Fiscal Note
This resolution authorizes the City, pursuant to a Settlement with Lamar Outdoor Advertising, to make a total payment of $160,000 to Lamar as a full refund of tax overpayments originally made to all taxing jurisdictions for several Lamar billboard properties for the tax years 2004 and 2006 thru 2010. The City's share of the tax overpayments, estimated to be $59,468.19, will result in reduced 2011 General Fund revenues. The remaining $100,531.81 of tax overpayments will be recognized as a receivable from the other taxing jurisdictions and is expected to be repaid to the City during 2012, in accordance with Wisconsin Department of Revenue procedures governing such property tax adjustments.
Title
Approving Settlement of tax refund litigation with Lamar Outdoor Advertising of Janesville for years 2004, 2006-2010, Approving payment of $160,000 from City resources to effectuate the Settlement and amending the 2011 Operating Budget to reduce estimated general fund revenues by $59,468.19 to recognize the City’s share of Settlement Costs.
Body
Background
The City of Madison and Lamar Outdoor Advertising of Janesville have been engaged in litigation for a number of years over the assessment of a number of billboards located in the City. The litigation involves tax years 2004, 2006-2010, all of which have the same legal issues involving the assessment of billboards that we have faced with Adams Outdoor Advertising. These cases have been placed on hold while we litigated the same issues in Adams Outdoor Advertising, Ltd. v. City of Madison, 294 Wis.2d 441, 717 N.W. 2d 803 (2006). The Supreme Court in Adams I, rejected the City’s methodology of assessing the billboards in relying solely on the income approach and including the value of the billboard permits. The Supreme Court in their ruling stated that the permit is an interest in real property, however that does not mean that the entire tax burden of the permit is transferred to the landowner where the...
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