A Wisconsin municipality's total equalized value of all taxable property is $500,000,000. The municipality needs to raise $6,000,000 through property taxes for the year. A property within the municipality has an assessed value of $200,000, which equals its full fair market value. What is this property owner's estimated property tax bill for the year?
Correct Answer
D) $2,400
Step 1 — Calculate the mill rate (tax rate): Total levy ÷ Total equalized value = $6,000,000 ÷ $500,000,000 = 0.012, or $12 per $1,000 of value (12 mills). Step 2 — Apply the mill rate to the subject property: $200,000 × 0.012 = $2,400. Wisconsin property taxes are calculated by dividing the municipal levy by the total equalized value to derive the mill rate, then multiplying by each property's assessed value. Since Wisconsin requires full value assessment under § 70.32, the assessed value equals fair market value here, simplifying the calculation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Various programs and exemptions exist to reduce the property tax burden for specific groups, such as seniors, homesteaders, or veterans.
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
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