Title
Resolution opposing elimination of personal property taxes.
Body
WHEREAS, Representative Bob Kulp (R-Stratford) and Senator Tom Tiffany (R-Hazelhurst) plan to introduce legislation that would eliminate both the personal property tax and the computer aid payments made to local governments; and
WHEREAS, the total statewide personal property tax levy in 2013 (collected in 2014) was $290 million; and
WHEREAS, the State has been making computer aid payments to local governments since 2001 to offset the personal property tax exemption for computer equipment that was created that year, with the total payment for 2015 set at $83.8 million; and
WHEREAS, elimination of the personal property tax on businesses will result in even more of the property tax burden shifting to residential homeowners, who, on average, already pay more than 70% of the statewide property tax levy; and
WHEREAS, the impact of eliminating the personal property tax will be greatest in the cities and villages where most of the personal property tax base is located; and
WHEREAS, fully exempting all personal property from the property tax will likely result in a reduction in the incremental levy for many tax incremental finance districts; and
WHEREAS, in the City of West Allis, the loss of computer aid payment for exempt computers would mean $177,600 less for the City's General Fund and $26,119 less for the City's TIDs, for a total decrease in state aid payments of $203,749; and
WHEREAS, in the City of West Allis, the shift to residential homeowners would be $1,322,200 of tax levy for just the City portion of property taxes, and the resulting equalized tax rate increase will be $.37 per $1,000 valuation.
NOW, THEREFORE, BE IT RESOLVED, that the City of West Allis opposes any attempt by the State Legislature to eliminate the personal property tax and the computer aid payments local governments receive for tax-exempt computer and related equipment; and at a minimum, the loss in local tax base and resulting tax shift must be addressed before moving forward with the legislation.
ADM\ORDRES\ADMR499