The Budget’s Impact on Property Taxes
The Legislative Fiscal Bureau has released an estimate of property tax levels and tax bills as affected by the budget proposed by the Governor, and as approved by the Legislature.
Under the Governor’s budget, gross statewide property tax levels were estimated to increase by 1.2% in tax year 2011and 1.3% in 2012. Due to changes in values of homes and other properties, the actual tax bill for a median-valued home taxed at statewide average tax rates was expected to increase by 0.8% (or $23) in 2011 and 0.4% ($13) in 2012, compared to the previous year.
The Legislature made some changes to the Governor’s budget that had an effect on property tax levels. These changes include adjustments to school revenue limits and the Milwaukee/Racine charter school program, as well as limits on the ability of technical college districts to levy. In addition, a re-estimate of the lottery fund meant there was additional money for property tax relief. The Governor used his veto power to prevent a slight loosening of restrictions on levy limits for counties and municipalities, as discussed in a blog post earlier this week.
After the Legislature’s changes, gross statewide property tax levels are estimated to increase by 1.3% in tax year 2011and 1.8% in 2012. For a house at the median value, this means an increase of $26 in tax year 2011 and $28 in 2012, compared to the previous year.
In comparison, the 2009-11 budget as passed by the Legislature was estimated to increase property taxes by $93 in the first year of the budget and $123 in the second year.