The Coalition to Repeal Wisconsin’s Personal Property Tax issued a letter Thursday to Gov. Tony Evers and the Wisconsin Legislature regarding a newly introduced bill, LRB 4737, that would repeal the state’s personal property tax.
The coalition, which advocated for the passage of the bill previously passed by the Legislature and vetoed by Evers, identified its concerns regarding several items in LRB 4737. The group of trade and business associations — including the Wisconsin Newspaper Association — noted it believes these items are not relevant to the main issue of the tax and only bring unnecessary politics into an otherwise bipartisan tax cut.
The coalition outlined its concerns about the following provisions in the letter to Evers:
- The funding plan for replacing the lost tax revenue
- The taxing of recreational mobile homes and outdoor advertising signs
- Changes to the Manufacturing & Agriculture Tax Credit
- A property tax exemption for aircraft carriers
The coalition, which collectively represents nearly every industry in the state, closed with the hope that a consensus can be reached on the issue. The WNA and others are pushing for the personal property tax repeal in an effort to save the state’s businesses roughly $200 million.
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The tax — first implemented in 1849 as part of the state’s property tax — originally exempted $75 worth of household items and included property such as bonds, jewelry, furniture, cattle and crops. For the last 175 years, exemptions have whittled away at the tax, leaving a levy applied only to businesses on furniture and other miscellaneous office fixtures. It is in addition to the real estate property tax.
The repeal would not only benefit businesses but would also help Wisconsin’s economy by allowing for business growth, which translates to additional property, income, sales and excise tax revenue.
