The annual tax comparisons linked below, provide an analysis of the municipal tax burden for the incorporated communities in Waukesha County. They evaluate the relative position of each community from three different perspectives and include a chart with the results. The intent is to rank the Village of Pewaukee municipal tax burden relative to other communities.
- Page one computes the municipal equalized tax rate. That computation is the result of multiplying the assessment ratio provided by the State Department of Revenue by the municipal tax rate. It is the only valid method of comparing tax rates between communities. Because each community has a different level of assessment (assessment ratio), the unadjusted tax rate cannot be used as a basis of comparison.
- Page two computes the per capita tax burden for each community by dividing their respective tax levies by their estimated population.
- Page three uses the equalized value provided by the Wisconsin Department of Revenue to estimate the per capita equalized value for each community.
There are some exceptions, but in general there is a correlation between the per capita equalized value in a municipality and the equalized tax rate. Communities with higher per capita equalized values tend to have lower equalized tax rates even though the per capita spending may be higher.
If the Village of Pewaukee had the same 2006 equalized tax rate as the City of Pewaukee, the 2006 Village levy could not have exceeded $2,242,210.71 or $250.14 per capita. That would represent a reduction of 50.88% in the Village levy. In 2005 it would have required a levy reduction of 43.05% to meet the City’s tax rate.
The question is WHY? The disparity in the equalized tax rates for the City and Village is not due to overspending on the part of the Village. The 2006 per capita spending in the Village is lower than the City by $13.15 per capita. The cause is a tax base problem. The per capita equalized value was $213,627 in the City for 2006 and $102,669 in the Village – a difference of 51.94%.
The probable reason for the difference is that there are too many high density residential developments in the Village that are moderate in value i.e.: too many condos and too much multi-family. Table DP-4. Profile of Selected Housing Characteristics from the 2000 Census shows that the Village percent of 1-unit detached housing units is only 38.3%. In the City of Pewaukee that statistic is 70.6%.
Any additional development of high density residential property will have a major and long term negative impact on Village taxes. The percent of 1-unit detached housing units in the Village is already seriously out of proportion relative to other communities. This imbalance is also likely to impact the desirability of the Village resulting in slower increases in property values. A double whammy. Higher taxes AND slower growth of property values.
2005 tax charts
2005 tax graphs
2006 tax charts
2006 tax graphs
2007 tax charts
2007 tax graphs
2008 tax charts
2008 tax graphs
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