AB2,,1 2023 ASSEMBLY BILL 2

February 6, 2023 - Introduced by Representatives Knodl, Armstrong, Moses, Allen, Bodden, Brandtjen, Brooks, Callahan, Dittrich, Donovan, Duchow, Edming, Goeben, Green, Gundrum, Gustafson, S. Johnson, Kitchens, Magnafici, Maxey, Murphy, Mursau, Nedweski, Neylon, Novak, O’Connor, Oldenburg, Penterman, Plumer, Rettinger, Rozar, Sapik, Schraa, Snyder, Sortwell, Steffen, Summerfield, Tittl, Tranel, Tusler, VanderMeer, Wichgers, Zimmerman, Swearingen, Binsfeld and Michalski, cosponsored by Senators Stroebel, Testin, Jacque, Bradley, Cabral-Guevara, Feyen, Hutton, James, LeMahieu, Nass, Quinn, Tomczyk, Wanggaard and Wimberger. Referred to Committee on Ways and Means.

AB2,,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.

AB2,,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.

AB2,,4 The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB2,1 Section 1. 17.14 (1) (g) of the statutes is amended to read:

AB2,,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.

AB2,2 Section 2. 26.03 (1m) (b) (intro.) of the statutes is amended to read:

AB2,,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:

AB2,3 Section 3. 33.01 (9) (a) of the statutes is amended to read:

AB2,,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.

AB2,4 Section 4. 33.01 (9) (am) 1. and 2. of the statutes are amended to read:

AB2,,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.

AB2,,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.

AB2,5 Section 5. 33.01 (9) (ar) 1. of the statutes is amended to read: