The 2023-2024 Regular Session of Wisconsin’s One Hundred Sixth Legislature recently enacted Assembly Bill No. 245, includes eliminating the business personal property tax on manufacturing and other business personal property. This change was enacted on June 20, 2023, and will be effective starting January 1, 2024.
The repeal of personal property tax – one of the oldest taxes in the state’s history – is more than just a policy change. It signifies the state’s commitment to nurturing a favorable business environment and reducing tax burdens.
Wisconsin also hopes to stimulate its economic activity. The idea is that the change will incentivize new businesses to set up shop in the state, ultimately creating more jobs within the state.
Businesses that own personal property located in Wisconsin are the primary beneficiary of this legislative change. Eliminating the personal property tax will help simplify their tax responsibilities and annual compliance filing obligations, saving time and internal resources.
Keep in mind that this bill impacts business personal property only and does not change the assessment and taxability of real estate.
Taxpayers will still want to monitor and review their business personal property tax assessment notice and tax bill related to their January 1, 2023 personal property return, which they filed earlier this year. It will also be important to stay informed regarding their January 1, 2024 real estate assessment (land, buildings, improvements, etc.) to ensure its accuracy.
The administrative components and any reporting requirements related to this legislative change will be finalized later this year.
Rhode Island recently adopted House Bill No. 6333 and Senate Bill No. 928. This change declares that a city, town, or fire district will provide each tangible personal property taxpayera statewide exemption of $50,000.
The exemption will apply to the aggregate amount of all ratable tangible personal property located Rhode Island, that is not otherwise exempt.
Effective June 24, 2023, the exemption is applicable for the December 31, 2023 assessment date, and each following assessment date.
Tangible personal property valued over $50,000 remains subject to taxation. Any individual exemptions previously granted to taxpayers will be applied to the assessed values prior to applying this new statewide exemption.
Earlier this year, business owners and legislators were pushing for a $100,000 exemption. However, the final exemption will provide a much needed relief for businesses in Rhode Island.
Rhode Island’s goal is to promote economic development, provide relief to businesses – including small businesses – and to encourage entrepreneurship in the state.
To keep your business ahead of personal property tax changes like these, talk to our experts.
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