MADISON—Net property taxes totalled $9.4 billion in 2010, up 4.9% from the prior year, according to newly available state figures. Property taxes claimed 4.5% of personal income, the highest statewide share since %). Municipal-only property taxes increased 3.2% from 2009 to 2010, rising from $2.30 billion to $2.37 billion. These are key findings from two new reports from the nonpartisan Wisconsin Taxpayers Alliance (WISTAX), one examining municipal-only taxes and one recapping total all-purpose levies.

When taxes levied by municipalities, schools, counties, technical colleges, and other taxing districts are combined, the gross tax levy was $10.11 billion in 2010. After subtracting school levy tax credits, the net levy was $9.36 billion. This year’s 4.9% increase matched or exceeded six of the previous 10 years.

As a percentage of statewide personal income, the total net levy was 4.5%, its highest share in 14 years. Over the past five decades, taxes relative to income grew during the 1960s and 1980s, dropped in the 1970s and 1990s—with school revenues limits and a billion-dollar jump in state aid—and have been generally rising since 2000. "In watching the percentage over the years, we have found it to be an excellent barometer of public sentiment," noted WISTAX President Todd A. Berry. "When levies claim around 5% or more of personal income, a major political or policy shift usually occurs. In the early 1970s, Democrats gained control of the legislature, which they maintained for more than two decades. In the mid-1990s, legislators of both parties overhauled Wisconsin school finance, adding more than $1 billion to state aid and driving down school taxes by 16%."

Property taxes solely for municipal purposes are now more than three times what they were 25 years ago ($2.37 billion vs. $601 million). Once less than a fifth of the typical tax bill, 2010 municipal levies averaged 23.5%. This year’s 3.2% increase was less than the prior year’s (4.4%) and below the average annual increase since %). In a relatively modern development, 61 municipalities levied more for municipal purposes than for schools, WISTAX said.

WISTAX researchers also compared municipal-only levies to population. Twenty-two municipalities reported taxes exceeding $1,000 per capita in 2010. Property taxes were highest in La Pointe ($5,205), Chenequa ($2,782), Ephraim ($2,744), and Egg Harbor ($2,685). There were 26 communities with a zero or negative levy.

Reflecting the number of services provided, average municipal-only tax rates were highest in cities 

($7.25 for every $1,000 of property value), followed by villages ($5.02) and towns ($1.88). Rates among individual communities ranged from $13.11 to less than zero (often due to state aid to communities with utilities). Four cities—Nekoosa, Niagara, Hurley, and Merrill—and the Village of Darien had rates of $12 or more per $1,000 of equalized value. An additional 15 municipalities had rates that exceeded $10.

With past increases in property values, total tax rates have, for the most part, fallen in recent years. However, due to a decline in property values, this year’s statewide net property tax rate ($18.28) was up from last year. Of the state’s 1,850 municipalities, rates were up in all but 78. Total rates in cities and villages ranged from $9.21 in Egg Harbor to $27.49 in Steuben. In addition to the Village of Steuben, four cities and three villages (Nekoosa, Norwalk, West Milwaukee, Owen, Niagra, Greenwood, and Gilman) had net tax rates over $27. Only Ephraim and Egg Harbor, both in Door County, reported rates under $10.

Statewide, total net levies per capita averaged $1,645. Chenequa ($11,907), Egg Harbor ($11,495), and Ephraim ($10,183) had the highest per capita levies, while Ingram ($350), Bowler ($382), and Melvina ($412) had the lowest. A number of municipalities with high per capita taxes were vacation areas with high property values but relatively small permanent populations.

According to the WISTAX reports, school tax levies increased most in %), followed by technical college (3.9%), county (3.2%), and municipal (3.2%) levies. Reasons for variation in levy growth include levy limits on municipalities and counties, revenue caps on schools, and a change in state school aid.

Net and municipal-only property tax levy information for each of the state’s towns, villages, and cities is available on the WISTAX Web site, www.wistax.org.

Free copies of the Focus newsletters titled "Property tax recap (I): Municipal Levies" and "Property tax recap (II): Total levies" are available by writing WISTAX at 401 North Lawn Ave., Madison, WI ; e-mailing ; visiting www.wistax.org; or phoning .o