B-130749, MAR. 27, 1958

B-130749, MAR. 27, 1958

TO MR. WALTER J. MATTISON, CITY ATTORNEY, MILWAUKEE 2, WISCONSIN:

REFERENCE IS MADE TO A CONFERENCE HELD WITH REPRESENTATIVES OF THE CITY OF MILWAUKEE ON JANUARY 22, 1958, AND TO A LETTER DATED FEBRUARY 11, 1958, FROM MR. EWALD L. MOERKE, JR., AN ASSISTANT CITY ATTORNEY, BOTH IN CONNECTION WITH THE CITY'S REQUEST FOR RECONSIDERATION OF THE CONCLUSIONS REACHED IN OUR LETTER OF JUNE 25, 1957, B-130749, TO YOU. IN THAT LETTER WE HELD, AS FAR AS PERTINENT HERE, THAT REAL PROPERTY TAXES DUE THE CITY OF MILWAUKEE IN JANUARY OF EACH YEAR ARE TAXES "FOR" THE PRECEDING YEAR, THAT IS, THE "TAX LEVY YEAR.' MORE SPECIFICALLY, WE HELD THAT TAXES DUE THE CITY IN 1955 WERE TAXES "FOR" THE YEAR 1954 AND, THEREFORE, WE CONCLUDED THAT THE CITY WAS NOT ENTITLED TO A PAYMENT IN LIEU OF TAXES IN JANUARY 1955 UNDER PUBLIC LAW 388, 69 STAT. 721, 40 U.S.C. 521, 524.

SECTION 703 OF PUBLIC LAW 388 PROVIDES, IN PERTINENT PART, THAT:

"* * * ON EACH DATE OCCURRING ON OR AFTER JANUARY 1, 1955, AND PRIOR TO JANUARY 1, 1959, ON WHICH REAL PROPERTY TAXES LEVIED BY ANY STATE OR LOCAL TAXING AUTHORITY WITH RESPECT TO ANY PERIOD BECOME DUE, THE GOVERNMENT DEPARTMENT WHICH HAS CUSTODY AND CONTROL OF SUCH REAL PROPERTY SHALL PAY TO THE APPROPRIATE STATE AND LOCAL TAXING AUTHORITIES AN AMOUNT EQUAL TO THE AMOUNT OF REAL PROPERTY TAX WHICH WOULD BE PAYABLE TO EACH SUCH STATE OR LOCAL TAXING AUTHORITY ON SUCH DATE IF LEGAL TITLE TO SUCH REAL PROPERTY HAD BEEN HELD BY A PRIVATE CITIZEN ON SUCH DATE AND DURING ALL PERIODS TO WHICH SUCH DATE RELATES.'

SECTION 704 (C) OF PUBLIC LAW 388, IN EFFECT, PROHIBITS PAYMENTS IN LIEU OF TAXES "WITH RESPECT TO ANY REAL PROPERTY FOR ANY PERIOD BEFORE JANUARY 1, 1955, OR AFTER DECEMBER 31, 1958.'

THE CITY (THROUGH ITS REPRESENTATIVES) SAYS THE TAXES COLLECTED IN JANUARY 1955 ARE FOR 1955 EXPENDITURES AND INVOLVE ANTICIPATED REVENUES FOR 1955. THE POINT IS MADE THAT THE PROCESSES THAT TOOK PLACE IN 1954, THAT IS, THE ASSESSMENT OF PROPERTY AND THE LEVYING OF THE TAXES, WERE ESSENTIALLY ADMINISTRATIVE STEPS NECESSARY TO THE LEVYING OF THE TAXES. THE CITY CONTENDS THAT ,TAXES, EVEN THOUGH ASSESSED IN 1954, ARE TAXES FOR 1955 BECAUSE THE BUDGETARY AND OTHER PROVISIONS OF THE STATUTES OF THE STATE OF WISCONSIN AND THE MILWAUKEE CITY CHARTER PROVIDE FOR THE PAYMENT AND COLLECTION OF TAXES IN ADVANCE OF DISBURSEMENTS, BASED ON SUCH BUDGET AND THAT, THEREFORE, THE TAXES FOR THE YEAR 1954 EVEN THOUGH DENOMINATED AS SUCH, ARE REALLY TAXES FOR 1955 PURPOSES.' OUR ATTENTION IS DIRECTED TO NUMEROUS BUDGETARY STATUTES WHICH THE CITY SAYS SUBSTANTIATE ITS CONTENTION THAT TAXES DUE IN JANUARY ARE TAXES FOR THE YEAR IN WHICH DUE.

ALSO, THE CITY INFORMED US THAT, IN CONNECTION WITH ITS REQUEST FOR RECONSIDERATION, IT CONDUCTED A SURVEY OF SOME OF THE COMMUNITIES ENTITLED TO RECEIVE PAYMENTS IN LIEU OF TAXES UNDER PUBLIC LAW 388, (AND FURNISHED US THE REPLIES FROM THE COMMUNITIES SURVEYED). WE ARE ADVISED THAT THE SURVEY DISCLOSES THAT IN ALMOST ALL CASES PROPERTY TAXES ARE LEVIED IN ADVANCE FOR USE BY THE COMMUNITY INVOLVED DURING THE YEAR IN WHICH THE TAXES ARE COLLECTED, WHICH THE CITY SAYS IS THE PRACTICE FOLLOWED BY MILWAUKEE. WE ARE FURTHER ADVISED THAT IN THE STATE OF NEW YORK, THE DATE OF PROPERTY ASSESSMENT, LEVY, AND THE DUE DATES FOR COLLECTION OF PROPERTY TAXES FOR MUNICIPAL PURPOSES ARE VERY SIMILAR TO THOSE IN MILWAUKEE.

WHILE, UNDER THE BUDGET LAWS PERTAINING TO THE CITY OF MILWAUKEE,THE REAL PROPERTY TAX LEVY OF ONE YEAR IS RELATED TO THE BUDGET FOR THE FOLLOWING YEAR, THERE APPEARS TO BE NOTHING IN ANY OF THE SPECIFIC STATUTES CITED IN MR. MOERKE'S LETTER TO SUBSTANTIATE THE CITY'S CONTENTION THAT REAL PROPERTY TAXES DUE THE CITY IN JANUARY OF EACH YEAR ARE TAXES "FOR" THE YEAR IN WHICH DUE. THE MOST PERTINENT STATUTE MR. MOERKE CITES APPEARS TO BE IN SECTION 65.05 (8), WISCONSIN STATUTES, WHICH PROVIDES:

"/8) THE ADOPTION OF THE BUDGET SHALL DETERMINE THE AMOUNT OF MONEY TO BE LEVIED UPON ALL TAXABLE PROPERTY IN THE CITY FOR THE ENSUING YEAR. THE TAX LEVY SHALL BE COMPUTED BY DEDUCTING THE SURPLUS AND MISCELLANEOUS REVENUES AVAILABLE THEREFOR FROM THE APPROPRIATIONS FOR EXPENDITURES FOR THE ENSUING YEAR. THE CITY COMPTROLLER SHALL THEN CERTIFY THE NECESSARY TAXES TO BE LEVIED TO THE TAX COMMISSIONER WHO SHALL CALCULATE THE TAX RATE. SUCH TAX RATE SHALL BE THE RATE OF THE ENSUING TAX LEVY.'

UNDER WISCONSIN LAW, MILWAUKEE'S BUDGET MUST BE ADOPTED BY THE COMMON COUNCIL ON OR BEFORE NOVEMBER 20 OF EACH YEAR AND REAL PROPERTY TAXES LEVIED IN DECEMBER OF EACH YEAR, THAT IS, SUBSEQUENT TO THE ADOPTION OF THE BUDGET. IT APPEARS THAT ALL SECTION 65.05 (8) DOES IS REQUIRE THAT TAXES LEVIED IN DECEMBER OF EACH YEAR BE IN THE AMOUNT SUFFICIENT, AFTER CERTAIN ADJUSTMENTS ARE MADE, TO MEET EXPENDITURES CONTEMPLATED TO BE MADE IN THE ENSUING YEAR AS REFLECTED BY THE BUDGET ADOPTED FOR THAT YEAR. TAXES, TAX RATES AND BUDGETS OF A MUNICIPALITY MUST, OF NECESSITY, BE RELATED TO EACH OTHER IN SOME MANNER. THIS RELATIONSHIP, HOWEVER, IS NOT NECESSARILY DETERMINATIVE OF WHAT YEAR OR PERIOD TAXES LEVIED OR DUE ARE "FOR.' NOR DOES THE FACT THAT TAXES COLLECTED IN ADVANCE OF DISBURSEMENT (MONEY CANNOT BE DISBURSED BEFORE IT IS RECEIVED), THAT THE AMOUNT OF TAXES TO BE LEVIED AND COLLECTED (OR THE TAX RATE) IS DETERMINED BY THE BUDGET FOR THE YEAR IN WHICH THE TAXES ARE PAYABLE, AND THAT THE TAXES DUE AND COLLECTIBLE IN JANUARY ARE TO BE USED FOR EXPENDITURES FOR THAT YEAR (THE YEAR IN WHICH DUE), NECESSARILY REQUIRE THE CONCLUSION THAT SUCH TAXES ARE "FOR" THE YEAR IN WHICH DUE AND PAYABLE. IN THIS CONNECTION WE NOTE THAT A REPORT PREPARED BY THE CITY COMPTROLLER OF MILWAUKEE ENTITLED "YOUR 1958 TAX DOLLAR" (APPARENTLY INTENDED FOR THE TAXPAYERS OF MILWAUKEE), CONTAINS THE FOLLOWING STATEMENT ON THE COVER:

"WHEN YOU PAY YOUR 1957 PROPERTY TAX, YOU PAY A SHARE OF THE 1958 COST OF SIX SEPARATE GOVERNMENTS, * * *"

THIS REPORT IS APPARENTLY ISSUED IN CONNECTION WITH THE TAXES DUE THE CITY IN JANUARY 1958. IT IS OBVIOUS FROM THE QUOTED STATEMENT THAT TAXES "FOR" THE YEAR 1957 ARE USED TO MEET EXPENSES INCURRED UNDER THE BUDGET ADOPTED FOR 1958, AND IS A FURTHER INDICATION THAT THE CITY CONSIDERS REAL PROPERTY TAXES DUE AND PAYABLE IN JANUARY OF EACH YEAR TO BE TAXES "FOR" THE PRECEDING YEAR, THAT IS, THE "TAX LEVY YEAR.'

IN DETERMINING WHAT PERIOD OR YEAR REAL ESTATE TAXES BILLED BY A COMMUNITY ARE "FOR," THERE MUST BE CONSIDERED ALL PERTINENT TAX STATUTES TOGETHER WITH THE CUSTOM AND PRACTICE OF THE COMMUNITY IN CHARACTERIZING ITS TAXES AS REFLECTED BY ITS TAX BILLINGS AND OTHER FORMS USED IN CONNECTION WITH TAXES.

IN OUR LETTER OF JUNE 25, 1957, TO YOU, WE STATED THAT THE PERIOD OR YEAR TO WHICH A CITY OR STATE RELATES ITS TAXES IS GENERALLY REFLECTED PROMINENTLY ON THE PRINTED STATEMENT OR TAX BILL FORM USED BY IT.WE NOTED THAT THE ONLY PERIOD FOR TAXES WHICH APPEARS TO RECEIVE STATUTORY RECOGNITION IN WISCONSIN IS THE "TAX LEVY YEAR," AND THAT THE TAX BILL RENDERED FOR TAXES DUE MILWAUKEE IN JANUARY 1955 APPARENTLY CONTAINED THE FOLLOWING ON ITS FACE IN LARGE LETTERS AND NUMBERS: "TAX 1954 LEVY.'

THE CITY CONCEDES THAT IN WISCONSIN REAL PROPERTY TAXES DUE AND PAYABLE IN JANUARY ARE CHARACTERIZED OR DENOMINATED AS "TAXES" FOR THE PREVIOUS YEAR, THAT IS, TAXES FOR THE YEAR IN WHICH LEVIED OR THE "TAX LEVY YEAR," BUT, AS INDICATED ABOVE, CONTENDS THAT ACTUALLY SUCH TAXES ARE TAXES FOR THE YEAR IN WHICH DUE. HOWEVER, IT APPEARS THAT THE WISCONSIN STATUTES REQUIRE, IN EFFECT, THAT TAXES DUE AND PAYABLE IN JANUARY BE DENOMINATED TAXES FOR THE PRECEDING YEAR, THAT IS, THE "TAX LEVY YEAR," AND THAT IS THE REASON THAT SUCH TAXES ARE SO CHARACTERIZED OR DENOMINATED BY THE CITY.

WISCONSIN LAW (SEE SECTIONS 74.46 (1) (A) AND 74.46 (1A) WISCONSIN STATUTES), REQUIRES THAT TAX CERTIFICATES ISSUED BY THE CITY OF MILWAUKEE INCIDENT TO THE SALE OF LAND FOR TAXES BE SUBSTANTIALLY IN THE FORM PRESCRIBED BY STATUTE. A COPY OF AN ACTUAL TAX SALE CERTIFICATE ISSUED INCIDENT TO THE SALE OF PROPERTY TO THE CITY OF MILWAUKEE FOR UNPAID TAXES DUE IN JANUARY 1955, CLEARLY INDICATES THAT TAXES PAYABLE IN JANUARY 1955 ARE TAXES FOR THE YEAR 1954. THE CERTIFICATE IN QUESTION IS DATED "FEBRUARY 1, A.D. 1955.' AND, UNDER YOUR CITY CHARTER (SECTION 24.20, AS AMENDED), IF REAL PROPERTY TAXES DUE IN JANUARY ARE NOT PAID BY THE LAST DAY OF THAT MONTH, THE PROPERTY IS SOLD FOR TAXES ON THE FIRST DAY OF FEBRUARY FOLLOWING. THE YEAR "1954" APPEARS IN LARGE FIGURES IN THE UPPER LEFT-HAND CORNER OF THE TAX CERTIFICATE (INDICATING THAT 1954 TAXES ARE INVOLVED), AND THE BODY OF THE FORM CONTAINS THE FOLLOWING PERTINENT LANGUAGE:

"I. J. J. KRUEGER, CITY TREASURER OF THE CITY OF MILWAUKEE * * * DO HEREBY CERTIFY THAT I DID, AT PUBLIC AUCTION, PURSUANT TO NOTICE GIVEN AS BY LAW REQUIRED, ON THIS 1ST DAY OF FEBRUARY, A.D. 1955 SELL TO THE CITY OF MILWAUKEE THE LANDS HEREIN DESCRIBED FOR THE SUM OF SEVENTEEN- - - - DOLLARS AND EIGHTEEN CENTS, SAID SUM BEING THE AMOUNT DUE AND UNPAID FOR CITY TAXES * * * ON SAID LAND FOR THE YEAR OF OUR LORD ONE THOUSAND NINE HUNDRED AND FIFTY FOUR; THAT SAID CITY * * * WILL, THEREFORE, BE ENTITLED TO A DEED OF CONVEYANCE OF SAID LANDS IN THREE YEARS FROM THIS DATE, UNLESS SOONER REDEEMED FROM SUCH SALE * * * AND THE RATE OF INTEREST IN CASE OF SUCH REDEMPTION SHALL BE EIGHT-TENTHS OF ONE PERCENT PER MONTH OR FRACTION OF A MONTH FROM DATE JANUARY 1, 1955 * * *.'

IT IS OBVIOUS FROM THE FOREGOING THAT THE PROPERTY HERE INVOLVED WAS SOLD FOR TAXES DUE AND UNPAID FOR THE YEAR "1954" RATHER THAN THE YEAR 1955, ALTHOUGH THE TAXES WERE DUE IN JANUARY 1955.

SECTION 75.20 (6), WISCONSIN STATUTES, CONTAINS THE FOLLOWING LANGUAGE:

"* * * TAX CERTIFICATES DATED IN 1945 OR PRIOR THERETO, REPRESENTING DELINQUENT TAXES OF A TAX LEVY YEAR IN WHICH * * *"

IF THE CITY'S CONTENTION, THAT TAXES DUE AND PAYABLE IN JANUARY 1955 ARE TAXES "FOR" 1955, IS ACCEPTED, SUCH TAXES, IF NOT PAID, WOULD APPARENTLY BE DELINQUENT TAXES "FOR" THE YEAR 1955. HOWEVER, THIS WOULD BE INCONSISTENT WITH THE ABOVE SECTION, SINCE TAXES DUE IN JANUARY 1955 ARE, AS INDICATED ABOVE BILLED AS THE "TAX 1954 LEVY," THAT IS, AS TAXES FOR THE "TAX LEVY YEAR" 1954, AND UNDER THE QUOTED STATUTORY LANGUAGE, IF NOT PAID, WOULD BE DELINQUENT TAXES OF THE "TAX LEVY YEAR" 1954. SEE ALSO, IN CONNECTION WITH THE "TAX LEVY YEAR," SECTIONS 74.03 (10) (D) AND 74.33 (3) (B), WISCONSIN STATUTES. THIS LATTER SECTION PRESCRIBES THE FORM AND LANGUAGE TO BE USED IN A NOTICE OF TAX SALE AND THE FORM CONTAINS--- AS FAR AS PERTINENT HERE--- THE FOLLOWING LANGUAGE:

"* * * THIS SALE WILL INCLUDE ALL REAL ESTATE LISTED IN THE COUNTY TREASURER'S OFFICIAL ROLL OF DELINQUENT TAXES FOR THE TAX LEVY YEAR ...., EXCEPT PUBLIC LANDS HELD ON CONTRACT AND LANDS MORTGAGED TO THE STATE.

THE ABOVE LANGUAGE IS FURTHER PROOF THAT REAL PROPERTY TAXES DUE THE CITY IN JANUARY OF EACH YEAR ARE TAXES "FOR" THE YEAR IN WHICH LEVIED OR THE "TAX LEVY YEAR," THAT IS, TAXES FOR THE PRECEDING YEAR. HENCE, IT IS OBVIOUS FROM THIS SECTION THAT IF TAXES LEVIED IN 1954 AND DUE IN JANUARY 1955 ARE NOT PAID, SUCH TAXES WOULD BE DELINQUENT FOR THE "TAX LEVY YEAR" 1954. AGAIN, THE CITY'S CONTENTION THAT TAXES LEVIED IN 1954 AND DUE IN JANUARY, 1955 ARE TAXES FOR THE YEAR 1955, IS INCONSISTENT WITH THE LAST QUOTED LANGUAGE. MOREOVER, THE CITY COULD HARDLY SELL A MAN'S PROPERTY FOR DELINQUENT TAXES FOR THE "TAX LEVY YEAR" 1954 IF HE FAILED TO PAY TAXES LEVIED IN 1954 BUT DUE IN JANUARY 1955, IF SUCH TAXES WERE TAXES "FOR" THE YEAR 1955 AS CONTENDED BY THE CITY. YET, IF THE CITY'S CONTENTION WERE ACCEPTED, THE CONCLUSION WOULD FOLLOW THAT THIS WAS DONE IN CONNECTION WITH THE PROPERTY SOLD TO THE CITY UNDER THE TAX CERTIFICATE REFERRED TO ABOVE.

IN YOUR LETTER YOU SAY THAT UNDER SECTION 24.21 OF THE MILWAUKEE CITY CHARTER A TAXPAYER MAY PAY HIS TAXES IN ADVANCE AND EVEN RECEIVE INTEREST THEREON UP TO 3 PERCENT PER ANNUM. SECTION 24.21 OF THE MILWAUKEE CITY CHARTER (1934 COMPILATION) PROVIDES:

"THE CITY TREASURERS OF ALL CITIES OF THE FIRST CLASS IN THIS STATE, ARE HEREBY AUTHORIZED TO RECEIVE FROM ANY TAXPAYER OR TAXPAYERS OF SUCH CITY SUCH SUMS OF MONEY IN ADVANCE OF THE TIME FOR PAYMENT OF TAXES FOR THE CURRENT YEAR AS MAY BE TENDERED FOR THAT PURPOSE, NOT, HOWEVER, EXCEEDING IN AMOUNT THE SUM WHICH IT IS ANTICIPATED SHALL BE DUE OR PAYABLE BY SUCH TAXPAYER, OR TAXPAYERS, FOR TAXES FOR SUCH CURRENT YEAR, AND TO ISSUE AND TO DELIVER TO SUCH TAXPAYER OR TAXPAYERS A NEGOTIABLE CERTIFICATE IN WRITING, SIGNED BY SUCH TREASURER, AND COUNTERSIGNED BY THE CITY COMPTROLLER OR AUDITING OFFICER OF SUCH CITY, STATING THEREIN THE AMOUNT OF SUCH ADVANCE PAYMENT, AND THAT SUCH CITY WILL PAY TO SUCH TAXPAYER OR TAXPAYERS, OR HIS OR THEIR ORDER, THE SUM OF MONEY THEREIN STATED, ON JANUARY 15TH OF THE YEAR FOLLOWING THE DATE OF SUCH CERTIFICATE, TOGETHER WITH INTEREST THEREON AT SUCH RATE PER ANNUM AS SUCH CITY SHALL THEN BE RECEIVING UPON ITS DAILY BALANCES FROM THE BANK OR BANKS IN WHICH THE MONEY OF SAID CITY BELONGING TO ITS GENERAL OR TRUST FUNDS MAY BE DEPOSITED, NOT, HOWEVER, EXCEEDING THE RATE OF THREE PERCENTUM PER ANNUM.' THIS ORDINANCE WOULD SERVE NO PURPOSE IF TAXES DUE THE CITY IN JANUARY ARE TAXES FOR THE YEAR IN WHICH DUE. UNDER THE ORDINANCE A TAXPAYER MAY ONLY MAKE ADVANCE PAYMENTS IN CONNECTION WITH TAXES DUE FOR THE CURRENT YEAR AND SUCH PAYMENTS ARE REQUIRED TO BE REFUNDED TO THE TAXPAYER ON JANUARY 15TH OF THE YEAR FOLLOWING THE DATE THE ADVANCE PAYMENT WAS MADE. THUS, FOR EXAMPLE, A TAXPAYER MAY NOT MAKE ADVANCE PAYMENTS IN 1954 ON HIS 1955 TAXES SINCE HE WOULD NOT BE MAKING PAYMENTS ON HIS TAXES FOR THE CURRENT YEAR, AND THESE ARE THE ONLY PAYMENTS AUTHORIZED BY THE ORDINANCE. ALSO, IF, AS CONTENDED BY THE CITY, TAXES DUE IN JANUARY 1955 WERE TAXES FOR 1955, THE TAXPAYER COULD NOT MAKE ADVANCE PAYMENTS ON SUCH TAXES IN 1955 SINCE, UNDER THE ORDINANCE, SUCH PAYMENTS MAY BE MADE ONLY IN ADVANCE OF THE TIME FOR PAYMENT OF TAXES FOR THE CURRENT YEAR AND TAXES ARE DUE IN MILWAUKEE BETWEEN THE FIRST AND LAST DAY OF JANUARY OF THAT YEAR. WE FEEL THAT THE CITY'S POSITION AS TO THE YEAR TAXES ARE "FOR" IS INCONSISTENT WITH THIS ORDINANCE.

CONCERNING THE SURVEY MADE BY THE CITY, AS INDICATED ABOVE, OUR PREVIOUS HOLDING THAT MILWAUKEE REAL PROPERTY TAXES PAYABLE IN JANUARY OF EACH YEAR ARE TAXES FOR THE PRECEDING YEAR, THAT IS, THE "TAX LEVY YEAR," RATHER THAN THE YEAR IN WHICH THE TAXES ARE DUE, IS NOT BASED ON THE FACT THAT THE PROPERTY IS ASSESSED AND THE TAXES LEVIED IN SUCH PRECEDING YEAR, BUT RATHER UPON THE FACT THAT UNDER WISCONSIN LAW THE TAXES DUE IN JANUARY ARE TAXES "FOR" THE PRECEDING YEAR, THAT IS, THE YEAR IN WHICH LEVIED. MOREOVER THE SURVEY CONDUCTED BY THE CITY DOES NOT DISCLOSE THAT ANY OF THE COMMUNITIES SURVEYED RECEIVED PAYMENTS IN LIEU OF TAXES FOR ANY PERIOD FOR WHICH SUCH PAYMENTS ARE PROHIBITED BY SECTION 704 (C) OF PUBLIC LAW 388. IT MAY BE THAT IN ALMOST ALL OF THE COMMUNITIES SURVEYED, TAXES ARE LEVIED IN ADVANCE FOR USE BY THE COMMUNITY DURING THE YEAR IN WHICH DUE AND PAYABLE AND THAT IN NEW YORK STATE THE DATES OF PROPERTY ASSESSMENT, LEVY, AND DUE DATES FOR COLLECTION ARE VERY SIMILAR TO THOSE IN WISCONSIN. HOWEVER, THESE FACTORS ARE NOT NECESSARILY DETERMINATIVE OF THE QUESTION OF WHETHER TAXES DUE AND PAYABLE IN A PARTICULAR YEAR ARE TAXES "FOR" THAT YEAR OR "FOR" THE PRECEDING YEAR. UNDER THE PERTINENT LAWS PERTAINING TO THE COMMUNITIES INVOLVED IN THE SURVEY, IT MAY BE THAT TAXES DUE AND COLLECTED IN A PARTICULAR YEAR ARE TAXES FOR THAT YEAR (THE YEAR IN WHICH DUE), AND ARE SO CHARACTERIZED ON THE TAX BILL FORM ON WHICH THE TAXES ARE BILLED. WHAT PERIOD REAL PROPERTY TAXES COVER IN A PARTICULAR STATE OR COMMUNITY MUST BE DETERMINED IN THE LIGHT OF APPLICABLE STATE AND LOCAL LAWS TAKING INTO CONSIDERATION THE CUSTOM AND PRACTICE OF THE COMMUNITY IN CHARACTERIZING ITS TAXES AS REFLECTED ON ITS TAX BILLING FORMS AND OTHER FORMS USED INCIDENT TO TAX COLLECTION OR TAX SALES.

IN VIEW OF THE FOREGOING COMMENTS, IT IS STILL OUR VIEW THAT TAXES DUE THE CITY OF MILWAUKEE IN JANUARY OF EACH YEAR ARE TAXES "FOR" THE PRECEDING YEAR THAT IS, THE "TAX LEVY YEAR.' HENCE, THE REAL PROPERTY TAXES DUE THE CITY IN JANUARY 1955 ARE TAXES "FOR" THE YEAR 1954 AND, THEREFORE, THE CITY WAS NOT ENTITLED TO A PAYMENT IN LIEU OF TAXES IN JANUARY 1955, UNDER PUBLIC LAW 388.

AS YOU ARE AWARE, THERE HAS BEEN INTRODUCED IN THE HOUSE OF REPRESENTATIVES LEGISLATION (H.R. 10066) CONTAINING A PROVISION WHICH WOULD, IF ENACTED, HAVE THE EFFECT OF PERMITTING MILWAUKEE TO RECEIVE FOUR PAYMENTS IN LIEU OF TAXES FOR THE YEARS 1955 THROUGH 1958.

THERE ARE ENCLOSED HEREWITH THE SURVEY REPORTS FURNISHED US BY MR. S. A. MAGIDSON, ADMINISTRATIVE ASSISTANT TO THE CITY COMPTROLLER, WHICH HE REQUESTED BE RETURNED TO HIM.