ACTION ALERT – MARCH 2004

GOOD SHEPHERD VOICES FOR JUSTICE

STOP TAXING NON-PROFITS

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The Good Shepherd Voices for Justice group asks you to consider taking action today to ask your Wisconsin state representative to reverse recent legislation that allows for taxation of non-profits.

 

BACKGROUND

Non-profit agencies around the state of Wisconsin, many of whom serve the poor and marginalized that our Catholic social teaching calls us to look after, (e.g. “preferential option for the poor”), will likely face property tax bills for which they have previously been exempt. Experts and the agencies themselves are concerned that this change could force them out of business and as a result, among other societal impacts, could increase homelessness. Some in our area that are expected to be effected include, but are not limited to: the Archdiocese of Milwaukee, AIDS Housing Corp, St. Anne’s Home for the Elderly, St. John’s Home of Milwaukee, Sojourner Truth House, Community Advocates and Hope House.

 

ACTION

Email or write a letter to your Wisconsin State Representative urging them to take action.

 

Below is a sample letter.  We suggest you modify to some degree and use your own phrasing where possible.

 

If you need contact information about your representative and where to send this letter, click here.

 

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SAMPLE LETTER:

March xx, 2004

 

 

Dear Members of the Assembly and Senate:

 

I am writing you today with a sense of deep urgency.  As you know, the Wisconsin Supreme Court recently overturned more than 20 years of accepted practice among local assessors in its Columbus Park Housing Corporation v. City of Kenosha ruling. This ruling has immediately jeopardized the ability of nonprofit organizations to provide housing for low income and elderly residents. 

 

If the Legislature does not take action before it adjourns, the consequences will be severe.  The rent of some low income and elderly will dramatically increase in order to offset the new property taxes; others will be forced out of their homes and into taxpayer-supported institutions.  Many nonprofit organizations that were barely earning enough revenue to stay open will shut their doors for good.  And many organizations that had plans to expand their benevolent activities will shelve those plans.

 

Please consider the following:

 

·         Codify the pre-Columbus Park practice of exempting nonprofit organizations from property taxes when they lease their property for housing.  There have been many ideas generated over the last few weeks that offer limited solutions.  We believe that there is neither the time nor the political consensus required for any solution except the most obvious and simple: a return to the tax-exempt status we all assumed existed before the Court’s decision.

·         There should be no sunset or grandfather clause in the legislation.  Both of these provisions would wreck the ability of nonprofit organizations to manage their finances, which are predicated on their tax-exempt status.   Financing or refinancing of debt, for example, will be much more expensive or impossible with sunset or grandfather clauses.

·         The new legislation must be retroactive to January 1, 2002.   State law requires assessors to collect taxes in the current year (2004) for property mistakenly omitted from tax assessment in the two previous years (2002 and 2003).  Therefore, the legislation must be retroactive to be fully effective because, as of January 1 of this year, according to Columbus Park, nonprofit housing has been “mistakenly omitted” from tax assessments for the previous two years.

I appreciate your consideration of this letter and your help with this important matter. 

 

Sincerely,

 

 

Your Name

Your Address Here