The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1923-07-05
BLAINE TO SIGN
HOMESTEAD LAW
$500 Exemption to Become
Effective Before Next
Levy is Made.
AFFECTS ALL TAXES
(By United Press)

Madison, Wis.-The only tax reduc-
ton measure to pass the 1923 session
of the Wisconsin legislature will be-
come law within ten days when Gov. J.
j Blaine signs Senator o. H. Johns on's
bill exempting home-owners from tax
alton on the first $500 worth of i'm
provements on their residences.
The senate today sent the bill to tn
governors Office, having concurred Fri
day in two administrative amendments
added by the assembly. Gov. Blaine
will sign the bill, as it comedies with
his announced policy Of relieving prop
erty Of tax burdens.
The bill provides for the $500 ex-
emption on condition that the home
owner~fi file an affidavit alleging his own
ership of his residence with the state
tax commission before July 1st of each
year. The measure is effective next
January LIST and all home-owners to
secure the exemption will file their
statements before the following July
LIST for the ensuing year.
Small Home Owners Benefit.
Small home-owners will be relieved
of about $40 each year, the tax COM
mission has estimated.
Assuming the average property tax
rate of the state to be 2@o and as
Stunning that this exemption will re-
move 4qo of the states property from
the tax rolls, this measure will in
crease the tax on unexempted proper
ty, including tenant property and the
improvements and property above the
$500 exemption, by 4@o," Senator John
son says in analyzing the bill.
The states assessed property valua-
tion is around $4,000, 100000 Remov-
ing AGO would decrease the taxable
property by about $150,000,0OO, the de-
crease coming entirely on the exemp-
tion of owned homes.
Must Increase Rates.
Tax rates on the remaining property
on the tax rolls will have to be in
creased about 40; Johnson pointed out.
"The relief becomes less as the value
of homes increase" he said. "This is
due to the fact that the increased rates
on the unexempted portion will be
higher than the decrease on the higher
valued homes"
"The bill will secure a sliding scale
of benefits, aiding the poorer home
stead owners the most; and adding a
sliding scale of increase to the wealth
Ter home-owners," the state tax COM
mission said in Analysing the bill. On
homes valued at $4,000 or more, prop
ertv taxes will he increased
On a $1,000 home occupied by the
erages around 2fo, is $40. Exempting
$500, the tax after next year will be
only $40 on the same rate. Granting
that the tax rate must be increased by
about 49o to make up the deficit, his
tax will be 5000, a decrease of $3.50
from the present rates.
How it Works Out.
On the same basis, the owner of a
$500 home will pay $20.8o instead of
$50; the owner Of $4,000 home will
pay $500 instead Of $40; the owner
of home worth $4,000 will pay S52
instead OF 500; the owner of $4,000
home will pay S93.60 instead Of $100.
I On a $1,000 home, the owner will pay
$135.20 instead of $140 as under the
present system on this average rate,
saving of only $40; on a $4,000
home he would pay $197.60 instead of
$780, a saving of only $2,40; and on a
$4,000 home ne would pay S239.2O in
stead of $240 as at present, saving
of only 80 cents.
On homes of $4,000 the owner will
begin to pay more. On this size under
this calculation of averages, the owner
will pay S301.60 instead of $500, a
slight increase. On a $4,000 home the
owner will pay S513.60 under the new
law, instead of $500. On a $500, 900
home the owner would pay $2,O69.6O
under the new law as compared with
| $4,000 under the present law.