The property tax is Wisconsin’s largest, oldest, and most confusing tax. At least five governments use the tax, and two different methods of valuing property are used to distribute taxes among property owners. One source of arises when tax rates and levies move in opposite directions, a common occurrence over the past 20 years. In addition, property owners are often unaware of how changing property values, both within a municipality and among municipalities, can cause individual property tax bills to rise, even when levies are “frozen.”
No tax produces more confusion, more questions, and more misleading information than the property tax. That is to be expected: Multiple governments levy the tax and two different methods are used to value property. December is property tax time in Wisconsin and questions abound, including:
• Why did the school property
tax rate decline, yet my school
taxes rose?
• Why did my property taxes
increase more than my friend’s
from across town?
• My property tax bill lists two
values for my property. Which
one is correct?
Understanding a few key concepts can help citizens navigate the often murky waters of Wisconsin’s property tax and get a better handle on annual changes in their bill.
Who Taxes?
The property tax is not easy for taxpayers, the press, or public officials to understand. This is not surprising. At least five units of government rely on property tax revenues. Moreover, it is not always the same local government that assesses, prepares tax bills, and receives payments.
Property Tax Users
To chart a course through the confusion that is the property tax, a good place to start is to determine which governments rely on it. The four main users are K-12 schools, municipalities, counties, and technical colleges. Other users include the state and various special districts.