Shawano County supervisors approved a pair of resolutions May 28 that, if approved by state lawmakers, would see more money flowing from Madison to Shawano and other county seats.
“The state should be paying their share of like DHS programs, land conservation,” said Tom Kautza, county board chairman. “They agreed to percentages of what them costs were, but they’re not paying their full percentage anymore.”
The first resolution, also aimed at getting support from the Wisconsin Counties Association, asks lawmakers to amend the tax levy cap imposed on counties by permitting a 3% annual tax increase or net new growth, whichever is greater.
Property tax limits were first imposed in 2006. Five years later, the limit requirement was changed to allow for an annual increase in the property tax levy based upon a percentage of the value of net new construction.
Many counties continue to experience annual operational cost increases, led primarily by higher fuel, material, supplies, insurance and labor costs, which historically increase at a much higher rate than net new construction.
The resolution noted the state’s failure to annually increase all sources of state aid while maintaining the levy limit cap.
Based on Shawano County’s five-year average tax levy of $16,164,523 and five-year average net new construction growth rate of 1.54%, the fiscal difference under the proposed change would be as follows:
• Current law allowable increase (1.54%): $232,779.
• Proposed 3% allowable increase: $478,987.
• Estimated additional revenue: $246,207.
The second resolution asks legislators for 0.5% of the state’s 5% sales tax. If that isn’t granted, the county wants permission to increase the county sales tax 0.5%, the same as is allowed in Milwaukee County.
This would essentially double the county’s sales tax revenue.
The county collected $3,155,763 in 2020; $3,601,250 in 2021; $3,755,688 in 2022; $3,944,936 in 2023; and $4,059,751 in 2024.
Supervisor Ken Capelle said the effort should be supported by the Wisconsin Counties Association.
“I think that’s who should really be involved,” he said. “We’re all hurting.”
According to the Wisconsin Department of Revenue, 70 Wisconsin counties have adopted a 0.5% county tax. Milwaukee County sales and use tax is 0.9%.
The city of Milwaukee is the only municipality that imposes a city sales and use tax, which stands at 2%.
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