Pending legislation
Assembly Bills 386 and 387
Late last month, the Assembly Committee on Ways and Means held a
public hearing on Assembly Bills 386 and 387 relating to
property tax assessments and closing the "Dark Store" loophole,
that I coauthored with Senators Roger Roth (R-Appleton) and Duey
Stroebel (R-Cedarburg). More than fifty-five individuals,
representing cities, towns, counties, villages, and school
districts, testified in favor of these proposals.
Assembly Bills 386 and 387 have wide bipartisan support--fifty
percent of legislators in both houses have cosponsored these
proposals--and were introduced at the behest of local units of
government, school districts, and other political subdivisions
that want to stop additional tax shifts from large retail stores
to homeowners and small businesses. The litigation and tax
refund costs associated with what is commonly referred to as the
"Dark Store Theory," have devastated our local units
of government and as such, it is imperative that a workable
solution is formulated.
These proposals, quite simply, clarify the best practices as
proscribed by the Wisconsin Property Tax Assessment Manual.
Moreover, they seek to provide clarity and direction
to the Board of Review and courts when determining the value of
property. The intent of these bills is to prevent further
potential tax shifts from big box stores to small businesses and
homeowners by ensuring assessments are fair and equitable for
all taxpayers. It is imperative to denote that neither of these
bills will result in an overall property tax increase. Local
governments work under strict levy limit caps and these bills do
not change the amount a community can tax, they only ensure that
the process is fair and equitable to everyone.
Assembly Bills 386 and 387 assess properties at their highest
and best use. Highest and best use is defined as, "the specific
current use of the property of a higher use to which the
property can be expected to be put in the immediate future, if
the use is legally permissible, physically possible, financially
feasible, and provides the highest net return."
Assembly Bill 386, provides that, for property tax assessment
purposes, to determine the value of a property using generally
accepted appraisal methods, an assessor must consider all of
the following as comparable to the property being assessed:
1. Sales or rentals of properties exhibiting the same or similar
highest and best use with placement in the same real estate
market segment.
2. Sales or rentals of properties that are similar to the
property being assessed with regard to age, condition, use, type
of construction, location, design, physical features, and
economic characteristics.
Additionally, this bill provides that a property is not
comparable to the property being assessed if the seller has
placed significant restrictions on the highest and best use of
the property or if the property is "dark" property and the
property being assessed is occupied. Assembly Bill 386 defines
"dark" property as property that is vacant or unoccupied beyond
the normal time period for a property in the same real estate
market segment.
The second proposal, Assembly Bill 387, provides that, for
property tax purposes, real property includes any leases,
rights, and privileges pertaining to the property that transfer
with the property shall be used in determining the value of that
property. Ordinarily, the best information for assessing a
property's fair-market value for property tax purposes is a
recent arm's-length sale of the property. This is true in
Wisconsin for all properties except single-tenant retail
facilities, which have relied on the Wisconsin Supreme
Court's 2008 ruling in Walgreen Company v. City of Madison,
to convince courts that their assessed values should be less
than half of the actual sale price of the property. A recent
example of this occurred when the Wisconsin Court of Appeals
relied on the aforementioned case to affirm that a single-tenant
retail facility in Appleton should be valued at $1.8 million,
significantly lower than the city's $4.4 million assessment,
which was based on an actual sale of the property. Appleton,
a result, must now issue a $350,000 tax refund to the
single-tenant retail facility.
Senator Duey Stroebel and I testifying before the Assembly
Ways and Means Committee.
Officials from local units of government throughout the state
came to Madison to testify in favor of Assembly Bills 386 and
387.
Public Bidding threshold
This week, the Assembly Local Government Committee will be
holding a public hearing on Assembly Bill 307, the "Threshold
Modernization Initiative," that I coauthored with Senators Duey
Stroebel (R-Cedarburg) and Devin LeMahieu (R-Oostburg). Assembly
Bill 307 increases the competitive bidding threshold for local
governments from $25,000 to $75,00. For local units of
government, costs of public works projects have
increased--precipitated in part by inflation--while the
threshold for triggering competitive bidding has remained
stagnant since 2005. As a result, local governments have been
required to competitively bid for small-dollar projects that, in
the past, would have fallen under the cap levels. For instance,
in 2015, the City of Mequon was required to bid a $39,000
project to remove ash trees. Subsequently, the City of Fond du
Lac had to bid a $35,000 project for park shelter renovations.
Providing more flexibility while continuing to require Class one
notices for public works projects, will benefit local local
communities across the state.
Additionally, Assembly Bill 307 requires that school districts
employ competitive bidding on public works projects exceeding
$75,000. Currently, school districts are exempt from
having to abide by competitive bidding regulations. This bill
requires school districts to competitively bid for large
expenditures, chiefly capital improvement projects akin to their
local counterparts. According to the Wisconsin Department of
Public Instruction, Wisconsin taxpayers, in 2016, approved, via
the referendum process, $1.34 billion in debt issuance for
capital improvement projects. Moreover, in 2017 alone, Wisconsin
taxpayers approved more than $700 million via the referendum
process; none of which were required to competitively bid
their projects.
By ensuring that, in the future, these projects are subject to
competitive bidding requirements taxpayers will potentially save millions of
dollars annually and school districts will be encouraged to
award projects to the lowest responsible bidder--a practice
currently employed by other local units of government. It is
imperative to denote that Assembly Bill 307 will codify best
practices employed by many school districts that currently
utilize self-imposed bidding requirements.
Wisconsin Private Colleges
Week
In addition to world-class public universities,
Wisconsin is fortunate to have two dozen private, non-profit
institutions of higher learning. July 10-15 is Private Colleges
Week, with events scheduled in every corner of the state. To
learn more and plan a trip to one or more campuses, please
visit:
http://www.wisconsinprivatecolleges.org/visit/register-private-college-week-visit.
Speaker's Task Force on
Foster Care
Assembly Speaker Robin Vos announced last week, the formation
of the Speaker's Task Force on Foster Care.
The Wisconsin Department of Children and Families reports 7,168
children resided in out-of-home care (OHC) in December 2015,
which is an increase from the previous year. The group of
lawmakers assigned to this task force will focus on ways to
improve the child welfare system that provides out-of-home care
for more than 7,000 Wisconsin children. The goal is to
help end the multi-generational cycle of government dependence
by strengthening community partnerships, and updating programs
to meet the changing needs of parents, children, and
communities.
Consumer Protection
Did you receive an order cancellation email from Amazon for a
product you do not remember ordering? It might be a scam. Do not
click on any links contained in the email. The Wisconsin
Department of Agriculture, Trade, and Consumer Protection is
aware of phishing scam involving fake Amazon order cancellation
emails and asks consumers to be suspicious of any analogous
emails they receive. If you click any links in the email, you
could unintentionally download malicious software onto your
device or be driven to a site that attempts to collect your
Amazon account username and password or other personal
information.
If you receive a cancellation email and you wish to inquire
further, do NOT click the links in the email. Instead, go
directly to
http://www.amazon.com or use the company's smart phone
application to check your account. If you share access to an
Amazon account with a family member, check with that person to
see if he or she cancelled the supposed order before you take any
additional action.
In many fraudulent emails, you can check the sender's email
address for an easy tipoff--the web address (URL) referenced the
sender's email address does not match the actual URL for the
business in question. For example, a fake email that claims to
come from Amazon may have a sender address of
"JoeSchmo@somefakecompany.com instead of "___@ amazon.com."
But some of these phony Amazon cancellation emails have had
"spoofed" sender addresses that actually appear to come directly
from "__@amazon.com. Consumers should be aware that spoofing of
email addresses is possible and that that the displayed sender
address may not be legitimate.
With this in mind, the best way to avoid being scammed is to
delete similar emails and go directly to Amazon.com or
the company's smart phone application to check your account.
Follow these additional tips to spot and avoid spam emails:
-
Hover your mouse over any link in the
message (again, do not click your mouse). The URL that the
link points to will appear in the bottom of your browser
window. If it does not match the sender's URL, the email is
likely fake.
-
Be suspicious of any request to open an
attached file or click a link (e.g. "view your account" or
unsubscribe here"). Either action could lead you to a
compromised website where your device and personal
information are at risk.
-
Watch for poor grammar, misspellings,
awkward language and a general lack of professionalism.
Legitimate corporate emails will be clear and grammatically
accurate.
-
Refuse requests to reply to an email with
confidential information such as usernames, passwords, and
personal details.
For additional information, visit the
Consumer Protection Bureau or send an e-mail to
datcphotline@wisconsin.gov or call the Consumer Protection
Hotline at 1-800-422-7128.
This week in the district
I had the opportunity, this week, to attend the
Eagle Scout Court of Honor Ceremony for six members of Boy Scout
Troop 875, Port Washington, WI: Brandon Baumann; Jonathan
Bischoff; Samuel Heinecke; Noah Irish; Erik Moe; and Hans Pfrang. Congratulations
to these young men on their accomplishments and hard work.
Presenting Eagle Scout plaques to six members of Boy Scout
Troop 875, Port Washington.
Eagle Scouts from Boy Scout Troop 875, Port Washington.
In-district legislative video
My staff and I, earlier this month, toured Advent Lutheran
Church's recently constructed columbarium, a first-class
facility with an area for the public to gather by the river. A
few of my constituents who are members of this congregation
contacted me seeking clarification for the definition of
columbarium under state statute. Advent Lutheran was unable to
place a columbarium on their church premises, as statute
considered columbarium to be a mausoleum, which would have
violated local zoning ordinances. Together, members of the
congregation, local leaders, and I were able to navigate through
the legislative process to update the statute. As a result of
our efforts, deceased congregants are able to have their final
resting place in their desired location. A video that my office
produced pertaining to Advent Lutheran's Columbarium, can be
viewed below by clicking on the photograph.
Have a great week,
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