.
Feedback

Property Tax Relief is on the Way

Two-year freeze will provide some much needed relief for Wisconsinites.

Homeowners can breathe a sigh of relief.

After years of out-of-control property tax increases, Wisconsin will finally have a permanent property tax freeze.

Last year, property taxes took a $9.4 billion bite out of homeowners’ wallets. According to the non-partisan Wisconsin Taxpayers Alliance, the average Wisconsinite spent 4.5 percent of their income on property taxes alone.


In an historic vote, the Joint Committee on Finance on May 12 approved a permanent property tax freeze.

Wisconsin has a $3.6 billion budget deficit. When your family budget is short, you sit down at the kitchen table and find a way to do more with less. In these tough times, government, too, must find a way to do more with less.

Throughout the budget deliberations, I have committed to not raising taxes. However, we simply cannot pass the buck onto local homeowners. That’s why, in addition to no state tax increases, we need to ensure that local property taxes remain frozen as well.

Under the proposal approved by the committee, tax levies would be frozen for two years. After that, tax levies could increase by only 1.5 percent per year. A set levy limit will give taxpayers the certainty they need as they set their family budgets.

We have created levy limits, but we have also given more control to municipal governments to manage their own budgets. That way local officials can preserve vital core services while controlling costs.

By reducing state mandates and giving local units of government more flexibility in their operations, government can do more with less.

We are giving certainty to both local government officials and to the property taxpayers.

Wisconsin’s taxpayers need relief. For far too long, we’ve spent beyond our means. Wisconsin will finally have a budget that recognizes the taxpayers’ ability to pay and puts us on a sustainable financial path.

Sen. Alberta Darling represents the 8th Senate District, which includes Fox Point, Shorewood, Whitefish Bay and Menomonee Falls.

Newsletter & Alerts

Get the best stories each day and important breaking news

Subscribe

Not from Fox Point-Bayside Patch? Find your Local Patch »

ike May 23, 2011 at 08:01 pm
Maybe, instead of not raising those taxes, they should put a program in place that allows citizens to pay more if they choose. Then, those citizens reap those benefits and get their street swept nightly, get their choice of teachers, nightly stop-bys from the police, etc. Those services are so much more important than a new computer, i-pad, smart phone, 3-D TV, PS3, etc.
By keeping the property tax percentage high, safety services are able to update their technology to keep us safe. Schools are able to keep their buildings, equipment, and technology updated to promote a well-rounded education. Etc., Etc. I just don't get it, why is all of this bad?
CowDung May 23, 2011 at 08:23 pm
When property taxes get 'too' high, people won't be able to afford to keep their homes and their kids can't attend those schools with the updated buildings, equipment, technology, etc.
CowDung May 23, 2011 at 08:26 pm
I know that my property taxes are much higher than the 'average' of $4500 you mentioned in your previous post...
...and I don't have a smartphone or drive a Lexus.
The prosser-cuter May 23, 2011 at 08:47 pm
6 Grand for me!
tom sheramn May 23, 2011 at 10:10 pm
saying you want to lower taxes means nothing. for whom are you lowering them is the question. saying government spending is bad also means nothing alberta depending on what the spending is for. sweden has high government spending but it is useful spending unlike ours. which country has the better medical system, lower crime rate, better educational system etc.?
further alberta you are an advocate of economic growth. i maintain the costs of growth are far greater than the benefits (read ezra mishan's "growth & technology the price we pay".further since the poor have such a small % of the gnp to begin with growth does not really benefit them. growth really only benefits the rich.
ike May 24, 2011 at 02:27 am
Really? Property taxes will get so high that people will lose their homes? My $4500 is based on the 4.5% of a $100,000 salary, which is what Darling reported as the average percentage of one's salary paid towards property taxes. And if someone loses their home because of $4,500 my guess is there are some other issues going on.
D.D. May 24, 2011 at 03:29 am
Wisconsin currently ranks 4th in the nation for our tax burden (11% of income). Only NY, NJ and CONN rank higher.
http://taxfoundation.org/research/show/22320.html Milwaukee County currently ranks as the 35th worst county (out of 2922) in the nation for property taxes as a % of income. http://www.taxfoundation.org/taxdata/show/27281.html Local Counties that rank higher... Lake, IL - 17th Kane, IL - 28th Kendall, IL - 29th McHenry, IL - 31st Then Milwaukee and several Illinois/Wisconsin Counties Note that the next closest Midwestern County that is not Illinois/Wisconsin based is in Michigan, ranked 115th Also note that Illinois has lower income taxes than Wisconsin even after their 67% tax increase they just passed. For those who think taxes and regulations have no impact on business climate, take a look at this interesting tool. It shows migration data...state by state. Between 2000 and 2008, Wisconsin has seen a loss of 27,000 tax returns (that includes a gain of 19,000 from Illinois). South Carolina, one of our favorite whipping boys, gained 98,000 over that time period. http://interactive.taxfoundation.org/migration/ We need to get our tax and regulatory climate in line to compete within our own country. Losing people who make money to other states will only make our situation much worse. One can argue about much of what Walker and Alberta have done, but the state has been neglected the last 10 years.
The prosser-cuter May 24, 2011 at 04:38 am
Thanks for that excellent data, D.D.
CowDung May 24, 2011 at 12:41 pm
The thing is, property taxes really aren't based on income, they are based on the value of one's property (hence the name). I'm not sure where Darling got her numbers from, but from my own 'average valued' home, I'm guessing that the average property tax bill in Shorewood is closer to the $8,000 mark.
It's not so much that one will 'lose their home' as much as they will have to leave Shorewood because they can no longer afford to pay their property taxes. The median household income in Shorewood is around $58,000.
Lyle Ruble May 24, 2011 at 01:43 pm
@DD, The prosser-uter and Joe Peterlin... The data from the taxfoundation is always suspect. They are not bipatisan and are pro-business. They have a long connection with Dick Armey and the Koch Brothers. There are other sources that don't agree with the listings since the data used is so restrictive.
Jay Sykes May 24, 2011 at 02:31 pm
These are lists, complied through data collection and math calculations. If one disagrees with the ranking one achieves on the list they could provide their own list or at a minimum give specific and verifiable data that indicates the position they achieved on these lists is incorrect; or kill the messenger.
ike May 24, 2011 at 02:37 pm
@CowDung - What were the property taxes when you first moved there? Are you unhappy with the $8,000 property tax average compared to the services one receives in Shorewood? If so, what services need improvement and have you addressed that with the village?
I moved to WFB knowing my property taxes were going to be high. But I moved here knowing that I'll receive great services (especially schools for our daughter) in a great community, with great parks within walking distance, next to the lake, and minutes from downtown. If you do minimal research before moving into a community, you learn about that community's property taxes and what you get for that money. I know you to be an intelligent person so I'm assuming you did research before you bought a home in Shorewood.
ike May 24, 2011 at 02:46 pm
@Joe Peterlin - You know how averages are calculated. My $4500 was based on Darling's statement using an even number of a $100,000 salary. Are you saying your Police, Fire, schools, and parks aren't worth $7000/year? If you are, what do you think one should pay per year for those services?
CowDung May 24, 2011 at 03:57 pm
I think they were around $6k when we first moved here. Even if one moves to a location knowing that they will be paying relatively high property taxes, they can't be expected to be happy about paying tax increases of hundreds of dollars every year.
My point is that we need to look for other answers besides 'raise property taxes'. If property tax increases continue, people looking for homes are going to avoid moving into Shorewood, and people who are already living in Shorewood are going to start to look for other communities to move to.
D.D. May 24, 2011 at 05:16 pm
Ike... He doesn't pay $7K for those services...because he probably pays income and sales taxes as well to the state who then sends that back in shared revenue and funding for schools. In your list, you forgot MATC. MATC gets more funding per pupil than any other technical college in the state... then they are a signficant portion of our property tax bill. What does that go to... higher salaries. http://www.jsonline.com/news/education/103801754.html
Almost $10K more a year than WCTC! Oh.. and while we are $3.6B (-0.6B) in the hole, MATC fast tracked their contract to screw tax payers... http://www.jsonline.com/news/education/116581388.html 10 to 1... you'll hear MATC scream when the budget comes out, raise tuition and blame others. Typical of an organization with poor leadership. It has been far too easy for a governmental body to overspend & commit to excessive compensation packages. Conserving money and staying on top of finances is a yearly effort and it only takes 1 bad group of leaders to screw us for decades. Just look at Milwaukee County... how much of our current and future tax base will be used to pay off the unnecessary pension benefits. Why in the WORLD would any leader of an organization give lavish pensions when you are looking at DECREASING your workforce! But because of ass clowns like those who ran Milwaukee County into the ground, we are stuck paying bills that provide no service improvements.
ike May 25, 2011 at 03:08 am
@Joe - So what would you consider reasonable for those other services besides police and fire? And lets keep the discussion focused on the original article about property taxes alone.
@D.D. - The $7k figure came straight from @Joe about property taxes. Why are you directing your comment to me? And you're right about the "ass clowns" in Milwaukee County. I think their supervisor showed extremely poor leadership, lack of economic knowledge, and general lack of care for the people of Milwaukee County. I'd love to know the name of the supervisor that allowed all of this to continue; the same guy that made decisions for the Mental Health Complex that directly lead to patients getting raped. Could you imagine how much turmoil that would cause if that guy became Governor? Wish I could remember his name????
Beth Gregg May 25, 2011 at 11:00 pm
AND you still get to deduct property tax on your federal taxes which totally reduces that burden don't forget. The average Wisconsinite is living on a lot less than most of us here on the North Shore. I agree with Ike, it is a small price to pay for all that we enjoy--good schools, good services, outstanding emergency response times, etc. The local governments are being left to twist in the wind with no support and no real "tools" as this measure has just tied their hands even further. As to the sweet picture of the family sitting around the kitchen table figuring out how to cut even more expenses, isn't more likely that MOM will have to get a job and bring in more income? For cripes sake, Senator Darling, please don't talk to us like we are still living in the 1950's and we are children incapable of understanding the "grown-up" talk. And lastly, I think that if you subtract the $636 million that popped up out of nowhere a few weeks ago, the largest PROJECTED deficit were are facing is just less than $3bil. I personally would like to see more facts, Senator Darling and less opinion.
Lyle Ruble May 25, 2011 at 11:35 pm
@Beth Gregg..."Right on Girl"! When I was looking for someplace to live when I transferred in 15 years ago with a 1st and 5th grader, I could have lived anywhere in Southeast Wisconsin or Northern Illinois. Of all the areas that we checked out the North Shore came in above anyplace else in the region. We were concerned about the children's education and decided to settle in Shorewood. We knew when we bought here the property taxes were higher than other areas. But, to live elsewhere would have meant enrolling the children in private schools. The fact that I could deduct our property taxes and send the kids to outstanding schools turned out to be the most fiscally sound decision. The kids received a great education and have done very well at university. Even though retired now, we will continue to live here and pay the high taxes to give back to the community for what they did for my family. Not all of us are knee jerk idiots and for Senator Darling to treat us as if we are, is insulting
Beth Gregg May 26, 2011 at 12:55 am
Well, DD, the tax foundation's numbers you quote are a bit out of date (2008). In 2011, the tax foundation released a report ranking WI as #40 for state business tax climate. Look at page 2 to see the top rankings: Nevada, Montana, Wyoming, Utah, South Dakota are all ranked pretty high. There are not many businesses creating, say 250,000, jobs in those states though. Agreed? Conversely, the biggest job creating companies are based in some of the worst tax climates like NY, CT, California and NJ. The tax climate is not a good predictor of job creation! Quality of life issues would be a better measure. http://www.taxfoundation.org/files/bp60.pdf Check out this article from last April in the JS: http://www.jsonline.com/news/wisconsin/89702927.html The accompaning article is pretty interesting too. Illnois may have less property tax, but they have lots of fees--their sales tax is significantly higher, you have to pay tolls on the freeways, etc. The cost of housing is much higher too. As you can see from the chart, WI is 26th on the spending burden on income and 2oth on the tax burden per capita and 14 on the tax burden on income. The numbers come from the census data and the Wisconsin Taxpayers Alliance. In 2009, the ranking was 9th for the tax burden on income http://money.cnn.com/2009/04/10/pf/taxes/state_tax_rates/index.htm Pretty big improvement and long before the current push to give the taxpayers "relief", don't you think?
Beth Gregg May 26, 2011 at 01:18 am
The Journal Sentinel article is from April, 2010--last year, not last month, sorry. I got a little flustered when Patch said, "slow down Tolstoy" when I went over the character limit and had to re-work some of what I had written to make it fit. My last cite is a WI State Dept of Revenue report, specifically page 13, that shows that our property values have increased significantly while our tax rates have decreased over time. It even shows the effects of the 2007 recession on both.
http://www.revenue.wi.gov/pubs/slf/tvc09.pdf My final word on this is that even though the taxes might be frozen, I will still have to pay more as the costs will be transferred to me in another way. For example, my alley will not be plowed and I will have to pay for snow removal to a private contractor. Not a fee or a tax, but a very real cost just the same.
Lyle Ruble May 26, 2011 at 01:20 am
@Beth Gregg...Those are the same figures that I found. This is why I have been critical of the Governor's message and legislative proposals.
D.D. May 26, 2011 at 11:09 am
Beth...
The ranking of Wisconsin as the 4th highest tax burden state was based on 2009 fiscal year data. This is from the Tax Foundations latest data. See table 3 in the link below: http://taxfoundation.org/files/ff2011.pdf This report was released Feb 28, 2011. Beth... Wisconsin was ranked #40... WORST business tax climate. Ranking #1 is actuall best. Illinois is 23.. .which is better! If you are going to come at me, read the damn document! You just undercut your position and I thank you!!!!!
D.D. May 26, 2011 at 11:34 am
Beth... I just read the CNN article that you linked, which references the Tax Foundation. That shows Wisconsin had a tax burden ranked #10 in 2008. Wisconsin is now ranked #4 based on 2009 taxes! So we are getting much WORSE, not BETTER! We won't see the 2010 tax data analysis for some time, I expect we will remain in the top 10.
As far as where businesses are adding Jobs, take a look at population movement based on the Migration link I provided. Since 1993, low tax state you listed: Nevada gain of 296,276 Montana gain of 15,000 Wyoming gain of 14,561 Utah gain of 16,441 South Dakota gain of 7,568 High tax states you listed NY loss of 962,000 CT loss of 117,000 California loss of 723,000 NJ loss of 280,000 So it proves my point! People and businesses are leaving high tax/cost states. I think you make a valid point regarding Illinois. Illinois is actual somewhat smart in how it handles taxes. It has very high sales taxes, hotel taxes, rental car, etc. That shifts much of the burden on individuals outside the state. So when we visit Chicago, we pay the 10-11% sales tax + extra taxes on hotels/cars. That is part of our tax burden. When others visit Wisconsin, they pay our 5% sales tax... so the burden is not equal.
Beth Gregg May 28, 2011 at 02:51 am
DD, okay, it wasn't my last word--the movement of people doesn't in and of itself create jobs. Many of the lower tax states are in deep economic trouble--Nevada has double digit unemployment, for example. Look at the chart on the left side of this article--Wyoming is not a whole lot better than Wisconsin. In fact, they are both within an average range. Calif is one of the worst tax climates and Florida one of the best according to your cites, yet their unemployment is almost indentical. http://www.usatoday.com/money/economy/2011-03-25-state-unemployment-uneven-recovery.htm Unemployment is a pretty good sign of job stagnation, but I decided to keep on looking for information on job growth and came across this chart:
http://www.linkup.com/trends/job-growth-by-state/march-2011.html Look at it closely, there is alot of new growth, but most of it is replacing lost jobs. In fact, there are not many jobs being created anywhere and it doesn't appear to make any difference whatsoever as to what the tax consequence is. Just saying we're open for business and continuing to cut revenue while destroying the quality of life is not working for Wisconsin.
Tricia January 30, 2012 at 06:14 am
My husband and I moved out of Shorewood because the taxes were completely out of control. However, after 8 years in Cedarburg we are now considering moving back because the schools here are subpar. You get what you pay for.
Has anyone in government considered the benefits of consolidating communities? Although I was born and raised in WI, I went to college at Arizona State University. Az has 15 counties, versus 72 in Wisconsin. Why do we need so many? Has anyone done a cost-benefit analysis on Shorewood and Whitefish Bay combining services, or Cedarburg and Grafton? (Not to single those communities out, I'm only using them as examples). Just curious.
CowDung January 30, 2012 at 01:59 pm
Cedarburg schools are ranked among the best schools in the state. What makes you think that the schools there are subpar?
Tricia January 31, 2012 at 03:39 am
Several reasons. My 14-year old was recently diagnosed as being on the spectrum of Aspergers - after YEARS of me begging his teachers to do an evaluation of him, or give him some kind of personal attention. He completely fell through the cracks at his elementary school, and his teachers treated me as a paranoid mom who didn't know what she was talking about. His physical education teacher was also extremely cruel to him, to the point that he can't even stand to go back to that school. He gets upset even talking about her. He is a very smart, kind and caring kid, but he was emotionally damaged by his experience at that school.
My 6-year old has always been an extremely happy and outgoing little boy. He always loved school, ever since starting 3-year old preschool. However, since starting public school in Cedarburg he has become increasingly depressed and does not look forward to going to school. He has had a lot of problems with bullying and was even stabbed in the arm with a pencil by another boy recently. This happened right outside his classroom. Where is the supervision? A 6-year old shouldn't be scared to go to school. The teaching methods are uninspired and old-fashioned. Not everything about the school is bad, they have a new principal who I think is trying to make improvements. I'm just not willing to wait around and see what happens. I could write a lot more, but I'm running out of characters.
Steve January 31, 2012 at 03:46 am
You can write a check for whatever amount you want to the WDR or your local county. They would love to cash it. Step up, put your money where your typing is.
Steve January 31, 2012 at 03:51 am
lol spending is not the problem
http://www.usdebtclock.org/ now compare to the reduction in spending http://www.usdebtclock.org/state-debt-clocks/state-of-wisconsin-debt-clock.html
Steve January 31, 2012 at 03:54 am
You didn't pay any state or federal taxes? Tell me how this works!
Key word is average, most of the state does not live in a house above 300K, it is also based off of property, not income.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors. Write a new post... What's up? Make an announcement, speak your mind, or sell something
Donna Price June 17, 2013 at 08:08 am
Why not let the poor start their own gardens as a community type setting. This way they can startRead More doing things for themselves Help them to be independent form others as in "self sufficient".
Walker celebrates after defeating the liberal unionista blue fisters
Eilene Stevens June 6, 2013 at 04:56 pm
Dave, thank you for a thoughtful comment, "...privatize the gains and socialize theRead More losses" gives a lot to think about. I also wish we had looked at restructuring the tax code to cover two unfunded wars.
John Wilson June 15, 2013 at 02:02 pm
“The state is only a year out of the recall mess that stalled any real change and any outsideRead More investment.” [WI = Mississippi II] What real change has been stalled? The “Love” Gov. Walker of yours has had his way with passing austerity, Neanderthal budgets, disenfranchising voters, repealing fair wages for women, Act 10, marginally crippling unions, because they invariably support the middle class and Democratic party, putting Billions on the credit card, and then, disingenuously claiming to have “balanced the budget” and created a huge surplus as well, and now – think small government here – is moving forward with ultrasounds for all women contemplating abortion, and we cannot forget the “mine” which, will create 700 low paying permanent jobs for Wisconsinites… all of these masterful initiatives have one thing in common: they are all tied up in the courts, and will not be resolved for years, and, the taxpayers of Wisconsin are all paying for Steve’s love affair with the “Love” Gov. Walker and his serial abortions… What will you say on June 5, 2014, when WI is the same as it is today or worse? I know. “Well, it is only 2-years out of the recall mess…”
Steve ® June 15, 2013 at 06:07 pm
Cry more. Your liberal propaganda is falling on deaf ears.
Sarah Worthman (Editor) June 3, 2013 at 11:53 am
Hey there - thanks for posting! Hopefully we can find you a game! :)