July 12, 2021 | Number 28
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Governor Evers Vetoes Personal Property Tax Repeal
Last week, Governor Evers vetoed AB 191, legislation repealing the personal property tax on businesses. In his veto message the Governor said he was concerned that the bill created potential unintended consequences for railroad and utility taxes paid to the state as well as the manufacturing and agriculture tax credit. The governor also expressed concerns about the unusual arrangement the Legislature created between the compensating aid payments to local governments and the exemption of personal property, which was designed to avoid the Governor's line item veto authority.
However, the Governor left the funding the Republican led Legislature included in the state budget to hold communities harmless from the repeal in 2023. The Governor called on the Legislature to pass a new version of the repeal bill for his consideration. He said he welcomed additional legislative action to meaningfully address his technical concerns about the bill.
Read the Governor's veto message here.
The League has consistently taken the position that as long as the Legislature provides for a reimbursement program that is adequately funded, we would not oppose repealing the personal property tax.
Governor Evers Vetoes Local Redistricting Bill
On Friday, the Governor vetoed AB 369, a bill the League supported that adjusts the statutory deadlines by which counties and municipalities must accomplish various steps in the local redistricting process following the 2020 federal decennial census. Due to the COVID 19 pandemic, the Census Bureau is months behind in releasing the 2020 census data to states. The data is expected to be released sometime in August, but may not arrive until late September.
The League joined with the Wisconsin Counties Association in developing this legislation to provide local governments with certainty as to when the local redistricting process must be finalized given the uncertainty as to when the state will receive the 2020 census data from the US Census Bureau.
Read the Governor's veto message here.
As a result of this veto, municipalities and counties will be forced to rush through each step of the local redistricting process in a highly compressed timeframe in order to have the new county supervisory district and aldermanic district maps completed and adopted by the end of November, 2021. League staff is working with the Wisconsin Counties Association on drafting a recommended timeline for completing each step of the local redistricting process by the end of November. We will share the recommended timeline with communities as soon as our two associations finalize the document within the next couple of weeks. Please stay tuned for more information.
Governor Evers Signs State Budget after making 50 Vetoes
Last week, Governor Evers signed into law the 2021-2023 state budget as Wisconsin Act 58. The Governor issued 50 vetoes regarding individual provisions in the bipartisan plan passed by the Legislature last week.
None of the Governor's vetoes directly impact municipalities. For a summary of items in the State Budget affecting municipalities see the July 7th Legislative Bulletin.
League Files Amicus Briefs in two Property Tax Cases
In recent weeks, the League filed amicus briefs in the following two cases before the Wisconsin Supreme Court:
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State of Wisconsin ex rel. City of Waukesha v. Salem United Methodist Church. The issue at stake in this case is whether a municipality may appeal a decision of the Board of Review after it reduces a property's assessed valuation. The Court of Appeals concluded that a municipality may not appeal a board of review decision. We argue in our amicus brief that Wis. Stat. sec. 70.47(13) allows municipalities to seek certiorari review of board of review determinations.
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State of Wisconsin ex rel. Nudo Holdings, LLC v. Board of Review for the City of Kenosha. This case examines the definition of agricultural land and specifically looks at whether the existence of walnut trees and pine trees on a vacant and unimproved parcel of land in the City of Kenosha, which the owner intends to develop into single family housing lots qualifies as agricultural use for assessment purposes. The board of review concluded the land should be classified as residential, not agricultural. The circuit court and court of appeals agreed. We argue in our amicus brief that because the property was not "devoted primarily to agricultural use," as required by Wis. State sec. 70.32(2)(c)1g., the property was appropriately classed as residential for assessment purposes.
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RECENTLY INTRODUCED LEGISLATION
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SB 442, Violence Prevention Grants. This bill directs the Department of Health Services to establish a program to award grants to cities and counties to conduct violence prevention programs. Under the bill, the amounts collected from the excise taxes on vapor products are appropriated to fund the grants. The bill also requires DHS to establish a violence prevention grant committee to award the grants. By Senator Larson (D-Milwaukee) and Representative Bowen (D-Milwaukee). The League supports this bill.
SB 444, Preference in State and Local Government Contracts and Procurement of Materials Manufactured in the U.S. Under this bill, with limited exceptions, the state must purchase materials that are manufactured to the greatest extent in the United States, regardless of whether all other factors are substantially equal. The bill also requires, with limited exceptions, that a contract for a public works or public improvement project must contain a provision requiring the contractor to use materials that are manufactured in the United States. The bill creates a similar provision for local governments. By Senator Pfaff (D-Onalaska) and Representative McGuire (D-Kenosha). The League is reviewing this bill.
SB 448, Including an Estimate of Interest on Bonding Referendum Questions. Under current law, whenever a municipality, county, or school district must hold a referendum seeking voter approval for issuing bonds, the referendum question must include a statement of the purpose for which bonds are to be issued and the maximum amount of the bonds to be issued. Under this bill, the statement included with the referendum question must also provide the estimated amount of the interest accruing on the amount of the bonds, along with the interest rate. If the interest rate is a variable rate, the statement must also specify the amount of the interest accruing on the amount of the bonds calculated using the lowest rate and the highest rate. By Senator Jacque (R-De Pere) and Representative Cabral-Guevara (R-Appleton). The League is reviewing this bill.
SB 452, State Minimum Wage and Allowing Local Minimum Wage Ordinances. Under that law, the current minimum wage for most employees is $7.25 per hour. This bill raises the minimum wage for most employees to $10.15 per hour on the effective date of the bill and $15 per hour one year after the effective date of the bill. The bill also repeals a number of current law provisions including the establishment of a separate, lower minimum wage for tipped employees. Finally, current law prohibits a city, village, town, or county from enacting and administering an ordinance establishing a minimum wage. This bill eliminates that prohibition. By Senator Agard (D-Madison) and Representative Subeck (D-Madison). The League is reviewing this bill.
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PUBLIC HEARINGS THIS WEEK
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There are currently no hearings scheduled this week at the State Capitol.
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IN THE NEWS
(Paywalls may apply)
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Gov. Tony Evers Signs State Budget, Including GOP-Backed Tax Cut Read the article.
Wisconsin Supreme Court says DNR has authority to limit animals, wells Read the article.
Evers vetoes bills eliminating personal property tax, creating legislative HR office Read the article.
Internet services now included under state emergency rental and utility assistance program Read the article.
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League's next Member Roundtable via Zoom
July 13, 2021, 12:00-1:00
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Chief Executives Summer Workshop
August 19 & 20, 2021 – Hotel Retlaw, Fond du Lac
Please thank our sponsor! MPIC
2021 Municipal Attorneys Institute
Monday -Wednesday!
August 30 – September 1, 2021
Osthoff Resort, Elkhart Lake
Please thank our sponsors!
Local Government 101
For New & Experienced Local Officials and Staff
Sept. 10 in Waupaca in person (capped at 65)
Please thank our sponsors!
2021 Plumbing Inspectors Institute
September 15-17, 2021 Eau Claire
Hotel Lismore
Municipal Assessors Institute 2021
Sept 28-30, 2021 in Oshkosh
Best Western Premier Waterfront Hotel & Convention Center
Building Inspectors Institute
October 6-8, 2021
Lismore Hotel, Eau Claire
Police & Fire Commission Workshop
November 3, 2021 in Wisconsin Dells
Wilderness Resort, Glacier Canyon Conference Center
The League's 123rd Annual Conference
Room Block at the Conference Hotel is NOW OPEN!
Pre-conference Webinars October 12-14 Via Zoom
Annual Conference October 20-22
K-I Center, Green Bay
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