HomeMy WebLinkAbout05. 16-481OCTOBER 11, 2016 16-481 RESOLUTION
(CARRIED 7-0 LOST________LAID OVER________WITHDRAWN________)
PURPOSE: SUPPORT LEGISLATION TO REFORM COMMERCIAL
PROPERTY TAX ASSESSMENT
INITIATED BY: CITY ADMINISTRATION
WHEREAS, recent litigation by national retail chains and other commercial
property owners has resulted in the valuation of those properties being significantly
reduced; and
WHEREAS, many of these reductions have relied upon what is known as the
“Dark Store Theory” that commercial property values should be based upon comparison
of those open and operating stores to the value of closed and vacant properties; and
WHEREAS, the Dark Store Theory argues for ignoring the cost of construction and
the value of ongoing leases and uses of the property and assuming that improvements
on these properties have little or no value beyond their current use and so should not be
included in, and may actually detract from, the value of the property as vacant for tax
valuation purposes; and
WHEREAS, this theory ignores long established principles of tax valuation and
results in an unfair shifting of the property tax burden to home owners who already pay
70% of the total statewide property tax levy in Wisconsin;
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the Common Council on behalf of the tax payers of the City of Oshkosh
urge the Governor and the State Legislature to protect home owners and small businesses
within communities from this shifting tax burden by passing legislation clarifying that
costs of acquisition and construction of property and the value of leases on properties
are appropriately factored into the valuation of properties and that assessors must, when
using the comparable sales method of valuation, consider as comparable those sales
exhibiting a similar highest and best use market segment, that are similar in current use
rather than similarly sized but abandoned properties.