Wausau’s Independent: By Tom Kilian for Wausau Pilot & Review
The City of Wausau did a “revaluation” of taxable property and many in town have seen their property assessments go up big time. Naturally, property owners wonder: will my property taxes go up from the increased assessment? The answer: Not always, but for many it will.
There is a method to estimate if your next Wausau property tax bill is more likely to go up or down after this revaluation based on the percentage increase of your recent property assessment.
This can be estimated or predicted, in a rough fashion, if two things occur: 1) local government budgets end up staying the same as this year and 2) property tax rate changes follow Wausau’s historical patterns.
If these two things occur, it is fair to say, in a ballpark fashion that:
- People who saw more than a 32% valuation increase are likely to see an increase in their property tax bill
- And people who saw less than a 32% valuation increase are likely to see a decrease in their property tax bill
Here is why, as can be noted from the revaluation data and historical property tax rate information later in this column: Because we just gave the City 32% more in taxable valuation that can be levied against. So if all relevant budgets remain the same as this year, the tax rate has to fall 32%. This type of change relationship is roughly what we have historically seen with property tax rate changes in Wausau associated with past revaluation years.
In that vein, I have embedded a gem of a document at the bottom of this column from the City’s Assessment Department. It lays out Wausau’s Assessment Ratios and Tax Rates for every Assessment Year since 1980, indicating in red which year listed is a city-wide revaluation year. Look at the changes around revaluation years with the assessment ratios and Wausau tax rate – the trend or pattern is pretty consistent.
Keep in mind that this is an opinion column, not the Oracle of Delphi, so some or all of these things may or may not happen.
Now let us look at some new statistics that most Wausonians have not yet seen.
Summarizing some key revaluation and assessment data
A few days ago, I had the pleasure of sitting down with Rick Rubow, the City Assessor for the City of Wausau. Not only does Mr. Rubow possess a wealth of knowledge and experience related to local assessment matters, he also has a strong reputation of being open and honest.
I learned a heck of a lot from our talk. Some of what I learned led to the above statements about the 32% threshold for property assessment increases.
If you are dying to know some of the key Wausau revaluation stats that you likely have not seen elsewhere, here are some that I gleaned.
- The City’s overall increase was $998,584,700 or 31.92%. It went from $3,128,427,000 to $4,127,011,700.
- There was an increase of 42.7% in the residential class of property amounting to a $762,662,400 increase
- Commercial class of property increased 17.5% or an increase of $235,286,000
- The commercial value change was $139,299,000 not in a Tax Increment District (TID). There was an increase of 18.74% as a percent change of non-TID last year versus this year.
- The City sent out 14,518 notices to properties. These notices were sent to properties if the property value changed $100 or more up or down.
- The City’s assessment department subsequently looked at 588 properties in the 30-day window during Open Book Period. These were for situations in which people did not know what their assessment notice meant, and for the taxpayer to view their property record with the appraiser and to better understand the assessment process.
- 113 changes were made after speaking with the 588 which resulted in a total value decrease of $7,788,900. This stemmed from causes like the property record card not being reflective of the property’s condition. In certain cases, there could have been water in the basement or a leaking roof, etc., of which the City became aware. These changes are only good for one year and the reasons/defects are reflected or disclosed in public-facing property assessment information.
- The assessment department looks at all “good” sales in a 2-year period. This year, it was 930 good sales. The assessment department’s job and goal is to bring assessment to 100% of market value and the valid sales are used to determine this.
- After the statistical analysis performed on these sales, the new sales ratio determined by the assessment department was 99.29%
The opinion
Since this is an opinion column, I am expected to give one, so here it is.
The City’s Assessment Department made the right call on pulling the trigger on the revaluation. My understanding is that the State allows a 10% leeway with the assessment model, and when that threshold is broken, the city is out of compliance. My further understanding is that there is a six-year cycle in which to come into compliance, and that Wausau was at year three. Ultimately, if a municipality stays out of compliance long enough, Department of Revenue (DOR) can come in and do a reval at the municipality’s expense.
It was also clear from my talk with Mr. Rubow, and information that I reviewed, that what the Assessment Department does is heavily data- and rule- driven, and often statutorily prescribed. This city department appears to closely follow the data and rules. How refreshing. If other facets of Wausau government followed the data and rules as closely as the Assessment Department, then those parts of local government would certainly be much less of a shitshow.
And sometimes the Assessment Department is unjustly vilified for increased property taxes. Keep in mind that Wausau property taxes are high from the silly spending decisions of the political class and those who carry water for it, not the Assessment Department, which is essentially doing what it has to within the rules and laws. Some of the concerns we have with property assessments and their increase are due to state-level requirements.
While I do not currently have the relevant data sets, anecdotally, the heaviest hits on property assessment increases – as a percentage – are to working- and middle- class residential properties in Wausau. We can anticipate the forthcoming tax consequence for those individuals and families. This is highly concerning that those who can afford it the least are going to take some of the biggest hits on property taxes. With that reality, it is increasingly important that the City stop its funneling of public tax monies to rich private developers to build upscale developments. The whole dynamic is grotesque and indefensible, from both a fiscal and a civic perspective. It is also long overdue to reform the City’s TIF practices.
Finally, the Wausau people had a right to be forewarned a long time ago of the likely property assessment increases anticipated from this revaluation, and the possible resulting tax liability for regular people. That did not happen in the twilight of the last administration. It should have.
Wausau Assessment Ratios
Wausau’s Independent is a weekly opinion column by former Wausau Alder Tom Kilian, a founding member of the grassroots environmental group Citizens for a Clean Wausau. Views expressed here are independent of this newspaper and do not necessarily reflect the views of Wausau Pilot. To submit an idea for a future column, email [email protected] or mail to 500 N. Third St. Suite 208-8, Wausau, Wis. 54403.
