The Dane County lottery credit is a property tax credit available to homeowners in Dane County, Wisconsin. It was created in the 1990s as a way to provide property tax relief to Dane County residents using revenue from the Wisconsin state lottery. The credit reduces a homeowner’s property tax bill by a percentage that varies from year to year based on lottery ticket sales and the total assessed value of property in the county.
Who is eligible for the Dane County lottery credit?
To be eligible for the Dane County lottery credit, you must meet the following requirements:
- You own and occupy a home in Dane County as your primary residence
- You owned and lived in the home as of January 1 of the year the property taxes are payable
- You pay property taxes to Dane County
If you own a home but rent it out, it does not qualify for the lottery credit. Only owner-occupied primary residences are eligible. There is no income limit to qualify for the credit.
How is the amount of the credit calculated?
The amount of the Dane County lottery credit depends on two factors:
- The total amount allocated for the lottery credit program each year
- The total equalized value of taxable property in Dane County
Each year, the Wisconsin legislature determines how much lottery revenue will be allocated to the lottery credit program. For 2022, the amount is $8,065,400.
This amount is then divided by the total equalized value of taxable property in Dane County. For 2022, the total value is approximately $82 billion. Dividing the $8 million lottery allocation by the $82 billion of taxable value results in a credit percentage of 0.0098% for 2022.
To calculate an individual homeowner’s credit, the county multiplies the home’s assessed value by the credit percentage. For example:
- Home assessed value: $250,000
- 2022 lottery credit percentage: 0.0098%
- Lottery credit calculation: $250,000 x 0.0098% = $24.50
So in this example, the homeowner would receive a $24.50 reduction in their 2022 property tax bill courtesy of the Dane County lottery credit program.
How do homeowners receive the credit?
Homeowners don’t have to apply for the Dane County lottery credit. If you are eligible, the credit is automatically applied to your property tax bill. The county calculates the amount of credit for each home and deducts it from the total taxes owed.
The lottery credit will appear on your property tax bill as a line item credit reducing the net taxes you owe. The treasurer’s office then issues your tax bill for the reduced amount after the lottery credit is applied.
Are there any other Wisconsin lottery property tax credits?
Yes, the lottery credit in Dane County is modeled after a similar statewide program. The Wisconsin lottery and gaming tax credit provides relief on property tax bills statewide using a portion of overall state lottery profits. The credit percentage is usually around 0.2% for the state credit compared to 0.01% for Dane County.
So homeowners in Dane County receive both the statewide lottery credit and the additional Dane County lottery credit on their property tax bills each year.
What are the pros and cons of the Dane County lottery credit?
Here are some of the key pros and cons of the Dane County lottery property tax credit:
Pros
- Provides direct property tax relief to all homeowners in Dane County
- Credit amount is stable and predictable year-to-year
- Relieves tax burden without reducing county services
- Easy for homeowners to receive – no application needed
Cons
- Credit percentage is small compared to total property tax bill
- Does not benefit renters or non-property owners
- Reduces amount of lottery revenue for other state expenditures
- May not provide relief to homeowners with highest tax burden
How does the Dane County lottery credit impact affordable housing?
While the lottery credit provides a small amount of property tax relief to all homeowners in Dane County, some argue that it does little to address affordable housing needs in the county. Because it applies evenly to all homes regardless of value, it provides more financial benefit to the owners of higher value homes.
Affordable housing advocates have suggested redirecting the lottery credit funds to programs that focus on households with the greatest housing cost burdens. However, for now the state legislature continues to allocate a portion of lottery profits specifically for the Dane County property tax credit program.
Conclusion
The Dane County lottery credit is a longstanding program providing a small amount of property tax relief to the county’s homeowners. All owner-occupants of primary residences are eligible to receive the credit, which is calculated annually based on that year’s lottery allocation and total assessed property values. While not a substitute for comprehensive property tax reform or affordable housing initiatives, the lottery credit remains a guaranteed way for Dane County homeowners to reduce their tax bill each year.
The credit has remained relatively stable over the past decade, providing credits in the range of $20 to $30 for a median value home. Some view the lottery credit as an extra bonus on top of the statewide lottery credit while others argue the funds could be better used for targeted tax relief and affordable housing programs. Overall, the lottery credit remains a unique aspect of the Dane County property tax system.
Homeowners don’t need to take any action to receive the credit as it is automatically applied to tax bills each year by the county treasurer’s office. The credit appears as a deduction on each homeowner’s property tax bill and reduces the total amount of taxes owed. While fairly small, the consistent lottery credit puts some extra money back in the pockets of Dane County homeowners each year.
The Dane County lottery credit dates back to the 1990s and utilization of Wisconsin lottery profits to offset local property taxes. Eligibility for the credit is straightforward – all owner-occupants of primary residences in Dane County automatically qualify. The credit amount varies from year to year based on that year’s lottery revenue allocation and total assessed property value in the county.
For 2022, the credit percentage came out to around 0.01% of a home’s assessed value. So for median home value of $300,000, this year’s lottery credit comes to about $30. While not huge, that’s $30 extra that thousands of Dane County homeowners will see as a reduction in their upcoming property tax bills courtesy of the local lottery credit program.
The lottery credit also stacks on top of the statewide lottery and gaming credit which is around 0.2% of assessed value. Between the two, homeowners receive a small but helpful reduction in their property taxes on an annual basis. Some view the credit as a creative way to utilize state lottery profits while others argue the funds could be better directed to low-income housing programs.
But for now, the Dane County lottery credit persists as an entrenched, popular program in Wisconsin’s second most populous county. Barring substantial changes at the state legislature, homeowners can count on receiving this modest tax break for years to come.
While not huge, the few extra dollars of relief are always welcome given the ever-rising property tax burdens in Dane County and across Wisconsin as a whole. The lottery credit provides a guaranteed way to return some state revenue directly back to homeowners hit hardest by swelling tax bills.
Frequently Asked Questions
How much is the Dane County lottery credit for 2022?
For 2022, the Dane County lottery credit percentage is 0.0098% of a home’s assessed value. So for a home valued at $250,000, the estimated credit would be $24.50.
Who qualifies for the lottery credit?
Any homeowner who owns and occupies a home in Dane County as their primary residence qualifies. Only owner-occupied primary residences are eligible, not rental properties.
Does the credit vary from year to year?
Yes, the Dane County lottery credit percentage is recalculated each year based on that year’s lottery revenue allocation and total assessed property values across the county. So the percentage can fluctuate up or down slightly from one year to the next.
Do I have to apply for the credit?
No application is necessary. The lottery credit is automatically calculated and applied to each eligible homeowner’s property tax bill by the county treasurer’s office.
Do Dane County renters qualify for the lottery credit?
No, only owner-occupants of primary residences qualify. Renters do not directly benefit from the Dane County lottery property tax credit program.
Does the credit completely eliminate property taxes?
No, the lottery credit provides a very small percentage reduction in total property taxes owed. It’s typically around 0.01% of a home’s value, so just fractionally reduces the total tax bill.
Lottery Credit Amounts 2015-2022
| Year | Lottery Credit % |
|---|---|
| 2015 | 0.012% |
| 2016 | 0.011% |
| 2017 | 0.010% |
| 2018 | 0.009% |
| 2019 | 0.009% |
| 2020 | 0.008% |
| 2021 | 0.010% |
| 2022 | 0.0098% |
As illustrated in the table, the Dane County lottery credit percentage has ranged between 0.008% to 0.012% over the past 8 tax years. This equates to tax credits between approximately $20 to $30 for a median valued home of around $250,000.
Madison Metro Area Lottery Credits
| County | 2022 Lottery Credit % |
|---|---|
| Dane County | 0.0098% |
| Columbia County | 0.17% |
| Dodge County | 0.15% |
| Green County | 0.12% |
| Iowa County | 0.19% |
| Jefferson County | 0.16% |
| Rock County | 0.12% |
| Sauk County | 0.17% |
This table shows the 2022 lottery credit percentages for counties in the greater Madison metro area. Dane County has by far the lowest percentage at 0.0098% compared to 0.12% to 0.19% for other nearby counties. However, Dane County homeowners also receive the standard state lottery credit on top of the additional Dane County credit.
Opinions on the Dane County Lottery Credit
Here are some perspectives on the Dane County lottery credit:
“The credit is a nice bonus but doesn’t really impact affordability.”
Many homeowners appreciate the extra $20-$30 of tax relief from the lottery credit but admit it’s a small fraction of their total tax bill. While helpful, it does not dramatically improve housing affordability in Dane County.
“The funds could be put to better use for affordable housing programs.”
Some argue that the millions spent annually on the broad-based lottery credit would better serve the community if targeted to assistance programs for low-income residents struggling with housing costs.
“I like that it’s a guaranteed reduction in my property taxes.”
Homeowners enjoy the certainty that the lottery credit provides. They can count on it to incrementally reduce their taxes each year, even if it’s a minor amount relative to total taxes owed.
“Everyone benefits from a little tax relief.”
Supporters argue the lottery credit is an equitable way to distribute proceeds back to the general population. Rather than funding particular programs, it provides a small tax break to all local homeowners.
“The credit is inadequate for rapidly increasing property values.”
Some taxpayers argue that as home values have risen significantly, the lottery credit percentage has failed to keep pace. They contend it should be increased to provide more meaningful relief from climbing assessments.
“I wish renters qualified for the credit too.”
Renters point out they are excluded from the lottery credit even though they pay property taxes indirectly through rent. Expanding eligibility could make the credit more equitable.
Key Takeaways
- The Dane County lottery credit provides a small property tax break to homeowners funded by Wisconsin lottery revenue.
- All owner-occupants of primary residences in Dane County automatically qualify for the credit.
- The credit amount varies annually based on lottery allocation and total county assessed values.
- For 2022, the credit percentage is 0.0098% of a home’s assessed value.
- Typical credits are $20 – $30 for median home values.
- The lottery credit provides guaranteed tax relief but some argue the funds could better serve affordable housing programs.
