As of January 1, 2024, all business personal property in Wisconsin is no longer subject to property tax due to the signing of Assembly Bill 245 into law, repealing business personal property tax statewide. The bill applies to tangible assets including but not limited to machinery, furniture, and equipment owned by Wisconsin businesses.
The goal of AB 245 is to streamline compliance, a formerly complicated process due to annual reporting requirements from local assessors for all tangible personal property, particularly for small businesses and those in asset-intensive industries that were burdened most heavily by previous tax rates.
While the repeal of business personal property tax in Wisconsin will likely result in property tax savings for many businesses, it may not mean complete tax savings for all. Previously, Wisconsin allowed improvements on leased lands to be assessed as either personal property or real property. AB 245 introduced a new code section which mandates that buildings, improvements, and fixtures on leased lands must be assessed as real property effective January 1, 2024.
To read more about the business personal property tax implications of AB 245 for Wisconsin businesses, click here. For guidance on any leased land buildings, improvements or fixtures that are now being assessed as real property, contact us today.
