While assessments are fundamental to Wisconsin’s property tax system, most property owners know little about them even though they can impact their property tax bill. Property revaluations do not necessarily mean tax increases, but can lead to a shifting of the tax. Property tax bills are also affected by changes in equalized values, or state estimates of the current fair market value of taxable property.
Each November, newspapers around the state report on municipal, county, and school property tax levies set by local officials. In December property owners are billed for their share of those levies. Often, those bills spark questions, such as:
- Why did my school property taxes increase when the school levy was unchanged this year?
- My assessment increased 10% last year after the town revalued properties, yet my taxes declined. Why? or
- The assessed value of my property has not changed for the past three years, yet my property taxes keep increasing. How can that be?
To be sure, property tax levies play a large role in determining individual tax bills. That said, answers to the above questions have more to do with property valuation.
Taxpayers often underestimate the role of valuation in Wisconsin’s property tax system. In Wisconsin, two measures of value—assessed and equalized—are used to apportion property taxes. Uneven changes in either can shift property taxes between property owners, resulting in higher bills even when levies are unchanged.