Snowmobile trail grooming equipment is now exempt from taxation as personal property, and a new two-year pilot program allows “utility terrain vehicles” (UTVs) on ATV trails with local consent, said State Sen. Jim Holperin, D-Eagle River, who wrote both measures, which were signed by Gov. Jim Doyle.
Holperin said the snowmobile trail groomer tax exemption is a “big win” for the dozens of nonprofit trail clubs and thousands of volunteers around the state who keep Wisconsin’s premier motorized trail system a top recreation asset and tourism attraction.
“Years ago, when grooming equipment was pretty simple and often homemade it had little value and local assessors pretty much ignored it for tax purposes,” he explained.
“A rough estimate is that perhaps a dozen pieces of equipment around the state are currently taxed. But recently, as sophisticated custom-made trail drags and expensive tractors to pull them became commonplace, the state Department of Revenue started to take an interest in taxing the equipment.
The 12th District State Senator said that last year, the department organized a concerted effort to inform assessors statewide that grooming equipment could and should be taxed. He predicted that, without the exemption, snowmobile clubs could be liable for property tax bills of from $2,000 to $6,000 per year or higher, depending on the kinds of equipment they own.
“Clearly, this kind of added financial burden for nonprofit clubs which are working hard to keep the state’s trail system in tip top shape is simply unwarranted,” Holperin added. “The groomer tax exemption bill signed by Governor Doyle this week is a huge relief for snowmobile clubs everywhere in the state.”
The utility terrain vehicle pilot program will allow counties and towns around the state to authorize the use of UTVs, also known as “side-by-sides” on ATV trails within their jurisdiction.
“There’s been a limited UTV pilot program operating over the past couple of years, but only in five Wisconsin counties,” Holperin said. The pilot program ended in September, 2009.
“The bill signed by the governor renews the pilot program for another two years and expands the program by allowing any county or town anywhere in the state to participate,” Holperin explained. He emphasized that participation is completely voluntary and is strictly a local decision.
“As the population ages, more and more trail riders really like the comfort of a side-by-side UTV,” Holperin concluded. “I think allowing localities to authorize trail access by UTVs will be a tremendous new tourism draw for many of our rural Northwoods communities.”
The two bills won near unanimous approval in both the State Senate and State Assembly.
