In a significant move for business owners in the state of Wisconsin, Governor Tony Evers signed 2023 Act 12 (“Act 12”) into law on June 20, 2023, effectively eliminating the state’s personal property tax. This law is slated to take effect on January 1, 2024, according to JD Supra.
The repeal will expunge the exhaustive and often expensive procedure associated with enforcing personal property tax laws. Previously, business owners had to expend a wealth of time and resource to ensure they adhered strictly to these processes. This development now offers a welcome change, potentially allowing companies to redirect their energy and focus on growth and development.
However, this legislative change necessitates business owners to reevaluate assets that were once designated as ‘personal property’. It becomes essential for them to decipher whether these possessions will now be categorised as ‘real property’. This shift could have implications on the financial and legal management of their asset portfolio, potentially calling for consultation and audit activities with legal experts.
Therefore, as Wisconsin steers towards a new regulatory climate, corporations and legal professionals, in tandem, must take a proactive approach. They should aim to thoroughly understand the implications of Act 12 and the subsequent need for strategic adjustments to ensure optimal asset management and continued legal compliance.