Fiscal Note
The proposed resolution provides a tax refund to United Rentals as the result of state legislative action to retroactively amend the personal property exemptions as outlined in state statute. The total tax refund is $142,537 plus $8,000 in interest. The proposed resolution will appropriate $8,000 from the Contingent Reserve for this purpose. Upon adoption of this resolution the balance of the 2016 Contingent Reserve will be $1,130,646.
Title
Authorizing the payment of a tax refund and associated interest as required by state law to United Rentals (North America) Inc. due to a retroactive amendment made to the personal property exemption statute for rental equipment and making an $8,000 appropriation from the Contingent Reserve to pay interest.
Body
This resolution authorizes the payment of a tax refund and associated interest as required by state law to United Rentals (North America) Inc. due to a retroactive amendment made to the personal property exemption statute for rental equipment.
The City denied United Rentals exemption because the statue contained a provision that the entity could not qualify for exemption if they had subsidiaries or affiliate companies that were engaged in business other than personal property rental. United Rentals sued the City for the refund of the 2014 taxes in the Dane County Circuit Court Case Number 15CV1563. The Wisconsin Legislature amended this section in 2015 Wis. Act 55 (Budget Bill) retroactive to January 1, 2014, which resolved the City’s argument concerning United Rentals affiliate companies and subsidiaries. This change in the law was adopted on July 12, 2015. In December of 2015 the Department of Revenue released the 2016 version of the Wisconsin Property Assessment Manual, which provided further instruction and clarification on the specific types of equipment that Assessors should exempt under this section.
Therefore, in light of the retroactive amendment and the instruction set forth in the Wiscons...
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