SB2: Bill Text

SB2,,1 2023 SENATE BILL 2

January 27, 2023 - Introduced by Senators Stroebel, Testin, Jacque, Feyen, Hutton, James, Bradley, LeMahieu, Nass, Quinn, Tomczyk, Wanggaard, Wimberger and Cabral-Guevara, cosponsored by Representatives Knodl, Armstrong, Allen, Callahan, Dittrich, Donovan, Duchow, Edming, Goeben, Green, Gundrum, Gustafson, S. Johnson, Kitchens, Magnafici, Maxey, Moses, Murphy, Mursau, Nedweski, Neylon, Novak, O’Connor, Oldenburg, Penterman, Plumer, Rettinger, Rozar, Sapik, Schraa, Snyder, Sortwell, Steffen, Summerfield, Tittl, Tranel, Tusler, VanderMeer, Wichgers, Zimmerman, Brooks, Brandtjen, Bodden and Krug. Referred to Committee on Universities and Revenue.

SB2,,2 An Act to repeal 60.85 (1) (f), 66.1105 (2) (d), 70.043 (2), 70.13 (3), 70.13 (7), 70.18, 70.19, 70.20, 70.21, 70.22, 70.29, 70.30, 70.34, 70.345, 70.35, 70.36, 70.47 (15), 70.53 (1) (a), 70.65 (2) (a) 2., 70.68, 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) and 74.11 (11) (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) 1. and 2., 33.01 (9) (ar) 1., 33.01 (9) (b) 1., 60.85 (1) (h) 1. c., 60.85 (1) (o), 66.0435 (3) (c) 1. (intro.), 66.0435 (3) (g), 66.0435 (9), 66.1105 (2) (f) 1. c., 66.1106 (1) (k), 70.02, 70.05 (5) (a) 1., 70.17 (1), 70.174, 70.44 (1), 70.49 (2), 70.52, 70.65 (2) (b) (intro.), 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 (1) (b), 70.995 (4), 70.995 (7) (b), 70.995 (8) (b) 1., 70.995 (12) (a), 71.17 (2), 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), 74.25 (1) (intro.), 74.29 (2), 74.30 (1m), 74.83, 74.87 (3), 76.125 (1), 77.84 (1), 174.065 (3), 815.18 (3) (intro.) and 978.05 (6) (a); and to create 60.85 (5) (j), 66.1105 (5) (j), 66.1106 (4) (e), 70.015, 70.111 (28) and 70.17 (3) of the statutes; relating to: eliminating the personal property tax.

SB2,,3 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, 2023, no items of personal property will be subject to the property tax.

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.

SB2,,4 The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB2,1 Section 1. 17.14 (1) (g) of the statutes is amended to read:

SB2,,6 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.

SB2,2 Section 2. 26.03 (1m) (b) (intro.) of the statutes is amended to read:

SB2,,8 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), 2021 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:

SB2,3 Section 3. 33.01 (9) (a) of the statutes is amended to read:

SB2,,10 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.

SB2,4 Section 4. 33.01 (9) (am) 1. and 2. of the statutes are amended to read:

SB2,,12 33.01 (9) (am) 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.

SB2,,13 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.

SB2,5 Section 5. 33.01 (9) (ar) 1. of the statutes is amended to read:

SB2,,15 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.

SB2,6 Section 6. 33.01 (9) (b) 1. of the statutes is amended to read:

SB2,,17 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

SB2,7 Section 7. 60.85 (1) (f) of the statutes is repealed.

SB2,8 Section 8. 60.85 (1) (h) 1. c. of the statutes is amended to read:

SB2,,20 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.

SB2,9 Section 9. 60.85 (1) (o) of the statutes is amended to read:

SB2,,22 60.85 (1) (o) “Taxable property” means all real and personal taxable property located in a tax incremental district.

SB2,10 Section 10. 60.85 (5) (j) of the statutes is created to read:

SB2,,24 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 2023 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.

SB2,11 Section 11. 66.0435 (3) (c) 1. (intro.) of the statutes is amended to read:

SB2,,26 66.0435 (3) (c) 1. (intro.) In addition to the license fee provided in pars. (a) and (b), each licensing authority shall collect from each unit occupying space or lots in a community in the licensing authority, except from recreational mobile homes as provided under par. (cm), from manufactured and mobile homes that constitute improvements to real property under s. 70.043 (1), from recreational vehicles as defined in s. 340.01 (48r), and from camping trailers as defined in s. 340.01 (6m), a monthly municipal permit fee computed as follows:

SB2,12 Section 12. 66.0435 (3) (g) of the statutes is amended to read:

SB2,,28 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.

SB2,13 Section 13. 66.0435 (9) of the statutes is amended to read:

SB2,,30 66.0435 (9) Municipalities; monthly municipal permit fees on recreational mobile homes and recreational vehicles. A licensing authority may assess monthly municipal permit fees at the rates under this section on recreational mobile homes and recreational vehicles, as defined in s. 340.01 (48r), except recreational mobile homes and recreational vehicles that are located in campgrounds licensed under s. 97.67, recreational mobile homes that constitute improvements to real property under s. 70.043 (1), and recreational mobile homes or recreational vehicles that are located on land where the principal residence of the owner of the recreational mobile home or recreational vehicle is located, regardless of whether the recreational mobile home or recreational vehicle is occupied during all or part of any calendar year.

SB2,14 Section 14. 66.1105 (2) (d) of the statutes is repealed.

SB2,15 Section 15. 66.1105 (2) (f) 1. c. of the statutes is amended to read:

SB2,,33 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.

SB2,16 Section 16. 66.1105 (5) (j) of the statutes is created to read:

SB2,,35 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 2023 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.

SB2,17 Section 17. 66.1106 (1) (k) of the statutes is amended to read:

SB2,,37 66.1106 (1) (k) “Taxable property” means all real and personal taxable property located in an environmental remediation tax incremental district.

SB2,18 Section 18. 66.1106 (4) (e) of the statutes is created to read:

SB2,,39 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 2023 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.

SB2,19 Section 19. 70.015 of the statutes is created to read:

SB2,,41 70.015 Sunset. Beginning with the property tax assessments as of January 1, 2023, no tax shall be levied under this chapter on personal property.

SB2,20 Section 20. 70.02 of the statutes is amended to read:

SB2,,43 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.

SB2,21 Section 21. 70.043 (1) of the statutes is renumbered 70.043.

SB2,22 Section 22. 70.043 (2) of the statutes is repealed.

SB2,23 Section 23. 70.05 (5) (a) 1. of the statutes is amended to read:

SB2,,47 70.05 (5) (a) 1. “Assessed value” means with respect to each taxation district the total values established under ss. s. 70.32 and 70.34, but excluding manufacturing property subject to assessment under s. 70.995.

SB2,24 Section 24. 70.111 (28) of the statutes is created to read:

SB2,,49 70.111 (28) Business and manufacturing personal property. (a) Beginning with the property tax assessments as of January 1, 2023, all business and manufacturing personal property.

SB2,,50 (b) A taxing jurisdiction may include the most recent valuation of personal property described under par. (a) that is located in the taxing jurisdiction for purposes of complying with debt limitations applicable to the jurisdiction.

SB2,25 Section 25. 70.13 (3) of the statutes is repealed.

SB2,26 Section 26. 70.13 (7) of the statutes is repealed.

SB2,27 Section 27. 70.17 (1) of the statutes is amended to read:

SB2,,54 70.17 (1) Real property shall be entered in the name of the owner, if known to the assessor, otherwise to the occupant thereof if ascertainable, and otherwise without any name. The person holding the contract or certificate of sale of any real property contracted to be sold by the state, but not conveyed, shall be deemed the owner for such purpose. The undivided real estate of any deceased person may be entered to the heirs of such person without designating them by name. The real estate of an incorporated company shall be entered in the same manner as that of an individual. Improvements Except as provided in sub. (3), buildings, improvements, and fixtures on leased lands may be assessed either as real property or personal property.

SB2,28 Section 28. 70.17 (3) of the statutes is created to read:

SB2,,56 70.17 (3) Beginning with the property tax assessments as of January 1, 2023, manufactured and mobile homes, not otherwise exempt from taxation under s. 66.0435 (3), buildings, improvements, and fixtures on leased lands, buildings, improvements, and fixtures on exempt lands, buildings, improvements, and fixtures on forest croplands, and buildings, improvements, and fixtures on managed forest lands shall be assessed as real property. If buildings, improvements, and fixtures, but not the underlying land, are leased to a person other than the landowner or if the buildings, improvements, and fixtures are owned by a person other than the landowner, the assessor may create a separate tax parcel for the buildings, improvements, and fixtures and assess the buildings, improvements, and fixtures as real property to the owner of the buildings, improvements, and fixtures. The assessor may also create a tax parcel for buildings, improvements, and fixtures on exempt lands, buildings, improvements, and fixtures on forest croplands, and buildings, improvements, and fixtures on managed forest lands and assess the buildings, improvements, and fixtures as real property to the owner of the buildings, improvements, and fixtures. For purposes of this subsection, “buildings, improvements and fixtures” does not include any property defined in s. 70.04.

SB2,29 Section 29. 70.174 of the statutes is amended to read:

SB2,,58 70.174 Improvements on government-owned land. Improvements made by any person on land within this state owned by the United States may shall be assessed either as real or personal property to the person making the same, if ascertainable, and otherwise to the occupant thereof or the person receiving benefits therefrom.

SB2,30 Section 30. 70.18 of the statutes is repealed.

SB2,31 Section 31. 70.19 of the statutes is repealed.

SB2,32 Section 32. 70.20 of the statutes is repealed.

SB2,33 Section 33. 70.21 of the statutes is repealed.

SB2,34 Section 34. 70.22 of the statutes is repealed.

SB2,35 Section 35. 70.29 of the statutes is repealed.

SB2,36 Section 36. 70.30 of the statutes is repealed.

SB2,37 Section 37. 70.34 of the statutes is repealed.

SB2,38 Section 38. 70.345 of the statutes is repealed.

SB2,39 Section 39. 70.35 of the statutes is repealed.

SB2,40 Section 40. 70.36 of the statutes is repealed.

SB2,41 Section 41. 70.44 (1) of the statutes is amended to read:

SB2,,71 70.44 (1) Real or personal property omitted from assessment in any of the 2 next previous years, unless previously reassessed for the same year or years, shall be entered once additionally for each previous year of such omission, designating each such additional entry as omitted for the year of omission and affixing a just valuation to each entry for a former year as the same should then have been assessed according to the assessor’s best judgment, and taxes shall be apportioned, using the net tax rate as provided in s. 70.43, and collected on the tax roll for such entry. This section shall not apply to manufacturing property assessed by the department of revenue under s. 70.995.

SB2,42 Section 42. 70.47 (15) of the statutes is repealed.

SB2,43 Section 43. 70.49 (2) of the statutes is amended to read:

SB2,,74 70.49 (2) The value of all real and personal property entered into the assessment roll to which such affidavit is attached by the assessor shall, in all actions and proceedings involving such values, be presumptive evidence that all such properties have been justly and equitably assessed in proper relationship to each other.

SB2,44 Section 44. 70.52 of the statutes is amended to read:

SB2,,76 70.52 Clerks to examine and correct rolls. Each city, village, and town clerk upon receipt of the assessment roll shall carefully examine the roll. The clerk shall correct all double assessments, imperfect descriptions, and other errors apparent on the roll, and correct the value of parcels of real property not liable to taxation. The clerk shall add to the roll any parcel of real property not listed on the assessment roll or item of personal property omitted from the roll and immediately notify the assessors of the additions and omissions. The assessors shall immediately view and value the omitted property and certify the valuation to the clerk. The clerk shall enter the valuation and property classification on the roll, and the valuation shall be final. To enable the clerk to properly correct defective descriptions, the clerk may request aid, when necessary, from the county surveyor, whose fees for the services rendered shall be paid by the city, village, or town.

SB2,45 Section 45. 70.53 (1) (a) of the statutes is repealed.

SB2,46 Section 46. 70.65 (2) (a) (intro.) and 1. of the statutes are consolidated, renumbered 70.65 (2) (a) and amended to read:

SB2,,79 70.65 (2) (a) As shown on the assessment roll: 1. Identify, identify all the real property within the taxation district and, with respect to each description of real property, the name and address of the owner and the assessed value.

SB2,47 Section 47. 70.65 (2) (a) 2. of the statutes is repealed.