HomeMy WebLinkAbout09-160APRIL 28, 2009 09 -160 RESOLUTION
(CARRIED 4 -1 P LOST LAID OVER WITHDRAWN )
PURPOSE: REFUND OF PROPERTY TAXES / EXCESSIVE ASSESSMENT
INITIATED BY: DEPARTMENT OF FINANCE
WHEREAS, the following real estate taxes were assessed improperly, per
Wisconsin State Statutes 74.37, and refund of the tax due is appropriate:
Inland Southeast Oshkosh Koeller Street LLC
950 S. Koeller Street
Oshkosh, WI 54904
(Parcel ID #13- 0848- 02 -00) $14,359.96
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the proper City Officials are hereby authorized and directed to refund the
sum of $14,359.96.
BE IT FURTHER RESOLVED that the proper City Officials are authorized and
directed to seek compensation from the other taxing entities per Wisconsin State Statutes
74.41.
Funds for this purpose are appropriated from:
Account No. 100- 0908 - 6469 -00000 — Tax Refund Account
City of Oshkosh
Finance Department
215 Church Ave., PO Box 1130
Oshkosh, WI 54903 -1130
(920) 236 -5080 (920) 236 -5039 FAX
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ON THE WATER
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Peggy Steeno, Finance Director
DATE: April 27, 2009
RE: Refund of Property Taxes - Excessive Assessment
BACKGROUND
Per Wisconsin State Statutes, the allowance of an excessive assessment claim needs to be authorized by
the Common Council. In regard to a claim that was filed, staff reviewed the information presented for
the 2008 real estate taxes and determined that the 2008 assessment should be lowered. Lowering the
assessment would result in a refund of a portion of the taxes paid in relation to this property. The
determination to lower the assessment is due to a Supreme Court decision to reverse a lower court
decision on this matter.
ANALYSIS
Below are the details and reason that this item is being presented for refunding. In addition, the specific
condition as outlined by State Statutes is included:
Parcel 1308480200 / Inland Southeast Oshkosh Koeller Street LLC (Walgreens) / 950 S. Koeller
Street - $ 14,359.96 — (State Statute 74.37 — Claim on Excessive Assessment) — In May of 2007, an
appeals court decision directed assessors to use contract rent when valuing this type of property. As a
result, the value of this property was increased for 2008, reflecting the court decision. Then, in the
summer of 2008, a Supreme Court decision reversed the lower court determination making the increase
unwarranted. Therefore, we are recommending a refund of the increased amount of real estate taxes
based on the court decision.
FISCAL IMPACT
The impact of the above refund is short term only, since, in the year that the taxes are refunded, the City
notifies the Department of Revenue (DOR) of the refunding, and the DOR adjusts the equalized value
for the following year to account for the difference. These adjustments are built into the tax rate for all
taxing authorities for the following year.
RECOMMENDATION
Staff recommends that Council approve this resolution to refund the above noted taxes as outlined.
Respectfully Submitted, Approved:
P "1 0 4 1 " 1720
Peggy Steeno Mark Rohloff
Finance Director City Manager