandtjen, Brooks, Cabral-Guevara, Dittrich, Edming, Gundrum, Horlacher, Kitchens, Krug, Kuglitsch, Macco, Magnafici, Moses, Neylon, Novak, Oldenburg, Penterman, Pronschinske, Ramthun, Rozar, Schraa, Skowronski, Sortwell, Tranel, VanderMeer, Wichgers, Plumer and Zimmerman, cosponsored by Senator Jacque. Referred to Committee on Ways and Means.

AB1048,2,11 An Act to repeal 60.85 (1) (f), 66.1105 (2) (d), 70.043 (2), 70.47 (15), 70.53 (1) (a), 70.65 (2) (a) 2., 70.995 (1) (b), 70.995 (12r), 71.28 (5n) (a) 5. d., 74.11 (4), 74.11 (11) (b), 74.11 (12) (a) 1g., 74.11 (12) (d), 74.12 (6), 74.12 (11) (a) 1g., 74.12 (11) (d), 74.30 (1) (i), 74.42, 74.47 (3) (e), 74.55 and 76.69; to renumber 70.043 (1), 74.11 (11) (a) and 79.096 (1); to renumber and amend 79.096 (2) (a); to consolidate, renumber and amend 70.65 (2) (a) (intro.) and 1.; to amend 17.14 (1) (g), 26.03 (1m) (b) (intro.), 33.01 (9) (a), 33.01 (9) (am), 33.01 (9) (ar) 1., 33.01 (9) (b) 1., 60.85 (1) (h) 1. c., 60.85 (1) (o), 66.0435 (3) (g), 66.1105 (2) (f) 1. c., 66.1106 (1) (k), 70.02, 70.05 (5) (a) 1., 70.13 (3), 70.13 (7), 70.17 (1), 70.174, 70.18, 70.19, 70.20, 70.21 (1), 70.21 (1m) (intro.), 70.21 (2), 70.22 (1), 70.22 (2) (a), 70.29, 70.30 (intro.), 70.34, 70.345, 70.35 (1), 70.35 (2), 70.35 (3), 70.35 (4), 70.35 (5), 70.36 (1), 70.36 (2), 70.44 (1), 70.49 (2), 70.52, 70.65 (2) (b) (intro.), 70.68 (1), 70.73 (1) (b), 70.73 (1) (c), 70.73 (1) (d), 70.84, 70.855 (1) (intro.), 70.855 (1) (a), 70.855 (1) (b), 70.995 (1) (a), 70.995 (4), 70.995 (7) (b), 70.995 (8) (b) 1., 70.995 (12) (a), 71.07 (5n) (a) 5. a., 71.07 (5n) (a) 9. (intro.), 71.07 (5n) (a) 9. a., 71.07 (5n) (d) 2., 71.07 (6e) (a) 5., 71.07 (9) (a) 3., 71.17 (2), 71.28 (5n) (a) 5. a., 71.28 (5n) (a) 9. (intro.), 71.28 (5n) (a) 9. a., 71.28 (5n) (d) 2., 73.06 (3), 74.05 (1), 74.09 (2), 74.11 (6) (a), 74.11 (10) (a) 1., 74.11 (12) (a) (intro.), 74.11 (12) (b), 74.12 (7) (a), 74.12 (8) (a), 74.12 (9) (a), 74.12 (10) (a), 74.12 (11) (a) (intro.), 74.12 (11) (b), 74.29 (2), 74.30 (1m), 74.83, 74.87 (3), 77.84 (1), 79.095 (3), 174.065 (3), 815.18 (3) (intro.) and 978.05 (6) (a); and to create 16.5185 (1m), 60.85 (5) (j), 66.1105 (5) (j), 66.1106 (4) (e), 70.015, 70.111 (28), 70.17 (3), 70.995 (5n), 71.07 (5n) (a) 9. c., 71.28 (5n) (a) 9. c., 79.096 (1) (b), 79.096 (2) (a) 2., 79.096 (2) (c) and 79.096 (2) (d) of the statutes; relating to: eliminating the personal property tax.

Analysis by the Legislative Reference Bureau

Under current law, beginning with the property tax assessments as of January 1, 2018, machinery, tools, and patterns, not including those items used in manufacturing, are exempt from the personal property tax. However, beginning in 2019, the state pays each taxing jurisdiction an amount equal to the property taxes levied on those items of personal property for the property tax assessments as of January 1, 2017.

Under the bill, beginning with the property tax assessments as of January 1, 2022, no items of personal property will be subject to the property tax. Beginning in 2023, and in each year thereafter, the state will pay each taxing jurisdiction an additional amount equal to the property taxes levied on the items made exempt under the bill for the property tax assessments as of January 1, 2021.

The bill also makes a number of technical changes related to the repeal of the personal property tax, such as providing a process whereby manufacturing establishments located in this state that do not own real property in this state may continue to claim the manufacturing income tax credit.

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:

AB1048,1 Section 1. 16.5185 (1m) of the statutes is created to read:

AB1048,3,6 16.5185 (1m) In fiscal year 2021-22, in addition to the amount under sub. (1), the secretary shall transfer from the general fund to the transportation fund $20,000,000. In fiscal year 2022-23, and in each fiscal year thereafter, in addition to the amount under sub. (1), the secretary shall transfer from the general fund to the transportation fund $44,000,000.

AB1048,2 Section 2. 17.14 (1) (g) of the statutes is amended to read:

AB1048,3,12 17.14 (1) (g) Failure to use the “Wisconsin Property Assessment Manual" provided under s. 73.03 (2a) and as required by s. 70.32 (1) and 70.34. The certification of any assessor removed under this paragraph may for sufficient reason be reinstated by the secretary of revenue after one year upon formal application for reinstatement.

AB1048,3 Section 3. 26.03 (1m) (b) (intro.) of the statutes is amended to read:

AB1048,3,18 26.03 (1m) (b) (intro.) Paragraph (a) 1. does not apply to a person harvesting raw forest products on public lands, as defined in s. 70.13 (7), 2019 stats., to a person harvesting raw forest products for fuel wood for his or her home consumption, to a person harvesting for the purpose of clearing the land for agricultural use or to a person harvesting from the person's own land, any of the following:

AB1048,4 Section 4. 33.01 (9) (a) of the statutes is amended to read:

AB1048,4,2 33.01 (9) (a) For the purpose of receiving notice under this chapter, a person whose name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year.

AB1048,5 Section 5. 33.01 (9) (am) of the statutes is amended to read:

AB1048,4,5 33.01 (9) (am) For the purpose of petitioning under this chapter, any of the following:

AB1048,4,8 1. A person whose name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year.

AB1048,4,12 2. The spouse of a person whose name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year if the spouse is referred to on that tax roll.

AB1048,6 Section 6. 33.01 (9) (ar) 1. of the statutes is amended to read:

AB1048,4,16 33.01 (9) (ar) 1. The person's name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year.

AB1048,7 Section 7. 33.01 (9) (b) 1. of the statutes is amended to read:

AB1048,4,20 33.01 (9) (b) 1. Whose name appears as an owner of real property on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of the previous year; or

AB1048,8 Section 8. 60.85 (1) (f) of the statutes is repealed.

AB1048,9 Section 9. 60.85 (1) (h) 1. c. of the statutes is amended to read:

AB1048,5,2 60.85 (1) (h) 1. c. Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the town of real or personal property within a tax incremental district for consideration which is less than its cost to the town.

AB1048,10 Section 10. 60.85 (1) (o) of the statutes is amended to read:

AB1048,5,5 60.85 (1) (o) “Taxable property" means all real and personal taxable property located in a tax incremental district.

AB1048,11 Section 11. 60.85 (5) (j) of the statutes is created to read:

AB1048,5,13 60.85 (5) (j) Upon receiving a written application from the town clerk, in a form prescribed by the department of revenue, the department shall recalculate the base value of a tax incremental district affected by 2021 Wisconsin Act .... (this act) to remove the value of the personal property. A request received under this paragraph no later than October 31 is effective in the year following the year in which the request is made. A request received after October 31 is effective in the 2nd year following the year in which the request is made.

AB1048,12 Section 12. 66.0435 (3) (g) of the statutes is amended to read:

AB1048,5,17 66.0435 (3) (g) Failure to timely pay the tax prescribed in this subsection shall be treated as a default in payment of personal property tax and is subject to all procedures and penalties applicable under chs. 70 and 74.

AB1048,13 Section 13. 66.1105 (2) (d) of the statutes is repealed.

AB1048,14 Section 14. 66.1105 (2) (f) 1. c. of the statutes is amended to read:

AB1048,5,22 66.1105 (2) (f) 1. c. Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the city of real or personal property within a tax incremental district for consideration which is less than its cost to the city.

AB1048,15 Section 15. 66.1105 (5) (j) of the statutes is created to read:

AB1048,6,5 66.1105 (5) (j) Upon receiving a written application from the city clerk, in a form prescribed by the department of revenue, the department shall recalculate the base value of a tax incremental district affected by 2021 Wisconsin Act .... (this act) to remove the value of the personal property. A request received under this paragraph no later than October 31 is effective in the year following the year in which the request is made. A request received after October 31 is effective in the 2nd year following the year in which the request is made.

AB1048,16 Section 16. 66.1106 (1) (k) of the statutes is amended to read:

AB1048,6,8 66.1106 (1) (k) “Taxable property" means all real and personal taxable property located in an environmental remediation tax incremental district.

AB1048,17 Section 17. 66.1106 (4) (e) of the statutes is created to read:

AB1048,6,16 66.1106 (4) (e) Upon receiving a written application from the clerk of a political subdivision, in a form prescribed by the department of revenue, the department shall recalculate the base value of a tax incremental district affected by 2021 Wisconsin Act .... (this act) to remove the value of the personal property. A request received under this paragraph no later than October 31 is effective in the year following the year in which the request is made. A request received after October 31 is effective in the 2nd year following the year in which the request is made.

AB1048,18 Section 18. 70.015 of the statutes is created to read:

AB1048,6,19 70.015 Sunset. Beginning with the property tax assessments as of January 1, 2022, no tax shall be levied under this chapter on personal property.

AB1048,19 Section 19. 70.02 of the statutes is amended to read:

AB1048,6,25 70.02 Definition of general property. General property is all the taxable real and personal property defined in ss. 70.03 and 70.04 except that which is taxed under ss. 70.37 to 70.395 and ch. 76 and subchs. I and VI of ch. 77. General property includes manufacturing property subject to s. 70.995, but assessment of that property shall be made according to s. 70.995.