A Homeowner's Guide to Understanding Property Tax Assessments in Wisconsin

Property tax assessments are a vital part of funding local services like schools, roads, and emergency services. However, understanding how these assessments work and what to do if you disagree with them can be challenging. Here’s a guide to help Wisconsin homeowners navigate property tax assessments and ensure fair valuations.

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How Property Tax Assessments Work
Every year, municipalities in Wisconsin assess property values to reflect current market conditions. This task is handled by local assessors, who might be municipal employees or hired professionals. They determine a property's market value by looking at recent sales data of similar properties, considering factors like location, size, condition, and use, and sometimes performing physical inspections.

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Wisconsin aims to assess properties at 100% of their market value. The Wisconsin Department of Revenue oversees these assessments to ensure accuracy and fairness, requiring that values remain within 10% of the market value over a five-year period.

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Occasionally, municipalities will conduct a revaluation of all properties to adjust for significant market changes and ensure assessments are up-to-date.

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What to Do If Your Assessment Increases
It's natural to worry that an increased property assessment will lead to higher taxes. However, property taxes are calculated by multiplying the assessed value by the tax rate, which is often expressed in mills (one mill equals one-tenth of a cent). Even if your assessed value increases, Wisconsin law caps the total tax levy, which may result in adjusted tax rates to keep tax increases in check.

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Factors that can cause property assessments to increase include:
- Rising Property Values: Driven by a strong real estate market or economic growth.
- Property Improvements: Renovations or new constructions can boost assessed value.
- Change in Property Use: Converting a property from residential to commercial use, for example, can increase its assessed value.
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Assessors follow guidelines from the Wisconsin Department of Revenue to maintain uniformity and fairness in property valuations.

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Steps to Take If You Disagree with Your Assessment
If you believe your property assessment is inaccurate, you have several options to challenge it:
- Review Your Assessment Notice: Carefully examine the assessment notice sent by your local assessor. Compare the assessed value with recent sales of similar properties in your area to check for accuracy.
- Discuss with Your Assessor: Schedule an informal meeting with your assessor to discuss your concerns. Many issues can be resolved at this stage without further action.
- File a Formal Appeal: If the informal meeting doesn’t resolve the issue, you can file a formal appeal with your local Board of Review. This must be done within the timeframe specified in your assessment notice. At the hearing, 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 pursue legal action in circuit court. The Department of Revenue provides guidelines and necessary forms for this process on its website.

Understanding property tax assessments and knowing your rights to appeal can help ensure your property is fairly valued, preventing overpayment on taxes. Stay informed, review your assessment carefully, and don't hesitate to take action if you believe your assessment is incorrect.