AB750: Bill Text

2015 - 2016 LEGISLATURE

2015 Assembly BILL 750

January 20, 2016 - Introduced by Representatives Kulp, Jarchow, Craig, Jacque, Sanfelippo, Macco, Gannon, Katsma, Kremer, Tittl, Kleefisch, Horlacher, Hutton, Swearingen, Quinn and Skowronski, cosponsored by Senators Stroebel, Tiffany, Nass, Lasee, Harsdorf and Vukmir. Referred to Committee on Ways and Means.

AB750,1,4 An Act to repeal 20.835 (1) (e), 79.095, 121.06 (4) and 121.90 (2) (am) 2.; to amend 70.11 (39), 70.17 (1), 73.06 (3), 121.004 (6), 121.15 (4) (a), 174.06 (5), 174.065 (3), 174.08 (1), 198.10 (1) and 200.13 (2); and to create 70.135 of the statutes; relating to: eliminating the personal property tax.

Analysis by the Legislative Reference Bureau

This bill eliminates the property tax on personal property beginning in 2020. The bill also eliminates, in 2016, the state aid payments to taxing jurisdictions based on the value of computers and computer-related equipment that are exempt from the personal property tax and that are located in the taxing jurisdictions.

Under the bill, personal property placed in service on or after January 1, 2016, is not subject to the property tax. Personal property placed in service before January 1, 2016, is subject to the property tax based on the actual depreciated value of the property.

Beginning with the assessments as of January 1, 2020, no personal property is subject to the property tax. Under the bill, real property that was assessed as personal property prior to January 1, 2020, will be assessed as real property and real property placed in service on or after January 1, 2020, that would have been assessed as personal property prior to that date will be assessed as real property.

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:

AB750,1 Section 1. 20.835 (1) (e) of the statutes is repealed.

AB750,2 Section 2. 70.11 (39) of the statutes is amended to read:

AB750,2,12 70.11 (39) Computers. If the owner of the property fulfills the requirements under s. 70.35, mainframe computers, minicomputers, personal computers, networked personal computers, servers, terminals, monitors, disk drives, electronic peripheral equipment, tape drives, printers, basic operational programs, systems software, and prewritten software. The exemption under this subsection does not apply to custom software, fax machines, copiers, equipment with embedded computerized components or telephone systems, including equipment that is used to provide telecommunications services, as defined in s. 76.80 (3). For the purposes of s. 79.095, the exemption under this subsection does not apply to property that is otherwise exempt under this chapter.

AB750,3 Section 3. 70.135 of the statutes is created to read:

AB750,2,16 70.135 Personal property tax; sunset. (1) Personal property placed in service on or after January 1, 2016, is not subject to the property tax imposed under this chapter.

AB750,2,20 (2) Subject to the exemptions under ss. 70.11 and 70.111, personal property placed in service before January 1, 2016, is subject to the property tax imposed under this chapter based on the property's depreciated value as reported under s. 70.35 or as determined by the department of revenue.

AB750,3,5 (3) Beginning with the assessments as of January 1, 2020, no personal property is subject to the property tax imposed under this chapter, except that real property that was assessed as personal property prior to January 1, 2020, and real property that is placed in service on or after January 1, 2020, that would have been assessed as personal property prior to January 1, 2020, shall be assessed as real property.

AB750,4 Section 4. 70.17 (1) of the statutes is amended to read:

AB750,3,16 70.17 (1) Real property shall be entered in the name of the owner, if known to the assessor, otherwise to the occupant thereof if ascertainable, and otherwise without any name. The person holding the contract or certificate of sale of any real property contracted to be sold by the state, but not conveyed, shall be deemed the owner for such purpose. The undivided real estate of any deceased person may be entered to the heirs of such person without designating them by name. The real estate of an incorporated company shall be entered in the same manner as that of an individual. Improvements on leased lands may, including all permanent fixtures, shall be assessed either as real property or personal property, but leased lands are not subject to liens for any unpaid taxes on the improvements.

AB750,5 Section 5. 73.06 (3) of the statutes is amended to read:

AB750,4,8 73.06 (3) The department of revenue, through its supervisors of equalization, shall examine and test the work of assessors during the progress of their assessments and ascertain whether any of them is assessing property at other than full value or is omitting property subject to taxation from the roll. The department and such supervisors shall have the rights and powers of a local assessor for the examination of persons and property and for the discovery of property subject to taxation. If any property has been omitted or not assessed according to law, they shall bring the same to the attention of the local assessor of the proper district and if such local assessor shall neglect or refuse to correct the assessment they shall report the fact to the board of review. If it discovers errors in identifying or valuing property that is exempt under s. 70.11 (39) or (39m), the department shall change the specification of the property as taxable or exempt and shall change the value of the property. All disputes between the department, municipalities and property owners about the taxability or value of property that is reported under s. 79.095 (2) (a) that is exempt under s. 70.11 (39) or (39m) or of the property under s. 70.995 (12r) shall be resolved by using the procedures under s. 70.995 (8).

AB750,6 Section 6. 79.095 of the statutes is repealed.

AB750,7 Section 7. 121.004 (6) of the statutes is amended to read:

AB750,4,15 121.004 (6) Net cost. The "net cost" of a fund means the gross cost of that fund minus all nonduplicative revenues and other financing sources of that fund except property taxes, and general aid, and aid received under s. 79.095 (4). In this subsection, "nonduplicative revenues" includes federal financial assistance under 20 USC 236 to 245, to the extent permitted under federal law and regulations.

AB750,8 Section 8. 121.06 (4) of the statutes is repealed.

AB750,9 Section 9. 121.15 (4) (a) of the statutes is amended to read:

AB750,4,19 121.15 (4) (a) In this subsection, "state aid" has the meaning given in s. 121.90 (2) except that it excludes aid paid to school districts under s. 79.095 (4).

AB750,10 Section 10. 121.90 (2) (am) 2. of the statutes is repealed.

AB750,11 Section 11. 174.06 (5) of the statutes is amended to read:

AB750,5,2 174.06 (5) Records. The listing official shall enter in the records for personal property assessments, or in a separate record, all dogs in the district subject to tax, to whom they are assessed, the name, number, sex, spayed or unspayed, neutered or unneutered, breed and color of each dog. The listing official shall make in triplicate a list of the owners of all dogs assessed.

AB750,12 Section 12. 174.065 (3) of the statutes is amended to read:

AB750,5,6 174.065 (3) Collection of delinquent dog license taxes. Delinquent dog license taxes may be collected in the same manner as provided for small claims in s. 74.55 and ch. 799 for the collecting of personal property taxes.

AB750,13 Section 13. 174.08 (1) of the statutes is amended to read:

AB750,5,15 174.08 (1) Except as provided in sub. (2), every collecting official shall pay all dog license taxes to the town, village, or city treasurer or other tax collecting officer who shall deduct any additional tax that may have been levied by the municipal governing body and pay the remainder to the county treasurer at the time settlement is made with the county treasurer for collections of personal property taxes, and shall at the same time report in writing to the county clerk the licenses issued. The report shall be in the form prescribed by the department, and the forms shall be furnished by the county clerks.

AB750,14 Section 14. 198.10 (1) of the statutes is amended to read:

AB750,5,22 198.10 (1) Taxable property, taxes. All real property situated in and all personal property the situs of which for purposes of general property taxation is in the district shall be subject to taxation in and by the district for a direct annual tax sufficient to pay the interest on any indebtedness of the district, and to pay and discharge the principal of the indebtedness within 20 years from the time of contracting the indebtedness.

AB750,15 Section 15. 200.13 (2) of the statutes is amended to read:

AB750,6,8 200.13 (2) Tax levy. The commission may levy a tax upon the taxable property in the district as equalized by the department of revenue for state purposes for the purpose of carrying out and performing duties under this subchapter but the amount of any such tax in excess of that required for maintenance and operation and for principal and interest on bonds or promissory notes shall not exceed, in any one year, one mill for each dollar of the district's equalized valuation, as determined under s. 70.57. The tax levy may be spread upon the respective real estate and personal property tax rolls of the city, village and town areas included in the district taxes, and shall not be included within any limitation on county or municipality taxes. Such moneys when collected shall be paid to the treasurer of such district.

AB750,16 Section 16. Initial applicability.

AB750,6,10 (1) This act first applies to the property tax assessments as of January 1, 2016.

AB750,17 Section 17. Effective date.

AB750,6,12 (1) This act takes effect on January 1, 2016.

AB750,6,13 (End)