Wisconsin lawmakers scrapped one of the oldest taxes in the state’s history: the tax on personal property.
Wisconsin’s personal property tax dates to the 1830s — before the state’s inception. At the time, Wisconsin had no income or sales tax, so it relied on property taxes.
The tax applied to business owners, who paid a sales tax when they bought an item, such as furniture, and continued to pay the personal property tax if they still owned it.
Uneven enforcement, litigation and the addition of hundreds of exemptions have made the tax difficult and expensive to comply with. Neighboring states Minnesota, Iowa, Illinois and Michigan have all repealed personal property tax laws.
With 2023 Wisconsin Act 12, Gov. Tony Evers signed the legislation into law on Tuesday, June 20. The act repeals Wisconsin’s remaining personal property tax, beginning with property tax assessments as of January 1, 2024.
The act also modifies the state's approach to shared revenue for counties and municipalities, and authorizes Milwaukee and Milwaukee County to impose sales and use taxes for limited purposes.