STOP TAXES ON PROPERTY

[GARY BAHR]

1. PLEASE COPY FOR LOCAL POLITICIANS, SCHOOL BOARD
MEMBERS, TEACHERS, JUDGES, THE GOVERNOR, STATE SENATOR,
STATE REPRESENTATIVE, EMPLOYEES, NEIGHBORS, FRIENDS &
FAMILY ACROSS THE STATE.

2. WRITE AREA NEWSPAPER EDITORS TO DEMAND REFORM!
THIS IS MOST IMPORTANT AS REACH ALL POLITICIANS AND
TAXPAYERS.

HOW TO STOP TAXES ON PROPERTY WITH FAIR TAXES
by Gary Bahr, founder of S.T.O.P.

THE PROBLEM:

Everyone agrees our property tax is unfair, immoral,

regressive, out-of-date, and out-of control. In Wisconsin,
it is 2-3 times the national average of $13, 2-3 times
more than any bordering state, and 5-6 times more than many
southern and western states. Our tax doubles every 10 years
which means it will be 4 times more in 20 years and 8 times
more in 30 years. It drives farmers off their land, seniors
out of their homes, forces businesses out of business and
out of state, keeps young families and poor families from
qualifying for home loan payments - thus hurting home
ownership, construction, business, the economy, wealth
accumulation and social betterment.

Our homes and farms should be our castles - not our tax
prisons. Now our tax bills rise if we improve our home, a
neighbor sells, the district needs a new school, or the
needy are bussed into our county. Why do we tax homes and
farms the way we do and not stocks and bonds, gold, and
other forms of wealth?

Taxes should be based on income, ability to pay, and
fairness. Logically, the property tax should fund local
real estate related services. Morally, we cannot keep
sending bigger annual property tax bills to people with no
income, low incomes, or fixed incomes.

Every new reform or relief plan proposed to date has turned
into just another token relief plan. It does not address
the problem much less solve it. The tax and assessments
continue to rise.

Meanwhile, legislators continue to exempt numerous
special-interest from various state taxes which cost the
rest of us $7 billion more in state taxes than we should be
paying. If those exemptions were repealed we could easily
cut tax rates in half or replace the entire property tax or
shift $4+ billion in school, county and state property
taxes to other taxes where they belonged in the first
place- thus reducing the property tax to a local tax and
slashing our present tax 85%.

There are 280 tax exemption devices listed in a "Summary of
Tax Exemption Devices" book available from the State of
Wisconsin Dept. of Revenue. Many states have the same
unfair tax problem.

In 1993, Michigan lawmakers slashed their property taxes $7
billion and cut their tax in half in one day (repeat, one
day!) after a couple upstate school Districts voted down
their school district annual operating budgets and closed
schools rather than operate them on the unfair property
tax. Their farmers were mad and their tax was not nearly
as bad as ours. They increased their sales tax 2%, raised
the cigarette tax a little, and upped a few minor revenues.

California slashed and froze their property tax many years
ago. Although they have had problems related to their
defense based economy and illegal immigrants - their
problems are not due to changing how they tax people for
education or social services.

In February of 1997, Vermont's Supreme Court found local
property taxes an unconstitutional way to fund a statewide
educational benefit - following many similar state court
rulings in recent years in other states.

What's Wrong With Wisconsin? Wisconsin is too dependant on
property taxes and legislators lack the courage or resolve
to change the system.

Legislators can slash property taxes 85% without raising
any tax rate simply by making all state taxes apply to all.
They can cut all tax rates by eliminating duplication of
services in local, county, and state government. Example:
In Madison, Wisconsin there are city, county, school
district, state and federal levels and departments of
government providing social services, nursing services,
psychiatric help, welfare, police, etc. Such duplication
in administration and delivery of services causes great
waste and great expense to taxpayers.

WHAT ARE OUR CHOICES:

1. Debate the problem for another 150 years.

2. Offer voters a token relief plan for 1998 election.

3. Offer every home owner, farmer and property taxpayer a
reverse mortgage to pay their property taxes by borrowing
against the value of their homes like government offers
senior citizens in some states.

4. The Fair Tax Solution.

Under a Fair Tax Solution the property tax would be slashed
85% in Wisconsin. No taxpayer would be exempt from a tax
at the expense of another. No tax would double for any
taxpayer unless he has been exempted in the past from
paying on half his income, half his purchases and half his
real estate. If he has been so exempted, it is time he pays
his fair share.

For those who oppose fair taxes in our any state and
threaten to leave if they have to pay a fair share - we can
escort them to the border.

Everyone would pay their fair share of each state tax - or
federal for that matter - no exception. Any future
exemption device must immediately and directly benefit
every taxpayer.

Now, in Wisconsin and other states, we exempt 35% of the
real estate tax from our property tax; almost half our
income from the income tax; and over half our sales and
services from the sales tax. This means that the many who
now pay these taxes pay much more than they should or would
if our taxes were fair and applied to all - as they should
and could.

What is The Fair Tax Solution?

THE FAIR TAX SOLUTION

1. STOP TAXES ON PROPERTY - MAKE PROPERTY TAX FAIR

Repeal school, county and state property taxes.

Reduce our property tax (85% reduction in Wisconsin) - as
it should be - to a local real estate fee for local real
estate related services such local police and fire
protection, garbage pick-up, and snow removal.

Apply this small fee of less than a state average of $5 per
$1000 of value to all real estate in the municipality.

2. STOP UNFAIR TAXES - MAKE ALL STATE TAXES FAIR FOR ALL

An exemption to any tax must be the exception - not the
rule.

Any exemption must directly benefit all taxpayers
immediately and directly, like exempting poverty level
income from the income tax up front for every taxpayer, or
exempting farm and manufacturing raw materials from a
retail sales tax.

We can repeal most state tax exemption devices from all
state taxes which unfairly benefit one taxpayer, group or
class at the expense of another. There are 280 such
exemptions in Wisconsin totaling $7 billion in potential
state revenue. Some exemption devices depend on federal
changes or time for contracts to expire before the
exemption can be eliminated.

We can fairly repeal enough exemptions to slash the
property tax 85%; make all our state taxes fairer and
purer in the process; not raise any tax rates; get
everyone to pay their fair share of taxes; and still
exempt family poverty level income for each taxpayer.

Our small real estate services fee should pay for real
estate elated services and apply to all real estate in the
locality - even churches and government buildings in the
locality. No one else in the municipality should have to
pay for the local services to those buildings.

Our retail sales tax should apply to all retail sales and
services. Raw materials of farmers and manufacturers would
not be taxed by a retail sales tax.

Our income tax should apply to all income above poverty
levels of all.

3. STOP DUPLICATION OF GOVERNMENT SERVICE - MAKE GOVERNMENT
EFFICIENT

We must assign each level of government and department
specific duties and assign a tax to finance each level of
government. Spending would be cut and services delivered
and administrated more efficiently.

Local government would provide real estate related services
with a small property tax or services fee that applies to
every building and parcel without exception.

Schools would be funded equitably by general state revenue
sharing and/or an education tax billed in December against
district resident income reported in the previous April to
IRS.

Local control can be written into law.

Counties could deliver all social services ( where city,
county, school districts, state and federal agencies now
duplicate services ) to be funded by state and federal
revenues sharing, user fees and/or a county income tax to
replace the county property tax.

Spending - not tax exemption devices - would determine
policy.

WHY STOP THE NUMEROUS TAX EXEMPTION DEVICES:

Exemptions devices should be repealed for one or all of
these reasons:

a). No reason justifies exempting or benefiting one
taxpayer, group, or class at the expense of another
taxpayer, group or class.

b) Income taxes on everyone's income or a sales tax on all
retail goods and services is better than an annual 3-4% tax
on the growing value of our homes or farms or business
realty.

c) The exemption device is not needed with real property
tax reform.

d) Every special interest contributes to tax reform.

e) Lobbyists and partisan politicians will look silly
opposing fair taxes.

THE CONSEQUENCES OF CHANGE:

Change means that those hurt most by the property tax can
keep their homes and farms and business buildings.

The unfair property tax is slashed 85% in Wisconsin and
shifted to where it belonged in the first place.

Taxes would be purer and based on income, ability to pay,
and fairness.

Change would not mean increased tax rates or increased
spending or loss of local control - rather an opportunity
to make sense out our various levels of government and
their duties and taxes, fairly apply all taxes to all, and
to cut tax rates for all..

Schools would be helped. They now hurt from a tax that
pits the needs of our kids against unfairly taxed and angry
property owners. Education is our greatest asset and needs
fair funding.

Business would be helped. Our businesses and farmers could
compete with border states and southern and western states.
The current high property tax now costs thousands of farm
and small business jobs. Billions saved in regressive
property taxes would be put into the economy. Low property
taxes will create a perpetual construction boom helpful to
all business, jobs, sales; and will create more tax state
revenue generated from new income and sales taxes.

Home ownership would become affordable to many and help cut
social problems and improves the lives of many.

Because exemptions are repealed on all taxes, the state
income or sales tax and other tax rates would not exceed
present rates. Rates could even be lessened if all state
tax exemption devices are eliminated and all levels of
government are made more efficient.

Lost tax deductions for many would be offset by tax
fairness, property taxes slashed 85%, lowered rents, and
lowered tax rates.

The state income tax is still deductible.

The sales tax is deductible to farmers and businesses.

By exempting poverty level income, all taxpayers benefit
and our seniors and lower income people are not hurt.

If we do nothing to Stop Taxes On Property, nothing will be
done. Let's do what is right and let the consequences
follow.

WE THE PEOPLE deserve fair taxes in our state!

WHAT CAN YOU DO!

1. Make copies of this message for all.

2. Write or call the Governor and your state Senator and
state Representatince to demand reform.

3. Write area editors to demand real tax reform! This is
most important as politicians and others read these
letters.

4. Join the Stop Taxes On Property Movement.

STOP is a grassroots, non-partisan, non-profit, movement
fighting for all property owners and for tax fairness.
Annual membership is $25. STOP is credited with getting
the $1.2 billion in relief for 1996, and is fighting to
reduce the tax to a local tax for realty services. All
donations are 100% used to get our message to taxpayers,
legislator, etc.

We are currently working on a Fair Tax Bill in the
Wisconsin legislature.
Your help is really needed and greatly appreciated to get
this message to every taxpayer.

If you have any questions, please contact me.

THANK-YOU!

GARY BAHR, founder
STOP (Stop Taxes On Property)
Belleville, WI 53508-9233
PH 608-424-6074
EMAIL: ba...@itis.com

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