Dept. of Revenue: Strong Growth in Wisconsin Property Values

MADISON – Wisconsin homeowners will continue to reap the benefits of Wisconsin’s strong economy according to the Equalized Values Report released today by the Wisconsin Department of Revenue.  Residential property values increased $31.06 billion (10.05%) between January 1, 2005 and January 1, 2006, demonstrating that home ownership remains a worthwhile investment. 

In addition to this good news regarding what is the primary investment for most Wisconsin families, the report also shows that the tax base is growing and diversifying.   Of the total equalized value growth of $41 billion, almost one-third of that ($12.5 billion) was due to new construction.  In addition, growth in commercial property (10.19%), the second largest category, outpaced residential growth this year. 

“We’re very pleased to see steady growth in Wisconsin communities as a whole”, stated Department of Revenue Secretary Michael L. Morgan.  “It is also good news that we are seeing strong growth in new construction and commercial properties.  Expanding and diversifying the tax base will help alleviate the property tax burden on existing homeowners.”

This year’s growth pushed Wisconsin’s total equalized property values to $468.9 billion, a 9.59% increase over last year’s values.  This year’s overall increase in value is higher than the growth experience last year (9.39%) and the highest growth since 1980.

Commercial properties increased by $7.5 billion (10.19%) and manufacturing property increased $160 million (1.38%) over last year. 

Growth in equalized values does not necessarily translate into higher property taxes.  Equalized values are calculated annually because of the need for a comparable value base to administer an entire property tax system for levy purposes.  This ensures fairness and equity in property tax distribution.

Secretary Morgan went on to say, “In last December’s tax bills, some homeowners saw a slight increase in their property taxes, while others had no increase at all.  Many had decreases due to Governor Doyle’s property tax freeze.”

For an electronic version of the Equalized Values Report, please visit the Department of Revenue web site at www.dor.state.wi.us.