Wisconsin’s tax rating has reached its lowest level in almost 50 years, ranking 15th among the other states, according to a report released Thursday by the Department of Revenue.
Ranked in terms of taxes per $1000 personal income, Wisconsin’s local and state tax level has not reached such a low level since 1961.
The report also found Wisconsin ranks 21st on a per capita basis, which is the lowest it has been since Wisconsin implemented a general sales tax.
“As other states increased taxes in the face of tough budgets, Gov. Jim Doyle held the line on taxes and provided tax cuts that will total $3.7 billion for businesses, middle class families and senior citizens. The Governor lowered our state’s tax rankings while providing for priorities like education, health care and economic development,” Revenue Secretary Roger Ervin said in a statement.
Before 2003, the state’s ranking was 4th in the nation for state and local taxes and had not been below the top 10 for 22 years. After Doyle took office, Wisconsin ranked in the top five for five of the six previous years. The state ranked 11th by 2005.
The deadline for filing taxes is less than a week away, and due to improvements in technology and new tax filing practices, officials say it is easier than ever before to file.
“More people use computers these days, and e-filing allows people to file their state income tax for free. The software even does the math for you,” Department of Revenue spokesperson Stephanie Marquis said.
There has been a 4 to 5 percent growth in the use of e-filing over the past year, according to Marquis.
“With the e-filing method, it’s secure, you receive immediate acknowledgement that your tax file was received and you get your tax return within a week. Also, the money can also be deposited directly. With paper tax filings, the process typically takes 8-12 weeks,” Marquis said.
On average, according to Marquis, about 3 million people in the state of Wisconsin will file their taxes. With one week to go before the tax deadline, two million returns have been filed, half of those received electronically. In relation to last year at this time, the department is “on target,” only short by 20,000 people.
According to a statement from the Department of Revenue, residents’ average tax return is about $679, which is $13 more than this time last year.
Marquis said the report’s findings of lower rankings are also due to streamlined efforts to make Wisconsin more competitive on the national tax forum, updated tax laws and efforts to draw in businesses.
As more businesses arise, and current businesses and corporations grow, in addition to efforts for changing current tax laws, Wisconsin could find itself ranked even lower in local and state taxes as compared to other states, Marquis added.
