Last month, Gov. Tony Evers signed the 2019-21 state budget into law. The governor used his partial-veto authority to change 78 provisions adopted by the Republican-controlled legislature. The final version of the budget will affect Wisconsin real estate in several ways.

Background

These are the most significant provisions included in the budget that impact commercial development and Wisconsin real estate.

• Income taxes: Reduces income taxes by approximately $450 million when combined with a separate bill passed by the legislature. Together, income taxes would be reduced on average by $75 per person in 2019 and by $136 in 2020. Married-joint filers will see a reduction of $182 annually.
• Property taxes: Maintains strict levy limits on local governments and technical colleges by allowing levies to increase by the change in equalized value due to net new construction or by referendum. Property taxes would increase for the average homeowner, which is the owner of a $174,000 median-value home, by only $56 in the first year of the budget and $48 in the second year
• DSPS website modernization: Allocates $5 million to update and modernize the Wisconsin Department of Safety and Professional Services (DSPS) website, credentialing systems and consumer portals.
• Broadband access in rural areas: Provides $48 million throughout the biennium to expand the broadband expansion grant program to reach more underserved areas of the state.

What’s in play

Now that the state budget is passed and signed into law, the WRA will proceed with other legislative priorities identified as priorities by the WRA board of directors.