Committee wrong on budget item
Last week, the Legislature’s Joint Finance Committee (JFC) announced a list of 280 items it had cut out of Gov. Tony Evers’ budget proposal.
By itself, this is not an unusual measure and is even less surprising given the toxic relationship between Evers, a Democrat, and the Republican-controlled Legislature. Even in years when the governor and the Legislature are not so politically divided, it is common to see items removed from the budget proposal for a variety of reasons.
What is deeply disappointing is that, once again, the Legislature is proving itself more in the pocket of the Wisconsin Manufacturers and Commerce and less responsive to citizens and municipalities by blocking efforts to close the state’s dark store assessment rules.
Current state assessment policies create a loophole where big box retailers argue to have their property tax assessment lowered because of vacant buildings in the region. In many cases, these vacancies were created by the retailers themselves as they built new locations or relocated stores. Rather than struggling, these large retailers continue to bring in revenue and sucking up municipal services without paying their fair share when it comes to local property taxes. This becomes more egregious when you factor in that local governments routinely use public dollars to provide economic incentives to developers to help build store complexes especially in regard to roads and utility infrastructure. In many cases, the financing plans for these investments are based on seeing an increase in property value and growth.
This dark stores loophole has resulted in a tax shift from commercial property to residential properties, putting the burden on local families while the corporations prosper.
Closing the dark store loophole has been a bipartisan cry for several years, but each time legislation moves forward it is blocked by leadership bowing to the demands of industry lobbyists. Due to the fiscal impact the dark stores loophole has on local governments and citizens, addressing it as part of the comprehensive state budget legislation seemed the best option available.
Among the several hundred pieces of legislation that pass through the Wisconsin Legislature every two years, the state budget is the most important one. It sets the agenda for the next two years and is a potent political tool used by the leaders of both parties as they seek to acquire or maintain power in Madison.
Gov. Evers’ budget proposal was admittedly bloated as the governor sought to play up to his base by calling for minimum wage increases, repeal of Scott Walker’s Act 10 provisions, and the decriminalization of recreational marijuana use.
While there are some legitimate issues which need their own legislative action rather than being rolled into a budget bill, closing the dark store loophole should be a priority and done by whatever means are needed to make it happen.
Homeowners shouldn’t have to carry the burden for tax-dodging mega retailers.
