Study of Eau Claire Tax-Exempt Properties
The City’s Fiscal Policy Advisory Committee (FISPAC) presented a Report of Tax-Exempt Properties in the City of Eau Claire to the City Council on September 13. The report includes an overview analysis of the status of tax-exempt properties within the City, along with maps illustrating the distribution of properties.
The total area of the City is over 21,000 acres, which includes public rights-of-way, water, and land parcels. Approximately 47% of the total area of the City is exempt from property tax. This includes 5,439 acres of public street rights-of-way and water areas, and 4,848 acres of tax exempt parcels.
The distribution of tax-exempt parcels includes:
- Federal parcels:26.4 acres
- State parcels:40.6 acres
- County parcels:940 acres
- City parcels:1946.8 acres
- School parcels:935.6 acres
The FISPAC report includes the following policy recommendations:
- The State of Wisconsin should review and adjust the existing state fiscal and revenue system to ensure sufficient public revenues for local governments to provide the public structures essential for families, businesses, and local communities to continue to thrive.
- While City services are provided for the entire area of the City, only 50% of the area is subject to property tax to support the services. The State and local communities should work together to address this imbalance and provide a reasonable and equitable way to support local services.
- The City of Eau Claire should consider alternative revenue options for ensuring the support of local public structures if the State fails to address the failures of the existing state system of revenue supports.
Additional information and reports regarding City fiscal issues and challenges are available at Fiscal Policy Advisory Committee.