The deadline to appeal Milwaukee property assessments is May 16. Here are five tips to know beforehand.
In 2020, Milwaukee homeowners made a record number of appeals to their property valuations, corresponding to a record number of home sales.
This year, the deadline is once again looming, as residents consider challenging their assessments as either too high or too low.
In Milwaukee, property assessments are typically done every year. One reason property assessments are considered important is because, when multiplied by the local tax levy, the assessments help calculate a homeowner's property tax bill.
Having a higher property value has traditionally been considered a good thing, as it builds equity for the homeowner. But in low-income areas, higher property values have led to concerns around higher property taxes, which can be devastating for homeowners living on fixed incomes.
City of Milwaukee Assessment Commissioner Nicole Larsen and Assessment Division Manager Kirk Redmon addressed those concerns at a meeting before the Sherman Park Community Association, where some residents said they felt punished for making improvements to their property or had no idea why their assessments suddenly rose.
Larsen acknowledged sometimes assessments, and the property taxes that result from them, can lead to “difficult” outcomes, while she also explained her team is doing the best they can to get it right.
Here are answers to some of the most common questions:
Who makes property value assessments?
A property's value is determined primarily by using the sales of comparable properties in the previous year.
Because there are only 21 appraisers for more than 150,000 properties in Milwaukee, individual appraisers gather as much information about regions and areas as possible, which is then plugged into a “computer assisted mass appraisal” system.
Appraisers inspect permit and sale records, view properties and work with homeowners to determine property values, but they do not visit every single property in the city.
Why is there such a huge jump between the 2019 and 2021 assessed value?
A property's value can be impacted by many things, including upgrades (such as a newly installed pool or central air system), additions (such as building a deck) or even just proximity to high-value amenities (such as a park or stadium).
At the meeting, Larsen and Redmon explained that due to the pandemic, the assessor's office was unable to do regular inspections. Consequently, the office conducted a “maintenance year” in 2021. A maintenance year, according to the Wisconsin Property Assessment Manual, involves “copying the assessment roll from the previous year and updating values to the current level of assessment when changes warrant.”
Depending on the property's condition compared to 2019, the sale prices of comparable homes and other factors, you may see your assessment change substantially.
What do property sales have to do with assessments?
In 2020, there were less than 5,500 market rate sales. Just a year later, there were 8,600. As Larsen and Redmon explained, the high quantity of lower-priced properties in low-income areas led to a high volume of sales, which then drove up assessments and the sale prices of nearby homes.
The combination of a higher volume of sales and sale prices can sometimes lead to a neighborhood receiving noticeably higher assessments and higher property tax bills.
That's not always the case. While property assessments factor into property taxes, the tax levy — determined in the fall — plays even more of a role.
You can learn more about 2021 property assessments from the state's Department of Revenue.
How can I make an appeal?
Before filing an appeal, you can reach out to the city using their “Ask the Assessor” feature. Homeowners who go this route can see how likely it is that their assessment will be reduced without having to pay for market research or an independent appraisal.
If you choose to file an appeal, the office encourages property owners to submit evidence. For homeowners, that could include the following:
- The copy of a recent appraisal
- Recent market analysis from a local real estate agent
- Photos from the interior and exterior of a home of areas needing maintenance, and
- Photos showing features not listed on the Assessor's Office's property record card.
Homeowners can make their appeal by calling 414-286-6565, visiting the assessor's office or going to the website milwaukee.gov/assessorobjection.
You must submit your appeal by 4:45 p.m. May 16, a deadline designated by state law.
How does the appeal process work?
Appeals are a two-step process.
First, they go before the Board of Assessors, which is composed of management personnel from the assessor's office. If the property owner disagrees with board of assessor's findings, they can take their appeal to a hearing before the Board of Review, which is composed of residents. Larsen and Redmon noted sometimes, the assessment is adjusted before it ever gets to the review board.
Wondering how likely it will be that your appeal is approved or denied? According to Larsen, 39% of appeals made in 2020 received an assessment that was lower than the original.
Talis Shelbourne is an investigative solutions reporter covering the issues of affordable housing and lead poisoning. Have a tip? You can reach Talis at (414) 403-6651 or tshelbourn@jrn.com. Follow her on Twitter at @talisseer and message her on Facebook at @talisseer.
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