Earlier this month, the Wisconsin Legislature passed legislation (Assembly Bill 245), which was subsequently signed by Gov. Tony Evers, to eliminate the state’s personal property tax. Elimination of the personal property tax was a top legislative priority for the business community –  including those in the health care sector – as the antiquated tax was an unnecessary financial and administrative burden for businesses across Wisconsin.

The personal property tax was initially implemented in the 1830’s, before Wisconsin was a state, to fund the territorial government. At the time, Wisconsin did not have an income or sales tax. Lawmakers have been chipping away at the personal property tax for decades, and the passage of AB 245 – a sweeping bipartisan bill that also provides an increase in state funding to local governments – finally completes the job in abolishing the tax.

Senator Dan Knodl (R-Germantown), who spearheaded efforts to eliminate the tax, said, “With this legislation signed into law, the personal property tax has been finally eliminated. I have been working towards this moment throughout my time in the legislature and it is such a relief knowing this tax will no longer burden our small business owners.”

Previously, when a business purchased an item (i.e., personal property), not only did they have to pay sales tax on it, but they also had to pay personal property taxes on the item for as long as they owned it. Under the new law, Wisconsin businesses will receive long-overdue tax relief.