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Property taxes won't be equivalent to investment

BRADFORD TOWNSHIP — Nebraska dairy farmer Todd Tuls says he wants to invest $35 million in Rock County next year.

But Ron Jacobson, assessor for the town of Bradford, said $35 million in construction does not translate to $35 million in taxable property—especially on a dairy farm. Jacobson said Tuls would pay taxes on less than $35 million in property.

Contrary to the concerns of some Gazette readers, however, Tuls and his employees will pay Wisconsin income taxes.

Jacobson has never assessed a farm as big as Tuls proposes building. But he expects the assessment to be 50 to 60 cents on the dollar.

"I've never assessed something like what I understand the size of this proposal is," Jacobson said. "But I can pretty much tell you from the classes I've had that if they spend $1 million, it's not going to end up being assessed on $1 million."

Tuls in March plans to break ground on a 5,200-cow dairy on Highway 14 east of Janesville in Bradford Township.

Assessments take place on the first of the year, so the property would first be assessed Jan. 1, 2012.

Whatever is standing at that time would be included for local property tax purposes, Jacobson said. Those taxes would be paid to the town of Bradford, Rock County, the Clinton School District, Blackhawk Technical College and the state of Wisconsin, he said.

Much of the equipment on a dairy farm is not assessed, he said.

Some Gazette readers were concerned that Tuls, who lives in Nebraska and will probably continue to do so, would pay Nebraska income taxes.

That's not the case, said Stephanie Marquis with the Wisconsin Department of Revenue. Taxes on income earned in Wisconsin would be paid in Wisconsin, Marquis said.

The same goes for Tuls' employees, she said. Tuls said he likely would move 10 employees from Nebraska to Wisconsin to help get things started.