Several municipalities in Racine County sent out property tax assessments last week.
Property tax assessments in Wisconsin are crucial for funding essential local services like schools, roads, and emergency services. But how do they work, and what should you do if you disagree with your assessment?
Let’s break it down in simple terms.
Wisconsin municipalities annually assess property values to ensure they reflect current market conditions. Local assessors, who might be municipal employees or hired professionals, are responsible for this task. They determine a property’s market value—the price it would likely sell for in a competitive market—by analyzing sales data from similar properties, considering the property’s characteristics (like location, size, condition, and use), and sometimes performing physical inspections.
Wisconsin uses an assessment ratio to compare a property’s assessed value to its fair market value. By law, properties should be assessed at or near 100% of their market value. The Wisconsin Department of Revenue monitors these ratios to ensure they’re accurate and fair, requiring local assessors to maintain assessments within 10% of market value over a five-year period.
Occasionally, municipalities conduct a comprehensive revaluation of all properties to adjust for significant market changes. The revaluation process helps keep property tax assessments accurate and fair.
What happens when assessments Increase
You might worry that an increase in your property’s assessed value will automatically lead to higher taxes. However, this isn’t always the case. Property taxes are calculated by multiplying the assessed value by the tax rate (often expressed in mills, where one mill equals one-tenth of a cent). Even if your assessed value goes up, the overall tax levy (the total amount of property tax revenue local governments can collect) is capped by Wisconsin law. This means the tax rate might be adjusted to keep tax increases in check.
Several factors can cause property tax assessments to increase. A common reason is rising property values driven by a robust real estate market or economic growth. Improvements to your property, like renovations or new constructions, can also increase its assessed value. Additionally, if the use of your property changes (for instance, if a residential property is converted to commercial use), the assessment will likely reflect that change.
Local assessors determine property values based on the Wisconsin Department of Revenue guidelines. This department oversees the assessment process to ensure uniformity and fairness across the state. Property owners can appeal their assessments if they believe them inaccurate.
What to do if you disagree with your assessment?
If you think your property assessment is incorrect, don’t worry—there’s a process to challenge it.
- Review Your Assessment: Start by carefully reviewing the assessment notice sent by your local assessor. Compare the assessed value to recent sales of similar properties in your area to see if it seems reasonable.
- Contact Your Assessor: Schedule an informal meeting with your assessor to discuss your concerns. Discrepancies can often be resolved at this stage.
- File a Formal Appeal: If the issue isn’t resolved informally, you can file a formal appeal with your local Board of Review. This must be done within a specific timeframe, usually outlined in your assessment notice. At the Board of Review hearing, you must present evidence, such as recent sales data, appraisals, or photographs, to support your claim.
- Further Appeals: If you’re still unsatisfied with the Board of Review’s decision, you can appeal to the Wisconsin Department of Revenue or take legal action in circuit court. The Department of Revenue provides guidelines and forms for this process on its website.
You can visit the Wisconsin Department of Revenue’s Property Tax Assessment Guide for more detailed information.
By understanding how property assessments work and knowing your rights to appeal, you can ensure your property is fairly assessed and not overpaying on your property taxes.
