GOP leaders split on whether property tax cuts must include end to Evers' 400-year veto

MADISON, Wis. (CBS 58) -- On the surface, it should be simple. Both Democratic Governor Tony Evers and Republicans in control of the Legislature agree property tax relief are a top priority.

However, when it comes to the details of how that relief would come, negotiations are stuck in the mud.

By Wednesday afternoon, Senate Majority Leader Devin LeMahieu (R-Oostburg) was offering a tax relief plan entirely different from a proposal Evers' office shared.

Meanwhile, Assembly Speaker Robin Vos (R-Rochester) said he had productive talks with the governor's office as recently as Tuesday, while LeMahieu told reporters he hadn't discussed property taxes with either Vos or Evers "recently."

A key sticking point on any long-term property tax cuts is a budget provision Evers made through a partial veto in 2023. By crossing out individual numbers in the budget document, the governor's office allowed school districts to raise their property tax levy limits every year through 2425.

Republicans have vowed to end the "400-year veto" once there's a GOP governor to sign such bill, but in the meantime, Vos said Wednesday he's willing to accept a short-term relief plan without making changes to Evers' veto.

"I'm open to that," Vos told reporters at the Wisconsin Counties Association's annual conference. "Again, look, I think it's wrong, but if Governor Evers is saying he would rather have the money stay in Madison if we don't repeal the veto, I'm not gonna say I agree with leaving it sit here. I want the money to go back to people so they can deal with rising costs."

About an hour later, LeMahieu told reporters before a Senate floor session he hadn't had recent talks about property tax relief with either Vos or the governor's office.

After LeMahieu had answered two other questions, a spokesperson ended the press conference as a CBS 58 reporter asked if ending the 400-year veto was a must.

LeMahieu initially walked out without answering the question. A short time later, the LeMahieu spokesperson went back to invite the CBS 58 reporter into the majority leader's office to discuss that topic.

"In order to do anything for school funding or running it through school aids, we're gonna need to repeal the 400-year veto," LeMahieu said. "I made that clear to WisPolitics [Tuesday], and I stand by it."

When asked for their current understanding of the negotiations, a spokesperson for Evers said the governor would only accept property tax cuts that included a funding boost for K-12 education.

Evers has previously said enacting a $1.3 billion property tax relief package is his top priority between now and when the Legislature wraps up the current session in March.

"After recently meeting with Republican leaders, Gov. Evers offered a compromise to Republican leaders on a plan that will provide tax relief while doing what’s best for our kids," Evers spokesperson Britt Cudaback wrote in an email Wednesday morning.

Under the state's open records laws, the governor's office shared an email one high-level aide had sent to top aides for both Vos and LeMahieu.

The email, dated Feb. 5, acknowledged a previous proposal "as discussed would not be able to get through both houses."

Moving ahead, Evers proposed a plan that lowered property taxes through a mix of general school aid increases, which are tied to school districts' property tax limits and tax credits.

Four hundred fifty million dollars would go toward general school aid, lowering property taxes in the process. Another $200 million would go toward special education reimbursement.

The governor's proposal aimed to satisfy Republicans by giving $550 million toward the School Levy Tax Credit, along with $97.3 million to backfill the revenue that would be lost by making cash tips exempt from taxes.

While Vos told reporters Wednesday he was hopeful a Republican proposal could be released later this week, LeMahieu released a very different plan.

Senate Republicans instead proposed to just use the state's surplus to give one-time direct rebate checks. Joint filers would receive $1,000 under the proposal while single filers would get $500.

It was a sign that any significant property tax relief will not happen until at least 2027, after the November elections.