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need to make a living. According to the Department o Revenue about 2% o the state- wide proper- ty tax comes rom the personal property tax on businesses. From the state’s standpoint, this doesn’t aect state rev- enue. Or does it? Small businesses, like the tavern on the corner, the restau- rant two blocks over, the work-out gym, the body shop, ast ood shop, and your lawyer’s ofce all pay personal property taxes on the goods, books, desks, equipment, stoves, chillers, dispensers, display racks, they need to make a living. In many cases, the personal property tax they pay is more than their real estate taxes. What does the value o the grill, ryer, tap line in your restaurant/bar have to do with the cost o educating your children? It gener- ates income, not just to pay the cost o educating your own children, but educat- ing everybody’s children. On the other hand, the more the taxes on your grill take out o your prots, the less income tax you have to pay. Te less you can pay your employees and the less taxes they can pay. It’s not a matter o airness. It’s a simple matter o economics, the more businesses pay or the things they need to make a living, the less they can pay or wages and the other costs o doing business. Want more small businesses? Want more small business employ- ers to invest more in more employ- ees? Stop charging businesses or invest- ing in goods and equipment essential to making a living. Let’s get practical. Why should Ball’s Body Shop be taxed on their spray-paint- ing equipment to pay or Madison Public Schools and subsidize services to tax-exempt proper- ties? As we are beginning to recover economically, now is the time to ask ourselves “How can we stimulate the growth o jobs in the small – and large- business sector?” In Wisconsin, we believe our long-range success lies in reducing impediments to pro- itability–especially ocused on taxing everybody, including small business owners – not on what they need to earn a living – but on what they earn. As has oten been said, but ignored, it’s not what you need to make a living, it’s what you earn (not what you own) that should determine what you can aord to make lie better or all o us. What is Personal Property? Te personal property tax has been a part o the General Property ax Code since Wisconsin became a state in 1848. In the beginning everything was taxed including household possessions, certain arm and manuacturing property and business inventory. Over the years much o the personal property has been exempted rom tax. WPT lobbied back in 1985 to eliminate business inventory and manuacturing machinery and equipment rom personal prop- erty tax. oday what’s let o the person- al property tax can be called the business personal property tax, because or prot business is the only entity that pays the tax. What Kinds of Business Property is Taxed? Te actual physical items you can use 2 WPT’s Newsletter 2nd Quarter 2014 u continued from page 1 u continued on page 3 in the daily operation o your business, including urniture, xtures, machinery, equipment, electronics, tools, supplies, signs and the costs o remodeling. I it benets you in your business oper- ation, it is included in the business personal property tax. Why Eliminate Business Personal Property Tax? Tere are our basic principles o air and sound tax policy: Simplicity, Transparency, Neutrality and Stabil- ity . Tere is absolutely nothing Simple, ransparent or Neutral about the Busi- ness Personal Property ax. It’s very com- plex, non-transparent, creates economic distortions and causes harm to economic growth. Te only one o the our that meets this requirement is Stability. Tere is no doubt a tax on property, whether real or personal property provides a reliable and stable source o gov- ernment revenue. However, it also leads to spending beyond the means o the economy. Tis sort o spending mentality is what created Wisconsin’s 3.6 billion decit in 2012. How Do We Elimi- nate the Business Personal Property Tax? Every major tax reorm initiative started with a grassroots coalition. We not only need your membership support. We need you to make phone calls. Te message is simple. Ask them to support passage o AB-911. ell them, i I can count on you, you can count on me in No- vember! Your WPT Member Representative will provide you with names and phone numbers. We will try to make this as simple or you as possible, but we can’t do it without your help. Teir phone needs to ring o the hook! How to Replace the Revenue? We won’t need to! Increased property
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