THE TAX MAN NOT COMETH – As telecommunications infrastructure continues to expand and converge with other technologies, Wisconsin’s elimination of taxes on towers could serve as a model—or a debate starter—for other states weighing similar reforms. Last year, the National Conference of State Legislatures provided a primer for state legislatures on Property Taxation of Communications Providers.
In a breakthrough shift for the wireless infrastructure industry, Wisconsin has officially enacted legislation that fully exempts telecommunications towers from property taxation, aiming to modernize the state’s tax code in response to an evolving communications landscape.
Signed into law by Governor Tony Evers as part of 2025 Wisconsin Act 15, the legislation removes both real and personal property taxes on radio, cellular, and telecommunications towers. The exemption for local property taxes on towers takes effect January 1, 2026 for towercos, with carriers receiving the emption for carriors a year later, and aligns with a broader effort by state leaders to ensure fairness and consistency in how telecom infrastructure is taxed.
A break from the past
Historically, Wisconsin taxed telecommunications towers inconsistently, with some counties classifying towers as real property and others as personal property. This inconsistency led to confusion, legal disputes, and uneven tax burdens across the industry. The new laws settle the matter decisively: telecom towers will no longer be taxed at all—a first for Wisconsin and a major shift from past practice.
Under previous law, towercos paid property tax on both the tower structure and the expensive equipment installed on it. Now, both the tower and its attached equipment are fully exempt from taxation—leaving only the land beneath the tower subject to property tax.
Supporting a changing industry
These reforms reflect a recognition that the telecommunications market is no longer a utility monopoly dominated by landlines, but a competitive environment defined by rapid infrastructure buildouts and 5G deployment. In 2023, Wisconsin’s state telephone tax revenue dropped to just over $50 million, the lowest level since 1978. That figure is expected to decline to $5 million annually by 2027, largely due to the exemptions passed under Act 140 and Act 15.
Fewer than 25% of American households now use landlines, and services like internet, mobile phone, video streaming, and cable often come bundled together—blurring the lines between historically distinct service providers. These tax changes acknowledge that convergence and seek to create a level playing field.
Boost for towercos and broadband expansion
Tower owners, wireless carriers, and broadband developers stand to benefit significantly from these reforms. By removing what was often a costly and inconsistent tax burden, Wisconsin has positioned itself as a more attractive environment for wireless infrastructure investment—especially in rural and underserved areas where cost sensitivities are higher.
The exemption is expected to stimulate additional broadband deployment and strengthen the economic sustainability of contractors, tower developers, and other vendors who have long operated on thin margins under carrier-imposed matrix pricing.
Remaining inequities
Despite the overhaul, other utility sectors in Wisconsin—such as electric, gas, and pipeline companies—remain subject to property taxes on both personal and real property. This discrepancy raises broader policy questions about tax parity and how various industries are treated under state law.
Moreover, while cable TV providers pay local video service fees instead of property tax, and streaming services avoid both, wireless and telephone companies have historically borne a disproportionate burden—a reality that lawmakers are now correcting.