MADISON—Wisconsin’s tax burden fell slightly in 2008 to 34.2% of personal income, from 34.9% in 2007. Part of the change may be attributed to a slowing economy impacting tax collections. Since 1980, Wisconsin taxes have been lower in only six years. In contrast, taxes have recently been as high as 37.6% of income (2000), according to a new report from the Wisconsin Taxpayers Alliance (WISTAX). WISTAX is a nonprofit, nonpartisan public-policy research organization dedicated to citizen education.

Totalling $69.4 billion, tax collections in 2007-08 by federal, state, and local governments were up 3.4% from the previous year ($67.1 billion in 2006-07). Federal taxes, 65% of all taxes collected, grew 3.0%. State taxes increased 3.4%. Local taxes were the smallest portion of total taxes but rose at the fastest rate (5.8%).

On average, $12,281 per person was collected from Wisconsin citizens in 2008.

Taxes and fees collected by the state increased to $15.4 billion in fiscal 2008, and were over one-fifth (22.2%) of total taxes. State taxes claimed 7.6% of personal income, slightly lower than in 2007 (7.8%). Collections were greatest from individual income ($6.7 billion), state sales ($4.3 billion), and motor vehicle ($1.5 billion) taxes and fees.

n The individual income tax grew 2.1% in 2008, after three consecutive years of 7% or higher growth. Fluctuations have been common through the years, ranging from a 15.5% increase (2000) to a 13.5% decline (2001).

n The second-largest state tax, the sales tax, increased 2.6%, from $4.2 billion to $4.3 billion. A small portion of the increase might be attributed to additional spending resulting from federal stimulus payments sent in May and June.

n After growing 14.1% in 2007, corporate income taxes fell 5.9% in 2008 to $837.8 million.

n Real estate transfer fees dropped 10.9% in 2007 and another 17.1% in 2008 to $59.4 million.  Since 1970 when the fee was implemented, revenues have not fallen in two consecutive years.

Local taxes and fees were up 5.8% in 2008, faster than state or federal taxes. The rise was propelled by the property tax, up 6.0% (net after school and lottery credits). Other local taxes generally grew at slower rates.

n Property taxes maintained their long-term pattern of growth, rising in 2008 to $8.4 billion. Between 1980 and 2008, property taxes increased every year, except one (1997).

n Local sales taxes grew a mere 1.2%. The 60 counties collecting the optional 0.5% tax received $278 million.

n Stadium taxes that fund Lambeau Field in Green Bay and Miller Park in Milwaukee also grew 1.2%, from $46.7 million to $47.3 million.

n Local room taxes rose 7.0%, the result of more communities adding the tax and sustained tourism levels.

Federal taxes collected from Wisconsin increased 3.0% in 2008 to $45.1 billion. In the prior three years, annual tax growth ranged from 5.0% to 9.8%.

n Federal taxes claimed 22.2% of personal income in 2008, a slight drop from 2007 (22.8%).

n Based on 2007 figures, most of Wisconsin’s federal tax contribution (84.1%) was from individual income and employment taxes (e.g., Social Security).