League's Model Resolution Opposing Elimination of Personal Property Taxes
Whereas, Representative Bob Kulp (R-Stratford) and Senator Tom Tiffany (R-Hazelhurst) plan to introduce legislation that would eliminate both the personal property tax and the computer aid payments made to local governments; and
Whereas, the total statewide personal property tax levy in 2013 (collected in 2014) was $290 million; and
Whereas, the State has been making computer aid payments to local governments since 2001 to offset the personal property tax exemption for computer equipment that was created that year, with the total payment for 2015 set at $83.8 million; and
Whereas, elimination of the personal property tax on businesses will result in even more of the property tax burden shifting to residential homeowners, who, on average already pay 70% of the statewide property tax levy; and
Whereas, the impact of eliminating the personal property tax will be greatest in the cities and villages where most of the personal property tax base is located, and
Whereas, fully exempting all personal property from the property tax will likely result in a reduction in the incremental levy for many tax incremental finance districts;
WHEREAS, in the Village/City of ___________, the loss of computer aid payment for exempt computers would mean $____________ less for the Village’s/City’s General Fund and $__________less for the Village’s/City’s TIDs, for a total decrease in state aid payments of $_______________; and
WHEREAS, in the Village/City of ___________, the shift to residential homeowners would be $_______________ of tax levy for just the Village/City portion of property taxes and the resulting equalized tax rate increase will be $______ per $1,000 valuation.
NOW THEREFORE BE IT RESOLVED, that the City/Village of ___________________ opposes any attempt by the State Legislature to eliminate the personal property tax and the computer aid payments local governments receive for tax-exempt computer and related equipment; and at a minimum, the loss in local tax base and resulting tax shift must be addressed before moving forward with the legislation.