The 2023–25 legislative session is underway, and as expected, property taxes remain a key topic of debate on both sides of the aisle.

Since 2011, Wisconsin has maintained a strict levy limit on property taxes. Over the 14 years this cap been in place, it has saved taxpayers more than $14 billion — equivalent to an average savings of over $5,600 per property owner.

Yet despite these savings, Wisconsin still ranks eighth-highest in the nation in property taxes. It’s staggering that even with these strict limits, the Badger State can’t break free from the top 10.

Wisconsin relies too heavily on property taxes to fund essential services like local governments and schools. More than 62% of local government funding and 43% of school funding comes directly from property taxes. While exceeding levy limits requires voter approval through referendums, these measures often pass. Nearly 70% of school referendums and about 60% of municipal referendums are approved, with success rates nearing 70% when limited to emergency medical service systems (EMS) and public safety.

But voter support is slipping. Referendum passage rates, once as high as 80%, have declined in recent years. A recent Marquette University Law School poll found 58% of respondents favor reducing property taxes, compared to 41% who prefer increased school funding.

The cost of property taxes is hitting a breaking point. Wisconsin’s average annual property tax bill is roughly $5,000 — more than double the national average of just over $2,000. Without meaningful legislative action, that burden will only grow.

One example is a recent Wisconsin Supreme Court decision regarding Gov. Tony Evers’ partial veto during the 2023–25 budget cycle. The original budget included a $325-per-student increase in school funding for two years. However, Gov. Evers used his partial veto — the most powerful in the nation — to strike the “20” and hyphen from “2024–25,” changing the time frame to “2425.” The result? The funding increase now technically extends for the next 402 years.

If future budgets don’t fund schools at this level, local districts may exceed levy limits through referendums to make up the difference — potentially locking in annual property tax increases indefinitely. In just the first year, property taxes on a median-valued home are expected to increase by $186, followed by $161 in year two. These increases become the base for future hikes, continuing every two years until 2425. This is clearly unsustainable.

To make matters worse, Senate Bill 181/Assembly Bill 197 proposes a new levy limit exception for regional EMS. If passed, the legislation would allow local governments to exceed levy limits without voter approval — further burdening property owners.

Of course, schools and EMS are essential. But property taxes alone cannot carry the weight of funding these services any longer. The current model is stretched too thin. It’s time for lawmakers in Madison to have serious conversations and to make difficult decisions about sustainable, alternative funding sources.

As summer budget talks continue, your WRA advocacy team will be at the Capitol, working to protect property owners and support essential services for Wisconsin residents.