The Legislature and the Governor seem to be in agreement to eliminate the personal property tax.
Governor Tony Evers budget proposal includes a provision that would fund the repeal of Wisconsin’s outdated and burdensome personal property tax. The Governor is providing $202.4 million to compensate local governments for the reduction in their property tax base, a payment that would increase each year by the annual percentage change in the CPI (Consumer Price Index).
The Governor is also proposing several technical changes relating to repeal of the tax to address concerns he expressed when he vetoed legislation last session that would have eliminated the tax.
Meanwhile, legislation that would eliminate the personal property tax has also been introduced in the Legislature.
Senator Duey Stroebel (Saukville) and Representative Dan Knodl (Germantown) are working hard to move their legislation through the legislative process. Senate Bill 2, introduced by Senator Stroebel, has been referred to the Senate Committee on Universities and Revenue, and Assembly Bill 2, introduced by Representative Knodl, is being reviewed by the Assembly Committee on Ways and Means. SB 2 has 12 co-sponsors, and AB 2 has 45 co-sponsors.
Representative Knodl said, “I am pleased the Governor included my initiative to eliminate the personal property tax, a bipartisan issue I have led on for years. We will work together on that area of agreement and finally kill that burden on our small businesses once and for all.”
The elimination of the personal property tax is a top NFIB tax reform initiative, supported by 82 percent of respondents to a recent state survey ballot.
NFIB members are encouraged to contact their elected officials to urge support for passage of Senate Bill 2 and Assembly Bill 2.