2018 Tax Bills FAQs
We’ve received a number of questions about the impact the revaluation project that occurred in the city during 2018 has had on property tax bills. The issues of property assessment and real estate tax amounts are two separate issues. The following document is meant to share information related to some of the frequently asked questions we are receiving from property owners:
How does the property assessment impact my property taxes?
Property assessments are the values placed upon taxable real and personal property by the assessor. This is a process required by WI Stat. Chapter 70. This is separate from the budget process described below. A property’s assessment determines the portion of property tax that will be due from a given property. Property assessments are based upon the amount that a typical purchaser would pay for the property under ordinary circumstances.
Why was the revaluation conducted?
Over time, if revaluations are not conducted, property assessments can vary significantly from market values causing inequities which results in some property owners paying more than their fair share of the property tax levy while others pay less. A full revaluation ensures each property is assessed at market value. The purpose of the revaluation is not to raise taxes but rather to provide a fair distribution of the property tax burden based on the market value of each property.
Under state law (sec 70.05(5)(b), Wis. Stats.), each municipality must assess all major classes of property within 10 percent of full value in the same year, at least once within a five-year period. In 2017, the Common Council determined the need to conduct a full revaluation for all properties within the City of Waupun as past practice far exceeded the five year rule.
What if I disagree with my valuation?
In August of 2018, a communication was mailed to homeowners from Associated Appraisal which included the new valuation amount of their property as of January 1, 2018. That letter explained that if a homeowner disagreed with the new valuation they could contact Associated Appraisal direct and/or schedule an appointment at City Hall for Open Book on Thursday, September 6, to discuss. The letter also explained that if the property owner was still unhappy after that discussion, that they had a right to appear before the Board of Review on October 3 to further dispute their valuation. We had a number of property owners schedule time in September during Open Book but only two appeared at Board of Review. The valuation as it was confirmed in October following the Board of Review session finalized the tax assessment roll with the WI Dept of Revenue.
How do the new valuations impact the tax levy?
The budget process is an annual process that begins in July and uses a zero-based approach to budgeting. The tax levy amount is determined based on the difference between the proposed budget and projected revenues. The difference between the two numbers is the tax levy. Assessed values are only used to determine distribution of the tax levy.
How much did the tax levy increase in Waupun in for 2019?
On Tuesday, November 13, 2018, the Council held a public hearing for the proposed 2019 budget. As adopted, the total city property tax levy increased 3.0%, or $90,071, compared to prior year. The majority of the increase supports capital improvement and equipment replacement. However, at the time of the budget hearing, the city’s property tax rate was estimated to decrease 3.5% overall due to increases in the finalized assessment roll. As a result of changes to individual revaluations, some property owners saw increases and others saw decreases to their property tax bill.
Information on the 2019 budget can be found here.
Why is did some property owners experience a larger property tax increase while others saw decreases?
Whether you experienced an increase or a decrease in your property tax amount was determined largely by your individual property assessment as that number determined the property tax distribution. To reiterate, the purpose of the revaluation is to ensure that all property owners pay their fair share of the tax levy based on fair market valuation.
Another important point to note is that the tax bills received each December are for all taxing jurisdictions within the City of Waupun, including the Waupun Area School District, Fond du Lac / Dodge County (depending on residence), Moraine Park Technical College and the City of Waupun. You can identify the taxing amount for each jurisdiction on your tax bill. The City of Waupun’s portion of the tax bill has historically been about 31% of the total tax bill.
Moving forward, what should we expect as it relates to property assessments?
It is important to note that Wisconsin has an annual assessment. This means that each year’s assessment is a new assessment. The assessor is not obligated to keep the same assessment year over year. The assessor may change an assessment because of building permits or sales activity, even if he or she did not inspect the property. The law requires that property be valued from actual view or from the best information that can be practicably obtained. Each fall the city holds Open Book and Board of Review sessions to give property owners a chance to discuss/dispute their property values. That process is in place to give citizens an opportunity to discuss/dispute the assigned valuation and to make certain distribution of tax levy remains fair and equitable. The city encourages citizen participation in this process.
