Wisconsin is set to see its largest increase in property taxes since the Great Recession — but the actual effect on homeowners will be cushioned by a boost to two state tax credits that lower the amounts homeowners and businesses must pay.
That’s according to a new report from the Wisconsin Policy Forum, which analyzed preliminary figures from the state Department of Revenue to project a 4.7% increase in net property taxes as bills go out this month — the largest increase since 2007.
The actual increase is likely to be closer to 2% or 3%, the report found, due to increases to two state tax credits included in the 2023-25 budget.
The budget increased the school levy tax credit by $255 million and increased the state lottery tax credit by $15.9 million. Both of those measures reduce the amounts taxpayers will pay while still allowing for revenue increases for schools and local governments.
The increase also comes despite a historical bipartisan deal that boosted shared revenue — money the state sends to counties, towns, villages and cities that local governments can use freely. That deal gave a minimum 20% increase to municipalities with a population under 110,000. Counties and the state’s two largest cities, Milwaukee and Madison, received at least a 10% increase in shared revenue.
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Locally, Madison taxpayers have long supported far above average K-12 $pending 22 to 29k annually, depending on the District numbers observed.