Each January, property owners throughout Wisconsin receive their annual property tax bill. This can be a stressful time and may sometimes lead to concerns or questions; especially when there are noticeable changes from year to year.
While there may be valid reasons for concern depending on local circumstances, misunderstandings often arise about how property taxes are determined—particularly when it comes to school districts. To better understand your tax bill, it’s helpful to know the key factors that influence property taxes each year.
When reviewing your bill, you will typically see taxes collected for several entities, including the county, municipality, local technical college, and the school district.
How School Taxes Are Calculated
Unlike municipalities, school taxes are based on a property’s fair market value, not its assessed value. The formula used to determine an individual’s school tax is:
Fair Market Value × School Levy (Mill) Rate – School Levy Credit = Your School Tax
Because of this, an increase in your property’s fair market value may result in a higher school tax—even if the school district has not increased its tax rate.
What’s Happening in the Unity School District?
In the municipalities that make up the Unity School District, average property values have increased by approximately 15% over the past five years. During that same period, the district’s school levy rate (mill rate) has decreased by more than $2.00 per $1,000 of value (from $7.95 to $5.60).
Even with a lower mill rate, property owners may still see an increase in taxes due to:
Rising property values
Decreases in state aid (which shifts more of the tax burden locally)
Or a combination of both
Understanding the School Levy Credit
You may notice a line item on your tax bill called the School Levy Credit. This credit is funded by the state and distributed to municipalities based on their share of statewide school levies.
The amount you receive is based on your property’s value relative to the total value within the district. In simple terms, it acts as a credit applied directly to your tax bill. Because this amount can vary from year to year, it may also impact whether your overall tax bill increases or decreases.
We hope this overview provides helpful insight into how property taxes work in Wisconsin and helps you better understand the details of your tax bill.
A sample property tax bill graphic is available on the Business Department page of the district website for a more detailed breakdown: How To Read Your Property Tax Statement.
Unity School District thanks you for your continued partnership in supporting excellence for our students, staff, and community