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 Section 1 . 16.5185 (3) of the statutes is created to read:

AB2-ASA1,3,3 16.5185 (3) On December 30, 2025, and on each December 30 thereafter, the secretary shall transfer from the general fund to the transportation fund $8,000,000.

AB2-ASA1,2 Section 2 . 26.03 (1m) (b) (intro.) of the statutes is amended to read:

AB2-ASA1,3,9 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-ASA1,3 Section 3 . 33.01 (9) (a) of the statutes is amended to read:

AB2-ASA1,3,14 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-ASA1,4 Section 4 . 33.01 (9) (am) 1. and 2. of the statutes are amended to read:

AB2-ASA1,3,18 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-ASA1,4,2 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-ASA1,5 Section 5 . 33.01 (9) (ar) 1. of the statutes is amended to read:

AB2-ASA1,4,6 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.

AB2-ASA1,6 Section 6 . 33.01 (9) (b) 1. of the statutes is amended to read:

AB2-ASA1,4,10 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

AB2-ASA1,7 Section 7 . 60.85 (1) (f) of the statutes is repealed.

AB2-ASA1,8 Section 8 . 60.85 (1) (h) 1. c. of the statutes is amended to read:

AB2-ASA1,4,16 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.

AB2-ASA1,9 Section 9 . 60.85 (1) (o) of the statutes is amended to read:

AB2-ASA1,4,19 60.85 (1) (o) “Taxable property" means all real and personal taxable property located in a tax incremental district.

AB2-ASA1,10 Section 10. 60.85 (5) (j) of the statutes is created to read:

AB2-ASA1,5,2 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.

AB2-ASA1,11 Section 11. 66.0435 (3) (c) 1. (intro.) of the statutes is amended to read:

AB2-ASA1,5,10 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: