The April 15^th deadline for filing income tax returns has passed; however, the “tax season” in Wisconsin is far from over according to Governor Doyle and the provisions he has included within his 2009-2011 Budget.  On April 9^th, The Wall Street Journal reported that Wisconsin is one of ten states considering “some kind of major increase in sales or income taxes” to repair its budget deficit.  My colleagues and I received a strong message of disapproval last week when nearly 6,000 residents traveled to Madison to participate in the Tea Party and protest against the tax increases proposed in the Governor’s Budget.  With the statewide unemployment rate now at 9.4%, the closure of one company after another, and cycle after cycle of layoffs, the last thing Wisconsin needs right now is more taxes.  Proposals included in the budget, such as the oil franchise tax, higher property taxes, and increased income taxes on job creators will surely hinder the efforts being made to reinvigorate the state’s economy. 

If signed into law this summer, the Governor’s budget – in its current form – would impose an oil franchise tax of not more than 3% on the gross receipts from the sale of motor vehicle fuel at local gas stations.  This would increase the overall taxes paid for fuel to more than $.55 per gallon, making Wisconsin the second-highest state in the nation for gasoline taxes (trailing only the state of New York).  Wisconsin is currently ranked 8^th.  In recent days, the Governor has mentioned substituting a 3 cent per gallon gas tax increase for the oil franchise tax.  Whether it's the oil franchise tax or a flat tax on each gallon of gas, the end result is the same – increased gas prices for consumers. 

As if the increased cost to drive in Wisconsin wasn’t enough, it will become more expensive to own a home under the proposed Budget.  According to the nonpartisan Legislative Fiscal Bureau, a provision included within the Budget will reduce the aid payments allocated to counties and municipalities.  This would severely impact the funding relied on by local and county governments to pay for transportation and community programs.  The only way to ease the strain this will inflict upon county and local budgets is by increasing property taxes.  The projected result would be an increase of 3.2% for 2009-2010 and 4.5% for 2010-2011 in the property taxes paid on a median-valued home estimated at about $166,000 (and declining).  To learn more about how the property tax changes could affect you, please use the following link to review the memo provided by the Legislative Fiscal Bureau: http://www.legis.state.wi.us/lfb/Misc/2009_04_08_WI%20Leg_property%20tax%20estimates.pdf.

In addition to the information on property taxes, the Legislative Fiscal Bureau also prepared a memo regarding the tax and fee modifications included in the budget.  To review this information, please use this link: http://www.legis.state.wi.us/lfb/2009-11Budget/Governor/2009_03_18WILeg_tax%20and%20fee.pdf.   

I will keep a close eye on the progress of the 2009-2011 Budget as it works its way through the Joint Finance Committee to the Assembly floor.  Be assured that I stand in strong opposition to the proposed tax increases as well as any other provision that could make living in Wisconsin even more expensive for hard-working taxpayers.

The Wisconsin Towns Association recently held their "Day at the Capitol".  Pictured above  (L-R) Ben Harbach, Town of Somers; Ron Kammerzelt, Town of Paris; Rep. Kerkman; Virgil Gentz, Town of Paris; and Rich Gosling, Town of Bristol.

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