HomeMy WebLinkAbout29. 19-158 MARCH 12, 2019 19-158 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: RESCIND PERSONAL PROPERTY TAXES — FESTIVAL FOODS
TITAN FEST INC ($23,331.47)
INITIATED BY: DEPARTMENT OF FINANCE
WHEREAS, the following property taxes were assessed improperly, per
Wisconsin State Statutes 74.33 (1) (c) and rescission of the tax due is appropriate:
FESTIVAL FOODS—TITAN FEST INC
C/O SKOGEN'S SUPPORT CENTER
3800 EMERALD DR E
ONALASKA, WI 54650-6760
(PP #138700000) 2018 $23,331.47
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
above sums.
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
74.42.
Funds for this purpose are appropriated from:
Account No. 0100-0908-6469 General Fund - Uncollectible Accounts
TO: Honorable Mayor and Members of the Common Council
FROM: Trena Larson, Director of Finance
DATE: March 5, 2019
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.
This property was incorrectly assessed for the tax year 2018. Therefore, the taxes that were incorrectly
charged need to be rescinded. The Assessor's staff verified this rescission is accurate and necessary.
ANALYSIS
Below are the details and reason this is being presented for rescission. In addition, the specific
condition as outlined by State Statutes is included:
State Statute 74.33 (1)(c) — The property is exempt by law from taxation.
Personal Property —138700000 / Festival Foods — Titan Fest Inc / 2415 Westowne Ave -
$23,331.47
FISCAL IMPACT
The impact of the above rescission is short term only, since in the years that the taxes are rescinded, the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,
%tea Zawm
Trena Larson
Finance Director
Approved:
-11""
Rohloff
City Manager
Finance Department
City Hall, 215 Church Avenue P.O. Box 1 130 Oshkosh, WI 54903-1 130 920.236.5005 http://www.ci.oshkosh.wi.us
RESCISSION OR REFUND OF TAXES BY TAXATION DISTRICT
Date: February 22nd, 2019
To: City Finance Director & Deputy Finance Director
From: Luke Alger, Assessor's Office
Description:
Assessment Year
R. E. Parcel or Pers. Property Acct #
Location of Property
Tid #
Owner Name
R.E. Legal Description
R.E. or P.P. Class
Calculation:
Assessed Value before Adjustment
- Assessed Value after Adjustment
= Amount of Assessment Adjusted
Tax Rate Applied 24.747
Amt. Of Tax to Rescind or Refund
- Lottery Credit to be applied
=Net Tax to Rescind or Refund
If refund, date taxes paid 2/5/19
2018
PP #138700000
2415 Westowne Ave
Festival Foods - Titan Fest Inc
Personal Property
Pers. Prop. Land Improvement Total
1,416,600 1,416,600
473,800 473,800
-942,800 0 0 -942,800
Mark the Basis for Rescinding or Refunding (Wisc.Stats. 74.33):
23, 331.47
23,331.47
a. A clerical error has been made in the description of the property or in the computation of the tax.
b. The assessment included real property improvements that did not exist on the assessment date.
C. X The property is exempt by law from taxation.
d. The property is not located in the taxation district for which the tax roll was prepared.
e. A double assessment has been made.
f. An arithmetic, transposition, or similar error has occurred.
Explain Reason in Detail: (Attach addendum or documentation if needed)
Assessment included assets that were exempt under Act 59.
Signature City Assessor
f0074100007s
January 28, 2019
Pamela Ubrig
City Clerk — City of Oshkosh
215 Church Ave.
PO Box 1130
Oshkosh, WI 54903-1130
—ONALASKA SUPPORT OFFICE
3800 Emerald Drive East ! Onalaska, WI 54650 608-783-5500
Re: Titanfest, Inc dba Festival Foods
Parcel number 138700000
Personal property taxes
Dear Ms. Ubrig:
RECEIVED
FEB 0 6 2019
ASSESSORS OFFICE
OSI]KOSII. \�/ISC'ONSIN
We hereby file a claim for refund under Wisconsin Statutes 74.35 [Recovery of unlawful taxes]
for the personal property taxes assessed to Titanfest, Inc. for the 2018 tax year related to assets
specifically exempt as machinery under 70.111(27)(a).
On January 3, the Wisconsin Attorney General provided clarification that the machinery
exemption applied regardless of the 2017 reporting schedule. This exemption has been allowed
for us in 22 of the 35 jurisdictions we have locations, and for other Wisconsin grocers in other
jurisdictions. However, the assessor for your jurisdiction has not accepted the 2018 return as
filed claiming various assets as machinery and not reportable on Schedule D. These assets meet
the definition associated with Schedule C assets for the 2017 tax year. Therefore, when the law
was changed to create an exemption for machinery, these assets became exempt.
Titanfest, Inc. has previously paid the assessed tax for $35,466.00 due on January 31, 2019, by
check number 425068. A copy of the tax bill has been included. Therefore, the claim for refund
is in the amount of $33,777.27, plus any applicable interest under 74.35(4).
Please contact me directly if you have any questions at (608) 779-2720.
Sincerely,
Sandy Kjome
Controller
Skogen's Festival Foods
Enclosures