AJR109: Joint Resolution Text

LRB-4510/1

PJD:kmg:jf

1999 - 2000 LEGISLATURE

1999 Assembly JOINT RESOLUTION 109

March 9, 2000 - Introduced by Representative Musser. Referred to Committee on Government Operations.

AJR109,1,6 To amend section 1 of article VIII; and to create section 11 of article VIII of the constitution; relating to: authorizing cities, villages, towns and counties to levy individual income taxes and sales and use taxes; prohibiting them from levying property taxes in excess of the amount currently levied; and requiring the payment to this state of amounts collected in excess of the amount currently levied (first consideration).

Analysis by the Legislative Reference Bureau

This proposed constitutional amendment, proposed to the 1999 legislature on first consideration, authorizes cities, villages, towns and counties to levy individual income taxes and sales and use taxes; prohibits them from levying property taxes in excess of the amount currently levied; and requires the payment to this state of amounts collected in excess of the amount currently levied.

The sales and use taxes may only be levied by a city, village, town or county on the same property, services, use and consumption that are subject to the sales and use taxes imposed by this state and for which the taxable event occurs in the governmental unit. Income taxes may only be levied by a city, village, town or county on the same net taxable income and the same individuals and fiduciaries that are subject to the income taxes imposed by this state who are residing in the governmental unit, which taxes may be graduated and progressive.

The imposition of a tax, the increase of the rate of the sales and use tax or the increase of any of the rates of the income tax by a city, village, town or county requires the approval of two-thirds of the members present of the governing body of such a governmental unit.

A proposed constitutional amendment requires adoption by 2 successive legislatures, and ratification by the people, before it can become effective.

AJR109,2,1 Resolved by the assembly, the senate concurring, That:

AJR109, s. 1 Section 1. Section 1 of article VIII of the constitution is amended to read:

AJR109,2,16 [Article VIII] Section 1. The rule of taxation shall be uniform but the legislature may empower cities, villages or towns to collect and return taxes on real estate located therein by optional methods. Taxes shall be levied upon such property with such classifications as to forests and minerals including or separate or severed from the land, as the legislature shall prescribe. Taxation of agricultural land and undeveloped land, both as defined by law, need not be uniform with the taxation of each other nor with the taxation of other real property. Taxation of merchants' stock-in-trade, manufacturers' materials and finished products, and livestock need not be uniform with the taxation of real property and other personal property, but the taxation of all such merchants' stock-in-trade, manufacturers' materials and finished products and livestock shall be uniform, except that the legislature may provide that the value thereof shall be determined on an average basis. Taxes may also be imposed by this state on incomes, privileges and occupations, which taxes may be graduated and progressive, and reasonable exemptions may be provided.

AJR109, s. 2 Section 2. Section 11 of article VIII of the constitution is created to read:

AJR109,2,19 [Article VIII] Section 11 (1) In this section, "governmental unit" means a city, village, town or county.

AJR109,3,2 (2) (a) A governmental unit may not levy property taxes in any year in excess of the amount of property taxes it levied in the year preceding the year in which the ratification of this paragraph occurs, except to the extent authorized pursuant to pars. (b) and (c).

AJR109,3,5 (b) The legislature, by law, shall provide a mechanism to adjust the amount under par. (a) to reflect any subsequent transfer of all or any part of the cost of providing a governmental function.

AJR109,3,9 (c) The legislature, by law, shall provide a mechanism to adjust the amount under par. (a) to reflect any subsequent annexation; the creation of a new governmental unit; or the consolidation, or change in the boundaries, of a governmental unit.

AJR109,3,12 (d) A governmental unit shall pay all amounts collected in violation of this subsection into the general fund of this state, notwithstanding section 1 of this article.

AJR109,3,13 (3) A governmental unit may impose:

AJR109,3,16 (a) Sales and use taxes on the same property, services, use and consumption that are subject to the sales and use taxes imposed by this state and for which the taxable event occurs in the governmental unit.

AJR109,3,19 (b) Income taxes on the same net taxable income and the same individuals and fiduciaries that are subject to the income taxes imposed by this state who are residing in the governmental unit, which taxes may be graduated and progressive.

AJR109,3,24 (4) The imposition of a tax, the increase of the rate of the sales and use tax or the increase of any of the rates of the income tax under sub. (3), including one required under section 5 of this article, section 4 of article X or section 3 (3) or (4) of article XI, requires the approval of two-thirds of the members present of the governing body of the governmental unit.

AJR109, s. 3 Section 3. Numbering of new provision. The new section 11 of article VIII of the constitution created in this joint resolution shall be designated by the next higher open whole section number in that article if, before the ratification by the people of the amendment proposed in this joint resolution, any other ratified amendment has created a section 11 of article VIII of the constitution of this state. If one or more joint resolutions create a section 11 of article VIII simultaneously with the ratification by the people of the amendment proposed in this joint resolution, the sections created shall be numbered and placed in a sequence so that the sections created by the joint resolution having the lowest enrolled joint resolution number have the numbers designated in that joint resolution and the sections created by the other joint resolutions have numbers that are in the same ascending order as are the numbers of the enrolled joint resolutions creating the sections.

AJR109,4,15 Be it further resolved, That this proposed amendment be referred to the legislature to be chosen at the next general election and that it be published for 3 months previous to the time of holding such election.

AJR109,4,16 (End)