HomeMy WebLinkAbout21. 20-228 MAY 26, 2020 20-228 RESOLUTION
(CARRIED 6-0 LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE WAIVING INTEREST AND PENALTY FEES FOR LATE
PROPERTY TAX INSTALLMENTS
INITIATED BY: CITY ADMINISTRATION
WHEREAS, a novel strain of the coronavirus, named COVID-19 has spread
throughout numerous countries including the United States; and
WHEREAS, Federal, State and Local Declarations of Emergency resulted in
significant disruption to the national, state and local economy, public access to
government facilities, and of citizens' lives and personal budgets; and
WHEREAS, the City of Oshkosh recognizes the economic burdens placed upon
property tax payers as a result of this emergency and desires to provide temporary relief
for the remaining tax installment payments due for property taxes payable in 2020; and
WHEREAS,the Wisconsin Legislature has passed Act 185 for COVID Relief which
in part provides that a taxation district may provide that a property tax installment
payment due and payable after April 1, 2020 shall not accrue interest or penalties if paid
on or before October 1, 2020 if both the County and taxation district adopt resolutions
authorizing the waiver of interest and penalties; and
WHEREAS, the Winnebago County Board has passed Resolution 020-052020,
Authorizing a Taxation District to Waive Interest on Property Tax Payment Installments
Due on or After April 1, 2020.
WHEREAS, Act 185 allows for either a general finding of hardship to qualify for
waiver of interest and penalties and the Resolution passed by Winnebago County
authorized waiver of interest and penalties for all property taxpayers in the County
otherwise eligible for waiver under Section 105(25) of Act 185 on a finding of general
hardship based upon the economic conditions resulting from the current COVID-19
pandemic.
MAY 26, 2020 20-228 RESOLUTION
CONT'D
NOW, THEREFORE BE IT RESOLVED by the Common Council for the City of
Oshkosh pursuant to Act 185 as follows:
1. Because of the COVID-19 Pandemic, the various federal laws and
regulations implemented as a result of the COVID-19 Pandemic,the various
emergency orders and regulations implemented by state and local
governments, and pursuant to Act 185 and Winnebago County Resolution
020-052020, the Common Council of the City of Oshkosh finds that all
property taxpayers are experiencing hardship as that term is used in Section
105(25) of Act 185.
2. Notwithstanding any state statute or municipal code provision providing
otherwise, in accordance with this Resolution and Winnebago County
Resolution 020-052020 the Common Council hereby waives interest and
penalties for late payments of installments of property tax installments due
and payable on May 31 and July 31, 2020 provided that the total amount due
and payable is paid on or before October 1, 2020. Interest and penalties shall
accrue from October 1, 2020 for any amounts payable in 2020 that are
delinquent after October 1, 2020.
4. The Common Council acknowledges that as provided under Section
105(25) of Act 185, the County shall deviate from the settlement procedure
set forth in Wis. Stat. § 74.29 and, instead the County shall settle property
taxes, interest and penalties collected on or before July 31, 2020, on August
20, 2020, as provided under Wis. Stat. § 74.29(1), and settle the remaining
unpaid taxes, interest, and penalties on September 20, 2020. The August 20,
2020, settlement shall be distributed proportionally to the underlying
taxing jurisdictions according to payments collected on or before July 31,
2020.
BE IT FURTHER RESOLVED that the appropriate city staff are hereby authorized
and directed to take all steps necessary to implement the terms of this Resolution and
Winnebago County Resolution 020-052020.
MAY 26, 2020 20-228 RESOLUTION
(CARRIED LOST LAID OVER WITHDRAWN )
PURPOSE: APPROVE WAIVING INTEREST AND PENALTY FEES FOR LATE
PROPERTY TAX INSTALLMENTS
INITIATED BY: CITY ADMINISTRATION
WHEREAS, a novel strain of the coronavirus, named COVID-19 has spread
throughout numerous countries including the United States; and
WHEREAS, Federal, State and Local Declarations of Emergency resulted in
significant disruption to the national, state and local economy, public access to
government facilities, and of citizens' lives and personal budgets; and
WHEREAS, the City of Oshkosh recognizes the economic burdens placed upon
property tax payers as a result of this emergency and desires to provide temporary relief
for the remaining tax installment payments due for property taxes payable in 2020; and
WHEREAS, the Wisconsin Legislature has passed Act 185 for COVID Relief which
in part provides that a taxation district may provide that a property tax installment
payment due and payable after April 1, 2020 shall not accrue interest or penalties if paid
on or before October 1, 2020 if both the County and taxation district adopt resolutions
authorizing the waiver of interest and penalties; and
WHEREAS, the Winnebago County Board has passed Resolution 020-052020,
Authorizing a Taxation District to Waive Interest on Property Tax Payment Installments
Due on or After April 1, 2020.
WHEREAS, Act 185 allows for either a general finding of hardship to qualify for
waiver of interest and penalties and the Resolution passed by Winnebago County
authorized waiver of interest and penalties for all property taxpayers in the County
otherwise eligible for waiver under Section 105(25) of Act 185 on a finding of general
hardship based upon the economic conditions resulting from the current COVID-19
pandemic.
MAY 26, 2020
20-228 RESOLUTION
CONT'D
NOW, THEREFORE BE IT RESOLVED by the Common Council for the City of
Oshkosh pursuant to Act 185 as follows:
1. Because of the COVID-19 Pandemic, the various federal laws and
regulations implemented as a result of the COVID-19 Pandemic, the various
emergency orders and regulations implemented by state and local
governments, and pursuant to Act 185 and Winnebago County Resolution
020-052020, the Common Council of the City of Oshkosh finds that all
property taxpayers are experiencing hardship as that term is used in Section
105(25) of Act 185.
2. Notwithstanding any state statute or municipal code provision providing
otherwise, in accordance with this Resolution and Winnebago County
Resolution 020-052020 the Common Council hereby waives interest and
penalties for late payments of installments of property tax installments due
and payable on May 31 and July 31, 2020 provided that the total amount due
and payable is paid on or before October 1, 2020. Interest and penalties shall
accrue from October 1, 2020 for any amounts payable in 2020 that are
delinquent after October 1, 2020.
4. The Common Council acknowledges that as provided under Section
105(25) of Act 185, the County shall deviate from the settlement procedure
set forth in Wis. Stat. § 74.29 and, instead the County shall settle property
taxes, interest and penalties collected on or before July 31, 2020, on August
20, 2020, as provided under Wis. Stat. § 74.29(1), and settle the remaining
unpaid taxes, interest, and penalties on September 20, 2020. The August 20,
2020, settlement shall be distributed proportionally to the underlying
taxing jurisdictions according to payments collected on or before July 31,
2020.
BE IT FURTHER RESOLVED that the appropriate city staff are hereby authorized
and directed to take all steps necessary to implement the terms of this Resolution and
Winnebago County Resolution 020-052020.
TO: Honorable Mayor and Members of the Common Council
FROM: Russ Van Gompel, Director of Finance
DATE: May 20, 2020
RE: Waive Interest and Penalty Fees for Late Property Tax Installments
BACKGROUND
On April 15, 2020 the Governor of the State of Wisconsin signed Act 185, a bipartisan
legislative package responding to the COVID-19 pandemic. Part of the Act which impacts
municipalities allows local taxation districts to waive interest and penalties for late payment of
property tax payments. The ability to waive interest and penalties is only available for
installments which are due and payable after April 1, 2020.
The City of Oshkosh has elected to be on a four installment plan for real estate taxes; January
31, March 31, May 31, and July 31. Most cities in the state and Winnebago County follow the
minimum two payment plan; January 31 and July 31. Prior to July 31, the local units are
responsible for tax collections. After July 31, the county is responsible for tax collections. After
July 31 the County settles with local governments and make the local units whole by carrying
any uncollected amounts. In a typical year this "settlement' date is August 2011
Under the provisions of Act 185, which allows cities to elect to waive interest and penalties,
installments that are due and payable after April 1, 2020 shall not accrue interest or penalties if
the total amount is paid on or before October 1, 2020. The Act also provides that the August
settlement occur as planned for payments through July 31 and settle the remaining unpaid
taxes on September 20, 2020. The decision to waive interest and penalties can be applied
"generally" across the entire community or it can be applied for individual taxpayers based on
a "case -by -case finding of hardship". If a city chooses to waive interest and penalties, it cannot
do so unless the County Board first adopts a resolution that allows for such a waiver.
Winnebago County adopted Resolution No. 020-052020 on May 19, 2020 which authorized a
taxation district to waive interest on property tax payment installments due on or after April 1,
2020.
Under the provisions of Act 185, the City must also approve a resolution to waive penalty and
interest for installments due on or after April 1, 2020.
Finance Department
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://w .ci.oshkosh.wi.us
FISCAL IMPACT
Through March 31, 2020, 67.5% of the tax levy was collected. For the same time period in 2019,
collections through March 31 represented 71.5%. Assuming the same rate of tax collections, I
would anticipate that maybe the total collections at the end of July would be in the 90 - 94%
range. If the collection rate ended up at 90%, the amount of taxes that the county will be
holding would be $10,633,000. This would be an increase of approximately $8,500,000. These
amounts are based on the total levy. The City represents about 40% of the total levy and
would therefore be short about $3,400,000 for approximately two months. Based on current
interest rates, the City would be facing about $6,000 in lost investment earnings.
RECOMMENDATION
Staff recommends that Council authorize this resolution to waive interest and penalties on
property tax installments due on or after April 1, 2020 as provided for in Act 185.
Respectfully Submitted,
Russ Van Gompel
Director of Finance
Approved:
Mark Rohloff
City Manager
Finance Department
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 htip://Ww .d.oshkosh.wi.us
1 020-052020 - Amended
2 RESOLUTION: Authorize a Taxation District to Waive Interest on Property Tax Payment
3 Installments Due on or After April 1, 2020
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WHEREAS, in December, 2019, a novel strain of coronavirus known as COVID-19 was detected, and
COVID-19 has continued to spread throughout the world, including to the United States and the State of Wisconsin
("COVID-19 Pandemic"); and
WHEREAS, the federal government, state governments, and local governments are working together to
contain the further spread of the disease and treat existing cases; and
WHEREAS, on January 31, 2020, the United States Department of Health and Human Services declared a
Public Health Emergency; on March 11, 2020, the World Health Organization declared COVID-19 a pandemic; on
March 12, 2020, the Governor of the State of Wisconsin declared a Health Emergency in the State; and on March 20,
2020, Winnebago County, through Winnebago County Executive Mark Harris, declared a local state of emergency
pursuant to Chapter 323, Wisconsin Statutes; and
WHEREAS, the federal government has enacted various laws and regulations in response to the COVID-19
pandemic including, without limitation, the Families First Coronavirus Response Act and the Coronavirus Aid, Relief,
and Economic Security Act; and
WHEREAS, because of the COVID-19 pandemic, on March 24, 2020, Secretary -designee Andrea Palm of
the Wisconsin Department of Health Services issued Emergency Order #12, Safer at Home Order ("Safer at Home
Order") requiring that everyone in Wisconsin stay at their home or place of residence, except in limited
circumstances, until April 24, 2020; and
WHEREAS, on April 16, 2020, Secretary -designee Palm extended the Safer at Home Order, with certain
modifications, to May 26, 2020, pursuant to Emergency Order #28; and
WHEREAS, federal, state, local, and individual responses to the COVID-19 pandemic, and the uncertainty
as to the effectiveness of those responses in mitigating the duration of the COVID-19 pandemic, have created
economic hardship and uncertainty in the County's business community, households throughout the County, and for
every County property taxpayer; and
WHEREAS, prominent economists have predicted record level unemployment rates for the coming months
and this prediction suggests that Winnebago County residents will also experience record -level unemployment rates
in the coming months, and an unprecedented number of businesses and employers throughout the State and in
Winnebago County have been required to suspend operations; and
WHEREAS, in response to the COVID-19 Pandemic, the various federal laws and regulations implemented
as a result of the COVID-19 pandemic, and the various emergency orders and regulations implemented by state and
local governments, on April 15, 2020, the Wisconsin Legislature enacted 2019 Wisconsin Act 185 ("Act 185"), which
Governor Evers signed on April 16, 2020; and
WHEREAS, Section 105(25) of Act 185 authorizes, among other things, the County to adopt a resolution
enabling taxation districts in the County to waive interest and penalties on 2020 property tax installment payments
due and payable after April 1, 2020, until October 1, 2020; and
Resolution Number: 020-052020
Page 1
41 WHEREAS, a resolution authorizing the above referenced waiver must also establish criteria for determining
42 hardship that would qualify a property taxpayer for the waiver; and
43 WHEREAS, Winnebago County's authorization for a taxation district to implement the above referenced
44 waiver is contingent upon a taxation district adopting a resolution in similar form and content as to Winnebago
45 County's resolution; and
46 WHEREAS, this Resolution (1) serves as Winnebago County's enabling resolution for purposes of Section
47 105(25) of Act 185; (2) authorizes any taxation district located in Winnebago County to waive interest on installment
48 payments of property taxes due and payable after April 1, 2020, in a manner consistent with Act 185, provided the
49 taxation district adopts a similar resolution and otherwise satisfies all conditions precedent to waiver contained in Act
50 185 and this Resolution; and (3) declares that all property taxpayers in Winnebago County are experiencing hardship
51 as a result of the economic conditions associated with the COVID-19 pandemic, the various federal laws and
52 regulations implemented as a result of the COVID-19 pandemic, the various emergency orders and regulations
53 implemented by state and local governments, and Act 185; and
54 WHEREAS, while the plain language of Section 105(25) of Act 185 allows for either a general or a "case-by-
55 case" finding of hardship to qualify for the above -referenced waiver of interest, the County intends, by this
56 Resolution, to authorize a taxation district to waive interest for all property taxpayers in the County otherwise eligible
57 for waiver under Section 105(25) of Act 185 on a finding of general hardship based upon the economic conditions
58 described in this Resolution, which the Board determines has adversely affected all taxpayers in the County; and
59 WHEREAS, this Resolution is not intended to be construed as authorizing any sort of "case -by -case" finding
60 of hardship by a taxation district
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62 NOW, THEREFORE, BE IT RESOLVED by the Winnebago County Board of Supervisors that, pursuant to
63 Section 105(25) of Act 185, it hereby finds and authorizes the following:
64 1. Because of the COVID-19 Pandemic, the various federal laws and regulations implemented as a result of the
65 COVID-19 Pandemic, the various emergency orders and regulations implemented by state and local
66 governments, and Act 185, the Board finds that all property taxpayers are experiencing hardship as that term
67 is used in Section 105(25) of Act 185.
68 2. A taxation district is authorized to waive interest for property taxes payable in 2020 for an installment
69 payment that is due and payable after April 1, 2020. This Resolution authorizes a taxation district to waive
70 interest as provided in Section 105(25) of Act 185 for all property taxpayers in the taxation district such that if
71 a taxation district authorizes the waiver under Section 105(25) of Act 185, it must offer the waiver to all
72 property taxpayers in the taxation district. Notwithstanding the foregoing, nothing in this Resolution
73 authorizes a taxation district to waive interest for property taxes payable in 2020 for an installment payment
74 that was due and payable prior to April 1, 2020, except as otherwise permitted under applicable law.
75 3. As provided under Section 105(25) of Act 185, the County shall deviate from the settlement procedure set
76 forth in §74.29, Wis. Stat., and instead the County shall settle property taxes and interest collected on or
77 before July 31, 2020, on August 20, 2020, as provided under §74.29(1), Wis. Stats., and settle the remaining
78 unpaid taxes and interest on September 20, 2020. The August 20, 2020, settlement shall be distributed
79 proportionally to the underlying taxing jurisdictions according to payments collected on or before July 31,
80 2020.
Resolution Number: 020-052020 Page 2
81 4. Notwithstanding §74.57, Wis. Stats., the County Treasurer is authorized, but not required, to omit from the
82 tax certificate delivered to the County on September 1, 2020, all parcels of real property for which a taxation
83 district has waived interest and penalties as provided in this Resolution.
84 5. The County Treasurer is directed to consult with the Wisconsin Department of Revenue, all taxation districts
85 in the County, and Corporation Counsel regarding the implementation of this Resolution and the procedures
86 associated with, or contemplated by, this Resolution.
87 6. Other County officers are authorized and directed to assist the Treasurer in the interpretation, application,
88 and implementation of this Resolution and Section 105(25) of Act 185.
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90 BE IT FURTHER RESOLVED by the Winnebago County Board of Supervisors that all actions heretofore taken
91 by the Board and other appropriate public officers and agents of Winnebago County with respect to the matters
92 contemplated under this Resolution are hereby ratified, confirmed and approved.
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94 Fiscal Note: Winnebago County makes the taxation districts `whole' each August. Therefore, the County takes on
95 the responsibility of collecting any remaining unpaid property taxes. Delaying the due date of tax
96 payments to October 1, 2020, will have a negative impact on County cash flow. In addition, the County
97 will incur a loss of investment income on cash paid out in August September ahead of the October 1st
98 collection deadline. Total fiscal impact on the County is unknown at this time. However, the County
99 has a strong cash position and should be able to manage the cash flow issues.
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101 Respectfully submitted by:
102 STEPHANIE J SPELLMAN, District 10
103 MICHAEL NORTON, District 20
104 BRIAN DEFFERDING, District 6
105 STEVEN LENZ, District 7
106 Committee Vote:
107 Vote Required for Passage: Two -Thirds of Membership
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109 Approved by the Winnebago County Executive this day of 12020.
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112 Mark L Harris
113 Winnebago County Executive
Resolution Number: 020-052020 Page 3