Exploring Changes in Homeowner Property Taxes in Wisconsin, 2000 to 2005

Despite policymakers’ interest in property tax relief, very little is known about changes over time in the property tax liabilities and burdens faced by homeowners. Drawing on the fact that Wisconsin taxpayers are required to list their previous year’s property tax payments on their income tax return, the authors have constructed a six-year panel of income tax returns that captures the property tax payment and income history of all Wisconsin resident homeowners between 2000 and 2005. The results show a great deal of variation in property taxes among non-mover homeowners; an actual decline in property taxes for 12 percent and an average annual growth rate in excess of 6 percent for 18 per-cent. Low-income homeowners experienced the greatest increase in property tax burdens, primarily because their incomes grew very slowly. The state’s efforts at reducing the highest property tax burdens were of limited effectiveness.