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Published - Wednesday, August 06, 2008

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EDITORIAL: Time to tame state tax bite on property

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Wisconsin landed on a Top 10 list recently that's sure to rankle homeowners. Wisconsin has the ninth highest property tax in the nation, according to the Wisconsin Taxpayers Alliance. The Badger State also has higher property taxes than all of its neighboring states in the Midwest.

The poor rating should serve as yet another warning to state and local leaders not to jack up this worst-of-all tax even higher. It also should energize groups such as The Wisconsin Way, which is brainstorming for creative and fair ways to reduce our state’s property tax burden while growing our high-tech economy.

If anything, the Taxpayers Alliance ranking minimized the pinch many Wisconsin homeowners feel. That’s because the group looked at the burden on all properties together -- homes, businesses, farms and other land.

If you single out just homes, a different study last year suggested Wisconsin property taxes rank No. 1 in the nation. The National Association of Home Builders compiled property tax rates on a median-valued home in each state. Only Wisconsin and Texas (which doesn’t have a state income tax) exceeded $18 per $1,000 of property value.

In its report, the Taxpayers Alliance measured the property tax bite more broadly. It ranked states based on ability to pay. It found that Wisconsin’s property tax burden eats up about 4.4 percent of personal income here.

Holding down property taxes won’t be easy. That’s because reducing the burden in a dramatic way is likely to increase other forms of taxation.

For example, Wisconsin has relatively low user fees — such as car registration and license charges — compared to other states. The Taxpayers Alliance ranks Wisconsin 32nd in the nation for such fees. Wisconsin also ranks in the bottom half of states for its sales tax.

At the same time, state leaders already give a large amount of aid to local governments — especially public schools — to try to ease the property tax burden. Wisconsin ranks eighth highest for these state transfers.

And despite state-imposed tax limits on local governments including schools, Wisconsin property owners received bills totalling $8.45 billion in December -- a more than 5 percent increase.

Cutting one tax only to raise another isn’t the solution. A better approach is to grow the state economy by encouraging, and investing in, technology and education while controlling spending elsewhere. More jobs with higher wages can ease the property tax burden without reducing the quality of basic government services.
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Tame property taxes or face California-type foreclosure rate wrote on Aug 8, 2008 12:22 PM:

" Rural property taxes DOUBLED over a two year period in our area (3-4 years ago)on a MODEST properties.

Add gasoline increases, overly-expensive health insurance (IF people can affrord it), excessive co-pays, food price increases and FLAT wages in an area that refuses to pay liveable wages--even to qualified people--and you WILL have increased "God's Country" foreclosure rates NOT due to California-like exploitation on the part of lenders, But from property taxes that increase to $200 or $300 PER MONTH in addition to the original mortage payments.

WAKE UP! "


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