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MEMORANDUM

TO:          Wisconsin County Officials

FROM:     Kyle Christianson, Director of Government Affairs

DATE:      June 12, 2017

SUBJECT:   Personal Property Tax Repeal Gaining Momentum
 
Legislative efforts to repeal Wisconsin's personal property tax are gaining momentum in the Wisconsin State Legislature.  In addition to stand-alone legislation moving its way through the committee process in both the Assembly and Senate (Assembly Bill 277/Senate Bill 218), legislators are working to include personal property tax repeal in the 2017-19 state budget.  

While Senate and Assembly Republicans disagree on funding for transportation and education, leaders in both houses have voiced support for repeal of the personal property tax in the state budget. One budget amendment under consideration phases in the personal property repeal over a three-year period. The budget amendment mirrors AB 277/SB 218 except that it phases in the full exemption, by category of property, to mitigate the financial impact on the state in a single biennium.

In order to ensure any personal property tax repeal includes a full, 100%, backfill for lost revenue to local governments, I am asking that you contact your State Representatives and Senators and tell them local governments must be fully compensated for lost revenue associated with personal property tax repeal.   

View joint Wisconsin Counties Association/League of Wisconsin Municipalities testimony on the personal property tax repeal here.  

The following TALKING POINTS may be helpful in your conversations with state legislators: 
  • Local governments recognize that the personal property tax is often burdensome on businesses. However, any repeal efforts must include state funds devoted to local governments to ensure the property tax burden is not shifted to residential property taxpayers.
  • Absent full replacement of local government revenues, public services will be dramatically reduced due to the loss of $270 million in tax revenue. 
  • Legislative efforts underway in the Legislature (AB 277/SB 218) include a sum-sufficient appropriation to reimburse local governments for lost revenue. This approach has broad support from legislative advocates, the business community, and local governments.
  • Local governments are partners with the state's business community.  In order for local governments to continue providing services businesses rely on, local budgets must be made whole for any revenue loss associated with personal property tax repeal. 

Thank you in advance for your assistance.  If you have any questions, please call the Wisconsin Counties Association at 608.663.7188.