HomeMy WebLinkAbout10-154ORIGINAL RESOLUTION PRESENTED TO COUNCIL -SEE 10 -154A / 10 -1548 FOR ACTIONS
MAY 11, 2010 10 -154 RESOLUTION
(CARRIED
PURPOSE
INITIATED BY
LOST LAID OVER WITHDRAWN )
RESCIND PERSONAL PROPERTY TAXES (THE FIFTH THIRD
LEASING COMPANY, BLIMPIE'S, PEABODY'S ALE HOUSE)
DEPARTMENT OF FINANCE
WHEREAS, the following property taxes were assessed improperly, per Wisconsin
State Statutes 74.33 (1) (e), and rescission of the tax due is appropriate:
The Fifth Third Leasing Company
2900 Atlas Avenue
Oshkosh, WI 54901
(Personal Property ID #200361000) $15,629.17
WHEREAS, the following property taxes were assessed improperly, per Wisconsin
State Statutes 74.33 (1) (f), and rescission of the tax due is appropriate:
Blimpie's
200 City Center, Suite G
Oshkosh, WI 54901
(Personal Property ID #025350000) $5,808.84
Peabody's Ale House
544 N Main Street
Oshkosh, WI 54901
(Personal Property ID #081360000) $1,560.86
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 rescind the
combined sum of $22,998.87 of personal property taxes associated with the three (3)
businesses identified in this Resolution.
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
OlHKOIH (920) 236 -5080 (920) 236 -5039 FAX
ON THE WATER
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Peggy Steeno, Finance Director
DATE: May 5, 2010
RE: Authorize Rescission of Personal Property Taxes
BACKGROUND
Per Wisconsin State Statutes, the removal of Property Taxes needs to be authorized by the Common
Council. Statutes enumerate six specific conditions under which a rescission is appropriate / necessary.
There are currently three businesses that have been incorrectly charged for Personal Property Taxes in
the current tax year (2009), and, in one case, the previous year (2008) tax was also incorrect; therefore,
the amounts overcharged need to be rescinded and refunded. The Assessor's staff verified that two of
the three businesses have new owners /operators that need to be assessed for the applicable time period,
and the other business was over assessed.
ANALYSIS
Below are the details and reasons that each of these is being presented for rescission. In addition, the
specific condition as outlined by State Statutes is included:
Personal Property 200361000 / The Fifth Third Leasing Company / 2900 Atlas Avenue -
$15,629.17 — (State Statute 74.33 (e) —A double assessment has been made.) — This leasing company
was assessed $683,900 as reported. However, the same equipment was also reported by Banc of
America Leasing, causing the double assessment. Therefore, our records were not correct. This has
been verified by the Assessor's office and the correction has been made.
Personal Property 025350000 / Blimpie's / 200 City Center, Suite G - $5,808.84 — (State Statute
74.33 69 —An arithmetic, transposition, or similar error has occurred.) — This business was not
operating in the City of Oshkosh during the years 2008 and 2009 since the previous owner /operator sold
the business to another party sometime in 2007; however, the City was not notified. Therefore, our
records were not correct. This has been verified by the Assessor's office and the correction has been
made. The new owner /operator will be assessed through the omitted tax process.
Personal Property 081360000 / Peabody's Ale House / 544 N Main Street - $1,560.86 — (State
Statute 74.33 (1) — An arithmetic, transposition, or similar error has occurred.) — This business was not
operating in the City of Oshkosh during 2009 since the previous owner /operator sold the business to
another party sometime in 2008; however, the City was not notified. Therefore, our records were not
correct. This has been verified by the Assessor's office and the correction has been made. The new
owner /operator will be assessed through the omitted tax process.
FISCAL IMPACT
The impact of the above rescissions is short term only, since, in the year that the taxes are rescinded, the
City notifies the Department of Revenue (DOR) of the rescissions, 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 authorize this resolution to rescind and refund the above noted taxes as
outlined.
Respectfully Submitted,
U
Peggy�no
Finance Director
Approved:
Mark Rohloff
City Manager