THE LATEST The Institute for Wisconsin's Future newsletter on tax policy

The Institute for Wisconsin's Future newsletter on tax policy
Wisconsin citizens want strong communities, reasonable taxes and a revenue system in which all individuals, businesses and organizations pay a fair share. This monthly email newsletter covers current research, community organizing and political activity in support of a fair tax system which adequately funds services for the common good.


State leaders address tax fairness

State Senator Dave Hansen introduced the Corporate Tax Accountability Act (SB367) in December which will require publicly-held corporations to report their earnings and tax payments to the Wisconsin state government which will, in turn, make this information available to the public. This bill affects less than 1% of all Wisconsin companies, primarily the large multi-state businesses. Co-sponsors include nine senators and nineteen assembly representatives. Assembly Representative Phil Garthwaite plans to introduce an Assembly version.

In addition, State Senator Bob Jauch has been named chairman of the Senate Tax Fairness and Family Prosperity Committee. The first meeting on January 10 featured Wisconsin Dept. of Revenue Secretary Roger Ervin discussing the Tax Incidence Study, a report completed in 2006 which discusses how the distribution of tax responsibilities impact Wisconsin residents. One key finding of the report was that overall, state taxes cost lower income married homeowners a greater portion of their income than they cost affluent households. This regressive pattern is caused in part by state tax policies that rely substantially on property taxes as the primary source of state and local revenue. The meeting on January 30 will focus on the loopholes large corporations use to avoid paying their share of state and local taxes.
Budget woes close Prairie du Chien tourist center
State tourism officials announced the Prairie du Chien travel information center will be permanently closed due to budget constraints. The tourism department must cut $500,000 a year for two years and $1 million within 18 months. The center attracts about 70,000 people annually. Another tourist center in Genoa City, along the Illinois border, will also be closed. Prairie du Chien Mayor Cheryl Mader called the decision short-sighted.
Crawford County Board Chairman Ron Leys said the city feels as if it has been abandoned by the state. “We’re like the Appalachia of Wisconsin,” he said. “We have beautiful scenery, but the average salary is $10,000 less than the state average. We need help from the state, but we’re not getting it.”

http://www.lacrossetribune.com/articles/2007/12/11/news/01first.txt

Up in smoke
On January 1st, Wisconsin raised the tax on all tobacco sales. The dollar-per-pack increase means Wisconsin smokers will now pay $1.77 in taxes on every pack of cigarettes. It's the 12th highest tobacco tax in the nation. The campaign for Tobacco-Free Kids predicts the higher tax will stop nearly 66,000 Wisconsin children from starting smoking, and it will help more than 33,000 smokers quit. The campaign estimates the state will save about $1.5 billion in long-term smoking-related health care expenses.
http://www.wsaw.com/home/headlines/12914912.html



Muskego fights Christmas tree tax scam


Parkland Venture LLC bought a viable commercial property in Muskego for condo and retail development but is now claiming it is a “Christmas tree farm” to avoid paying the commercial property taxes. Parkland bought the paved land on the corner of Lannon Road and Janesville in 1997. Since Parkland cannot get a developer to pay the $8 million it is asking, and commercial property taxes are higher than those on agricultural land, Parkland removed the top layer of blacktop and put in tiny white pine plants in late 2004. By spring the trees were dead and the city refused to give Parkland an agricultural tax cut for 2005. In November of 2006, Parkland tried again with bigger plants and started a legal battle with the city to get the land re-categorized as agricultural. For 2005 and 2006, Parkland was charged $50,000 each year for commercial property taxes -- which it refused to pay. With interest, Parkland now owes Muskego about $128,000 in back property taxes. Meanwhile, the court decided to grant the company an agricultural use permit for 2007. This year, Parkland owes $40.78 for taxes on the property and is trying to get the back taxes excused. Nearby residents have not seen anyone "working the land" since 2006. If there are Christmas trees, they are buried in weeds and no one in the area has bought their holiday tree at the site. It's a Christmas miracle -- for Parkland Venture LLC.

NOTE: The new IWF corporate tax study is available on the IWF website -- http://www.wisconsinsfuture.org There is also an IWF op-ed on the Disclosure bill printed in the Milwaukee Journal Sentinel on January 4.