The 2023 Wisconsin Act 12 enacted June 20, 2023, exempts personal property from taxation beginning with the January 1, 2024, assessment.
The information below outlines the transition for businesses that historically filed and paid personal property tax:
- No personal property tax returns will need to be filed beginning in 2024 for both manufacturers and non-manufacturers.
- Expect to receive and pay a personal property tax bill this December for the 2023 assessment period.
- If the business owns leasehold improvements that were taxed as personal property, the business will now be taxed as real estate. Expect to receive a real estate tax bill in 2024 for these improvements.
- Manufacturing real estate tax returns will still need to be filed annually with the Wisconsin Department of Revenue. This is one of the requirements that allows your business to claim the Wisconsin manufacturing credit on your income tax return.
- The Act allows municipalities to assess personal property tax for any errors or omissions from the 2022 and 2023 assessments on the 2024 and 2025 real estate tax bills.
- The Act creates a new section 70.995(5n) which updates the definition of manufacturing property, defines what it means to be engaged in manufacturing, and makes several changes to rules on the manufacturing classification and assessments.
If you have any questions you would like answered in further detail, please contact us!
I joined Hawkins Ash CPAs in August 2010, and am currently the Director of Tax. From the Firm's Medford office, I provide a variety of tax services, including trust and estate tax preparation and planning. I provide these services to small business, individual, trust, estate, and non-profit clients.
