HomeMy WebLinkAbout29. 19-227 APRIL 9, 2019 19-227 RESOLUTION
(CARRIED 7-0 LOST LAID OVER WITHDRAWN )
PURPOSE: A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF
OSHKOSH, WINNEBAGO COUNTY, WISCONSIN REQUESTING
THAT THE WISCONSIN STATE LEGISLATURE REAFFIRM ITS
COMMITMENT TO REIMBURSE LOCAL GOVERNMENTS IN
THEIR ENTIRETY FOR PERSONAL PROPERTY EXEMPTIONS
FOR MACHINERY
INITIATED BY: CITY OF OSHKOSH COMMON COUNCIL
WHEREAS, in the 2017-19 State Budget, the Wisconsin Legislature created a new
personal property tax exemption for "Machinery'; and
WHEREAS, the Legislature agreed to fully reimburse local governments the
amount of lost personal property tax revenue based on the exemptions listed on
"Schedule C" of the 2017 personal property tax valuation statement; and
WHEREAS, on January 3, 2019, Attorney General Schimel issued an opinion in
which he determined that the definition of "Machinery" should be more broadly applied
to all machinery regardless of its inclusion on Schedule C; and
WHEREAS, this revised, broad definition of "Machinery" has resulted in lost
personal property tax revenue that was not originally intended by the Wisconsin
Legislature; and
WHEREAS,for the City of Oshkosh, this revised definition has already resulted in
lost value of$7.8 million, with additional lost revenue in excess of$82,000 annually; and
WHEREAS, this loss will continue to increase as other businesses become aware
of this new tax exemption and take advantage of this new legal interpretation; and
WHEREAS, as this exemption widens, the long-term effect will be that the
property tax burden will shift to residential property taxpayers, thereby increasing
residential property taxes.
APRIL 9, 2019 19-227 RESOLUTION
CONT'D
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of
Oshkosh:
1. That the Wisconsin State Legislature seek input from local governments on the
true fiscal impact of the "Machinery' exemption as defined by the statute and
interpreted by the Attorney General's opinion; and
2. That the Legislature amend the formula reimbursement for municipalities to
reflect all "Machinery" exemptions through 2021 taxation year to allow time
for an equitable reimbursement to local governments as businesses continue to
take advantage of this new exemption.
BE IT FURTHER RESOLVED THAT the City Manager or his designee is hereby
directed to send a copy of this resolution to the representatives of the City of Oshkosh in
the Legislature as well as any other individuals or entities with an interest in or authority
over this matter in the judgment of the City Manager.