This story is courtesy of the Vilas County News Review.
Although the Riverside Park decision was the hot topic during last month’s Vilas County Board of Supervisors meeting, another resolution was also passed that asks the state to reconsider its tax levy freeze.
Chairman Jerry Burkett has long taken issue with the limits inflicted upon counties which restrict the annual property tax levy increases to the amount of net new construction, not taking into account increases in property values based on market appreciation or countywide revaluations.
The tax levy increase limits are having real-world effects in Vilas County, and Burkett only expects budgeting to get more difficult in the coming years.
“The last four years I’ve been urging relief to no avail. So now we’ll try it this way,” Burkett said of the resolution.
He has indicated at a number of recent city and county meetings that part of the reason the idea was ever floated to sell Riverside Park was to alleviate some of the issues caused by these state-imposed limits. He also has brought up multiple times that residents should contact Gov. Tony Evers and other legislators and urge them to change this rule.
“If the levy limits are relaxed, we’re not forced into the position we’re in, looking at selling properties to pay our bills,” Burkett said.
County struggling to pay its bills
The statewide limits were enacted as part of Act 25 of the 2005-2007 biannual state budget. According to the resolution drafted and adopted by the county, these limits mean county budgets can only grow automatically in proportion to new construction, plus any adjustments for closing or amending tax incremental districts.
“If there is little or no new construction, the county’s levy limit remains the same, often causing budget pressures and resulting in service cuts or referendums for additional revenue,” the resolution states.
In Vilas County, the new net construction rate for 2025 was only 1.28%; well below the rate of inflation. This limits the county’s ability to increase its levy and keep up with rising costs.
Meanwhile, the equalized property valuation for the county has increased from approximately $6.2 billion in 2005 to $13 billion in 2023, representing growth of more than 110%.
“This has resulted in a cumulative levy increase that is significantly lower than the growth in property values and inflation during the same period,” the resolution says.
The lack of ability for counties to pay their bills leaves them at the whims of alternative funding sources such as state aid, grants, or temporary relief programs to cover budget shortfalls. Ultimately, this exposes local governments’ funding to instability from sources like sales taxes or fees, state budget cycles, and political shifts, according to the resolution.
Tax spikes taken into consideration
Vilas County’s resolution acknowledged that removing the current tax levy freeze legislation and returning to the traditional method of increasing property taxes based on valuation can lead to volatile revenue streams due to significant fluctuations because of market conditions.
Removing the tax levy freeze with no safeguards in place also can cause homeowners to face sudden tax spikes from increasing property assessments even if their income stays the same, which is why the resolution calls for caps to be placed on how much levy inflationary costs can increase. One recommendation included in the resolution set that cap at 3.5% annual growth limit.
Vice Chair Carolyn Ritter highlighted what in her view were key parts of the resolution explaining how difficult budgeting becomes without a steady income stream to rely on.
Ritter drew attention to lines 49-50 which read, “Whereas, predictable and capped revenue growth helps local governments plan capital projects, manage debt, and deliver services with greater confidence, thereby reducing their reliance on emergency budget adjustments. It also encourages local governments to prioritize spending, find efficiencies, and avoid dependence on volatile real estate markets.”
“That’s what we have been struggling to do,” Ritter said. “Some of the budget cuts that we do, some of the things we have not done in the past year because we have not had the money, this would help to alleviate some of that problem.”
A second portion of the resolution she brought attention to states, “Aligning levy growth with actual service costs and inflation adjustments would sustain essential local functions while protecting taxpayers from abrupt, discretionary hikes.”
“That’s another important part of this,” Ritter said. “The way this is laid out, it will do both. It will help the county to raise a little more through its tax levy, and at the same time it’ll protect taxpayers from huge increases. So I would urge passage of this.”
Now that the board has adopted it, copies of Resolution 2026-01 will be sent to the governor, leadership of the State Senate and Assembly, local legislative delegation, the Wisconsin Counties Association, as well as all Wisconsin counties to garner support for the change.
