What is the First Dollar Credit?
Every taxable parcel in the State of Wisconsin qualifies for the First Dollar Credit provided that parcel contains a real property improvement. This includes business, commercial and private property. This credit should be automatically applied to all qualifying properties. If the property tax bill has an amount shown in the “Ass’d Value Improvements” boxes, then that property should receive the credit. Unlike the Lottery and Gaming Credit, the property does not need to be the primary residence of the owner and an owner may receive the credit on more than one property. A personal property improvement is not a qualifier for this credit.
Wisconsin Department of Revenue Division of Research and Policy December 17, 2008 FIRST DOLLAR CREDIT The first dollar credit was created by the 2007 Legislature. The first payment will be made in the 2008/09 property tax year. The credit is funded by the state general fund. Payment The first dollar credit is paid to the owner of any real estate parcel on which at least one improvement owned by the land owner is located. The credit equals the school property tax on a certain amount of the value of the improvements. This “credit value” is calculated every year by the Department of Revenue, after taking into considering the estimated number of claims that are expected to be paid and school property tax rates (for K-8, Union High, and K-12 school districts). The “credit value” is set at the level that distributes the available funds. If the value of the parcel exceeds the “credit value”, a full credit is paid. However, if the value of the parcel is less than the “credit value”, the credit
