The removal of the personal property tax could have significant implications for state and local revenue streams. As the state has been compensating local taxing jurisdictions for revenue lost due to spending on personal property exemptions since 2019, the full elimination of this tax may necessitate adjustments to state financial strategies. Moreover, the bill includes provisions that allow manufacturing establishments that do not own real property in the state to continue claiming the manufacturing income tax credit, providing some continuity in support for the manufacturing sector amid these tax changes.
Summary
Assembly Bill 2 aims to eliminate the personal property tax in the state, which currently applies to items such as machinery and tools. The bill proposes that, starting with property tax assessments as of January 1, 2023, no items of personal property will be subject to this tax. This sweeping change seeks to simplify the tax structure and alleviate some of the financial burdens on businesses and individuals who are currently subject to personal property taxation.
Contention
There is potential for contention surrounding Assembly Bill 2, particularly regarding its impact on local government funding. Critics may voice concerns that removing the personal property tax could lead to significant revenue losses for municipalities that depend on these funds for local services and infrastructure. Supporters of the bill, however, argue that the elimination of the tax could foster a more favorable business environment, potentially encouraging growth and investment in the state. The overall dialogue suggests a division between prioritizing business incentives and maintaining local government financial stability.
County and municipal aid; imposing a city sales tax and an additional county sales tax to pay the unfunded actuarial accrued liability of city and county retirement systems; requiring newly hired city and county employees of certain city agencies and counties to be enrolled in the Wisconsin Retirement System; fire and police commissions of first class cities; eliminating the personal property tax; reporting certain crimes and other incidents that occur on school property or school transportation; advisory referenda; local health officers; local public protection services; exceptions to local levy limits; local regulation of certain quarry operations; emergency services; local approval of projects and activities under the Warren Knowles-Gaylord Nelson Stewardship 2000 Program; requiring a referendum; and granting rule-making authority. (FE)
County and municipal aid; imposing a city sales tax and an additional county sales tax to pay the unfunded actuarial accrued liability of city and county retirement systems; requiring newly hired city and county employees of certain city agencies and counties to be enrolled in the Wisconsin Retirement System; fire and police commissions of first class cities; eliminating the personal property tax; reporting certain crimes and other incidents that occur on school property or school transportation; advisory referenda; local health officers; local public protection services; exceptions to local levy limits; local regulation of certain quarry operations; emergency services; local approval of projects and activities under the Warren Knowles-Gaylord Nelson Stewardship 2000 Program; requiring a referendum; and granting rule-making authority. (FE)
County and municipal aid; imposing a city sales tax and an additional county sales tax to pay the unfunded actuarial accrued liability of city and county retirement systems; requiring newly hired city and county employees of certain city agencies and counties to be enrolled in the Wisconsin Retirement System; fire and police commissions of first class cities; eliminating the personal property tax; reporting certain crimes and other incidents that occur on school property or school transportation; advisory referenda; local health officers; local public protection services; exceptions to local levy limits; local regulation of certain quarry operations; emergency services; local approval of projects and activities under the Warren Knowles-Gaylord Nelson Stewardship 2000 Program; requiring a referendum; and granting rule-making authority. (FE)
County and municipal aid; imposing a city sales tax and an additional county sales tax to pay the unfunded actuarial accrued liability of city and county retirement systems; requiring newly hired city and county employees of certain city agencies and counties to be enrolled in the Wisconsin Retirement System; fire and police commissions of first class cities; eliminating the personal property tax; reporting certain crimes and other incidents that occur on school property or school transportation; advisory referenda; local health officers; local public protection services; exceptions to local levy limits; local regulation of certain quarry operations; emergency services; local approval of projects and activities under the Warren Knowles-Gaylord Nelson Stewardship 2000 Program; requiring a referendum; and granting rule-making authority. (FE)