Part 2: State estimates allocate portions of the school levy to each municipality in a district.
The school portion of a property tax bill is based on more than a school district’s total levy. It also depends on how state-calculated property values are divided among the towns and villages inside the district.
That calculation matters for property owners in communities such as Iola and Scandinavia, where the local school district covers more than one municipality. The district sets a total levy, but the tax burden is apportioned to each municipality according to its share of the district’s equalized value.
Equalized values are estimates of taxable property value the state uses to put municipalities on a common basis. The Wisconsin Department of Public Instruction says school property values are equalized to reflect market value rather than local assessed value, and the Wisconsin Department of Revenue publishes school district equalized value certifications for tax apportionment each fall.
This distinction matters because local assessments are made parcel by parcel, while equalized values apply to entire municipalities. For school levy purposes, the state looks at the total value of each municipality within the district rather than the value of an individual home or business.
If values rise faster in one municipality than in another, that community can receive a larger share of the school levy even when the district’s overall levy does not increase. Conversely, a municipality with slower value growth can see its share fall.
For example, if the Town of Scandinavia’s equalized value increases while the Village of Iola’s value remains flat, the town would account for a larger percentage of the district’s tax base. That would shift more of the school’s levy to town taxpayers and less to village taxpayers.
As a result, a property owner’s school tax bill reflects both district spending decisions and changes in property values across the district. Residents comparing their bills year to year may see changes driven by local market conditions, not just school budget changes.
The Iola-Scandinavia School District spans 10 municipalities and townships, so its tax levy is not divided the same way a single town’s levy would be. Because each municipality assesses property differently, the district apportions its levy using equalized value—the state’s estimate of full market value—rather than local assessed values.
That distinction matters for taxpayers. If one municipality completes a revaluation and local assessments rise sharply, that increase alone does not automatically shift more of the school levy to that community. The tax burden changes only when that municipality’s equalized value changes relative to the other nine. In other words, homeowners may see a much higher assessed value after revaluation without seeing a comparable increase in their share of the school tax bill, because equalization is meant to account for differences in local assessment practices.
If the operational referendum passes, the additional money authorized by the voters will be assessed at a dollar amount per $1,000 of property value. In Iola-Scandinavia, the proposed referendum in the first year indicates $25 per $100,000 of assessed value. So, if your tax bill would have remained the same under an assessment, your taxes will go up because of the referendum. If your assessment gives your property a lower percentage of the municipality’s entire valuation, you may not see your taxes go up.
