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
SB623,3
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: