WI Personal Property Tax Repealed

Big news! On June 20, 2023, Wisconsin Governor Tony Evers signed Assembly Bill 245 (AB 245), repealing Wisconsin's personal property tax, and certain filing requirements associated with the tax. The repeal takes effect for property tax assessments beginning January 1, 2024.

Historically, Wisconsin has imposed property tax on both real estate and business tangible personal property. Tangible personal property includes machinery and equipment, furniture and fixtures, and tools and other equipment. AB 245 repeals the personal property tax (but not the real estate tax).

The repeal relieves certain filing requirements, easing the compliance (and financial) burden on businesses. You probably remember receiving personal property tax paperwork every January that you needed to forward to PPG Partners for us to complete your personal property tax assessment. You will no longer receive this paperwork; the assessment and tax will no longer exist.

While business should see some tax savings, it’s important to note that AB 245 also introduced a new code section, Wis. Stat. 70.17(3), which mandates that buildings, improvements, and fixtures on leased lands be assessed as real property beginning January 1, 2024.

AB 245 also addressed sales tax. If approved, the Bill will allow Milwaukee to impose a 2% sales tax, and also
allow Milwaukee County to impose an additional 0.4% sales tax. The current county sales tax rate is .5%. These rates could become effective as early as January 1, 2024.