MADISON—Net Wisconsin property taxes for 2006-07 are estimated to rise 3.3% to $8.1 billion, exceeding last year’s increase of 2.3%, according to new figures from the Wisconsin Taxpayers Alliance (WISTAX). The percentages are for the state as a whole, and increases for individual communities can vary greatly.

Although this year’s 3.3% increase in total net levies is larger than last year’s, it is less than in recent history. Net levy increases averaged 5.4% since 1997 and 4.6% since 2002.

Gross levies are projected to reach $8.71 billion, a 4.6% increase, compared to last year’s 2.2%. The increase in net taxes is less than the gross levy due to the state increasing levy credits for the first time in 10 years. Gross levies less property tax credits yield the net figure, explained WISTAX, a nonprofit, nonpartisan public-policy research organization.

Of the five major governmental units that use the property tax, schools accounted for the largest increase (5.4%), followed by technical colleges (4.6%), municipalities (3.8%), counties (3.2%), and the state (2.7%). This year, school levies will total $3.79 billion, or 43.5% of the gross total. Last year, school levies dropped 0.5% when the state boosted school aid.

At $2.11 billion, municipalities (towns, villages, and cities together) took the second-largest share (24.2%) of the property tax total. This share has been rising because, unlike state aid to schools, aid to municipalities and counties has stagnated.

Counties had the smallest property tax increase (3.2%) of all local government units collecting them.

County levies are estimated to generate $1.72 billion, or 19.8% of the total gross levies.

Technical college levies are a relatively small portion of the typical property tax bill (7.5%). Tech college levies rose 4.6% for 2006-07 to a total of $650.6 million. In recent years, tech college levies have been the fastest growing of the local governments that levy property taxes.

The WISTAX report "Net Property Taxes to Rise 3.3%" will be available next week and offers more information on property tax trends, annual changes, and increases as a percent of personal income.

For a free copy of Focus #01-07, write WISTAX, 401 North Lawn Ave., Madison, WI 53704-5033; e-mail wistax@wistax.org; or phone 608.241.9789. o