Impact of property value greater than tax rate, report says

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Jeff Schmidt

Researcher

Public Policy Forum

414-276-8240

jschmidt@publicpolicyforum.org

Impact of property value greater t= han tax rate, report says

Comparison of average tax bills in region

makes cities of Milwaukee and Racine more attrac= tive

MILWAUKEE, Wisconsin – May 20, 2005 – Using the average home sale price in southeastern Wisconsin communities to determine tax bills puts the cities of Milwaukee a= nd Racine in a more favorable financial light, according to a new Regional Report from Milwaukee-bas= ed Public Policy Forum.

“It’s time to s= tart thinking regionally and not have communities competing against each other f= or lower tax rates,” says Jeffrey K. Schmidt, the Forum researcher who w= rote the report. “Tax rates = do not have as much bearing on a homeowner’s tax bill as does the value of a home.”

For example, the report say= s that the city of Milwaukee is in the top 10 in tax rate among southeastern Wisco= nsin communities, but it is in the bottom 10 (78^th out of 84) in aver= age tax bill. The city of Racine is in the = top 20 in tax rate, but is 83^rd (out of 84) in average tax bill. Conversely, the village of Oconomowoc Lake is last in tax rate in the re= gion, but it ranks 2^nd in tax bill.&n= bsp;

“It’s a myth to= say that moving from the city to the suburbs will shield you from the high tax burden of the city,” Schmidt says.&n= bsp; “In reality you are going to a more expensive home which will result in a higher tax bill even though there might be a lower tax rate.= 221;

Generally speaking, accordi= ng to the report, the higher the value of the home, the higher the tax bill regardless of the tax rate.

Other report findings inclu= de:

Property tax levies in southeastern Wisconsin increased 5.5% from 200= 4 to 2005;

The village of West Milwaukee had the highest net tax rate in 2005 at $30.29 per $1,000 of assessed value. The town of Paris in Kenosha County had the lowest net tax rate at $10.93;

Based on 2004 average home sale prices, homeowner= s in the village of Chenequa in Waukesha County had the highest average property tax bill in southeastern Wisconsin for 2005 at $21,908, while taxpayers in the village of Elmwood Park in Racine County had the lowe= st at $2,681;

The top three counties in southeastern Wisconsin in terms of 2004 average residential= home sale price (Ozaukee, Wauk= esha, and Walworth) are also the top three in 2005 average tax bill.

The Public Policy Forum is facilitating creation of a shared vision action plan for regional cooperati= on in southeastern Wisconsin based on research and analysis. During the next three years, the Forum will encourage the region to think and act in ways that promote its long-term economic and social health, including . . .

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Developing a Southeastern Wisconsin Leadership Network;
Establishing priorities for regional action;
Making the case to citizens that regional coopera= tion is vital to our future;
Benchmarking progress toward the shared vision.

Milwaukee-based Public Poli= cy Forum – which was established in 1913 as a local government watchdog –= ; is a nonpartisan, nonprofit organization dedicated to enhancing the effectiven= ess of government and the development of southeastern Wisconsin through objective research of regional public policy issues.

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