Will Garthwaite Support Doyle Property Tax Hike?

I heard Rep. Garthwaite say on the radio today that he was proud of Governor Doyle's State of the State speech. I certainly hope that this doesn't mean that Garthwaite plans to support the major property tax hike proposed by the unpopular Governor in that speech.

Here is a portion of a release from the non-partisan Wisconsin Property Taxpayers Inc. on Doyle's property tax proposal:

GOVERNOR CALLS FOR UNFAIR TAX AMENDMENT: WPT CALS FOR REJECTION

The Uniformity Clause of Wisconsin’s Constitution requires fairness in property taxation: equal taxes on equally valued properties, regardless of their classification.

In his State of the State address, Governor Doyle asked you to “begin the process of amending our Constitution…so we can direct property tax relief where people need it the most – on their homes.”

While the Governor was not specific about the amendment he was calling for, there are currently two Uniformity Clause amendments under consideration: AJR-8 and AJR-24/SJR-7. Under both amendments, renters, commercial, farm, and other business property owners would pay more than equally valued homes and more than under current law. (See April 9, 2009 LFB Memo to Rep. Ballweg)

Renters would pay more than owners of equally valued homes

Under both amendments, more than 633,000 hard working Wisconsin families and individuals who rent their homes and apartments would pay more than the owner-occupants of equally valued homes and condominiums next door or across the hall. Instead of receiving more property tax relief , those who rent would end up paying more property taxes on their homes under these amendments.

Tax shift could eliminate jobs, hamper recovery

According to the Legislative Fiscal Bureau, AJR-24/SJR-7 would have increased 2008(09) business property taxes by more than $200 million, the equivalent of 4,024 medium wage jobs. Increasing businesses’ property taxes when many are struggling to meet their payrolls could result in more business failures and job losses. This would tend to slow our recovery rate and reduce the impact of the Governor’s jobs initiatives.

Agricultural property taxes would increase

According to the Legislative Fiscal Bureau AJR-24/SJR-7 would have increased taxes on undeveloped, forest and agricultural forest land by 23.8% in 2008(09). This could lead to abandonment of thousands of acres and hundreds of farmsteads due to inability to pay taxes on their woodlands.

Homeowners’ taxes subject to Legislature’s whims

AJR-8 would allow future Legislatures to tax homeowners more or less from year-to-year. When school and local government spending increases more than state revenues, the Legislature could increase instead of lowering taxes on principal residences – the main source of property tax revenue - to help schools and local governments fill their revenue/spending gap.

Rep. Garthwaite campaigned on a similar tax shift scheme in the last election that he called HOPE so I expect that he will support the Governor on this plan. A quick search of the legislature's website seems to confirm this. Rep. Garthwaite is a lead author of AJR 24, the bill to increase property taxes on farmers, renters, and small businesses in order to subsidize others.