Financial Services

Understanding School Taxes

Education in Wisconsin, through high school, is financed heavily by local revenues which in turn rely strongly on the general property tax. Property tax is based on the property's market value rather than benefits received, and must consequently fall uniformly on all taxable property.

Link to the WI Department of Revenue Guide for Property Owners

Tax bills are mailed annually in mid-December. The following information identifies the different sections of your tax statement and how they relate to the Hudson School District.

A - Referendum/Resolution Reminder: Beginning in 2015, legislation required that voter-approved tax increases for the purpose of school referenda (whether capital or operational referenda) would be displayed on the property tax bill for each county, municipality, school district, and technical college that has a temporary change in tax levy approval after December 31, 2014, by referendum or resolution. This is not a special assessment for any individual jurisdiction listed on the bill. The voter-approved temporary tax increases show how much of the “Net Tax” is due to the approved referendums.

Note: Total Est. Fair Market Value (I) x School Levy Rate - School Levy Tax Credit (J) = Individual School Levy (P) (School District portion of Net Taxes).

B - Assessed Value Land: The value of taxable land, as determined by the assessor for the purpose of taxation.

C - Assessed Value Improvements: The value of taxable buildings, as determined by the assessor for the purpose of taxation.

D - Total Assessed Value: The total value of land and buildings, as determined by the assessor for the purpose of taxation. This figure is the sum of B and C and may be higher or lower than the property’s current market value. This is multiplied by the net assessed value rate (tax rate) to determine the amount of tax that each property owner must pay.

E - Average Assessment Ratio: The WI Dept of Revenue determines the average assessment ratio and is used in calculating the estimated fair market value shown on the tax bill. The assessed value divided by the average assessment ratio = estimated fair market value.

F - Net Assessed Value Rate (Tax Rate): The tax rate is determined by dividing the amount of the tax levy – this is, the total amount taxed in the entire district – by the total assessed value of all the property in the district. The tax rate is then multiplied by the total assessed value to determine the amount of tax that each property owner must pay.

G - Estimated Fair Market Land: This is the assessed value land figure (B) divided by the average assessment ratio (E).

H - Estimated Fair Market Improvements: This figure is the assessed value improvements figure (C) divided by the average assessment ratio (E).

I - Total Estimated Fair Market Value: This figure is the sum of the estimated fair market land figure (G) and the estimated fair market improvements figure (H). This is the real market value of a property. In other words, it is the price for which a willing seller would sell a property to a willing buyer under normal market conditions.

J - School Levy Tax Credit: The school levy tax credit is a credit paid to municipalities, not the school district, to offset property taxes. Despite the fact that the funds for the credits do not go to schools, the state considers these dollars part of its commitment to education. School levy tax credits are distributed based on each municipality’s share of statewide levies for school purposes. These amounts are decided based on the value of an individual property as a percentage of the district’s total value. This credit is automatically applied to all properties that qualify.

K - Taxing Jurisdiction: In most parts of the state, there are five “taxing jurisdictions:” the state, the county, the city/village/township, the school district, and the local technical college. This area lists them Each jurisdiction determines its own levy.

L - State Aid: This shows the revenue received from the state for each jurisdiction for this and the prior year.

M - Information from Prior Years: This shows the taxes due for each jurisdiction. For comparison, the figures for the prior year are listed with the percent change.

N - Net Property Tax: This figure is the total property tax minus the lottery and gaming credits.

P - Individual’s School Levy: This figure is the Total Est. Fair Market Value (I) times the School Levy Rate (Mill Rate/1000) minus the School Levy Tax Credit (J).