For individuals and businesses throughout the state of Wisconsin, property taxes can be a serious issue. The requirement to pay these taxes can place a significant financial burden on property owners, especially when taxes are increased significantly or when other related fees are imposed. In some cases, cities and towns have attempted to levy additional taxes or fees in order to fund utilities, improvements, and other expenses. However, the state of Wisconsin places limits on increases in property taxes. In a recent decision, the Wisconsin Supreme Court addressed attempts by the town of Buchanan to get around these limits, and it forced the town to comply with the levy limits that have been put in place in Wisconsin law.
Wisconsin Property Taxpayers, Inc. v. Town of Buchanan
In 2019, the town of Buchanan sought to increase revenue that would be used to maintain and reconstruct roads in the area. To do so, it used a referendum to allow voters to decide between raising property taxes, putting a special assessment in place, or creating a Transportation Utility Fee (TUF). Voters chose the TUF, and the town put an ordinance in place creating a Transportation Utility District that would be funded by these fees.
The town's Transportation Utility Fee was imposed in addition to the property taxes the town collected. While property taxes are based on the value of a property, the TUF was based on the usage of the town's roads that a property was estimated to generate. The annual fee ranged from around $300 for most residential homes to $8,000 for certain commercial properties.
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