Repeal personal property tax now

Just because you have done something one way for 170 years, doesn’t mean you should keep on doing it that way.

While this can apply to many things, it is especially applicable to the state’s personal property tax. Personal property taxes are a way governments pick the pockets of businesses on an annual basis by forcing them to pay taxes on things like tables, desks, chairs, silverware and plates for as long as they are in use.

Businesses have the additional burden of tracking and self-reporting these items. As can be imagined, this leads to vast inconsistencies with individual business owners and their accountants left to interpret what should or shouldn’t be listed. As a result of judgment calls and personal ethics of those filling out the tax forms, the actual burden may vary widely.

In 2018, under former Gov. Scott Walker some business owners saw relief with the ending of portions of the personal property tax. However, for the vast majority of businesses, the burden remained, chipping away at both their bottom lines and stealing away time that could be better spent on other tasks.

Last spring the state legislature pushed through Assembly Bill 191 and Senate Bill 189, a pair of bills that sought to eliminate the personal property tax.

While going on record at the time in support of ending the personal property tax, Gov. Tony Evers vetoed that effort over concerns about unintended impacts of the legislation.

At the time, Evers and the Department of Revenue were concerned about the problematic ramifications for railroad taxes and the manufacturing and agriculture credit, as well as the potential for the state to lose millions in taxes owed by utility companies.

A key component of cutting the personal property tax was the provision to keep local governments whole by giving additional state aid to cover the loss of local personal property tax revenues. Statewide this amounts to $188 million to local municipalities.

Compared to the state’s more than $1.6 billion in surplus over the past fiscal year and projections for an even bigger surplus at the end of the current fiscal year, the state can wellafford the additional state aids.

At the time of the veto, Evers called on the legislature to bring a new bill forward that would address the concerns about unintended consequences. while granting relief to business taxpayers. As passed, the state budget also included the money for additional state aids to municipalities.

This week, new legislation to repeal the personal property tax was introduced with Evers using it as an excuse to get out campaign talking points. Despite the miasma of political gamesmanship, the Wisconsin legislature is urged to move quickly in repealing this outdated burden that impacts small business owners disproportionately hard. Repealing the personal property tax is a good idea no matter the initial behind the author’s name.

Eliminating the personal property tax will have direct benefits to business through reducing their overall tax obligation, and saving business owners time and money in preparing the costly, complex and confusing taxes.

Contact Rep. James Edming and Sen. Jerry Petrowski and tell them to vote yes to repeal the personal property tax as a way to help Wisconsin businesses.