2023 - 2024 LEGISLATURE
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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.
1 AN ACT to repeal 60.85 (1) (f), 66.1105 (2) (d), 70.043 (2), 70.13 (3), 70.13 (7),
2 70.18, 70.19, 70.20, 70.21, 70.22, 70.29, 70.30, 70.34, 70.345, 70.35, 70.36, 70.47
3 (15), 70.53 (1) (a), 70.65 (2) (a) 2., 70.68, 74.11 (4), 74.11 (11) (b), 74.11 (12) (a)
4 1g., 74.11 (12) (d), 74.12 (6), 74.12 (11) (a) 1g., 74.12 (11) (d), 74.30 (1) (i), 74.42,
5 74.47 (3) (e), 74.55 and 76.69; to renumber 70.043 (1) and 74.11 (11) (a); to
6 consolidate, renumber and amend 70.65 (2) (a) (intro.) and 1.; to amend
7 17.14 (1) (g), 26.03 (1m) (b) (intro.), 33.01 (9) (a), 33.01 (9) (am) 1. and 2., 33.01
8 (9) (ar) 1., 33.01 (9) (b) 1., 60.85 (1) (h) 1. c., 60.85 (1) (o), 66.0435 (3) (c) 1. (intro.),
9 66.0435 (3) (g), 66.0435 (9), 66.1105 (2) (f) 1. c., 66.1106 (1) (k), 70.02, 70.05 (5)
10 (a) 1., 70.17 (1), 70.174, 70.44 (1), 70.49 (2), 70.52, 70.65 (2) (b) (intro.), 70.73 (1)
11 (b), 70.73 (1) (c), 70.73 (1) (d), 70.84, 70.855 (1) (intro.), 70.855 (1) (a), 70.855 (1)
12 (b), 70.995 (1) (a), 70.995 (1) (b), 70.995 (4), 70.995 (7) (b), 70.995 (8) (b) 1., 70.995
13 (12) (a), 71.17 (2), 74.05 (1), 74.09 (2), 74.11 (6) (a), 74.11 (10) (a) 1., 74.11 (12)
14 (a) (intro.), 74.11 (12) (b), 74.12 (7) (a), 74.12 (8) (a), 74.12 (9) (a), 74.12 (10) (a),
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1 74.12 (11) (a) (intro.), 74.12 (11) (b), 74.25 (1) (intro.), 74.29 (2), 74.30 (1m),
2 74.83, 74.87 (3), 76.125 (1), 77.84 (1), 174.065 (3), 815.18 (3) (intro.) and 978.05
3 (6) (a); and to create 60.85 (5) (j), 66.1105 (5) (j), 66.1106 (4) (e), 70.015, 70.111
4 (28) and 70.17 (3) of the statutes; relating to: eliminating the personal
5 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,
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.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
6 SECTION 1. 17.14 (1) (g) of the statutes is amended to read:
7 17.14 (1) (g) Failure to use the “Wisconsin Property Assessment Manual"
8 provided under s. 73.03 (2a) and as required by s. 70.32 (1) and 70.34. The
9 certification of any assessor removed under this paragraph may for sufficient reason
10 be reinstated by the secretary of revenue after one year upon formal application for
11 reinstatement.
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ASSEMBLY BILL 2 SECTION 2
1 SECTION 2. 26.03 (1m) (b) (intro.) of the statutes is amended to read:
2 26.03 (1m) (b) (intro.) Paragraph (a) 1. does not apply to a person harvesting
3 raw forest products on public lands, as defined in s. 70.13 (7), 2021 stats., to a person
4 harvesting raw forest products for fuel wood for his or her home consumption, to a
5 person harvesting for the purpose of clearing the land for agricultural use or to a
6 person harvesting from the person's own land, any of the following:
7 SECTION 3. 33.01 (9) (a) of the statutes is amended to read:
8 33.01 (9) (a) For the purpose of receiving notice under this chapter, a person
9 whose name appears as an owner of real property on the tax roll under s. 70.65 (2)
10 (a) 1. that was delivered under s. 74.03 on or before the 3rd Monday in December of
11 the previous year.
12 SECTION 4. 33.01 (9) (am) 1. and 2. of the statutes are amended to read:
13 33.01 (9) (am) 1. A person whose name appears as an owner of real property
14 on the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before
15 the 3rd Monday in December of the previous year.
16 2. The spouse of a person whose name appears as an owner of real property on
17 the tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the
18 3rd Monday in December of the previous year if the spouse is referred to on that tax
19 roll.
20 SECTION 5. 33.01 (9) (ar) 1. of the statutes is amended to read:
21 33.01 (9) (ar) 1. The person's name appears as an owner of real property on the
22 tax roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd
23 Monday in December of the previous year.
24 SECTION 6. 33.01 (9) (b) 1. of the statutes is amended to read:
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1 33.01 (9) (b) 1. Whose name appears as an owner of real property on the tax
2 roll under s. 70.65 (2) (a) 1. that was delivered under s. 74.03 on or before the 3rd
3 Monday in December of the previous year; or
4 SECTION 7. 60.85 (1) (f) of the statutes is repealed.
5 SECTION 8. 60.85 (1) (h) 1. c. of the statutes is amended to read:
6 60.85 (1) (h) 1. c. Real property assembly costs, meaning any deficit incurred
7 resulting from the sale or lease as lessor by the town of real or personal property
8 within a tax incremental district for consideration which is less than its cost to the
9 town.
10 SECTION 9. 60.85 (1) (o) of the statutes is amended to read:
11 60.85 (1) (o) “Taxable property" means all real and personal taxable property
12 located in a tax incremental district.
13 SECTION 10. 60.85 (5) (j) of the statutes is created to read:
14 60.85 (5) (j) Upon receiving a written application from the town clerk, in a form
15 prescribed by the department of revenue, the department shall recalculate the base
16 value of a tax incremental district affected by 2023 Wisconsin Act .... (this act) to
17 remove the value of the personal property. A request received under this paragraph
18 no later than October 31 is effective in the year following the year in which the
19 request is made. A request received after October 31 is effective in the 2nd year
20 following the year in which the request is made.
21 SECTION 11. 66.0435 (3) (c) 1. (intro.) of the statutes is amended to read:
22 66.0435 (3) (c) 1. (intro.) In addition to the license fee provided in pars. (a) and
23 (b), each licensing authority shall collect from each unit occupying space or lots in a
24 community in the licensing authority, except from recreational mobile homes as
25 provided under par. (cm), from manufactured and mobile homes that constitute
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1 improvements to real property under s. 70.043 (1), from recreational vehicles as
2 defined in s. 340.01 (48r), and from camping trailers as defined in s. 340.01 (6m), a
3 monthly municipal permit fee computed as follows:
4 SECTION 12. 66.0435 (3) (g) of the statutes is amended to read:
5 66.0435 (3) (g) Failure to timely pay the tax prescribed in this subsection shall
6 be treated as a default in payment of personal property tax and is subject to all
7 procedures and penalties applicable under chs. 70 and 74.
8 SECTION 13. 66.0435 (9) of the statutes is amended to read:
9 66.0435 (9) MUNICIPALITIES; MONTHLY MUNICIPAL PERMIT FEES ON RECREATIONAL
10 MOBILE HOMES AND RECREATIONAL VEHICLES. A licensing authority may assess monthly
11 municipal permit fees at the rates under this section on recreational mobile homes
12 and recreational vehicles, as defined in s. 340.01 (48r), except recreational mobile
13 homes and recreational vehicles that are located in campgrounds licensed under s.
14 97.67, recreational mobile homes that constitute improvements to real property
15 under s. 70.043 (1), and recreational mobile homes or recreational vehicles that are
16 located on land where the principal residence of the owner of the recreational mobile
17 home or recreational vehicle is located, regardless of whether the recreational mobile
18 home or recreational vehicle is occupied during all or part of any calendar year.
19 SECTION 14. 66.1105 (2) (d) of the statutes is repealed.
20 SECTION 15. 66.1105 (2) (f) 1. c. of the statutes is amended to read:
21 66.1105 (2) (f) 1. c. Real property assembly costs, meaning any deficit incurred
22 resulting from the sale or lease as lessor by the city of real or personal property within
23 a tax incremental district for consideration which is less than its cost to the city.
24 SECTION 16. 66.1105 (5) (j) of the statutes is created to read:
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ASSEMBLY BILL 2 SECTION 16
1 66.1105 (5) (j) Upon receiving a written application from the city clerk, in a
2 form prescribed by the department of revenue, the department shall recalculate the
3 base value of a tax incremental district affected by 2023 Wisconsin Act .... (this act)
4 to remove the value of the personal property. A request received under this
5 paragraph no later than October 31 is effective in the year following the year in which
6 the request is made. A request received after October 31 is effective in the 2nd year
7 following the year in which the request is made.
8 SECTION 17. 66.1106 (1) (k) of the statutes is amended to read:
9 66.1106 (1) (k) “Taxable property" means all real and personal taxable property
10 located in an environmental remediation tax incremental district.
11 SECTION 18. 66.1106 (4) (e) of the statutes is created to read:
12 66.1106 (4) (e) Upon receiving a written application from the clerk of a political
13 subdivision, in a form prescribed by the department of revenue, the department shall
14 recalculate the base value of a tax incremental district affected by 2023 Wisconsin
15 Act .... (this act) to remove the value of the personal property. A request received
16 under this paragraph no later than October 31 is effective in the year following the
17 year in which the request is made. A request received after October 31 is effective
18 in the 2nd year following the year in which the request is made.
19 SECTION 19. 70.015 of the statutes is created to read:
20 70.015 Sunset. Beginning with the property tax assessments as of January
21 1, 2023, no tax shall be levied under this chapter on personal property.
22 SECTION 20. 70.02 of the statutes is amended to read:
23 70.02 Definition of general property. General property is all the taxable
24 real and personal property defined in ss. 70.03 and 70.04 except that which is taxed
25 under ss. 70.37 to 70.395 and ch. 76 and subchs. I and VI of ch. 77. General property
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1 includes manufacturing property subject to s. 70.995, but assessment of that
2 property shall be made according to s. 70.995.
3 SECTION 21. 70.043 (1) of the statutes is renumbered 70.043.
4 SECTION 22. 70.043 (2) of the statutes is repealed.
5 SECTION 23. 70.05 (5) (a) 1. of the statutes is amended to read:
6 70.05 (5) (a) 1. “Assessed value" means with respect to each taxation district
7 the total values established under ss. s. 70.32 and 70.34, but excluding
8 manufacturing property subject to assessment under s. 70.995.
9 SECTION 24. 70.111 (28) of the statutes is created to read:
10 70.111 (28) BUSINESS AND MANUFACTURING PERSONAL PROPERTY. (a) Beginning
11 with the property tax assessments as of January 1, 2023, all business and
12 manufacturing personal property.
13 (b) A taxing jurisdiction may include the most recent valuation of personal
14 property described under par. (a) that is located in the taxing jurisdiction for
15 purposes of complying with debt limitations applicable to the jurisdiction.
16 SECTION 25. 70.13 (3) of the statutes is repealed.
17 SECTION 26. 70.13 (7) of the statutes is repealed.
18 SECTION 27. 70.17 (1) of the statutes is amended to read:
19 70.17 (1) Real property shall be entered in the name of the owner, if known to
20 the assessor, otherwise to the occupant thereof if ascertainable, and otherwise
21 without any name. The person holding the contract or certificate of sale of any real
22 property contracted to be sold by the state, but not conveyed, shall be deemed the
23 owner for such purpose. The undivided real estate of any deceased person may be
24 entered to the heirs of such person without designating them by name. The real
25 estate of an incorporated company shall be entered in the same manner as that of an
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ASSEMBLY BILL 2 SECTION 27
1 individual. Improvements Except as provided in sub. (3), buildings, improvements,
2 and fixtures on leased lands may be assessed either as real property or personal
3 property.
4 SECTION 28. 70.17 (3) of the statutes is created to read:
5 70.17 (3) Beginning with the property tax assessments as of January 1, 2023,
6 manufactured and mobile homes, not otherwise exempt from taxation under s.
7 66.0435 (3), buildings, improvements, and fixtures on leased lands, buildings,
8 improvements, and fixtures on exempt lands, buildings, improvements, and fixtures
9 on forest croplands, and buildings, improvements, and fixtures on managed forest
10 lands shall be assessed as real property. If buildings, improvements, and fixtures,
11 but not the underlying land, are leased to a person other than the landowner or if the
12 buildings, improvements, and fixtures are owned by a person other than the
13 landowner, the assessor may create a separate tax parcel for the buildings,
14 improvements, and fixtures and assess the buildings, improvements, and fixtures as
15 real property to the owner of the buildings, improvements, and fixtures. The
16 assessor may also create a tax parcel for buildings, improvements, and fixtures on
17 exempt lands, buildings, improvements, and fixtures on forest croplands, and
18 buildings, improvements, and fixtures on managed forest lands and assess the
19 buildings, improvements, and fixtures as real property to the owner of the buildings,
20 improvements, and fixtures. For purposes of this subsection, “buildings,
21 improvements and fixtures" does not include any property defined in s. 70.04.
22 SECTION 29. 70.174 of the statutes is amended to read:
23 70.174 Improvements on government-owned land. Improvements made
24 by any person on land within this state owned by the United States may shall be
25 assessed either as real or personal property to the person making the same, if
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