Waste Treatment Exemption

Facilities used for the treatment of industrial wastes or air contaminants may qualify for an exemption from property taxes under the provisions of s. 70.11(21) of the Wisconsin Statutes. Below are responses to the most frequently asked questions regarding this exemption.

  1. What property qualifies for this exemption?
  2. What is "Industrial Waste"?
  3. What are "Air Contaminants"?
  4. How is "Waste Treatment Facility" defined?
  5. What are some of the types of property that could qualify for this exemption?
  6. What types of property are specifically excluded from exemption?
  7. How do I claim this exemption and what type of records do I need to keep?
  8. What if the DOR determines during a field audit that the property recorded on my M forms do not qualify for exemption? Can I appeal the DOR decision?
  9. Where can I obtain additional information on this exemption?
  1. What property qualifies for this exemption?

    All property (land, land improvements, buildings, machinery) purchased or constructed as a waste treatment facility used for the treatment of industrial wastes or air contaminants for the purpose of abating or eliminating pollution of surface waters, the air, or waters of Wisconsin.

  2. What is "Industrial Waste"?

    "Industrial Waste" is liquid or other waste resulting from any process of industry, manufacture, trade, business, or the development of any natural resource. Industrial waste also includes wood chips, sawdust and other wood residue from the paper and wood products manufacturing process that can be used as fuel and would otherwise be considered superfluous, discarded or fugitive material.

  3. What are "Air Contaminants"?

    "Air Contaminants" are dust, fumes, mist, liquid, smoke, other particulate matter, vapor, gas, odorous substances, or any combination thereof.

  4. How is "Waste Treatment Facility" defined?

    "Waste Treatment Facility" means tangible property that is built, constructed, or installed as a unit so as to be readily identifiable as directly removing, altering, or storing leftover, superfluous, discarded, or fugitive material.

  5. What are some of the types of property that could qualify for this exemption?

    A large variety of types of property could qualify for this exemption including dust collection systems, electrostatic precipitators, wastewater pretreatment systems, waste holding tanks, wood waste burning boilers, aerators, ridge and furrow systems, thermal incinerators, paint booths, and so on.

  6. What types of property are specifically excluded from exemption?

    • Conversion of a furnace from one type of fuel to another type of fuel.
    • Treatment of uncombined water vapor (e.g., steam)
    • Unnecessary situation resulting from operations such as washing of vegetables or raw food products, gravel washing, stripping of lands for development of subdivisions, highways, quarries and gravel pits, mine drainage, cleaning of vehicles or barges, or gross neglect of land erosion.
    • Increasing height of a smokestack to diffuse emissions over a wide area.
    • Monitoring equipment which is not a component or integral part of a waste treatment facility.
    • Property used to dispose of industrial waste and also used to grow agricultural products which are sold.
    • Sewage treatment or garbage handling

  7. How do I claim this exemption and what type of records do I need to keep?

    A company classified and assessed as a "manufacturer" by the Department of Revenue under s. 70.995 Wis. Stats. will report waste treatment property on the manufacturing self-reporting forms. Waste treatment personal property costs must be reported on the M-P Wisconsin Manufacturing Personal Property Return, Schedule Y-P line 12. Real estate costs related to waste treatment must be reported on the M-R Wisconsin Manufacturing Real Estate Return, Schedule Y-R, Part 1 line 6 and on Schedule R-6. Owners must retain a listing of assets classified as exempt waste treatment on these forms at their place of business for inspection by the Department of Revenue.

  8. What if the DOR determines during field audits that property recorded on my M form does not qualify for exemption? Can I appeal the DOR decision?

    If your property is determined to be taxable, you may appeal the determination. If you are a manufacturer, the property denied the waste treatment exemption will be added to your manufacturing property assessment. You may then appeal your full value manufacturing assessment to the State Board of Assessors.

  9. Where can I obtain additional information on this exemption?

    Manufacturers - Contact the Manufacturing & Utility Section district office serving the area where your property is located.

    Non-Manufacturers - Contact the local assessor responsible for assessments in the municipality where your property is located.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Division of State & Local Finance
Manufacturing and Utility Bureau
Jean Adler, Director
Mail Stop 6-97
P.O. Box 8971
Madison, WI 53708-8971
Phone: (608) 266-3845
Fax: (608) 264-6897
E-Mail Additional Questions

Last updated December 15, 2011