Revenue Dept. reduces taxable factor for non-ag property

Posted on Wednesday, June 2, 2010

By ELISA SAND, Staff Reporter

The Department of Revenue has agreed to reduce the taxable factor that will determine the taxes assessed on non-ag properties in Lake County. County Equalization Director Shirley Ebsen told commissioners on Tuesday that she has accepted a 2 percent adjustment in the taxable factor for non-ag property.

Non-ag property includes all properties not classified as ag property, such as residential properties around the lakes, commercial property and properties within municipalities, and unincorporated communities.

The taxable factor is the percentage of property value that is taxed.

Ebsen said that if property in Lake County is selling at assessed values placed by the Equalization Office, the Department of Revenue says assessment level is at 100 percent and the taxes are based on 85 percent of those values.

With the new ag valuation system, Ebsen said, ag property is now valued at 100 percent.

Assessment levels for non-ag property, however, are not at 100 percent. Ebsen said the original taxable factor, set by the Department of Revenue, was 96.2 percent.

After discussion with state officials, Ebsen said, that factor has now been reduced to 94.7 percent.

Originally, Ebsen said, she was seeking a 4 percent reduction in the taxable factor, but accepted this adjustment as a compromise.

While it doesn't seem like a huge concession, Ebsen said, 2 percent represents a significant amount.

The total value for property in Lake County currently sits at a little more than $1 billion with ag property alone accounting for $449 million.

Non-ag property accounts for the balance: about $561.7 million.

The original taxable factor of 96.2 percent would have levied taxes on $540 million. The new factor of 94.7 levies taxes on $531.9 million.

©Madison Daily Leader 2010