Wisconsin Assembly Bill AB185

Wisconsin 2025-2026 Regular Session

• Introduced: 4/15/25
• Refer: 4/15/25
• Report Pass: 5/8/25
• Refer: 5/8/25

Caption

Property tax exemption for nonprofit theaters. (FE)

Impact

If enacted, AB185 would significantly impact statutes concerning property tax exemptions for nonprofit theaters. By lowering the minimum capacity requirement and expanding eligibility to indoor theaters, the bill is expected to provide financial relief to a greater number of performing arts organizations. This could lead to enhanced sustainability and growth for local theaters, which are vital community assets. The bill represents a recognition of the importance of the arts and aims to foster a more vibrant cultural scene in Wisconsin.

Summary

Assembly Bill 185 seeks to amend property tax exemption laws applicable to nonprofit organizations that operate theaters. Currently, only outdoor theaters with a seating capacity of no less than 400 are eligible for tax exemptions. AB185 reduces this capacity requirement to 240 and broadens the scope to include both outdoor and indoor theaters, thereby expanding the number of organizations that can benefit from such exemptions. This bill aims to support the performing arts sector by alleviating tax burdens on nonprofits that play a significant role in cultural enrichment.

Contention

While many stakeholders support AB185, there may also be contention regarding the potential implications of the expanded exemptions on state and local revenue. Opponents could argue that more exemptions could strain local budgets that rely on property taxes for funding essential services. There may also be discussions around the fairness of tax benefits for nonprofit organizations versus other businesses, as this shift may be viewed as preferential treatment for a specific sector. Balancing support for the arts with fiscal responsibility will likely be key points of debate as the bill moves through the legislative process.