“…….Death & Taxes”
Taxes and exemption of taxes are overseen by the Wisconsin Department of Revenue. Each municipality determines a mil rate and assessment ratio based upon the proposed budget for that year. The property tax rate is the total levy divided by total assessed value minus the TID increment. The total levy is the sum of the city’s levy added to the school district’s levy (the total need minus the percentage of state funding minus other revenue) plus the city’s portion of the county’s levy (this is determined by at what percent the city’s value is of the county’s total value). An assessor will use a statistical program to double check his/her assessments. If the statistical analysis shows the assessor’s calculations to be off by more than 10%, than it is standard for the assessor to reanalyze his/her data as he/she may be under-assessing. So, if individuals involved with real estate transactions ‘push the market’, not only will we have a bubble (an inflated market), but when the assessor ‘corrects’ his/her analysis of fair market value to coincide with current sales prices, property owners will be faced with an unpleasant surprise. The mil rate (property tax rate) is the dollar amount per thousand which you are taxed and the assessment ratio is the percentage of the fair market value of your home which you are taxed. For example if you live in an area where the mil rate is 18 and taxes are based upon an 85% assessment ratio and the assessor determines the fair market value of your home to be $200,000, your taxes for the year would be calculated at $3,060. However, if you seek the services of an independent qualified real estate appraiser and find you have been over assessed the savings could be substantial. For example, if the same home of $200,000 where to have an independent appraisal done and the appraiser’s analysis found the property’s value to be $190,000, your new tax would be $2,907. The fact that your assessment has increased since last year is not sufficient grounds alone for appealing your tax. How do I successfully appeal the valuation? ‘Wisconsin Statute 70.32 (1) (1) Real property shall be valued by the assessor in the manner specified in the Wisconsin property assessment manual provided under s. 73.03 (2a) from actual view or from the best information that the assessor can practicably obtain, at the full value which could ordinarily be obtained therefore at private sale. In determining the value, the assessor shall consider recent arm's-length sales of the property to be assessed if according to professionally acceptable appraisal practices those sales conform to recent arm's-length sales of reasonably comparable property; recent arm's-length sales of reasonably comparable property; and all factors that, according to professionally acceptable appraisal practices, affect the value of the property to be assessed.’ To be successful in appealing your valuation, you have to prove your property is assessed higher than market value, as of the base date of valuation, January 1 of that year. If you believe you do have a case, file the appeal and if applicable, pay the filing fee. Submit on the document provided that, "The assessed value is higher then market value" and return to the Assessment Office. Keep a photo copy for your records. If you discover you don't have a case, then withdraw ten days before the hearing and in some provinces you should get your filing fee back. For more tax information please visit the Department of Revenue at www.dor.state.wi.us or your municipality’s assessing office.
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