Glossary of Terms S - Z

Glossary of Terms

Special Commercial Property

See commercial class.

Uniformity

The State Constitution demands that all property within the municipality is taxed at the same tax rate. State law demands that the valuation be based on market value.

Tax Base

The total assessed value of all assessments in the municipality that is subject to local property taxes.

Taxing Bodies

The following taxing bodies determine the total tax levy for property located in the City of Superior:

• City of Superior
• Superior School District
• Douglas County
• Wisconsin Technical Colleges
• State of Wisconsin

Tax Levy

The total amount of property tax money that a taxing unit (such as the schools, city, county, etc.) needs to raise to provide services.

Tax Rate

The tax levy (as determined by the taxing bodies) divided by the tax base. It is often expressed in terms of dollars per thousand. The tax rate is multiplied by the assessed value to determine the amount of tax that each property must pay.

Tax Rate

= Total Tax Levy
Tax Base

• Assessed Value Tax Rate

  is the tax levy divided by the assessed value (base) and is utilized for comparing tax bills within a community and for comparing particular property's tax bills over time.

• Equalized Value Tax Rate

  is the tax levy divided by the equalized value (base) and is used for comparing tax rates between different communities and for determining the tax rates applied to overlapping jurisdictions.

Assessed value rates and equalized value rates may differ slightly depending on whether the tax incremental values are included in the tax base or excluded.

Tax Incremental District (Tid)

A contiguous geographic area within a city defined and created by resolution of the local legislative body. Procedures described in s. 66.46, Stats., must be followed in creating a tax incremental district. The procedures include holding public hearings, adopting a project plan, getting approval, and gathering any information necessary to establish the TID.

Tax Incremental Financing

A method of splitting the cost of public works in certain areas (tax increment districts) with the other taxing bodies that will benefit from an increase in the tax base. Basically, it works as follows: Any increase in value in the TID above the base value (the value at the time the TID is formed) is not included in determining the tax rate; however, the tax rate is applied to all taxable property in the TID. The additional revenue generated (the tax increment) is used by the municipality to help pay for the public works that stimulated the increase in the value in the TID. This process continues until the public works are paid for, the legislative body terminates the TID, or 23 years has elapsed.