On June 20, 2023, Wisconsin Governor Tony Evers signed Assembly Bill 245 (AB 245), which repeals Wisconsin's tangible personal property tax and allows Milwaukee and Milwaukee County to increase their sales taxes to address structural deficits from employee retirement systems.

Repeal of tangible personal property tax

Wisconsin imposes property tax on both real estate and on business tangible personal property, such as machinery and equipment, furniture and fixtures, and tools and other equipment. Effective for property tax assessments as of January 1, 2024, AB 245 repeals the tangible personal property tax.

Milwaukee city and county sales taxes

AB 245 allows Milwaukee to impose a 2% sales tax and also allows Milwaukee County to impose an additional 0.4% sales tax (current county rate is .5%). These rates could become effective as early as January 1, 2024, if approved by a two-thirds vote of the City of Milwaukee Common Council and the Milwaukee County Board of Supervisors.

Implications

The repeal of the tangible personal property tax brings Wisconsin in line with its neighboring states, which do not impose similar taxes. As a result of AB 245, Wisconsin will not issue 2024 tangible personal property assessments, and 2024 Statements of Personal Property, otherwise due on March 1, 2024, will not be required.

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Published by NTD’s Tax Technical Knowledge Services group; Jennifer A Brittenham, legal editor