LFB Releases Estimated Effect of Proposed Budget on Property Taxes

The non-partisan Legislative Fiscal Bureau (LFB) has released a memo providing an estimate of the effects of Governor Walker’s proposed 2015-17 state budget.  The memo also updates estimates on property taxes for bills issued in December 2014 (and payable in 2015) tax year based on preliminary reports from DOR.

According to the LFB memo, the proposed budget would decrease property taxes $8 in the first year (0.3 percent) and decrease $3 in the second year (0.1 percent). Much of the decrease is due to the proposed budget’s freezing of revenue limits on school districts in both years of the proposed budget coupled with the addition of $320 million in funds earmarked for school property tax relief—$108.1  million in general aids in 2016-17 and $211.2 million over the biennium to increase the school levy tax credit.