Hawthorne Place v. Village of Dousman

This lawsuit is significant because several municipalities around Wisconsin have either adopted a similar tax or contemplated doing so. These taxes can be very costly, exceeding ordinary property taxes for some businesses. By mislabeling these taxes as “special charges,” municipalities have been using these taxes to exceed their statutory levy limits, impose taxes on tax-exempt property, and circumvent the Wisconsin Constitution’s uniformity requirement for property taxation. Because these taxes have no legal basis, they also have no legal limit – a municipal government could charge homeowners and businesses as much money in “fire/EMS fees” as local elected officials desire. A WMC Litigation Center victory in this case would clarify the purpose of and the limits on special charges—as well as perhaps clarify when certain charges are in reality illegal taxes.