regional report · 2014. 2. 17. · city of delafield $7,830 village of sharon $2,984 village of...

RegionalRegionalVolume Two • Number FiveMay 2005 ReportReport

Southeastern Wisconsin tax bills higher despite lower tax rates

CREDITSE X E C U T I V E S U M M A R Y

Local elected officials in southeastern Wisconsin pride themselves on keepingtheir tax rates low and their tax rate increases even lower. Comparing the tax rate ofone community to another is a favorite pastime among policymakers and homebuyers alike. Suburban communities with lower tax rates often market themselves asan escape from the high taxes of the city. But tax rates are not the only factor indetermining a homeowner’s tax bill. Our new analysis shows that a home’s value hasa much greater impact on the tax bill than does the tax rate.

Because property assessments are based on market value, a community’s averagehome sales price can be used to calculate its average tax bill. The Forum found thatwhen the net tax rate is applied to the average sales price, communities with areputation of having lower taxes actually have higher tax bills and vice versa. The cityof Milwaukee, for example, has the region’s 8th highest tax rate, but the 7th lowestaverage tax bill.

Thus, it does not make much sense for communities to compete for the lowest taxrate. A more expensive house will have a higher tax bill, no matter the comparative taxrate. A region-wide focus on raising property values while maximizing efficiencieswould better serve property owners across southeastern Wisconsin.

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Sponsor

Research conducted byPublic Policy Forum

Jeffrey K. SchmidtResearcher

Anneliese Dickman, J.D.Senior Researcher

Ryan HortonResearch & Editing Assistance

Jeffrey C. BrownePresident

Jerry SlaskeCommunications Director

Catherine A. CrotherOffice Manager

633 W. Wisconsin Ave., Suite 406Milwaukee, WI 53203

www.publicpolicyforum.orgPhone (414) 276-8240

Top ten Bottom ten

Village of Chenequa $21,908 Village of Newburg $3,415

Village of Oconomowoc Lake $18,350 Village of Mount Pleasant $3,354

Village of River Hills $16,349 Village of Sturtevant $3,254

Village of Lac La Belle $15,228 City of Milwaukee $3,202

Village of Shorewood $8,325 Village of Kewaskum $3,029

Village of Bayside $8,056 Village of Paddock Lake $3,001

City of Delafield $7,830 Village of Sharon $2,984

Village of Fox Point $7,764 Village of Butler $2,928

Village of Whitefish Bay $7,502 City of Racine $2,766

City of Mequon $7,334 Village of Elmwood Park $2,681

Note: Average tax bill is based on the 2004 average residential home sale price in that community.

TABLE 1 AVERAGE TAX BILLS IN SOUTHEASTERN WISCONSIN, 2005

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Other findings from our annual analysis of property tax rates

• Property tax levies in southeastern Wisconsinincreased 5.5% from 2004 to 2005. Of the majortaxing jurisdictions, school districts increased theirtax levies the most, 6.9%, followed by municipalgovernments at 4.3% and county governments at3.2%. These increases compare to an inflation rate of1.4% from 2003 to 2004.

• The village of West Milwaukee had the highest nettax rate in 2005 at $30.29 per $1,000 of assessedvalue. The town of Paris in Kenosha County had thelowest net tax rate in 2005 at $10.93. The city ofMilwaukee ranked eighth of 85 with a net tax rate of $25.08.

• Based on 2004 average home sale prices, home-owners in the village of Chenequa in WaukeshaCounty had the highest average property tax bill insoutheastern Wisconsin for 2005 at $21,908, whiletaxpayers in the village of Elmwood Park in RacineCounty had the lowest at $2,681.

• Although the city of Milwaukee has a relatively hightax rate, its average tax bill is among the lowest inthe region.

• The top three counties in southeastern Wisconsin interms of 2004 average residential home sale price arealso the top three counties in 2005 average tax bill.

Data and methodology

This report compiles data (from the WisconsinDepartment of Revenue) on 2004-2005 tax levies and taxrates of municipalities in the seven counties of southeasternWisconsin. These data are considered preliminary becausethey have not yet been fully audited.

The tax levy is the amount of money that each taxingjurisdiction (county, municipality, school district, technicalcollege district, tax increment finance district, specialdistrict, and the state) budgets to receive from propertytaxes. These levies were decided in 2004 for the 2005budgets. To arrive at the tax rate, each government dividesthe levy by the total property value (tax base) in itsjurisdiction and multiplies the result by 1,000. This

calculation allows property tax payments to be distributedevenly among taxpayers according to individual property values.

Because each property taxpayer lives within severaltaxing jurisdictions, the tax rates are added together toarrive at the gross tax rate. However, the net tax rateactually determines each taxpayer’s payment because thestate tax credit is subtracted from the gross tax rate.Taxpayers can determine their individual payment bydividing their property value by 1,000 and multiplying theresulting number by the net tax rate.

Our analysis of the average residential property tax billis based on the 2004 average residential home sale price foreach municipality as provided by the Multiple ListingService, Inc. (MLS). For this report residential propertiesinclude single family, two family, and multi-family homesand also condos. Townships are not analyzed separatelybecause MLS reports the average home sales price forcommunities with the same name (such as the town of PortWashington and the city of Port Washington) as onemunicipality. In these cases, we applied the net tax rate ofthe larger municipality to the average sales price. Tax ratesfor towns are listed separately for this reason and alsobecause incorporated municipalities such as cities andvillages offer a different level of services than do towns.

Tax levies

Table 2 shows the one-year change in the tax levy bymunicipality for the three largest components of the grosstax levy: school districts, county government, andmunicipal governments. Although there are oftensignificant changes to the levies for technical colleges, stateforestry, special district, and TIF districts, these taxingjurisdictions levy a relatively small portion of the total levyso they are not included in this analysis.

The aggregate gross tax levy for southeasternWisconsin increased 5.5% from 2004 to 2005—1.5percentage points higher than last year’s increase and thehighest since 2002 when the increase was 6.2%. Schooldistricts were the driving force behind this increase. Theaggregate school district tax levy increased 6.9% from 2004

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to 2005. This is more than one percentage point higherthan last year’s increase. Southeastern Wisconsin’s aggregatemunicipal government tax levy increased 4.3% from 2004to 2005—also much higher than last year’s increase. Theaggregate county government tax levy increased the leastfrom 2004 to 2005, going up 3.2%.

Kenosha County municipalities had the highestincrease in aggregate gross tax levy of the seven counties,increasing 6.7% from 2004 to 2005. Racine and Walworthcounties were next, both increasing 5.9%. Next areMilwaukee and Washington counties at 5.5% each.Waukesha County municipalities followed closely with theaggregate gross tax levy increasing 5.3%. Ozaukee Countymunicipalities had the lowest increase in aggregate gross tax

levy increasing 4.3% from 2004 to 2005. Fourteenmunicipalities increased their gross tax levies more than10%; five municipalities saw their gross tax levies decrease.

Chart 1 shows the difference in the 2003 to 2004 andthe 2004 to 2005 aggregate gross tax levy changes. It showsthat every county’s aggregate gross tax rate had a higherincrease this year than last year except for one, OzaukeeCounty. The increase for Ozaukee County municipalities in2005 was 1.8 percentage points less than the 2004 one-yearchange. Milwaukee County municipalities’ one-year changein 2005 was 3.2 percentage points higher than the 2004one-year change. This was the only county aggregateincrease that had more than a one percentage pointdifference.

CHART 1 2003-2004 AND 2004-2005 AGGREGATE TAX LEVY CHANGES BY COUNTY

2005 gross Gross tax School district tax County tax Municipal tax tax levy levy change levy change levy change levy change

Kenosha County $238,029,021 6.7% 10.4% 3.1% 3.0%

Town of Brighton $2,815,580 5.9% 10.5% 1.0% -5.3%

Town of Bristol $8,734,449 5.4% 4.9% 4.6% 7.7%

Town of Paris $2,066,532 1.2% 1.5% -2.3% -2.3%

Town of Randall $7,456,125 13.7% 20.5% 5.5% 6.0%

Town of Salem $17,620,186 11.9% 16.6% 7.3% 5.2%

Town of Somers $11,568,216 7.7% 10.4% 3.4% 7.9%

Town of Wheatland $4,682,253 6.3% 7.3% 6.0% 1.2%

Village of Paddock Lake $4,398,308 3.1% 4.0% 1.4% 3.1%

Village of Pleasant Prairie $37,998,124 7.7% 9.2% 2.3% 4.5%

Village of Silver Lake $3,397,058 16.3% 26.5% 6.6% 9.4%

Village of Twin Lakes $13,111,134 9.1% 17.9% 8.4% -8.4%

City of Kenosha $124,180,915 5.1% 8.7% 1.8% 2.9%

Milwaukee County $1,322,390,347 5.5% 7.8% 2.9% 3.2%

Village of Bayside $14,579,237 0.8% -0.9% -0.2% 3.9%

Village of Brown Deer $25,391,274 3.0% 0.2% 0.8% 6.0%

Village of Fox Point $25,035,977 4.1% 4.0% 4.1% 2.8%

Village of Greendale $32,711,746 3.8% 3.8% 3.4% 2.9%

Village of Hales Corners $14,820,659 4.6% 1.6% 1.7% 3.7%

Village of River Hills $10,852,744 4.6% -0.5% 1.0% 19.4%

Village of Shorewood $34,527,351 1.7% -0.6% 2.1% 2.5%

Village of West Milwaukee $8,302,202 2.0% 1.0% -2.9% -1.0%

Village of Whitefish Bay $39,872,615 5.0% 6.3% 2.1% 5.4%

City of Cudahy $28,462,621 7.6% 12.4% 0.5% 3.0%

City of Franklin $69,429,672 5.4% 2.8% 6.6% 6.9%

City of Glendale $41,297,067 6.8% 2.2% 2.4% 10.0%

City of Greenfield $62,092,635 4.2% 5.5% 4.2% 1.3%

City of Milwaukee $616,367,981 6.7% 12.6% 2.8% 2.0%

City of Oak Creek $57,784,288 7.3% 7.2% 10.0% 2.8%

City of Saint Francis $13,312,071 4.3% 3.8% 3.2% 4.8%

City of South Milwaukee $26,832,284 5.6% 7.9% 2.7% 4.0%

City of Wauwatosa $104,423,260 3.2% 3.6% 0.9% 4.3%

City of West Allis $96,294,665 4.6% 5.9% 1.8% 5.0%

Ozaukee County $171,816,856 4.2% 2.1% 2.7% 7.5%

Town of Belgium $2,987,119 8.9% 9.4% 9.0% 0.0%

Town of Cedarburg $11,086,006 -0.3% -2.9% 3.3% 1.4%

Town of Fredonia $2,725,312 2.6% 2.0% 3.2% 1.3%

Town of Grafton $7,864,628 5.1% 4.1% 1.8% 12.2%

Town of Port Washington $2,708,572 5.3% 5.1% 2.7% 7.9%

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One RegionTABLE 2 2004-2005 TAX LEVY CHANGES

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One Future2005 gross Gross tax School district tax County tax Municipal tax

tax levy levy change levy change levy change levy change

Town of Saukville $3,073,716 5.6% -0.3% 5.2% 73.5%

Village of Belgium $2,330,140 10.9% 14.7% 7.3% 4.2%

Village of Fredonia $2,447,300 1.6% 0.1% 6.8% 4.7%

Village of Grafton $19,572,553 2.1% 1.3% 0.1% 3.4%

Village of Saukville $7,038,674 6.4% 5.3% 2.1% 4.7%

Village of Thiensville $5,909,678 3.2% 2.2% 1.9% 0.8%

City of Cedarburg $20,919,493 0.2% -3.2% 3.1% 2.6%

City of Mequon $67,030,091 6.6% 3.2% 2.9% 14.3%

City of Port Washington $15,459,606 3.4% 4.4% 0.7% 0.0%

Racine County $250,987,126 5.9% 8.7% 1.8% 5.0%

Town of Burlington $9,701,726 7.1% 10.3% 5.9% 1.3%

Town of Caledonia $34,017,625 4.7% 7.1% 1.7% 4.5%

Town of Dover $4,811,695 3.4% 8.1% 9.3% -23.5%

Town of Norway $12,355,454 10.7% 12.6% 10.4% 3.2%

Town of Raymond $6,495,962 7.0% 12.4% 2.1% 3.5%

Town of Rochester $2,728,333 -23.5% 6.9% -90.2% -2.2%

Town of Waterford $11,589,123 13.0% 15.7% 8.3% 17.0%

Town of Yorkville $6,384,271 6.5% 6.7% 3.8% 14.1%

Village of Elmwood Park $674,647 7.3% 7.6% 2.0% 14.0%

Village of Mount Pleasant $39,237,331 7.5% 9.2% 3.5% 8.6%

Village of North Bay $647,326 10.0% 17.4% 11.2% 0.0%

Village of Rochester $1,137,034 2.3% 3.3% 0.6% 2.8%

Village of Sturtevant $6,876,402 8.9% 11.8% 6.0% 11.8%

Village of Union Grove $5,609,202 9.8% 12.0% 10.0% 4.9%

Village of Waterford $7,207,496 4.6% 5.2% 2.4% 7.0%

Village of Wind Point $3,952,110 -0.3% 3.0% -2.3% 0.0%

City of Burlington $15,481,160 6.8% 7.9% 3.4% 3.1%

City of Racine $82,080,230 4.9% 7.1% 1.3% 4.3%

Walworth County $194,733,216 5.9% 8.2% 4.6% 6.8%

Town of Bloomfield $7,768,673 10.8% 17.2% 5.1% 3.9%

Town of Darien $1,859,985 1.5% 3.1% 0.5% -6.2%

Town of Delavan $13,655,930 9.3% 8.4% 6.7% 19.2%

Town of East Troy $9,476,614 4.9% 3.5% 3.7% 9.6%

Town of Geneva $10,788,565 9.2% 12.8% 5.1% 6.6%

Town of La Fayette $3,023,742 7.3% 7.5% 5.3% 16.3%

Town of La Grange $9,026,043 8.7% 10.1% 7.4% 4.4%

Town of Linn $18,707,707 5.8% 7.6% 4.3% 3.4%

Town of Lyons $6,467,583 0.9% 4.5% -4.2% 4.5%

Town of Richmond $3,217,952 8.3% 10.4% 6.7% 0.0%

TABLE 2 2004-2005 TAX LEVY CHANGES, continued

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Town of Sharon $1,258,561 -0.6% -0.6% -1.4% 0.6%

Town of Spring Prairie $3,184,766 3.9% 5.1% 2.7% 4.1%

Town of Sugar Creek $4,649,660 6.3% 7.9% 4.9% 3.9%

Town of Troy $3,482,288 7.2% 3.1% 3.1% 36.9%

Town of Walworth $2,959,549 1.9% 0.2% 1.5% 12.1%

Town of Whitewater $4,151,458 9.1% 10.0% 6.3% 4.2%

Village of Darien $2,178,174 2.3% 7.1% 4.1% 5.0%

Village of East Troy $5,529,020 4.3% 2.1% 2.2% 12.1%

Village of Fontana $12,984,292 1.7% 2.3% 3.5% 4.9%

Village of Genoa City $3,762,845 15.3% 14.3% 1.8% 8.9%

Village of Sharon $1,788,510 3.1% 4.4% 2.4% 2.8%

Village of Walworth $3,679,321 6.1% 6.1% 6.7% 5.5%

Village of Williams Bay $8,906,244 3.3% 2.1% 6.7% 0.3%

City of Delavan $11,162,302 2.8% 20.7% 17.3% 13.0%

City of Elkhorn $10,893,917 5.7% 8.1% 4.8% -0.5%

City of Lake Geneva $20,502,367 7.8% 13.6% 1.8% 5.7%

City of Whitewater $9,627,810 3.2% 6.7% 2.8% 1.2%

Washington County $196,490,597 5.5% 6.5% 3.7% 5.6%

Town of Addison $4,862,280 9.0% 14.9% 2.0% 3.8%

Town of Barton $3,688,915 10.0% 8.9% 5.5% 22.8%

Town of Erin $8,096,824 5.8% 7.8% 1.9% 3.8%

Town of Farmington $4,648,722 6.9% 8.7% 5.0% -0.1%

Town of Germantown $349,048 0.4% 0.5% 0.5% -6.3%

Town of Hartford $5,576,301 0.0% 0.1% -1.1% 5.2%

Town of Jackson $5,449,848 8.9% 10.1% 8.8% 0.0%

Town of Kewaskum $1,661,919 5.7% 8.2% 4.5% -1.4%

Town of Polk $7,307,755 3.1% 8.3% -2.7% -17.6%

Town of Richfield $20,618,343 5.3% 5.5% 3.6% 6.5%

Town of Trenton $5,489,694 5.0% 5.5% 2.3% 8.2%

Town of Wayne $2,220,291 7.9% 10.3% 6.5% -1.7%

Town of West Bend $10,471,635 8.2% 11.0% 3.3% 13.8%

Village of Germantown $39,291,496 2.9% 1.7% 1.9% 3.9%

Village of Jackson $7,618,499 8.6% 12.1% 8.6% 5.1%

Village of Kewaskum $3,983,014 9.0% 10.5% 6.9% 8.0%

Village of Newburg $1,067,759 12.9% 14.1% 10.8% 12.7%

Village of Slinger $6,529,166 13.9% 21.1% 7.1% 7.4%

City of Hartford $17,200,745 5.7% 7.2% 11.3% 8.6%

City of West Bend $40,333,035 5.0% 6.1% 3.2% 5.3%

Waukesha County $752,308,602 5.3% 5.4% 4.0% 5.2%


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Town of Brookfield $16,068,789 6.5% 8.8% 6.7% 0.9%

Town of Delafield $19,110,073 6.5% 7.5% 4.7% 3.3%

Town of Eagle $5,225,402 1.6% 1.3% 4.1% -1.6%

Town of Genesee $11,220,919 3.2% 2.9% 1.9% 8.3%

Town of Lisbon $14,885,766 5.8% 5.7% 5.6% 6.9%

Town of Merton $18,682,518 4.6% 4.6% 4.3% 5.0%

Town of Mukwonago $10,202,341 3.1% 2.1% 2.5% 6.1%

Town of Oconomowoc $17,249,374 4.4% 4.6% 3.2% 5.5%

Town of Ottawa $7,078,073 4.2% 5.0% 4.4% 3.1%

Town of Summit $11,736,923 7.2% 8.1% 6.5% 4.2%

Town of Vernon $10,264,190 3.6% 4.4% 4.8% -1.1%

Town of Waukesha $12,174,874 5.3% 6.0% 3.8% 5.0%

Village of Big Bend $2,157,124 2.0% 1.9% 3.0% 1.7%

Village of Butler $4,780,899 7.5% 10.3% 9.1% 0.0%

Village of Chenequa $7,152,416 7.2% 9.1% 8.4% 1.2%

Village of Dousman $2,407,897 8.1% 8.5% 7.8% 7.3%

Village of Eagle $2,419,286 1.1% 0.0% 4.1% 1.5%

Village of Elm Grove $18,732,716 5.2% 5.1% 4.4% 5.8%

Village of Hartland $17,193,575 6.6% 7.8% 4.5% 4.7%

Village of Lac La Belle $1,920,729 6.6% 7.2% 5.3% 6.8%

Village of Lannon $1,637,389 3.7% 3.0% 3.1% 5.6%

Village of Menomonee Falls $72,131,346 5.3% 6.2% 0.5% 3.1%

Village of Merton $3,458,458 22.9% 27.0% 23.0% 12.4%

Village of Mukwonago $10,196,816 4.1% 1.3% 2.4% 5.5%

Village of Nashotah $2,835,002 2.7% 3.7% 1.9% 0.0%

Village of North Prairie $3,176,671 4.5% 6.6% 6.8% -1.4%

Village of Oconomowoc Lake $5,154,921 6.4% 7.1% 5.2% 5.3%

Village of Pewaukee $15,479,795 8.7% 8.3% 8.3% 9.1%

Village of Sussex $16,459,878 2.2% 0.1% 1.0% 9.0%

Village of Wales $3,958,988 9.8% 10.2% 9.5% 8.6%

City of Brookfield $105,768,327 3.5% 3.9% 3.2% 3.0%

City of Delafield $17,805,242 2.4% 0.2% -0.2% 8.1%

City of Muskego $40,327,093 6.9% 7.7% 6.0% 4.6%

City of New Berlin $80,359,554 4.2% 5.3% 3.8% 2.1%

City of Oconomowoc $23,845,460 10.1% 8.3% 7.1% 8.0%

City of Pewaukee $37,024,163 6.8% 5.4% 4.2% 16.0%

City of Waukesha $101,496,133 5.9% 5.0% 3.5% 7.8%

Southeastern Wisconsin $3,126,755,765 5.5% 6.9% 3.2% 4.3%


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Tax rates

For the most part, the report focuses on the net taxrate because that is what affects taxpayers the most.Nevertheless, it is also important to look at the gross taxrate and its components. The aggregate 2005 gross tax ratein southeastern Wisconsin is $21.50. There are sevencomponents to the gross tax rate that we recognize: schooldistricts, technical colleges, county governments, municipalgovernments, state government, special districts, and TIFdistricts. Chart 2 shows that the largest component of thegross tax rate in southeastern Wisconsin is consumed byschool districts, with an aggregate tax rate of $9.35.Municipal governments make up the next largestcomponent with an aggregate tax rate of $5.76, well belowthe school district rate. The other major component iscounty governments which take up 16% of the total grossrate with an aggregate rate of $3.52.

In 2005, the aggregate net tax rate for all southeasternWisconsin is $20.28, down 2.8% from last year due tohigher property values. Taxpayers in Milwaukee Countyface the highest net tax rate in the region: $24.60 in theaggregate. The next highest aggregate net tax rate is inKenosha County, with a rate of $20.24. These were the only

two counties with aggregates above $20. Racine Countyhad the next highest aggregate at $19.70, followed byWalworth County at $17.83 and Ozaukee County at$17.39. Washington County ranked sixth in aggregate nettax rate at $17.32. Waukesha County taxpayers had thelowest aggregate net tax rate in the region at $17.09. Allseven counties in southeastern Wisconsin had aggregate nettax rates lower than last year’s rates.

The village of West Milwaukee has the highest net taxrate in southeastern Wisconsin for 2005 at $30.29 and isthe only municipality with a rate above $30. Of themunicipalities with the highest net tax rates only two ofthem—the villages of Sharon and Darien in WalworthCounty—are not in Milwaukee County. The city ofMilwaukee ranks eighth in terms of net tax rate at $25.08.The town of Paris in Kenosha County had the lowest net taxrate in the region at $10.93.

The lowest 23 municipalities in terms of net tax ratewere towns. Only four cities were ranked in the bottom halfof municipalities and only seven towns were in the top half.For the most part, areas that are more developed tend to

CHART 2 SOUTHEASTERN WISCONSIN AGGREGATE GROSS TAX RATE BREAKDOWN

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have higher tax rates because they provide more servicesthan rural areas. This explains why towns are ranked nearthe bottom in net tax rate. Also, municipalities with greaterpopulation need to have increased services such as policeand fire protection, which tend to cost more.

All but 14 municipalities in southeastern Wisconsindecreased their net tax rate from 2004 to 2005. Althoughmost municipalities decreased their net tax rates, a largeportion of them did not improve their ranking whencompared to all municipalities in southeastern Wisconsin.In fact, 41% of the municipalities increased their net taxrate ranking from 2004 to 2005. Sixty-five percent ofWaukesha County municipalities improved their rankingfrom 2004 to 2005, the highest percentage in southeasternWisconsin. Ozaukee County was next with 50% of themunicipalities improving their ranking, followed byMilwaukee County where 42% of the municipality rankingsimproved. Thirty-nine percent of the municipalities inRacine County improved their ranking from 2004 to 2005.In Kenosha County, it was one-third of the municipalities

improving, followed by Walworth County with 22%improving their rank. Washington County had the lowestpercentage of municipalities improving, with only 20%.

Tax bills

Although some municipalities have high tax rates, thisdoes not necessarily mean that taxpayers in thosecommunities will have high tax bills. A homeowner’s taxbill is based on the assessed home value, so obviously thelower the value of the home, the lower the taxes. This year,we calculated an average tax bill using the averageresidential home sale price in 2004 and applying the 2005net tax rate. For this analysis, we looked at only villages andcities in southeastern Wisconsin.

The resulting findings are unique. Often, a comparisonof tax bills is made based on a hypothetical house of acertain price; for example, by comparing the bill for ahypothetical $100,000 house in Whitefish Bay with the billfor that same house in West Allis. This does not providemuch valuable information to a taxpayer, however, if there

2005 net 2004 average 2005 averagetax rate home sale price tax bill

Kenosha County $20.24 $179,359 $3,630

Milwaukee County $24.60 $157,214 $3,867

Ozaukee County $17.39 $296,380 $5,154

Racine County $19.70 $167,128 $3,292

Walworth County $17.83 $240,346 $4,285

Washington County $17.32 $215,812 $3,739

Waukesha County $17.09 $282,084 $4,821

Southeastern Wisconsin $20.28 $199,824 $4,052

2005 net 2004 home 2005 average rate rank sale price rank tax bill rank

Ozaukee County 5 1 1

Waukesha County 7 2 2

Walworth County 4 3 3

Milwaukee County 1 7 4

Washington County 6 4 5

Kenosha County 2 5 6

Racine County 3 6 7

TABLE 3 2004 AVERAGE HOME SALE PRICE AND 2005 NET TAX RANKINGS BY COUNTY

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are not very many $100,000 homes in his or hercommunity. We take a more pragmatic and realisticapproach by using the average home sales price of eachcommunity.

The average residential home sale price insoutheastern Wisconsin was $199,824 in 2004. OzaukeeCounty had the highest overall average residential homesale price in 2004 at $296,380. The next highest averagehome sale price—$283,084—was in Waukesha County,followed by Walworth County where the average sale pricewas $240,346, followed by Washington County with anaverage home price of $215,812. These were the onlycounties with average home sale prices above $200,000.Kenosha, Racine, and Milwaukee counties, in that order,were the last three ranked counties in average home sale price.

As shown in Table 3, the rankings of the average homesale price approximate the rankings of net taxes. The net taxrate does not have as much bearing on net taxes as the valueof the home. Generally, the higher the value of the home,the higher the taxes. The average tax bill in southeasternWisconsin is $4,052 based on the 2004 average residentialhome sale price. Ozaukee County had the highest homesale price and when that was used to calculate the averagetax bill, it had the highest tax bill. The 2005 average tax billin Ozaukee County is $5,154. Waukesha County rankedsecond with an average tax bill of $4,821, even though ithas the lowest net tax rate in southeastern Wisconsin.Walworth County has the third highest average tax bill at$4,285. Milwaukee County is next with a tax bill of $3,867,even though it has the highest net tax rate in southeasternWisconsin. Following Milwaukee County are Washington,Kenosha, and Racine counties in that order, which also arefourth, fifth, and sixth in average home sale price.

The village of Chenequa in Waukesha County has thehighest average tax bill at $21,908. This is due to the factthat the 2004 average home sale in Chenequa was$1,317,268, the highest in the region. Nine out of the top10 mean tax bills by municipality are in either Milwaukeeor Waukesha counties with the tenth being the city ofMequon in Ozaukee County. The village of Elmwood Parkin Racine County had the lowest average tax bill at $2,681(although there were only three houses sold there in 2004).The average homeowner in the city of Racine pays slightlymore than that at $2,766.

Even though the value of the home has more bearingon the tax bill than the net tax rate, it is still interesting tocompare the two. The city of Milwaukee and the village ofSharon in Walworth County are the only two municipalitiesto be in the top 10 in net tax rate, but in the bottom 10 inaverage tax bills. This means that even though the tax rateseems high, the taxes paid are low because the marketvalues of the homes are lower than elsewhere insoutheastern Wisconsin.

There is only one municipality—the village ofShorewood in Milwaukee County—in the top 10 in net taxrate and average tax bill. On the other hand, there are twomunicipalities that are in the bottom 10 in net tax rate andin the top 10 in average tax bill: the village of Lac La Belleand the village of Oconomowoc Lake, which is last in nettax rate and second in tax bill. There are two municipalitiesin southeastern Wisconsin that are in the bottom 10 in bothnet taxes and net tax bill: the village of Newburg inWashington County and the village of Elmwood Park inRacine County.

11


One Future2005 net tax rate

Kenosha County $20.24

Town of Brighton $16.75

Town of Bristol $17.47

Town of Paris $10.93

Town of Randall $16.52

Town of Salem $18.18

Town of Somers $17.46

Town of Wheatland $17.23

Ozaukee County $17.39

Town of Belgium $13.90

Town of Cedarburg $14.96

Town of Fredonia $13.82

Town of Grafton $15.79

Town of Port Washington $15.97

Town of Saukville $14.15

Racine County $19.70

Town of Burlington $17.28

Town of Caledonia $18.60

Town of Dover $15.99

Town of Norway $17.14

Town of Raymond $17.05

Town of Rochester $12.05

Town of Waterford $17.91

Town of Yorkville $17.02

Walworth County $17.83

Town of Bloomfield $19.72

Town of Darien $12.92

Town of Delavan $16.55

Town of East Troy $15.75

Town of Geneva $17.52

Town of La Fayette $15.58

Town of La Grange $15.53

Town of Linn $16.00

Town of Lyons $15.69

TABLE 4 2005 NET TAX RATE – TOWNS

2005 net tax rate

Town of Richmond $15.83

Town of Sharon $19.26

Town of Spring Prairie $16.82

Town of Sugar Creek $15.59

Town of Troy $16.28

Town of Walworth $16.29

Town of Whitewater $16.14

Washington County $17.32

Town of Addison $16.65

Town of Barton $14.15

Town of Erin $15.78

Town of Farmington $13.83

Town of Germantown $16.05

Town of Hartford $15.63

Town of Jackson $14.40

Town of Kewaskum $15.20

Town of Polk $14.44

Town of Richfield $16.10

Town of Trenton $13.41

Town of Wayne $14.32

Town of West Bend $13.78

Waukesha County $17.09

Town of Brookfield $15.26

Town of Delafield $14.31

Town of Eagle $13.42

Town of Genesee $13.36

Town of Lisbon $15.72

Town of Merton $13.75

Town of Mukwonago $14.07

Town of Oconomowoc $14.03

Town of Ottawa $14.18

Town of Summit $14.09

Town of Vernon $13.38

Town of Waukesha $13.36

Southeastern Wisconsin $20.28

12



2005 net Rank 2004 average 2005 average Ranktax rate home sale price tax bill

Kenosha County $20.24 — $179,359 $3,630 —

Village of Paddock Lake $20.21 35 $148,490 $3,001 81

Village of Pleasant Prairie $18.04 57 $223,667 $4,035 51

Village of Silver Lake $21.05 29 $180,268 $3,794 66

Village of Twin Lakes $19.16 47 $241,068 $4,618 39

City of Kenosha $23.02 21 $153,072 $3,524 74

Milwaukee County $24.60 — $157,214 $3,867 —

Village of Bayside $24.82 11 $324,539 $8,056 6

Village of Brown Deer $24.93 10 $144,760 $3,609 70

Village of Fox Point $23.84 16 $325,729 $7,764 8

Village of Greendale $26.64 4 $208,054 $5,543 17

Village of Hales Corners $24.03 14 $198,720 $4,776 34

Village of River Hills $23.81 17 $686,521 $16,349 3

Village of Shorewood $25.62 7 $324,899 $8,325 5

Village of West Milwaukee $30.29 1 $141,239 $4,278 45

Village of Whitefish Bay $22.89 22 $327,725 $7,502 9

City of Cudahy $26.73 3 $145,986 $3,902 59

City of Franklin $24.47 13 $220,187 $5,387 20

City of Glendale $23.63 19 $191,326 $4,522 42

City of Greenfield $23.60 20 $172,774 $4,078 50

City of Milwaukee $25.08 8 $127,685 $3,202 79

City of Oak Creek $22.35 23 $189,243 $4,229 46

City of Saint Francis $26.80 2 $145,686 $3,904 58

City of South Milwaukee $23.96 15 $166,885 $3,999 53

City of Wauwatosa $22.15 24 $215,613 $4,775 35

City of West Allis $26.29 6 $147,306 $3,873 61

Ozaukee County $17.39 — $296,380 $5,154 —

Village of Belgium $17.74 62 $217,860 $3,866 62

Village of Fredonia $17.74 63 $200,810 $3,563 71

Village of Grafton $19.92 38 $258,033 $5,139 25

Village of Saukville $20.16 36 $203,931 $4,111 48

Village of Thiensville $19.65 42 $202,421 $3,977 54

City of Cedarburg $19.14 48 $307,528 $5,886 16

City of Mequon $16.60 74 $441,819 $7,334 10

City of Port Washington $19.66 41 $179,552 $3,531 73

Racine County $19.70 — $167,128 $3,292 —

Village of Elmwood Park* $15.99 79 $167,667 $2,681 85

Village of Mount Pleasant $17.94 59 $186,919 $3,354 77

*There were fewer than 5 homes sold in 2004.

TABLE 5 2005 NET TAX RATE AND AVERAGE TAX BILL

13


One Future2005 net Rank 2004 average 2005 average Ranktax rate home sale price tax bill

Village of North Bay $17.84 61 $300,150 $5,355 21

Village of Rochester $16.71 72 $232,650 $3,887 60

Village of Sturtevant $19.61 43 $165,954 $3,254 78

Village of Union Grove $20.40 33 $179,801 $3,668 69

Village of Waterford $21.56 26 $231,454 $4,990 27

Village of Wind Point $16.58 75 $311,273 $5,162 24

City of Burlington $21.21 28 $188,632 $4,002 52

City of Racine $23.73 18 $116,551 $2,766 84

Walworth County $17.83 — $240,346 $4,285 —

Village of Darien $25.06 9 $179,201 $4,491 43

Village of East Troy $19.81 40 $273,001 $5,408 19

Village of Fontana $16.12 78 $365,483 $5,891 15

Village of Genoa City $24.63 12 $156,420 $3,852 64

Village of Sharon $26.47 5 $112,748 $2,984 82

Village of Walworth $20.39 34 $189,431 $3,862 63

Village of Williams Bay $16.75 71 $266,088 $4,457 44

City of Delavan $21.37 27 $191,562 $4,094 49

City of Elkhorn $20.48 31 $166,954 $3,419 75

City of Lake Geneva $21.62 25 $239,617 $5,181 23

City of Whitewater $20.05 37 $185,754 $3,725 68

Washington County $17.32 — $215,812 $3,739 —

Village of Germantown $19.27 45 $254,661 $4,907 29

Village of Jackson $17.65 65 $224,523 $3,963 56

Village of Kewaskum $18.75 50 $161,599 $3,029 80

Village of Newburg $16.53 76 $206,605 $3,415 76

Village of Slinger $20.46 32 $188,016 $3,847 65

City of Hartford $20.64 30 $190,532 $3,932 57

City of West Bend $19.44 44 $182,511 $3,548 72

Waukesha County $17.09 — $282,084 $4,821 —

Village of Big Bend $18.91 49 $200,007 $3,782 67

Village of Butler $19.27 46 $151,982 $2,928 83

Village of Chenequa $16.63 73 $1,317,268 $21,908 1

Village of Dousman $17.03 68 $299,224 $5,096 26

Village of Eagle $17.99 58 $272,530 $4,903 30

Village of Elm Grove $18.73 52 $333,209 $6,240 12

Village of Hartland $17.51 66 $337,557 $5,912 14

Village of Lac La Belle $14.85 84 $1,025,286 $15,228 4

Village of Lannon* $17.72 64 $301,333 $5,341 22

*There were fewer than 5 homes sold in 2004.

TABLE 5 2005 NET TAX RATE AND AVERAGE TAX BILL, continued

14



2005 net Rank 2004 average 2005 average Ranktax rate home sale price tax bill

Village of Menomonee Falls $18.72 53 $261,624 $4,898 31

Village of Merton $15.63 80 $440,583 $6,888 11

Village of Mukwonago $18.49 54 $250,882 $4,640 38

Village of Nashotah $16.95 69 $348,950 $5,914 13

Village of North Prairie $15.55 81 $304,382 $4,733 37

Village of Oconomowoc Lake $14.73 85 $1,246,100 $18,350 2

Village of Pewaukee** $18.43 56 $260,723 $4,804 33

Village of Sussex $17.17 67 $276,407 $4,745 36

Village of Wales $15.12 83 $326,748 $4,940 28

City of Brookfield $17.85 60 $306,889 $5,479 18

City of Delafield $16.85 70 $464,844 $7,830 7

City of Muskego $18.48 55 $262,403 $4,849 32

City of New Berlin $18.74 51 $241,631 $4,527 41

City of Oconomowoc $16.17 77 $285,532 $4,617 40

City of Pewaukee** $15.24 82 $260,723 $3,973 55

City of Waukesha $19.86 39 $208,286 $4,137 47

Southeastern Wisconsin $20.28 — $199,824 $4,052 —

* There were fewer than 5 homes sold in 2004.

**MLS doesn’t differentiate between a village and city with the same name. Thus, one average home sale price was used for both.

TABLE 5 2005 NET TAX RATE AND AVERAGE TAX BILL, continued

C O N C L U S I O N

The Public Policy Forum’s annual analysis ofmunicipal tax rates has long been used by real estate agents,relocation companies, corporate recruiters, and others tocompare potential tax bills as a factor in a home-buying orrelocation decision. It is clear now that looking at only thenet tax rate provides an incomplete picture of a newhomeowner’s potential tax bill. Buying a more costly homewill result in a more costly tax bill, no matter how low the

tax rate of the community in which the home is located.The city of Milwaukee, with one of the highest tax rates inthe region, has one of the lowest average tax bills, due tothe lower housing prices. A homeowner relocating fromMilwaukee to Milwaukee County suburbs to escape highproperty taxes would likely find his tax bill to besignificantly higher after the move.

15

One FutureR E G I O N A L R E P O R TR E P O R T

The Public Policy Forum is facilitating creation of a shared vision action plan for regional cooperation 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 . . .

• Developing a Southeastern Wisconsin Leadership Network;

• Establishing priorities for regional action;

• Making the case to citizens that regional cooperation is vital to our future;

• Benchmarking progress toward the shared vision.

The Forum is seeking partners to support its effort. If you would like to participate, provide leadership,

or offer financial support, please contact:

Jeffrey C. Browne President, Public Policy Forum

[email protected].

Acting regionally on issues that are regional in nature is in our economic and social long-term interest.

For more information about the Public Policy Forum and its work,please go to our web site: www.publicpolicyforum.org.


One Region, One FutureR E P O R T

Nonprofit Org.U.S. Postage

P A I DMilwaukee, WIPermit No. 267

One FutureOne Region

Want a lower property tax bill?

Consider the cities of Racine and Milwaukee.

regional report · 2014. 2. 17. · city of delafield $7,830 village of sharon $2,984 village of...

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