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: