Where Do Property Taxes Go?

Wisconsin State Journal
9/15/2007

Do you know where your property taxes go? Take a good look the next time you drive past a school, fire station or a local park. Schools take the largest share, followed by the city or village. But many people are surprised that counties and technical colleges also are among the top four.

Historically, about 60 percent of property taxes went to schools, but since the state has dramatically increased aid to local school districts, the total has fallen to an average of 43 percent statewide. The fastest-growing segment has been the technical colleges, which now absorb nearly 8 percent of all property taxes, says Todd Berry, president of the Wisconsin Taxpayers Alliance.

A quick comparison: Traditionally, Wisconsin has relied on the property tax more than most other states. Property taxes accounted for $7.9 billion in taxes assessed in 2006. By comparison, the state collected $6.1 billion in income taxes and $4.4 billion in sales taxes.

What you think: In a March 2006 Wood Communications Group survey of 600 Dane County residents, 86 percent said local government spends "about the right amount" on trash collection, followed by fire protection (79.2 percent), sewer maintenance (77.4 percent), police (66.4 percent), parks and recreation (64.8 percent) and street maintenance (60.5 percent).

Test your knowledge The "mill rate" refers to: (a) taxes per thousand dollars of home value; (b) taxes per million dollars of community value; © the tax rate on commercial property; (d) the tax rate needed to continue government at last year's level. Check next week for the answer.

Last column's quiz answer: On average, 24 percent of the amount you pay in property taxes goes to the community that sent your tax bill.

Got a question? Ask Civitas experts to answer your public policy questions. E-mail national@madison.com.

What is Civitas? These monthly seminars inform citizens about local government issues and civic responsibility. They are organized by Wood Communications Group and financially supported by several Madison-area companies. Information, www.civitaswi.org.