LRBs0049/1
JK:cjs&wlj
2023 - 2024 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 2
April 25, 2023 - Offered by Representatives Macco and Knodl.
AB2-ASA1,2,12
1An Act to repeal 60.85 (1) (f), 66.1105 (2) (d), 70.043, 70.11 (42), 70.47 (15), 70.53
2(1) (a), 71.07 (5n) (a) 5. d., 71.28 (5n) (a) 5. d., 76.07 (4g) (a) 11. and 12. and 76.69;
3to renumber 79.096 (1);
to renumber and amend 77.51 (12t) and 79.096 (2)
4(a);
to amend 26.03 (1m) (b) (intro.), 33.01 (9) (a), 33.01 (9) (am) 1. and 2., 33.01
5(9) (ar) 1., 33.01 (9) (b) 1., 60.85 (1) (h) 1. c., 60.85 (1) (o), 66.0435 (3) (c) 1. (intro.),
666.0435 (3) (g), 66.0435 (9), 66.1105 (2) (f) 1. c., 66.1105 (2) (i) 2., 66.1106 (1) (k),
770.02, 70.04 (1r), 70.05 (5) (a) 1., 70.10, 70.13 (1), 70.13 (2), 70.13 (3), 70.13 (7),
870.15 (2), 70.17 (1), 70.174, 70.18 (1), 70.18 (2), 70.19, 70.20, 70.21 (1), 70.21
9(1m) (intro.), 70.21 (2), 70.22 (1), 70.22 (2) (a), 70.27 (1), 70.27 (3) (a), 70.27 (4),
1070.27 (5), 70.27 (7) (b), 70.29, 70.30 (intro.), 70.34, 70.345, 70.35 (1), 70.35 (2),
1170.35 (3), 70.35 (4), 70.35 (5), 70.36 (1), 70.36 (2), 70.43 (2), 70.44 (1), 70.47 (7)
12(aa), 70.49 (2), 70.50, 70.52, 70.65 (2) (a) 2., 70.65 (2) (b) (intro.), 70.68 (1), 70.73
13(1) (b), 70.73 (1) (c), 70.73 (1) (d), 70.84, 70.855 (1) (intro.), 70.855 (1) (a), 70.855
1(1) (b), 70.995 (1) (a), 70.995 (4), 70.995 (5), 70.995 (7) (b), 70.995 (8) (b) 1., 70.995
2(12) (a), 71.07 (5n) (a) 5. a., 71.07 (5n) (a) 9. (intro.), 71.07 (5n) (a) 9. a., 71.07
3(5n) (d) 2., 71.07 (6e) (a) 5., 71.07 (9) (a) 3., 71.17 (2), 71.28 (5n) (a) 5. a., 71.28
4(5n) (a) 9. (intro.), 71.28 (5n) (a) 9. a., 71.28 (5n) (d) 2., 71.52 (7), 73.01 (5) (a),
576.02 (1), 76.03 (1), 76.07 (2), 76.07 (4g) (a) 10., 76.07 (4g) (a) 13., 76.125 (1),
676.24 (2) (a), 76.31, 76.82, 77.04 (1), 77.54 (20n) (d) 2., 77.54 (20n) (d) 3., 77.54
7(57d) (b) 1., 77.84 (1), 78.55 (1), 174.065 (3), 815.18 (3) (intro.) and 978.05 (6) (a);
8and
to create 16.5185 (3), 60.85 (5) (j), 66.1105 (5) (j), 66.1106 (4) (e), 70.015,
970.111 (28), 70.17 (3), 70.995 (5n), 71.07 (5n) (a) 9. c., 71.28 (5n) (a) 9. c., 76.025
10(5), 76.074, 77.51 (12t) (a) to (c), 79.096 (1) (b), 79.096 (2) (a) 2., 79.096 (2) (c),
1179.096 (2) (d) and 706.05 (2m) (b) 3. of the statutes;
relating to: eliminating the
12personal 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,
2024, no items of personal property will be subject to the property tax.
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 to the license fee for
railroad companies in order to comply with the requirements of the federal Railroad
Revitalization and Regulatory Reform Act.
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.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB2-ASA1,1
1Section 1
. 16.5185 (3) of the statutes is created to read:
AB2-ASA1,3,32
16.5185
(3) On December 30, 2025, and on each December 30 thereafter, the
3secretary shall transfer from the general fund to the transportation fund $8,000,000.
AB2-ASA1,2
4Section 2
. 26.03 (1m) (b) (intro.) of the statutes is amended to read:
AB2-ASA1,3,95
26.03
(1m) (b) (intro.) Paragraph (a) 1. does not apply to a person harvesting
6raw forest products on public lands, as defined in s. 70.13 (7),
2021 stats., to a person
7harvesting raw forest products for fuel wood for his or her home consumption, to a
8person harvesting for the purpose of clearing the land for agricultural use or to a
9person harvesting from the person's own land, any of the following:
AB2-ASA1,3
10Section 3
. 33.01 (9) (a) of the statutes is amended to read:
AB2-ASA1,3,1411
33.01
(9) (a) For the purpose of receiving notice under this chapter, a person
12whose name appears as an owner of real property on the tax roll under s. 70.65 (2)
13(a)
1. that was delivered under s. 74.03 on or before the 3rd Monday in December of
14the previous year.
AB2-ASA1,4
15Section 4
. 33.01 (9) (am) 1. and 2. of the statutes are amended to read:
AB2-ASA1,3,1816
33.01
(9) (am) 1. A person whose name appears as an owner of real property
17on the tax roll under s. 70.65 (2) (a)
1. that was delivered under s. 74.03 on or before
18the 3rd Monday in December of the previous year.
AB2-ASA1,4,219
2. The spouse of a person whose name appears as an owner of real property on
20the tax roll under s. 70.65 (2) (a)
1. that was delivered under s. 74.03 on or before the
13rd Monday in December of the previous year if the spouse is referred to on that tax
2roll.
AB2-ASA1,5
3Section 5
. 33.01 (9) (ar) 1. of the statutes is amended to read:
AB2-ASA1,4,64
33.01
(9) (ar) 1. The person's name appears as an owner of real property on the
5tax roll under s. 70.65 (2) (a)
1. that was delivered under s. 74.03 on or before the 3rd
6Monday in December of the previous year.
AB2-ASA1,6
7Section 6
. 33.01 (9) (b) 1. of the statutes is amended to read:
AB2-ASA1,4,108
33.01
(9) (b) 1. Whose name appears as an owner of real property on the tax
9roll under s. 70.65 (2) (a)
1. that was delivered under s. 74.03 on or before the 3rd
10Monday in December of the previous year; or
AB2-ASA1,7
11Section 7
. 60.85 (1) (f) of the statutes is repealed.
AB2-ASA1,8
12Section 8
. 60.85 (1) (h) 1. c. of the statutes is amended to read:
AB2-ASA1,4,1613
60.85
(1) (h) 1. c. Real property assembly costs, meaning any deficit incurred
14resulting from the sale or lease as lessor by the town of real
or personal property
15within a tax incremental district for consideration which is less than its cost to the
16town.
AB2-ASA1,9
17Section 9
. 60.85 (1) (o) of the statutes is amended to read:
AB2-ASA1,4,1918
60.85
(1) (o) “Taxable property" means all real
and personal taxable property
19located in a tax incremental district.
AB2-ASA1,10
20Section
10. 60.85 (5) (j) of the statutes is created to read:
AB2-ASA1,5,221
60.85
(5) (j) Upon receiving a written application from the town clerk, in a form
22prescribed by the department of revenue, the department shall recalculate the base
23value of a tax incremental district affected by 2023 Wisconsin Act .... (this act) to
24remove the value of the personal property. A request received under this paragraph
25no later than October 31 is effective in the year following the year in which the
1request is made. A request received after October 31 is effective in the 2nd year
2following the year in which the request is made.
AB2-ASA1,11
3Section
11. 66.0435 (3) (c) 1. (intro.) of the statutes is amended to read:
AB2-ASA1,5,104
66.0435
(3) (c) 1. (intro.) In addition to the license fee provided in pars. (a) and
5(b), each licensing authority shall collect from each unit occupying space or lots in a
6community in the licensing authority, except from recreational mobile homes as
7provided under par. (cm), from manufactured and mobile homes that constitute
8improvements to real property
under s. 70.043 (1), from recreational vehicles as
9defined in s. 340.01 (48r), and from camping trailers as defined in s. 340.01 (6m), a
10monthly municipal permit fee computed as follows:
AB2-ASA1,12
11Section
12. 66.0435 (3) (g) of the statutes is amended to read:
AB2-ASA1,5,1412
66.0435
(3) (g) Failure to timely pay the tax prescribed in this subsection shall
13be treated as a default in payment of
personal property tax and is subject to all
14procedures and penalties applicable under chs. 70 and 74.
AB2-ASA1,13
15Section
13. 66.0435 (9) of the statutes is amended to read:
AB2-ASA1,5,2516
66.0435
(9) Municipalities; monthly municipal permit fees on recreational
17mobile homes and recreational vehicles. A licensing authority may assess monthly
18municipal permit fees at the rates under this section on recreational mobile homes
19and recreational vehicles, as defined in s. 340.01 (48r), except recreational mobile
20homes and recreational vehicles that are located in campgrounds licensed under s.
2197.67, recreational mobile homes that constitute improvements to real property
22under s. 70.043 (1), and recreational mobile homes or recreational vehicles that are
23located on land where the principal residence of the owner of the recreational mobile
24home or recreational vehicle is located, regardless of whether the recreational mobile
25home or recreational vehicle is occupied during all or part of any calendar year.
AB2-ASA1,14
1Section
14. 66.1105 (2) (d) of the statutes is repealed.
AB2-ASA1,15
2Section 15
. 66.1105 (2) (f) 1. c. of the statutes is amended to read:
AB2-ASA1,6,53
66.1105
(2) (f) 1. c. Real property assembly costs, meaning any deficit incurred
4resulting from the sale or lease as lessor by the city of real
or personal property within
5a tax incremental district for consideration which is less than its cost to the city.
AB2-ASA1,16
6Section
16. 66.1105 (2) (i) 2. of the statutes is amended to read:
AB2-ASA1,6,117
66.1105
(2) (i) 2. For purposes of any agreement between the taxing jurisdiction
8and a developer regarding the tax incremental district entered into prior to
April 5,
92018 the effective date of this subdivision .... [LRB inserts date], “tax increment”
10includes the amount that a taxing jurisdiction is obligated to attribute to a tax
11incremental district under s. 79.096 (3).
AB2-ASA1,17
12Section 17
. 66.1105 (5) (j) of the statutes is created to read:
AB2-ASA1,6,1913
66.1105
(5) (j) Upon receiving a written application from the city clerk, in a
14form prescribed by the department of revenue, the department shall recalculate the
15base value of a tax incremental district affected by 2023 Wisconsin Act .... (this act)
16to remove the value of the personal property. A request received under this
17paragraph no later than October 31 is effective in the year following the year in which
18the request is made. A request received after October 31 is effective in the 2nd year
19following the year in which the request is made.
AB2-ASA1,18
20Section 18
. 66.1106 (1) (k) of the statutes is amended to read:
AB2-ASA1,6,2221
66.1106
(1) (k) “Taxable property" means all real
and personal taxable property
22located in an environmental remediation tax incremental district.
AB2-ASA1,19
23Section
19. 66.1106 (4) (e) of the statutes is created to read:
AB2-ASA1,7,524
66.1106
(4) (e) Upon receiving a written application from the clerk of a political
25subdivision, in a form prescribed by the department of revenue, the department shall
1recalculate the base value of a tax incremental district affected by 2023 Wisconsin
2Act .... (this act) to remove the value of the personal property. A request received
3under this paragraph no later than October 31 is effective in the year following the
4year in which the request is made. A request received after October 31 is effective
5in the 2nd year following the year in which the request is made.
AB2-ASA1,20
6Section
20. 70.015 of the statutes is created to read:
AB2-ASA1,7,8
770.015 Sunset. Beginning with the property tax assessments as of January
81, 2024, no tax shall be levied under this chapter on personal property.