2017-1422 FILE RESOLUTION NO. 2017 - 1422
A proposed resolution urging the Governor and Legislature to close loopholes
that shift a greater property tax burden from commercial to residential properties
WHEREAS, homeowners in Wisconsin pay over 70% of the total statewide property tax
levy; and
WHEREAS, the disproportionate burden of property taxes on home owners will worsen
unless legislators take action to close loopholes in property tax law that some national
chain stores use to gain substantial reductions in property taxes; and
WHEREAS, lawsuits in Wisconsin are forcing assessors to reduce the market value of
thriving national chain stores, shifting the tax burden to local businesses and home
owners; and
WHEREAS, some national chain stores in Wisconsin have argued in communities
across the state that the assessed value of their property for property tax purposes
should only be half of its actual value on the open market; and
WHEREAS, some national chain stores are using what is known as a "Dark Store"
strategy to argue that the assessed value of a new, thriving store should be based on
comparing their buildings to nearby vacant or abandoned stores from a different market
segment; and
WHEREAS, in many cases, courts have sided with national chain stores, requiring
communities to refund tax revenue back to the chain stores; and
WHEREAS, on two occasions in the last two years, the Indiana Legislature
overwhelmingly passed legislation prohibiting assessors from valuing new big box
stores the same as nearby abandoned stores from a different market segment; and
WHEREAS, the Michigan State house overwhelmingly passed similar legislation in May
of 2016.
NOW, THEREFORE, BE IT RESOLVED, that the Common Council of the City of
Janesville does hereby urge the Governor and Legislature to protect local businesses
and home owners from having more of the property tax burden shifted to them by
passing legislation that allows for leases to be appropriately factored into the valuation
of leased properties; and
BE IT FURTHER RESOLVED, that the Common Council does hereby urge the
Governor and Legislature to enact legislation requiring assessors to consider as
comparable only those sales within the same market segment exhibiting a similar
highest and best use rather than similarly sized, but vacant, properties in abandoned
locations when using the comparable sale method of valuation; and
BE IT FURTHER RESOLVED, that the Common Council directs the Clerk to send a
copy of this resolution to Governor Scott Walker and the City of Janesville's legislative
delegation.
ADOPTED: May 8, 2017 Motion by: Consent
Second by: Consent
APPROVED: / Councilmember Aye Nay Pass Absent
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i ..tl Conley X
Farrell X
Mark A. reitag, City Manager Gruber X
Jorgensen X
ATT : : Marklein Marklein X
Williams X
Wolfe X
Davis T. Godek, Cit Clerk-Treasurer
APPROVED AS TO FORM:
Wald Klimczyk, City Attorney
Proposed by: City Assessor's Office
Prepared by: City Manager's Office
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