Farmland is Supposed to Be Taxed on Its Use. A New Report Shows That’s Only Part of the Assessment.

Like most states, Wisconsin treats farmland differently when it comes to property taxes.

State law says that agricultural land is assessed “according to the income that could be generated from its rental for agricultural use.”

But a new report from the Wisconsin Policy Forum found the way farmers’ property tax bills are assessed is lower than if they were based on income alone.

The land use value would have been $933 for 2023 if it was just based on the net farm income formula, almost four times what was actually assessed.

Byrnes said going back to the income-based formula would be detrimental to farmers, especially given the swings in production expenses and crop prices experienced in recent years. But he said it’s worth pointing out that a tax assessment intended to be linked to farm income no longer appears to be.

“Not that we’re advocating a big change or anything, but that is something worth a little bit of attention by policymakers,” he said.

The report found that low property tax rates for farms can also impact other types of taxpayers within a county or local school district. Assessed property values are used to calculate how much of a local levy each taxpayer will contribute. Byrnes said if farms are paying less, that means other types of property owners have to make up the difference.

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