Personal Property Exemption Aid

Personal Property Tax Exemption Aid

The 2017-2019 state budget (2017 Act 59) exempted machinery, tools, and patterns, other than items already considered exempt manufacturing property under prior law, effective January 1, 2018.  The budget act also created a new state aid program designed to reimburse municipalities for the lost personal property tax revenue.  Personal property aid payments are made to municipalities in May of each year.  The payment amount is based on the amount of property taxes levied in 2017 and collected in 2018 on the personal property exempted by the state budget (i.e., machinery, tools, and patterns). 

Each municipality must report to the department of revenue, in the time and manner determined by the department, the amount of the property taxes levied on the items of personal property exempted by the state budget for the property tax assessments as of January 1, 2017, on behalf of the municipality and on behalf of other taxing jurisdictions.

The department of revenue shall certify the amount of the payment due each taxing jurisdiction under sub. (1) to the department of administration, and the department of administration shall make the payment on or before the first Monday in May.

DOR has posted estimates of 2020 personal property aid payments here.