1. ​​ What is exempt computer aid?


2. Who qualifies for exempt computer aid?


3. How is exempt computer value determined and reported?


4. How is exempt computer aid calculated?


5. How is exempt computer aid handled for a terminated TID?


6. Does the exempt computer aid payment affect the Levy Limit Worksheet?


7. When do local governments receive the exempt computer aid payment?

1. What is exempt computer aid?
   
   

   Computers, software, cash registers and fax machines (except fax machines that are also copiers) are exempt from property tax. When property becomes exempt, the tax that would be collected on that property is shifted to other properties that remain taxable, resulting in higher property tax bills for those properties. To provide property tax relief, the state authorized computer aid for all impacted taxing jurisdictions to offset the impact of the exempt equipment.



2. Who qualifies for exempt computer aid?
   
   

   Each county, municipality, school district, technical college, special district, and tax incremental district (TID) that had exempt computer property within the district and received an aid payment in July 2017 is eligible to continue receiving exempt computer aid. Note: Aid is discontinued for districts that are dissolved. Due to a law change, effective for 2022 and forward, when a tax incremental district terminates, the exempt computer aid is transferred to the municipality and applicable taxing jurisdictions.



3. How is exempt computer value determined and reported?
   
   

   Under current state law (sec. 79.095(4)(b), Wis. Stats.), exempt computer aid is based on the prior year payment. Exempt computer values are no longer reported each year to the Wisconsin Department of Revenue (DOR).



4. How is exempt computer aid calculated?
   
   

   Under current state law (sec. 79.095(4)(b), Wis. Stats.), DOR calculates each taxing jurisdiction's payment as follows:

   • 2018 payment equals the 2017 payment multiplied by 1.0147
   • 2019 payment equals the 2018 payment multiplied by 1.0242 (one plus the Consumer Price Index)
   • 2020 payment and thereafter equals the prior year's payment​
     
   ​​

   Note: If a tax increment district terminates, the year after the TID terminates the payment is distributed to each taxing jurisdiction where the TID is located and will remain in each taxing jurisdictions exempt computer aid payment going forward.​

   ​
5. How is exempt computer aid handled for a terminated TID?
   
   

   If a TID is terminated, DOR distributes:

   • Current year aid payment – to the TID
   • Following year aid payment and thereafter – to the municipality and other taxing jurisdictions
   
   
6. Does the exempt computer aid payment affect the Levy Limit Worksheet?
   
   

   No. Exempt computer aid is not reported on the Levy Limit Worksheet and does not affect your allowable levy limit.



7. When do local governments receive the exempt computer aid payment?
   
   

   Each year, DOR distributes exempt computer aid on the fourth Monday in July.

Questions?

Contact us at lgs@wisconsin.gov.