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2021 - 2022 LEGISLATURE
October 20, 2021 - Introduced by Senators Pfaff, Smith, Bewley, Ringhand, Agard,
Roys and Larson, cosponsored by Representatives Vining, B. Meyers,
Shankland, Milroy, Doyle, Vruwink, Snodgrass, Hintz, Sinicki, Hebl,
Ohnstad, Shelton, Spreitzer, Considine, Billings, Anderson, Neubauer,
Hesselbein, S. Rodriguez, Conley, Subeck, Stubbs, Andraca, Ortiz-Velez
and McGuire. Referred to Committee on Financial Institutions and Revenue.
SB623,2,11 1An Act to repeal 20.835 (1) (em), 60.85 (1) (f), 66.1105 (2) (d), 70.11 (42), 70.1105
2(2), 70.53 (1) (a), 70.995 (12r), 71.07 (5n) (a) 5. d., 71.28 (5n) (a) 5. d., 76.07 (4g)
3(a) 11. and 12. and 76.69; to renumber 79.096 (1); to renumber and amend
477.51 (12t) and 79.096 (2) (a); to amend 60.85 (1) (h) 1. c., 60.85 (1) (o), 66.0435
5(3) (g), 66.1105 (2) (f) 1. c., 66.1106 (1) (k), 70.04 (1r), 70.043, 70.05 (5) (a) 1.,
670.10, 70.1105 (1), 70.111 (19) (b), 70.13 (1), 70.13 (2), 70.13 (3), 70.13 (7), 70.15
7(2), 70.17 (1), 70.174, 70.18, 70.19, 70.20, 70.21 (1), 70.21 (1m) (intro.), 70.21 (2),
870.22 (1), 70.22 (2) (a), 70.27 (1), 70.27 (3) (a), 70.27 (4), 70.27 (5), 70.27 (7) (b),
970.29, 70.30 (intro.), 70.34, 70.345, 70.35 (1), 70.35 (2), 70.35 (3), 70.35 (4), 70.35
10(5), 70.36 (1), 70.36 (2), 70.43 (2), 70.44 (1), 70.47 (7) (aa), 70.49 (2), 70.50, 70.52,
1170.65 (2) (a) 2., 70.65 (2) (b) (intro.), 70.68 (1), 70.73 (1) (b), 70.73 (1) (c), 70.84,
1270.855 (1) (intro.), 70.855 (1) (a), 70.855 (1) (b), 70.995 (1) (a), 70.995 (3), 70.995
13(4), 70.995 (5), 70.995 (7) (b), 70.995 (8) (b) 1., 70.995 (12) (a), 71.07 (5n) (a) 5.
14a., 71.07 (5n) (a) 9. (intro.), 71.07 (5n) (a) 9. a., 71.07 (5n) (d) 2., 71.07 (6e) (a)

15., 71.07 (9) (a) 3., 71.17 (2), 71.28 (5n) (a) 5. a., 71.28 (5n) (a) 9. (intro.), 71.28
2(5n) (a) 9. a., 71.28 (5n) (d) 2., 71.52 (7), 73.01 (5) (a), 73.06 (3), 76.02 (1), 76.025
3(2), 76.03 (1), 76.07 (2), 76.07 (4g) (a) 10., 76.07 (4g) (a) 13., 76.24 (2) (a), 76.28
4(9), 76.31, 76.82, 76.84 (4), 77.04 (1), 77.54 (20n) (d) 2., 77.54 (20n) (d) 3., 77.54
5(57d) (b) 1., 77.84 (1), 78.55 (1), 79.095 (3), 174.065 (3), 815.18 (3) (intro.) and
6978.05 (6) (a); to create 16.5185 (3), 60.85 (5) (j), 66.1105 (5) (j), 66.1106 (4) (e),
770.111 (28), 70.17 (3), 70.995 (5n), 71.07 (5n) (a) 9. c., 71.28 (5n) (a) 9. c., 76.02
8(4m), 76.025 (5), 76.074, 77.51 (12t) (a) to (c), 79.096 (1) (b), 79.096 (2) (a) 2.,
979.096 (2) (c) and 79.096 (2) (d) of the statutes; and to affect 2021 Wisconsin
10Act 58
, section 9125 (1); relating to: repealing the personal property tax,
11granting rule-making authority, and making an appropriation.
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, 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. Beginning in 2024, each taxing jurisdiction will
receive a payment to compensate it for its loss in personal property revenue equal
to the payment it received in the previous year, increased by the annual percentage
change in the consumer price index.
Under current law, generally, public utilities, including railroad companies, are
subject to a license fee imposed by the state instead of being subject to local property
taxes. This bill creates a personal property tax exemption for railroad companies in
order to comply with the requirements of the federal Railroad Revitalization and
Regulatory Reform Act.
Finally, the bill 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:
SB623,1 1Section 1. 16.5185 (3) of the statutes is created to read:
SB623,3,62 16.5185 (3) On December 30, 2022, the secretary shall transfer from the
3general fund to the transportation fund $9,000,000. On December 30, 2023, and on
4each December 30 thereafter, the secretary shall transfer from the general fund to
5the transportation fund an amount equal to the amount transferred under this
6subsection in the previous fiscal year, increased by 1.25 percent
SB623,2 7Section 2. 20.835 (1) (em) of the statutes, as created by 2021 Wisconsin Act 58,
8is repealed.
SB623,3 9Section 3. 60.85 (1) (f) of the statutes is repealed.
SB623,4 10Section 4. 60.85 (1) (h) 1. c. of the statutes is amended to read:
SB623,3,1411 60.85 (1) (h) 1. c. Real property assembly costs, meaning any deficit incurred
12resulting from the sale or lease as lessor by the town of real or personal property
13within a tax incremental district for consideration which is less than its cost to the
14town.
SB623,5 15Section 5. 60.85 (1) (o) of the statutes is amended to read:
SB623,3,1716 60.85 (1) (o) “Taxable property" means all real and personal taxable property
17located in a tax incremental district.
SB623,6 18Section 6. 60.85 (5) (j) of the statutes is created to read:
SB623,4,7
160.85 (5) (j) Upon receiving a written application from the town clerk, in a form
2prescribed by the department of revenue, the department shall recalculate the base
3value of a tax incremental district affected by 2021 Wisconsin Act .... (this act) to
4remove the value of the personal property. An application received under this
5paragraph no later than October 31 is effective in the year following the year in which
6the application is made. An application received after October 31 is effective in the
72nd year following the year in which the application is made.
SB623,7 8Section 7. 66.0435 (3) (g) of the statutes is amended to read:
SB623,4,119 66.0435 (3) (g) Failure to timely pay the tax prescribed in this subsection shall
10be treated as a default in payment of personal property tax and is subject to all
11procedures and penalties applicable under chs. 70 and 74.
SB623,8 12Section 8. 66.1105 (2) (d) of the statutes is repealed.
SB623,9 13Section 9. 66.1105 (2) (f) 1. c. of the statutes is amended to read:
SB623,4,1614 66.1105 (2) (f) 1. c. Real property assembly costs, meaning any deficit incurred
15resulting from the sale or lease as lessor by the city of real or personal property within
16a tax incremental district for consideration which is less than its cost to the city.
SB623,10 17Section 10. 66.1105 (5) (j) of the statutes is created to read:
SB623,4,2418 66.1105 (5) (j) Upon receiving a written application from the city clerk, in a
19form prescribed by the department of revenue, the department shall recalculate the
20base value of a tax incremental district affected by 2021 Wisconsin Act .... (this act)
21to remove the value of the personal property. An application received under this
22paragraph no later than October 31 is effective in the year following the year in which
23the application is made. An application received after October 31 is effective in the
242nd year following the year in which the application is made.
SB623,11 25Section 11. 66.1106 (1) (k) of the statutes is amended to read:
SB623,5,2
166.1106 (1) (k) “Taxable property" means all real and personal taxable property
2located in an environmental remediation tax incremental district.
SB623,12 3Section 12. 66.1106 (4) (e) of the statutes is created to read:
SB623,5,114 66.1106 (4) (e) Upon receiving a written application from the clerk of a political
5subdivision, in a form prescribed by the department, the department shall
6recalculate the base value of a tax incremental district affected by 2021 Wisconsin
7Act .... (this act) to remove the value of the personal property, as defined in s. 66.1105.
8An application received under this paragraph no later than October 31 is effective
9in the year following the year in which the application is made. An application
10received after October 31 is effective in the 2nd year following the year in which the
11application is made.
SB623,13 12Section 13. 70.04 (1r) of the statutes is amended to read:
SB623,5,1813 70.04 (1r) Toll bridges; private railroads and bridges; saw Saw logs, timber, and
14lumber, either upon land or afloat; steamboats, ships, and other vessels, whether at
15home or abroad; ferry boats, including the franchise for running the same; ice cut and
16stored for use, sale, or shipment; beginning May 1, 1974, and manufacturing
17machinery and equipment as defined in s. 70.11 (27), and entire property of
18companies defined in s. 76.28 (1), located entirely within one taxation district
.
SB623,14 19Section 14. 70.043 of the statutes is amended to read:
SB623,6,2 2070.043 Mobile homes, recreational mobile homes, and manufactured
21homes.
(1) A mobile home, as defined in s. 101.91 (10), a recreational mobile home,
22as defined in s. 66.0435 (1) (hm),
or a manufactured home, as defined in s. 101.91 (2),
23is an improvement to real property if it is connected to utilities and is set upon a
24foundation upon land which is owned by the mobile home, recreational mobile home,
25or manufactured home owner. In this section, a mobile home, recreational mobile

1home,
or manufactured home is “set upon a foundation" if it is off its wheels and is
2set upon some other support.
SB623,6,8 3(2) A mobile home, as defined in s. 101.91 (10), a recreational mobile home, as
4defined in s. 66.0435 (1) (hm),
or a manufactured home, as defined in s. 101.91 (2),
5is personal property if the land upon which it is located is not owned by the mobile
6home, recreational mobile home, or manufactured home owner or if the mobile home,
7recreational mobile home,
or manufactured home is not set upon a foundation or
8connected to utilities.
SB623,15 9Section 15. 70.05 (5) (a) 1. of the statutes is amended to read:
SB623,6,1210 70.05 (5) (a) 1. “Assessed value" means with respect to each taxation district
11the total values established under ss. s. 70.32 and 70.34, but excluding
12manufacturing property subject to assessment under s. 70.995.
SB623,16 13Section 16. 70.10 of the statutes is amended to read:
SB623,6,22 1470.10 Assessment, when made, exemption. The assessor shall assess all
15real and personal taxable property as of the close of January 1 of each year. Except
16in cities of the 1st class and 2nd class cities that have a board of assessors under s.
1770.075, the assessment shall be finally completed before the first Monday in April.
18All real property conveyed by condemnation or in any other manner to the state, any
19county, city, village or town by gift, purchase, tax deed or power of eminent domain
20before January 2 in such year shall not be included in the assessment. Assessment
21of manufacturing property subject to s. 70.995 shall be made according to that
22section.
SB623,17 23Section 17. 70.11 (42) of the statutes is repealed.
SB623,18 24Section 18. 70.1105 (1) of the statutes is amended to read:
SB623,7,8
170.1105 (1) Property that is exempt under s. 70.11 and that is used in part in
2a trade or business for which the owner of the property is subject to taxation under
3sections 511 to 515 of the internal revenue code, as defined in s. 71.22 (4m), shall be
4assessed for taxation, unless otherwise exempt under this chapter, at that portion
5of the fair market value of the property that is attributable to the part of the property
6that is used in the unrelated trade or business. This section does not apply to
7property that is leased by an exempt organization to another person or to property
8that is exempt under s. 70.11 (34).
SB623,19 9Section 19. 70.1105 (2) of the statutes is repealed.
SB623,20 10Section 20. 70.111 (19) (b) of the statutes is amended to read:
SB623,7,1611 70.111 (19) (b) Recreational mobile homes, as defined in s. 66.0435 (1) (hm),
12that are personal property under s. 70.043 (2) and recreational vehicles, as defined
13in s. 340.01 (48r). The exemption under this paragraph also applies to steps and a
14platform, not exceeding 50 square feet, that lead to a doorway of a recreational mobile
15home or a recreational vehicle, but does not apply to any other addition, attachment,
16deck, or patio.
SB623,21 17Section 21. 70.111 (28) of the statutes is created to read:
SB623,7,2118 70.111 (28) Personal property. (a) Beginning with the property tax
19assessments applicable to the January 1, 2022, assessment year, personal property,
20as defined under s. 70.04, including steam and other vessels, furniture, and
21equipment.
SB623,7,2222 (b) The exemption under par. (a) does not apply to all of the following:
SB623,7,2323 1. Property qualifying as real property under s. 70.03.
SB623,7,2524 2. Off-premises advertising signs defined as personal property under s. 70.04
25(3).
SB623,8,1
13. Property assessed as real property under s. 70.17 (3).
SB623,8,22 4. Property subject to taxation under s. 76.025 (2).
SB623,8,53 (c) A taxing jurisdiction may include the most recent valuation of personal
4property described under par. (a) that is located in the taxing jurisdiction for
5purposes of complying with debt limitations applicable to the jurisdiction.
SB623,22 6Section 22. 70.13 (1) of the statutes is amended to read:
SB623,8,137 70.13 (1) All For assessments made before January 1, 2022, all personal
8property shall be assessed in the assessment district where the same is located or
9customarily kept except as otherwise specifically provided. Personal property in
10transit within the state on the first day of January shall be assessed in the district
11in which the same is intended to be kept or located, and personal property having no
12fixed location shall be assessed in the district where the owner or the person in charge
13or possession thereof resides, except as provided in sub. (5).
SB623,23 14Section 23. 70.13 (2) of the statutes is amended to read:
SB623,8,2115 70.13 (2) Saw For assessments made before January 1, 2022, saw logs or timber
16in transit, which are to be sawed or manufactured in any mill in this state, shall be
17deemed located and shall be assessed in the district in which such mill is located.
18Saw logs or timber shall be deemed in transit when the same are being transported
19either by water or rail, but when such logs or timber are banked, decked, piled or
20otherwise temporarily stored for transportation in any district, they shall be deemed
21located, and shall be assessed in such district.
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