City of Manitowoc Opposes TP Amendment

The City of Manitowoc opposes the proposed TP Amendment, which is basically the TABOR pig with lipstick -- the failed Colorado initiative.

• The proposed constitutional amendment would severely restrict the City of Manitowoc's ability to foster and serve new economic development because the growth formula is capped at 60% rather than 100% of new construction, and the revenue limits apply to debt servive levies and TIF levies.
• TheTP Amendment interferes with the elected City of Manitowoc Common Council's control over municipal taxing and spending decisions, and undermines Wisconsins's tradition of representative democracy.
• Furthermore, the proposed TP Amendment will not reduce property taxes because it severely restricts other forms of revenue, like stormwater utility fees, building permit fees, license fees and impact fees that help to reduce the property tax cost of essential services, and that fairly assess the cost of services according to use.
• The TP Amendment fails to recognize that Wisconsin municipalities are a diverse group with great variation in economic conditions, tax base and reliance on shared revenues.
• The TP Amendment unfailry penalizes poorer communities as well as those that have been particularly frugal and efficient in recent years by applying the same revenue limits on all communities regardless of local conditions.
• The TP Amendment makes it difficult to modify the revenue limits in the future...making it impossible to respond quickly to emergencies.
• The City of Manitowoc's elected officials have consistently demonstrated their commitment to controlling spending and reducing the property tax burden on homeowners, and share the Legislature's concerns about high property taxes in this state.
• The City of Manitowoc believes there are better ways to lessen the residential property tax burden than inserting revenue limits into the constitution including:

1. Working with local governments to develop and enact proposals fundamentally reforming how local government is structured and financed in this state;
2. Reducing the number and scope of property tax exemptions created for special interests. Increases in property tax exempmtions have unfairly shifted more of the burden for paying for municipal services onto homeowners. In 1970, residential owners paid 50% of all property taxes in Wisconsin. Today, they pay over 70%.
3. Providing municipal officials with the flexible tools they need for controlling property taxes locally.
4. Increasing state funding of shared revenues.