Homeowner FAQ's

Wisconsin law requires that property assessments be based on fair market value. Estimating the market value of your property is a matter of determining the price a typical buyer would pay for it in its present condition. Some factors the assessor considers are what similar properties are selling for, what it would cost to replace your property, and the rent it may earn.

Your share of taxes depends upon the assessed value of your property in relation to the assessed value of other properties within your municipality. For example, if your assessed value increase is greater than the average increase for the municipality, your tax share may increase. If your assessed value increase is less than the average for the municipality, your tax share may decrease.

The actual tax levied by the municipality is determined by the budgeted needs of the schools, technical colleges, and municipal, county, and the state governments. All of these taxing units decide what services they will provide and how much money they will need to provide these services. Once these decisions are made, a tax rate is determined. Your actual tax obligation is calculated by multiplying the tax rate by your assessed value.

Generally speaking, significant improvements that increase the market value of a property will usually increase the assessed value. The following are typical items that will increase the assessed value of your property:
. Adding rooms, decks or garages
. Replacing older siding or roofing with aluminum or vinyl siding
. Installing central air conditioning
. Fireplaces
. Extensive remodeling
 

No. The value of properties with similar characteristics often changes at a similar rate. However, properties of different styles, locations or size may change at a different rate. Each property must be reviewed individually to establish an accurate assessed value.

Construction costs are variable and may not reflect the current market value of your property. Therefore, construction costs may be one of many elements that are considered when establishing market value.

Good maintenance will help retain the market value of your property. Generally, your assessment will not be increased for individual minor repairs; however, a combination of repairs like those listed below may result in an increase in the assessed value:
. Repairing concrete walks and driveways
. Replacing gutters and down spouts
. Replacing hot water heater
. Repairing porches and decks steps
. Repairing original siding
. Patching or repairing interior walls and ceilings
. Exterior painting
. Replacing electrical fixtures
. Replacing furnace
. Exterior awnings and shutters
. Weather stripping, Replacing screens, storm windows, or doors
. Landscaping including lawns, shrubbery, trees, flowers

Not necessarily. To illustrate how the levy affects your assessment we’ll look at Badgertown; a community of two.

Each resident owns a house valued at $100,000. Badgertown’s tax levy is $2,000; the amount needed to cover its expenses.  Since each resident owns 50% of the total property, they each pay 50% of the levy giving them each a tax bill of $1,000. 

If property values in Badgertown go up 10%, then each property is assessed at $110,000. The amount they pay in taxes, however, remains the same. Each resident still owns 50% of the total property in Badgertown and must pay 50% of the $2,000 tax levy or $1,000. And what if values start dropping? Residents’ property might drop to $80,000 each but because they each still own 50% of the property, and Badgertown still needs to collect $2,000, they will continue to see a $1,000 property tax bill.