Perspective on Wisconsin's Personal Property Tax Steering Committee for Personal Property Tax July 30, 2014

Personal Property Taxes Less than 3% of Total Property Taxes 2 Source: Wisconsin Department of Revenue, Town, Village, and City Taxes 2013

Current Personal Property Exemptions Three Different Means Included in General Property Exemptions Specific Personal Property Exemption Exempt Because of Special Tax

Current Personal Property Exemptions Three Different Means Included in General Property Exemptions Specific Personal Property Exemption Exempt Because of Special Tax

Included In General Exemptions General property is all the taxable real and personal property PROPERTY OF THE STATE MUNICIPAL AND SPECIAL DISTRICT PROPERTY PROPERTY LEASED OR SUBLEASED TO SCHOOL DISTRICTS COLLEGES AND UNIVERSITIES WISCONSIN VETERANS HOMES STUDENT HOUSING FACILITIES EDUCATIONAL, RELIGIOUS AND BENEVOLENT INSTITUTIONS;WOMEN’S CLUBS; HISTORICAL SOCIETIES; FRATERNITIES; LIBRARIES BENEVOLENT LOW−INCOME HOUSING HOUSING PROJECTS FINANCED BY HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY BENEVOLENT RETIREMENT HOMES FOR THE AGED NONPROFIT HOSPITALS AGRICULTURAL FAIRS FIRE COMPANIES MEMORIALS CERTAIN CHARITABLE ORGANIZATIONS CEMETERIES PUBLIC ART GALLERIES MANURE STORAGE FACILITIES HOUSING AUTHORITIES INSTITUTIONS AND CENTERS FOR DEPENDENT CHILDREN AND PERSONS WHO HAVE DEVELOPMENTAL DISABILITIES TREATMENT PLANT AND POLLUTION ABATEMENT EQUIPMENT LABOR TEMPLES FARMERS’ TEMPLES NONPROFIT MEDICAL RESEARCH FOUNDATIONS PROPERTY OF INDUSTRIAL DEVELOPMENT AGENCIES MANUFACTURING MACHINERY AND SPECIFIC PROCESSING EQUIPMENT HUMANE SOCIETIES NONPROFIT RADIO STATIONS NONPROFIT THEATERS NONPROFIT OUTDOOR THEATERS NONPROFIT COMMUNITY THEATER CROPS SPORTS AND ENTERTAINMENT FACILITIES RAILROAD HISTORICAL SOCIETIES NONPROFIT YOUTH HOCKEY ASSOCIATIONS CULTURAL AND ARCHITECTURAL LANDMARKS PROFESSIONAL SPORTS AND ENTERTAINMENT HOME STADIUMS LOCAL EXPOSITION DISTRICT UNIVERSITY OF WISCONSIN HOSPITALS AND CLINICS AUTHORITY ECONOMIC DEVELOPMENT CORPORATION COMPUTERS LOCAL CULTURAL ARTS DISTRICT FOX RIVER NAVIGATIONAL SYSTEM AUTHORITY HEALTH INSURANCE RISK−SHARING PLAN AUTHORITY HUB FACILITY ART AND ARTS EDUCATION CENTERS OLYMPIC ICE TRAINING CENTER SNOWMOBILE, ALL−TERRAIN VEHICLE, AND UTILITY TERRAIN VEHICLE CLUBS NONPROFIT YOUTH BASEBALL ASSOCIATIONS Source: Wisconsin Statues, s and s.70.11

Specific Personal Property Exemptions JEWELRY, HOUSEHOLD FURNISHINGS AND APPAREL. ANIMALS. BOATS CHARTER SPORT FISHING BOATS. CROPS. FAMILY SUPPLIES. FEED. HORSES, ETC. TOOLS AND GARDEN MACHINES. FARM MACHINERY AND EQUIPMENT. CHEESE. MILKHOUSE EQUIPMENT. MERCHANTS’ STOCK−IN−TRADE; MANUFACTURERS’ MATERIALS AND FINISHED PRODUCTS; LIVESTOCK. ENERGY SYSTEMS CAMPING TRAILERS, RECREATIONAL MOBILE HOMES, AND RECREATIONAL VEHICLES. LOGGING EQUIPMENT. STRUCTURES FOR GINSENG. RENTED PERSONAL PROPERTY VENDINGMACHINES. MOTION PICTURE THEATER EQUIPMENT. DIGITAL BROADCASTING EQUIPMENT. HIGH DENSITY SEQUENCING SYSTEMS. Source: Wisconsin Statues, s and s

Exempt Because of Special Tax Money and Intangible Personal Property Special Property and Gross Receipts Taxes or License Fees Motor Vehicles, Bicycles, Snowmobiles Aircraft Mobile Homes and Manufactured Homes Source: Wisconsin Statues, s

Dates of Principal Personal Property Exemptions 1891—Apparel, kitchen furnishings, crops, household furniture 1908—Intangible personal property: stocks, certificates, credits 1929—Horses, mules, wagons, carriages, harnesses 1931—Motor vehicles 1961—50% Exemption Line A Property: Merchant's Inventories, Manufacturers Inventories, Farmer's Livestock 1975—Manufacturing Machinery and Equipment 1977 to 1981—Phase-Out of Line A Personal Property Tax 1991—Computer Equipment 8 Source: Legislative Reference Bureau, A HISTORY OF PROPERTY TAX AND PROPERTY TAX RELIEF IN WISCONSIN by Jack Stark

Personal Property Exemptions With Compensating Local Government Aid Payments Intangible Personal Property – Adoption of income tax and return to source payments Motor Vehicles – Adoption of registration fees and return to source Line A Personal Property – Initial direct state aid payment of exempt proportion – Aid amounts folded into shared revenues and school aids Manufacturing Machinery and Equipment – Initial direct state aid compensatory payment – Later aid amounts folded into shared revenues Computer Equipment – Direct state aid compensatory payment 9

Little Growth in Personal Property Tax Since 1991 Source: Wisconsin Department of Revenue, Research and Policy, STATEWIDE GROSS LEVIES BY PROPERTY CLASS: 1945/ /14

Personal Property Tax Share of Total Taxes Near All-Time Low Source: Wisconsin Department of Revenue, Research and Policy, STATEWIDE GROSS LEVIES BY PROPERTY CLASS: 1945/ /14

Personal Property Tax Burden by State Source: "States Moving Away From Taxes on Tangible Personal Property," Tax Foundation, Background Paper, Number 63