As 2024 begins, Wisconsin business owners have a reason to celebrate: the personal property tax (PPT) is officially a thing of the past. This marks the first year in nearly two centuries that small businesses won’t receive tax bills for furniture, equipment, and other tangible assets. Thanks to Act 12, passed earlier in 2023, this long-overdue repeal ushers in a new era of economic relief and opportunity for entrepreneurs across the state.

The personal property tax, introduced in 1837 when Wisconsin was still a territory, once served as a cornerstone of local government revenue. Over time, however, it became an antiquated and inefficient system. As Wisconsin modernized its tax structure with the introduction of the income tax in 1911 and the sales tax in 1962, the PPT’s role diminished. Successive exemptions further eroded its scope, leaving behind a burdensome and complex tax that generated only a small portion of revenue for local governments while disproportionately affecting small businesses.

For decades, the PPT created significant headaches for business owners. It required detailed reporting, frequent assessments, and considerable time and resources to comply. Businesses often spent more on compliance than the tax itself, creating widespread frustration and diverting energy from business growth and innovation.

The repeal of the PPT under Act 12 not only eliminates this outdated tax but also ensures that local governments remain financially supported. The legislation provides increased state aid to municipalities to offset any lost revenue, striking a balance between business relief and community stability. This offset was key to getting Governor Evers to sign the bill into law. The bill has longed by championed by Republicans, most notably. Sen Duey Stroebel (Cedarburg) and Rep. Dan Knodl (Germantown). 

For Wisconsin’s small businesses, this repeal is more than just a financial benefit—it’s a game-changer. Without the PPT’s red tape, entrepreneurs can focus on creating jobs, expanding operations, and contributing to the state’s economy.

As property tax bills for 2024 land in mailboxes, business owners can take pride in knowing they’ll no longer be paying the personal property tax.