WisGOP throwing $181 million at property tax cut, and we won't even get lower taxes!

While the Joint Finance Committee was out of town discussing the Fox-con today, the Legislative Fiscal Bureau dropped this bit of information ahead of JFC’s Thursday meeting regarding the state’s expected property tax bill.

What’s interesting here is that the projected property tax cut that was part of Governor Walker’s budget is even smaller than the minor writeoff that was expected. And the main reason is a good one- a larger increase in property values.

Projected property tax bill, March vs August
Projected Median Value Home, Wisconsin
2017- $160,622 (Aug) vs $159,393 (March)
2018- $163,834 (Aug) vs $162,581 (March)

Projected property tax bill
2016 $2,852
2017 (March proj.) $2,832
2017 (Aug proj.) $2,846 (-$20 vs 2016, +$14 vs March)

2018 (March proj.) $2,831
2018 (Aug proj.) $2,844 (-$8 vs 2016, +$13 vs March)

$8 in two years? Go crazy, everybody!

The LFB also notes that the increased property tax values means that the cost of the proposed Walker/WisGOP tax gimmick eliminating the state’s Forestry tax also goes up.

It should be noted that the new values will also impact the fiscal effect of the Governor's proposal to sunset the state forestry tax beginning in 2017(18) and replace that revenue with a transfer to the conservation fund from the general fund. The proposed transfer would equal the amount otherwise raised through the state forestry tax. In the Governor's 2017-19 budget recommendations, this was estimated at $88,759,300 in 2017-18 and $91,695,600 in 2018-19. Because the actual 2017 state total equalized value is higher than previously estimated, thereby affecting the estimated 2018 equalized value as well, the proposed transfers to the conservation fund are now estimated at $89,259,600 and $92,224,100. These amounts represent an additional general fund commitment of $500,300 in 2017-18 and $528,500 in 2018-19, or $1,028,800 in the biennium.

So that’s an additional $181.5 million going out the door over these next 2 years just to cut property taxes by an estimated $26 per homeowner. Given the money that we don’t have for roads or schools or local governments, is that worth it just to have a campaign talking point of “see, you saved $8! Aren’t I doing great?”

I say no, but it appears that the WisGOP-controlled Finance Committee is willing to say “yes” on Thursday. And you know what’s even worse? With the Lottery credit being lower than what Walker's bill projects, I bet your property taxes won’t go down at all next year.

Now add in the increased deficits and future budget cuts that will result, and you can't tell me these property tax gimmicks will leave the average Wisconsinite better off. But that's what we're looking at in the near future, and it's more damage from a Wisconsin GOP who has made "politics over policy" one of their hallmarks in the 2010s.