Hefty state tax credits eased the hit on recent tax property bills despite more public spending driven by inflation and growth, and multiple reassessments across Dane County.
But as always, how much you pay depends on where you live and if voters have approved spending referendums.
Driven largely by rising labor costs and debt payments, spending is up in most places. Among large local budgets, spending rose 6% in Madison to $405.4 million; 10.4% in the county to $789.3 million; 6% in the Madison School District to $591 million; and 2% for Madison Area Technical College to $320.4 million.
But the state budget for 2023-25 increased two state tax credits that lower the net amount owed by homeowners and businesses.
The state budget increases the school levy tax credit by $255 million, or 27%, on December’s tax bills, the nonpartisan Wisconsin Policy forum said in a recent report. Funds from these credits don’t increase school spending. Instead, the additional state money is used to lower the net tax bills paid by property owners.
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The budget also will increase the state lottery credit by $15.9 million over what it otherwise would have been, producing a similar effect, the policy forum said.
“There was an uptick in local government levies,” said Jason Stein, vice president and research director for the Wisconsin Policy Forum. “Tax credits did cushion the blow.”
Meanwhile, at least 10 municipalities in the county did full or partial reassessments, which bring values closer to market reality and more fairly spread the tax burden among property owners, Dane County Treasurer Adam Gallagher said.
“A lot of communities have fallen behind on their assessments and are trying to catch up now,” Stein said.
Madison, with the most resources, looks to bring all properties to fair market value every year.
While new assessments can bring shock and fear of rising taxes, a big increase in property value doesn’t necessarily mean a dramatic rise in an individual tax bill because the values of other properties are also likely rising and the tax rate used to calculate a bill is probably dropping, Stein said.
But individual bills will vary, driven by changes in property values and local factors such as referendums or growth in the tax base, officials stressed. Some municipalities also add charges, such as for trash collection or recycling, improvements to streets or sidewalks, or unpaid bills.
Madison increases
For Madison residents in the Madison School District, the total tax bill for the average home assessed at $424,400 is going up about $289, or 3.87%, to $7,757. Last year’s increase of $262 was a 3.64% hike.
Those sums reflect tax bills after the school tax credit is applied but before deducting the state lottery credit and another credit for building improvements. The lottery credit for Dane County taxpayers ranged from $229 to $372, Gallagher said.
In Madison, city spending rose mainly due to wage and cost inflation, new staff to accommodate growth, 2024 election costs and changes in federal funding, city Finance Director David Schmiedicke said.
In Wisconsin, almost all cities other than Milwaukee can’t impose income or sales taxes and rely heavily on property taxes and state “shared revenues.”
Amid a significant increase in shared revenues to municipalities and counties in the recent budget, Madison got the second-lowest per capita of any city, village or town in the state, Stein said, noting that Madison got $29 per capita and Milwaukee $407, with a statewide average of $142.
In Madison, property taxes support more than 70% of the cost of the city’s key services such as public safety and health, public works, parks and libraries, with the city’s property tax levy rising 4.7% to $286.5 million.
The city tapped its “rainy day fund” for $9.2 million to help address a shortfall in state shared revenues so it could maintain current services, Schmiedicke said.
In addition to city operations, the average property taxpayer will be paying more to the Madison School District and Dane County but a pinch less to Madison Area Technical College. Of the four, the school district’s dollar increase on the average home is the largest at $249, to $4,180, followed by the city at $115, to $3,016; the county at $98, to $1,073; while MATC’s sum dropped $1.54, to about $282.
For the school district, the levy increased about 8% to $391.7 million for 2023-24. It’s the last time the district can tap previously approved referendum money and COVID-19 pandemic relief funds.
School revenue limits increased as part of the state 2023-25 budget, allowing districts to collect and spend more money. But the formula that determines state school aid gives more money to property-poor districts and less to property-rich districts, so an increase in Madison home values meant less state aid and an increase in the district’s levy. Declining enrollment also meant less state aid, putting more pressure on taxpayers.
The county’s levy rose 13.6% to $254.5 million, with the main driver being rising debt payments, Chief Financial Officer and Controller Chuck Hicklin said. MATC’s levy rose 2.7% to $85 million.
Growth can help
Municipalities — and existing taxpayers — are helped by growth.
The state limits how much municipalities can increase tax levies, but it’s tied to net growth, which is the value of new buildings, additions and remodeling minus the value of what gets torn down.
High growth means more budget available for municipalities or other taxing jurisdictions, such as the county, with an expanded tax base. This limits or neutralizes the impact to tax rates for existing property owners.
In Madison, overall real estate values rose 14.4%, fueled by a robust market and annexation of about 1,500 parcels from the dissolved town of Madison, according to the city assessor’s office. The value of residential properties, which include single-family homes and apartment buildings with up to three units, increased by 12.9%; and the value of commercial properties, including offices, hotels and big apartment buildings, rose 16.8%.
The city’s $866 million in new construction broke the record of $784.2 million set the previous year. The city’s rate of net growth is higher than the state average, Stein said.
High, low tax rates
It’s tempting to compare tax bills from one municipality to another. But not all communities assess properties at 100% of fair market value and that skews results.
But data that the city and Dane County treasurers provide to the Wisconsin State Journal shows how close each municipality’s assessment is to fair market value. Knowing that information makes it possible to compare tax rates and bills on a typical home.
In Madison, for example, the total tax bill for a $400,000 home in the Madison School District assessed at 100% of its fair market value was $7,270, seventh-highest in the county.
The highest in the county on a home of that value was $7,784 for a Madison home in the Verona Area School District. That’s followed by $7,734 for a Madison home in the Monona Grove School District and $7,690 for a Fitchburg home in the Verona School District.
The lowest total tax bill for a $400,000 home was $3,645 in the town of Christiana in the Stoughton School District.
Tax bills began arriving in mailboxes in mid-December. The deadline for owners to pay at least the first installment of their property taxes is Jan. 31.
The initial deadline is the same in Madison, but the city has switched from the option of paying two installments to four, with the second installment due March 31, the third May 31 and the final payment due July 31. That’s the same final due date as other municipalities in the county.
A fair way to compare taxes
Municipality | School District | 2023 assessed value tax rate per $1,000* | 2023 assessed ratio to fair market value | 2023 fair market value tax rate per $1,000 | 2023 tax on a home worth $400,000 |
---|---|---|---|---|---|
Cities | |||||
Edgerton | Edgerton | $15.63 | 0.933 | $14.58 | $5,832.86 |
Fitchburg | Madison | $19.76 | 0.865 | $17.08 | $6,833.06 |
Verona | $22.23 | 0.865 | $19.23 | $7,690.20 | |
Oregon | $19.61 | 0.865 | $16.96 | $6,783.57 | |
Madison | Madison | $18.28 | 0.994 | $18.18 | $7,270.41 |
Mcfarland | $16.43 | 0.994 | $16.34 | $6,535.12 | |
Mid-Cr Plains | $16.89 | 0.994 | $16.79 | $6,717.76 | |
Sun Prairie | $18.33 | 0.994 | $18.23 | $7,291.89 | |
Verona | $19.57 | 0.994 | $19.46 | $7,784.48 | |
Waunakee | $17.43 | 0.994 | $17.33 | $6,933.13 | |
Deforest | $17.58 | 0.994 | $17.48 | $6,990.91 | |
Monona Grove | $19.44 | 0.994 | $19.34 | $7,734.08 | |
Middleton | Mid-Cr Plains | $17.08 | 0.890 | $15.19 | $6,077.86 |
Waunakee | $17.70 | 0.890 | $15.75 | $6,299.34 | |
Monona | Monona Grove | $18.68 | 0.973 | $18.18 | $7,271.20 |
Stoughton | Stoughton | $15.91 | 0.963 | $15.32 | $6,129.80 |
Sun Prairie | Sun Prairie | $17.77 | 1.000 | $17.77 | $7,107.87 |
Verona | Verona | $18.26 | 0.895 | $16.33 | $6,533.97 |
Average, all cities | $17.20 | ||||
Average without Edgerton ** | $17.35 | ||||
Average without Edgerton or Madison ** | $16.87 | ||||
Villages | |||||
Belleville | Belleville | $23.88 | 0.749 | $17.89 | $7,154.61 |
Black Earth | Wis Heights | $25.44 | 0.651 | $16.55 | $6,621.50 |
Blue Mounds | Mount Horeb | $20.92 | 0.741 | $15.50 | $6,198.96 |
Brooklyn | Oregon | $25.32 | 0.681 | $17.24 | $6,895.40 |
Cambridge | Cambridge | $19.33 | 0.882 | $17.04 | $6,816.39 |
Cottage Grove | Monona Grove | $23.05 | 0.816 | $18.81 | $7,522.31 |
Cross Plains | Mid-Cr Plains | $21.18 | 0.814 | $17.24 | $6,897.38 |
Dane | Lodi | $17.38 | 0.919 | $15.97 | $6,387.74 |
Deerfield | Deerfield | $21.07 | 0.744 | $15.68 | $6,272.48 |
Deforest | Deforest | $17.66 | 0.944 | $16.67 | $6,666.80 |
Maple Bluff | Madison | $22.59 | 0.760 | $17.16 | $6,865.40 |
Marshall | Marshall | $22.10 | 0.712 | $15.74 | $6,295.73 |
Mazomanie | Wis Heights | $18.86 | 0.931 | $17.55 | $7,020.73 |
Mcfarland | Mcfarland | $16.26 | 0.958 | $15.57 | $6,229.91 |
Mount Horeb | Mount Horeb | $15.41 | 1.002 | $15.44 | $6,177.75 |
Oregon | Oregon | $16.69 | 0.974 | $16.25 | $6,498.76 |
Rockdale | Cambridge | $19.42 | 0.722 | $14.02 | $5,608.18 |
Shorewood Hills | Madison | $18.77 | 0.866 | $16.25 | $6,501.93 |
Waunakee | Waunakee | $16.56 | 0.935 | $15.47 | $6,189.44 |
Windsor | Deforest | $16.49 | 0.923 | $15.23 | $6,091.08 |
Average, all villages | $16.36 | ||||
Towns | |||||
Albion | Edgerton | $13.77 | 0.858 | $11.81 | $4,723.63 |
Berry | Wis Heights | $16.06 | 0.911 | $14.64 | $5,856.11 |
Mid-Cr Plains | $14.36 | 0.911 | $13.08 | $5,233.54 | |
Black Earth | Wis Heights | $14.51 | 1.016 | $14.74 | $5,897.48 |
Blooming Grove | Madison | $18.77 | 0.680 | $12.76 | $5,102.97 |
Mcfarland | $16.03 | 0.680 | $10.90 | $4,358.50 | |
Blue Mounds | Mount Horeb | $16.72 | 0.730 | $12.21 | $4,884.48 |
Bristol | Sun Prairie | $13.23 | 0.979 | $12.95 | $5,181.17 |
Columbus | $10.22 | 0.979 | $10.01 | $4,002.14 | |
Burke | Deforest | $14.05 | 0.872 | $12.25 | $4,900.35 |
Sun Prairie | $15.17 | 0.872 | $13.23 | $5,291.06 | |
Christiana | Cambridge | $18.13 | 0.605 | $10.97 | $4,389.36 |
Stoughton | $15.06 | 0.605 | $9.11 | $3,645.46 | |
Cottage Grove | Monona Grove | $17.40 | 0.865 | $15.05 | $6,019.73 |
Deerfield | $15.69 | 0.865 | $13.57 | $5,427.81 | |
Stoughton | $12.83 | 0.865 | $11.10 | $4,440.34 | |
Cross Plains | Mid-Cr Plains | $18.86 | 0.662 | $12.49 | $4,995.76 |
Mount Horeb | $18.68 | 0.662 | $12.37 | $4,947.24 | |
Wis Heights | $21.57 | 0.662 | $14.29 | $5,714.75 | |
Dane | Lodi | $15.13 | 0.833 | $12.61 | $5,045.26 |
Waunakee | $15.29 | 0.833 | $12.74 | $5,097.26 | |
Deerfield | Deerfield | $14.63 | 0.908 | $13.29 | $5,315.34 |
Cambridge | $14.09 | 0.908 | $12.80 | $5,118.00 | |
Dunkirk | Stoughton | $18.32 | 0.622 | $11.40 | $4,558.98 |
Edgerton | $19.39 | 0.622 | $12.06 | $4,823.10 | |
Dunn | Oregon | $17.05 | 0.777 | $13.25 | $5,299.07 |
Mcfarland | $15.09 | 0.777 | $11.72 | $4,688.48 | |
Stoughton | $13.71 | 0.777 | $10.65 | $4,259.31 | |
Mazomanie | Wis Heights | $13.10 | 1.019 | $13.35 | $5,338.33 |
Sauk Prairie | $10.64 | 1.019 | $10.84 | $4,334.57 | |
Medina | Marshall | $13.86 | 0.983 | $13.61 | $5,445.81 |
Middleton | Mid-Cr Plains | $15.63 | 0.777 | $12.14 | $4,856.87 |
Montrose | Belleville | $11.87 | 0.984 | $11.68 | $4,672.99 |
Verona | $15.47 | 0.984 | $15.21 | $6,085.81 | |
Oregon | Oregon | $17.51 | 0.752 | $13.17 | $5,266.05 |
Belleville | $15.35 | 0.752 | $11.54 | $4,617.86 | |
Perry | Mount Horeb | $15.22 | 0.871 | $13.26 | $5,302.70 |
New Glarus | $17.35 | 0.871 | $15.11 | $6,043.22 | |
Pecatonica | $18.58 | 0.871 | $16.18 | $6,472.87 | |
Pleasant Springs | Stoughton | $11.05 | 0.935 | $10.33 | $4,131.15 |
Mcfarland | $12.20 | 0.935 | $11.40 | $4,560.31 | |
Primrose | New Glarus | $15.20 | 0.957 | $14.55 | $5,819.25 |
Mount Horeb | $13.34 | 0.957 | $12.77 | $5,109.57 | |
Roxbury | Sauk Prairie | $14.11 | 0.809 | $11.41 | $4,564.52 |
Rutland | Stoughton | $11.31 | 0.969 | $10.95 | $4,381.91 |
Oregon | $14.00 | 0.969 | $13.56 | $5,425.06 | |
Springdale | Mount Horeb | $16.97 | 0.692 | $11.73 | $4,693.96 |
Verona | $21.44 | 0.692 | $14.82 | $5,929.67 | |
Springfield | Mid-Cr Plains | $18.83 | 0.632 | $11.90 | $4,758.68 |
Waunakee | $19.71 | 0.632 | $12.45 | $4,981.09 | |
Sun Prairie | Sun Prairie | $20.49 | 0.663 | $13.57 | $5,429.07 |
Marshall | $18.28 | 0.663 | $12.11 | $4,845.38 | |
Vermont | Wis Heights | $19.58 | 0.725 | $14.18 | $5,672.88 |
Mount Horeb | $17.06 | 0.725 | $12.36 | $4,944.80 | |
Verona | Verona | $18.02 | 0.862 | $15.54 | $6,216.97 |
Vienna | Deforest | $16.97 | 0.770 | $13.07 | $5,228.94 |
Waunakee | $16.82 | 0.770 | $12.96 | $5,184.29 | |
Lodi | $16.89 | 0.770 | $13.01 | $5,204.06 | |
Westport | Waunakee | $18.79 | 0.715 | $13.44 | $5,374.09 |
Mid-Cr Plains | $17.89 | 0.715 | $12.80 | $5,119.22 | |
York | Columbus | $11.54 | 0.998 | $11.51 | $4,605.68 |
Marshall | $12.80 | 0.998 | $12.77 | $5,107.20 | |
Waterloo | $12.07 | 0.998 | $12.04 | $4,814.14 | |
Average, all towns | $12.69 | ||||
* Tax rates include state, county, municipal, school district, technical colleges, any special tax districts and the state school credit. | |||||
** Because only a small portion of edgerton is in dane county, including the city with other dane county cities distorts that comparison. | |||||