Wisconsin scores well on 2022 business property tax map

(The Center Square) – Wisconsin is best among its neighbors when it comes to business property taxes. But that’s not saying much.

A new report from the Tax Foundation ranks Wisconsin 16th in the nation when it comes to business property taxes.

“Property taxes matter to businesses for several reasons. First, businesses own a significant amount of real property, and tax rates on commercial property are often higher than the rates on comparable residential property,” the Tax Foundation wrote.

“Many states and localities also levy taxes not only on the land and buildings a business owns but also on tangible property, such as machinery, equipment, and office furniture, as well as intangible property like patents and trademarks. Across the nation, property taxes impose one of the most substantial state and local tax burdens most businesses face.”

Wisconsin is 16th in the United States for business property taxes. Michigan is 21st, Minnesota is 32nd, Iowa is 39th, and Illinois is ranked 48th in the nation. Indiana is ranked 1st in the Tax Foundation report for its low business property tax environment.

Wisconsin has actually improved its ranking on the list over the past few years. In 2019, the Tax Foundation placed Wisconsin’s 20th on the list.

Chris Reader, Executive Vice President at the Institute for Reforming Government said the shift in business tax rankings has helped Wisconsin improve its reputation as a business friendly state.

But he said Wisconsin could really stand-out in the Midwest if lawmakers can eliminate the state’s personal income tax.

“Today’s report illustrates that as Wisconsin climbs in the ranking for reducing the property tax burden, we continue to be woefully outpaced by our peers in income tax rates – scoring 37th out of 50 states for the highest income tax rates in the nation,” Reader told The Center Square.

“As we fight to remain competitive and reduce taxes on working families and small businesses, the Institute for Reforming Government will continue to adamantly support the elimination of the state’s income tax – a tax cut that could save an average family $1,700 a year.”

The Tax Foundation released its report on income taxes back in March. In that report Wisconsin ranked 37th in the country, far behind Illinois and Michigan.

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