WisPolitics Budget Blog

GOP Motion Defeated

The governor's proposal to double the real estate transfer fee remains in the budget.

The GOP motion to reduce the rate of the fee from $3 per $1,000 to $2 per $1,000 of value in 2009-10, and to $1 per thousand in 2010-11 ad thereafter failed on an 8-8 party line vote.

Labels: General_Fund_Taxes, Real_Estate_Transfer_Fee

Decker Motion Fails

Sen. Decker's motion to modify the real estate transfer fee was rejected on an 8-8 vote along party lines.

The committee is now considering the GOP alternative to reduce the rate of the fee from $3 per $1,000 to $2 per $1,000 of value in 2009-10, and to $1 per thousand in 2010-11 ad thereafter. Under the proposal, the collections would be shared 60-40 among the state and the counties, and beginning in 2010-11 the counties would retain 100 percent of the fee.

Rep. Vos said the proposal is a "revenue upper" for counties. "If you care about providing additional revenues for counties, then the vote is yes," he said.

Decker said the proposal is "goofy," and the Republicans wouldn't propose it if they didn't know Democrats would defeat it on an 8-8 vote.

Decker was the second Democrat to invoke President Bush today, saying this motion from the Republicans is "what Bush and the Republicans in Congress did."

"You've gotta pay the bills - that's a fundamental responsibility of this Legislature and this committee," Decker said.

Labels: General_Fund_Taxes, Real_Estate_Transfer_Fee

Deadlock on Transfer Fee

The committee votes 8-8, along party lines, on the proposal to delete the real estate transfer fee increase from the governor's budget.

Next, the committee takes up Sen. Decker's proposal to modify the governor's proposal by keeping transfers of properties of $200,000 or less at $3 per thousand, and raising the fee to $6 on properties exceeding $200,000. Under Decker's proposal, counties would continue to get 20 percent of fees collected at the $3 rate, and would get 10 percent on transfers at the $6 rate.

Meanwhile, committee Republicans are circulating a motion that would reduce the rate of the fee from $3 per $1,000 to $2 per $1,000 of value in 2009-10, and to $1 per thousand in 2010-11 ad thereafter.

Under the proposal, the collections would be shared 60-40 among the state and the counties, and beginning in 2010-11 the counties would retain 100 percent of the fee.

Labels: General_Fund_Taxes, Real_Estate_Transfer_Fee

Debating Real Estate Transfer Fee

Sen. Decker said deleting the governor's provision would "blow a massive hole" in the entire budget.

Rep. Pocan, who believe it or not used to work for the Wisconsin Realtors Association, drew on his experience with the realty group to say that increasing the fee would not impact the affordability of the housing market.

The WRA is opposed to raising the fee, and is backing a group running television commercials against the "home tax."

Sen. Alberta Darling, R-River Hills, said she wouldn't support the fee increase, and she is alarmed by the amount of spending and new fees in the budget. She said the services the real estate transfer fee funds are core government services, and should be paid for by GPR.

"We should not look at the real estate market as a way to bail out the courts," she said.

Rep. Vos agreed, saying the real estate market is a "very unstable funding source," and collections over the years have fluctuated greatly.

Rep. Suder said the governor's proposal is giving property owners "nightmares" and would hit middle class and lower income families the hardest. "The tax, any way you cut it, is regressive," he said.

Rep. Colon said like the Republicans earlier proposal on levy limits, their idea to delete this fee increase "defies reality."

"People want the courts off their property taxes. This will pay for it," he said. "We need solutions. We have enough rhetoric ... you have to put a solution on the table."

Labels: General_Fund_Taxes, Real_Estate_Transfer_Fee

Real Estate Transfer Fee at the Plate

Now under consideration by the JFC is the controversial proposal by Gov. Doyle to double the real estate transfer fee from $3 to $6 per $1,000 of value transferred. (Budget paper 345)

Under the governor's proposal, the state would retain 90 percent of the collections, up from the current 80 percent, and county governments would receive 10 percent, down from the current 20 percent. The state's share of the fee would increase from $2.40 to $5.40 per $1,000 of value, while the county share would remain at 60-cents per $1,000 of value.

All collections of the RETF would be deposited in the segregated county aid fund (created under the bill), rather than the general fund. The county aid fund would be used to fund aid payments under shared revenue, county and municipal aid, circuit court support grants, and youth and family aids programs and a transfer to the affordable housing trust fund.

Republicans are looking to delete the provision.

Co-chair Sen. Decker has proposed in a motion to modify the governor's proposal by keeping transfers of properties of $200,000 or less at $3 per thousand, and raising the fee to $6 on properties exceeding $200,000.

Under Decker's proposal, counties would continue to get 20 percent of fees collected at the $3 rate, and would get 10 percent on transfers at the $6 rate.

Labels: Real_Estate_Transfer_Fee

Locals Voice Concerns

Mark Drangstveit, a logger from Black River Falls, asked the committee to lift weight restrictions on bridges or to direct more cash to improve bridges to handle more than the 98,000-pound limit that is currently law. He said the current restrictions "are like putting a roadblock on every single highway in the state."

Dave Fish representing St. Joseph's Hospital spoke against the 1 percent gross revenue hospital tax. Fish said the budget's highest goal should be to help the poor, but said the tax is "not sufficent in looking at the long term viability and achievements of what needs to be done."

Neil Haselwander, a local realtor, voiced his opposition to the governor's boost to the real estate transfer fee, which he said would double the cost of the transfer fee on a $166,000 home from $500 to $1000. He said the transfer fee would stifle investment in the state.

Bob Sather of Ace Ethanol in Stanley spoke in support to the governor's renewable fuels initiatives in the budget, and said he believes the goal of having 25 percent of the state's energy come from renewable sources is achievable.

Labels: Chippewa_Falls_Meeting, ethanol, Hospital Assessment, Joint Committee on Finance, Real_Estate_Transfer_Fee, Transportation

WisPolitics Budget Blog

JOINT FINANCE COMMITTEE

Senate Members

Assembly Members

BUDGET LINKS

Thursday, May 03, 2007

GOP Motion Defeated

Decker Motion Fails

Deadlock on Transfer Fee

Debating Real Estate Transfer Fee

Real Estate Transfer Fee at the Plate

Tuesday, March 27, 2007

Locals Voice Concerns

Blog Editor

Blog Description

Other Sites

Previous Posts

Archives