WDA advises members to speak with their certified public accountant

The 2017-2019 state budget, recently signed into law by Governor Scott Walker, included an important change long asked for by small-business owners by repealing the personal property tax on machinery. This can have a significant impact on your tax bill. While the Department of Revenue is still creating official guidelines, there are basic steps that you can take to ensure that your office takes advantage of this new tax break.

What changes were made in the tax schedule?

  • The repeal exempts all property previously included under Schedule C of the Statement of Personal Property and includes machinery, patterns and tools.
  • “Machinery” is defined as a “structure or assemblage of parts that transmits forces, motion or energy from one part to another in a predetermined way by electrical, mechanical or chemical means.”
  • This generally means that if something is plugged in, it is now exempt.

Some offices may have reported their office equipment under a different schedule. However, it is recommended that you examine all items of personal property to see if it fits the definition of “machinery.”

These changes take effect with the Statement of Personal Property due in March 2018. The Department of Revenue will provide further guidelines soon. It is advised that you speak with your CPA about how these changes may affect your business.