Governor Tony Evers marked the end of a taxing era in Wisconsin on Tuesday, June 20, 2023 in Wausau with the signing of legislation that fully repeals the state’s 175 year-old personal property tax. After more than 8 years of advocacy work by a broad coalition of employers and interest groups, including the Independent Insurance Agents of Wisconsin (IIAW), this outdated, burdensome tax will now go by the wayside once and for all on January 1, 2024.

The language repealing the state personal property tax was included in a negotiated omnibus bill (Assembly Bill 245 now 2023 Wisconsin Act 12) related to shared revenue which will also provide historic and much needed additional financial state resources to local units of government all throughout Wisconsin.

Currently, Wisconsin law generally requires personal property to be assessed and taxed for purposes of the property tax. However, current law exempts numerous categories of personal property from taxation, including household furnishings, farm machinery, crops, and vending machines. Most recently, the 2017-19 Biennial Budget Act created an exemption from the personal property tax for certain machinery, tools, and patterns, and required the Department of Administration (DOA) to provide aid to local taxing jurisdictions to compensate for the loss of revenue resulting from that new exemption. The bill signed by Governor Evers repeals Wisconsin’s remaining personal property tax beginning with property tax assessments as of January 1, 2024. Specifically, the bill exempts most items that are currently defined as “personal property” from the personal property tax and reclassifies certain other items as real property for purposes of property taxation.

IIAW would especially like to extend our members’ thanks and appreciation to the business coalition, Governor Evers, Revenue Secretary Peter Barca, as well as Senator Stroebel (R-Saukville), Senator Knodl (R-Germantown) and Representative Macco (R-Green Bay) for their leadership and tireless efforts over the course of multiple legislative sessions to finally get this issue across the finish line. 

The end of the personal property tax is a prime example of how a group’s advocacy efforts over the course of time can and do eventually pay off.

Congratulations to everyone involved!