Property tax levies totaled $10.38 billion in 2012, up 0.2% from 2011. After subtracting more than $1 billion dollars in state-funded credits, net property taxes were $9.36 billion, also 0.2% more than the prior year. One-year changes varied by taxing unit: schools, -1.0%; counties, 1.1%; municipalities, 1.6%; and technical colleges, 1.8%. Net property taxes on the median value home statewide rose 23.5% over the last ten years. However, both the 2012 tax on the median value home and ten-year change varied widely by county.
The state budget, collective bargaining, and fringe benefit changes were the focus of Wisconsin politics in 2011. But amidst the Madison protests and partisanship of the last 18 months, many other changes included in the budget received less attention than they would have in prior years. Among those were new limits on local property tax levies. While often characterized as a tax “freeze” by some state leaders, just-released figures recapping 2011-12 property taxes finally permit a comparison of rhetoric and reality.
OVERVIEW
While property taxes statewide were not “frozen” in 2012, increases were generally small.
Total
In 2011-12 (2012), Wisconsin local governments and schools levied a total of $10.38 billion in property taxes (taxes levied in 2011, payable in 2012). After subtracting state tax credits—school levy, first dollar, and lottery—totaling $1.03 billion, taxpayers paid $9.36 billion in net property taxes. Both gross and net levies were up 0.2% from 2011.
Trends
Changes. This year’s statewide property tax increase was the smallest since 1997, when the total levy fell more than 9% due to an infusion of approximately $1 billion of state money to buy down school taxes. From 2000 through 2011, net property taxes rose an average of 4.8% per year, compared to 0.2% in 2012.
Relative to Income. Property taxes can also be measured relative to ability to pay (i.e., personal income). Personal income is a broad measure that includes wages, benefits, dividends, interest, and rental income, among others. In 2012, net property taxes statewide were 4.2% of personal income (see Figure 1, page two).