The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1917-02-01
RETAIN PERSONAL TAXES.
New Law to Eliminate Personal Prop
erty Taxes on Account of the Assess
ment Of Income Taxes Gets Rise
Out of State Cities.

Mayor Charles II. Pfennig has re-
ceived letter from Mayor John E. Bar
ron Of Eau Claire asking that the city
of Kenosha take hand in an effort
to prevent legislation which will do
away with the assessing of personal
taxes in the state and making the in
come tax the sole method of assessing
of the so called personal property.
Mayor Pfennig is not ready to say that
he is favorable to the law but he is
not willing to oppose it until after
he has made careful study of the
records of Kenosha county to ascertain
just how such law would affect the
city of Kenosha. The income taxes
for Kenosha county and especially for
Kenosha city are considerably more
than the personal property taxes and
the entire amount of the personal
taxes collected goes into the city treas
ury while twenty per cent of the in
come tax goes to the county and ten
per cent to the state. The proposed
law would largely increase the amount
which the state would receive from
these taxes in Kenosha. The letter of
Mayor Barron is pretty clear on the
proposed law and it is given as follows:
Eau Claire, Wis, Jan. 20, 1917.
Chas. FL. Pfennig, Mayor,
Kenosha, Wis.
Dear Mayor: Our attention has been
directed TO a proposed amendment of
the tax laws which is recommended by
the State Tax Commission. The change
would involve the exemption of all per-
sonal property from taxation with the
possible exception of bank stock, and
the income tax to take its place
We figure that such a change would
be disastrous one to Eau Claire and
we presume that other cities of the same
class would be similarly affected.
At the present time we collect from
personal property the sum of $97, 488.93.
Our gross income tax with no allow
ance for offsets amounts to $66,379.00.
At present, only about $25,000.00 of this
is collected, the balanc being offset by
the personal property tax, and as the
proportion retained by the City is sew
-enty per cent of the amount collected,
we now receive about 10000.
Under the proposed law, all the in
come tax would be collected and the
share of the city would be $46,465.3O.
AS we now receive $17, 10000 of this
amount, the net gain for the city would
be only $28,965.30 to take the place of
the $97 ,488.93 which we now receive on
personal property leaving deficit Of
nearly 100000 which would have to
be made up from an increased tax on
real estate.
While the suggestion was made that
the income tax be increased perhaps
twenty per cent, the suggestion was also
made that the percentage for the state
and county be increased, so that the
amount to be received by the city
would probably remain about the same
as under the present law.
1t was also suggested that utility
companies be placed on the same basis
of taxation as real estate IF this were
done, Eau Claire might receive SIC, 100000
more from this source than now, but
this would leave deficit of $60,o000O
in our revenues which would have to be
made up from an increased tax on real
estate and would mean an increase in
our local tax rate of probably seven
mills.
| We would suggest that you go into
this matter and ascertain the probable
effect on your city and it would appear
that the different cities affected should
act as unit on this matter and en-.
deavor to line up our representatives
in the legislature to work for our in
terests. We will be greatly pleased to
hear from you on this matter.
Very truly yours,
Mayor and Council,
j. E. Barron,
Mayor