| The intent of this column is to explain the effects of the budget, along
with the other taxing jurisdictions on the tax bill that you
receive. It’s hard to take a complex topic like
real estate taxes in Wisconsin and explain it simply, especially
when the media or other jurisdictions seem to use the method of
explanation that best fits their situation.
Let's start by defining some
terms that get used all the time in discussions of real estate
taxes. Tax levy = revenue shortfall, or the difference between
revenues and expenses for each tax jurisdiction. In the City of
Prairie du Chien, we have (5) taxing jurisdictions, the City of
Prairie du Chien, County of Crawford, Prairie du Chien Area
School District, State of Wisconsin, and Southwest Technical
College. Each of these jurisdictions send to the City, the
City’s portion of their tax levy which is placed on your tax bill.
So the tax bill you pay to the City is a combination of all five
jurisdictions.
Tax Rate or mil rate = tax levy
divided by the total assessed value of the City. In order to
spread the tax levy equitably across all property in the City, a tax rate
is created and then multiplied by each individual
assessment to give you your share of the levy. The rate is
usually expressed in dollars per $1,000 of assessed value. A tax
rate is created for each of the five jurisdictions to give us a
total tax rate.
Assessed value = a value placed
on your property by the local assessor for tax purposes. The
ratio (%) of assessed value to market value (Fair Market or
Equalized Value) is determined by the Department of Revenue and
changes from year to year.
The City generally holds a public
hearing to set its tax levy in November, after the other
jurisdictions have already held their public hearings and have
submitted their final numbers to the City. The levies include the Tax
Increment Financing levy for each tax jurisdiction.
The proposed total tax levy divided by the assessed value of the City yields a gross tax rate
(per $1,000 of assessed value). We have a state school
credit that is deducted to determine the net tax rate.
The net tax rate x your assessed
value = total tax. Total tax + garbage fee –
lottery credit = net tax.
The tax information
for 2006 is as follows:
|
Tax Rate |
$28.87 (per
$1,000 of assessed value) |
|
Garbage Fee |
$102.00 |
|
Lottery Credit |
$114.59 |
|
Fair Market (Equalized)
Value Ratio |
83.36% |
Hopefully, this provides a better
understanding of the information that is shown on your tax bill.
Anyone having questions on their tax bill is encouraged to
contact the City Administrator's Office at (608) 326-6406.
City Administration
|
