Number
010132
Version
ORIGINAL
Reference
Sponsor
ALD. HENNIINGSEN
Title
Resolution directing the Department of Administration - Intergovernmental Relations Division to seek introduction and passage of state legislation exempting business improvement districts from real and personal property taxation on property owned by such districts.
Analysis
This resolution directs the Department of Administration-Intergovernmental Relations Division to seek introduction and passage of state legislation that would exempt business improvement districts in cities of the 1st class from property taxes on real property and personal property used exclusively for the purposes of the districts,as specified in the annual operating plans approved by the governing bodies of these cities.
Body
Whereas, Under current state law (s.66.1109, Wis. Stats.), a municipality may create a business improvement district (BID), upon being petitioned to do so by owners of real property used for commercial purposes, if a number of steps are taken; and
Whereas, A BID is a specific geographical area of the city in which property owners pay special assessments to cover the costs of capital improvements or business promotion activities; and
Whereas, The Common Council approves annually a BID's operating plan which relates to the development, maintenance, operation and improvement of the BID; and
Whereas, BID assessments are used to pay for either soft costs (e.g., salary of executive director, office costs, marketing expenses, etc.) or capital
improvements; and
Whereas, A BID performs valuable services which benefit the entire community, and functions as an extension of the municipality; and
Whereas, BIDs engage in the purchase and rehabilitation of distressed buildings which enhance the assessed valuation of the surrounding areas as well as in the provision of important services such as street-sweeping, security, business area promotion and streetscaping; and
Whereas, The taxes that BIDs must pay on rehabilitated buildings and
street-sweeping and other equipment they own are a disincentive to expansion of certain services provided by BIDs; and
Whereas, It is in the best interest of the City that state legislation with respect to BIDs be amended to remove these adverse tax consequences; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of Administration-Intergovernmental Relations Division is directed to seek introduction and passage of state legislation that would exempt BIDs in cities of the lst class from property taxes on real property and personal property owned by BIDs and used exclusively for the purposes of the BIDs, as specified in the annual operating plans approved by the governing bodies of these cities.
Requestor
Drafter
LRB01175-1
TWM/cac
5/4/2001