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PROPERTY REVALUATIONS – PART 1
During 2010, the Town will be doing a revaluation of all real estate parcels. This project is mandated by the State Department of Revenue specifically when the properties within a Town fall below a certain percentage of equalized value, or fair market value, which is set by the State. The Town of Neenah is currently less than 80%.
Wisconsin Statutes require that the assessed value of all property in the Town must be within 10% of the fair market value during a particular period of time. If our assessed value is not within 10%, we risk having the state order special supervision to perform the revaluation at a considerably higher cost than we can contract for with our own assessor. Therefore, you will soon see representatives from our assessor, Bowmar Appraisal, Inc., of Appleton working on a complete revaluation of all taxable real estate and personal property for the December 2010 tax bills.
Please cooperate with this project. If Bowmar is refused inspection of any property by the owner or occupant, he (or she) will value that property according to the best information he can practically obtain. Documentation will be noted on each record as to dates and times of inspection and attempts to contact an owner to arrange inspection. Failure to allow access can negate your right to appeal any assessment change. All work is expected to be completed, including Open Book and Board of Review, on or before September 1, 2010.
Watch for Part 2 of Property Revaluation information in the next newsletter…we will publish frequently asked questions.
PROPERTY REVALUATIONS – PART 2
As advised in our previous newsletter, the Town is doing a property revaluation this year. Regarding this important subject, following are some frequently asked questions:
What is a revaluation? A revaluation is a complete review of all property assessed values. This is done to assure that property taxes are distributed equitably and uniformly. It is our assessor’s job to place a value on all taxable property in the Town in a uniform manner.
How does the assessor value property? 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 considered are: what similar properties are selling for, what it would cost to replace your property, the rent it may earn, and other factors that affect value. The assessor does not create this value, but rather interprets what is happening in the market place.
What is market value? Market value is defined as the amount a typical buyer would be willing to pay for a property. The seller and buyer must not be related, the seller must be willing, but not under pressure to sell, and the buyer must be willing but not under pressure to buy. The property must be on the market for a reasonable length of time, the payment must be in cash or its equivalent, and the financing must be typical for that type of property. If all these conditions are present, this would be a market value, arms-length sale.
Will the construction costs of a new home be considered? Your construction cost may or may not reflect the current fair market value of your home. It is only one element that is considered.
What will happen to my assessment if I improve my property? Generally speaking, improvements that increase the market value of a home will increase the assessed value. The following are typical items that will increase the value of your home: added rooms or garages, siding, modernization of kitchen or baths, central air conditioning , fireplaces, extensive remodeling. Generally, your assessment will not be increased for minor repairs such as repairing walks and driveways, replacing gutters and downspouts, replacing hot water heater, repair or replacing the roof, painting, replacing a furnace, landscaping, etc.
How can an assessment change when nothing has been done to the property? Economic conditions such as interest rates, inflation, and changes in tax laws will influence the value of real estate. As property values change in the market place, those changes are reflected on the assessment roll.
Do all assessments change at the same rate? There are differences between individual properties and between neighborhoods. In one area, residential sales may indicate a substantial increase in value in a given year. In another neighborhood, the increase may not be significant. Different types of properties within the same neighborhood may also show different value changes. Generally, commercial and industrial properties do not appreciate at the same rate as single-family homes. There are numerous factors to be considered which can affect value, such as location, condition, size, quality, number of bathrooms, finished basement, garages, and many others.
Will I be notified if there is a change in my assessment? Wisconsin law requires that the assessor notify owners whose total assessment changed from the previous year. However, failure to receive a notice does not invalidate the assessment! The notice must be in writing and mailed at least 15 days prior to the Board of Review meeting. The notice contains the amount of the changed assessment and the time, date, and place of the Board of Review meeting. The notice must include information notifying the owner of the procedures to be used to object to the assessment.
How do I know if my assessment is correct? You should first attempt to decide for yourself what your property is worth. This can be done by looking at area sales, contacting appraisers, and comparing assessments of similar homes in your neighborhood. Sales and assessment information is available from the assessor and open to the public for review during the Open Book session.
What is the Open Book session? It is a period of time that the assessor and the records must be available to the people. It is a time for learning how your assessment was made, what factors were considered, and what type of records are kept regarding your property. It is a time for you to ask questions that will help you understand the process. Ask to see the records for your property and how your assessment was determined. Make sure the size, age, conditions, number of bathrooms and other physical characteristics of your property are correct. Also, if you know of recent sales of property in your neighborhood, bring them to the attention of the assessor. Minor errors and misunderstandings can often be corrected easily by meeting with the assessor at the Open Book session.
What if I don’t agree with my assessment? Talk with the assessor at the Open Book session. The Town must provide instructional material at the Open Book session which explains the assessment, taxation and appeal process. Call the Town Clerk to verify the dates for Open Book and/or the Board of Review. You are not required to meet with the assessor before appealing to the Board of Review, but it is highly recommended.
After the Open Book discussion and I still think the assessment is incorrect, what can I do? The first thing you do is provide notice of your intent to file an objection. Call the Town Clerk and get the form that you need to complete. This form must be filled in and given to the Town Clerk at least 48 hours before the Board of Review. The Clerk will schedule a time for you to meet with the Board of Review. Each assessment year stands alone. You may only appeal the current year’s assessment. However you may appeal your assessment every year if you feel the value is wrong.
What is the Board of Review? The Board of Review is made up of the five Town Board members, with alternates available if needed. The Board of Review hears evidence from you and then from the assessor before making a decision whether or not the value put on your property is correct. The Board can act only upon evidence presented at the hearing.
Can I exclude a Board of Review member from hearing my objection? Yes. You may request the removal of any one Board member for any reason. You may request the removal of any Board member whom you believe harbors a personal bias or prejudice against you. A request to remove a Board of Review member must be made at the time you fill out the objection form and give it to the Town Clerk. The notice must identify the member to be removed. It must also state the nature of the bias or prejudice.
What evidence do I need to present at the Board of Review? You need to prove that the assessment is incorrect. Your evidence must be strong enough to prove that the assessor’s value is wrong. Remember, unless you present convincing evidence that proves the assessor’s value is wrong, your assessment will not be changed. The Board considers only relevant testimony given at the hearing. Stating only that your taxes are too high is not relevant information. You should establish in your own mind what you think your property is worth and then present evidence to convince the Board to change the value. The best evidence would be recent sale prices for properties similar to yours. The closer in proximity and similarity, the better the evidence. Another type of evidence is oral testimony from a witness who has made a recent appraisal of your property. If your concern is that your taxes are too high, you should contact those responsible for spending decisions: the county board members, school board members, your state legislators, etc. These are the people who approve the spending that results in your property taxes. The assessor is only responsible for the equitable distribution of the tax. If you believe the Town tax is too high and that your Town Board is spending too much, the place to present that discussion is at the Annual Budget Hearing, not the Board of Review.
What is the best evidence to prove my assessment is wrong? The best indicator of market value is a recent arm’s-length sale of a reasonable comparable property. Sales should be recent…those several years old may not reflect current market conditions. Sales must be arm’s-length. There should be no relationship between the buyer and seller that affects the sale price because sales between relatives are typically not arm’s-length sales. Comparable properties are those similar to your property in location, style, age, size, and other features. You should try to find recent arm’s-length sales of properties in your neighborhood with the same or similar features as your home. The assessor should be able to tell you what comparable sales he used to determine the value of your home.
What if there are no comparable sales? The value may be estimated using other available information. This may include sales of less comparable properties, asking prices, cost and income approaches to value, options to purchase, recent appraisals, insurance estimates, and assessments of other comparable properties.
If I want to appeal my assessment, am I required to appear at the Board of Review? Yes. It is extremely important that you appear at the Board of Review. If you cannot attend the Board’s hearing, you can arrange for a friend, relative, attorney or other representative to appear before the Board on your behalf. You should present all of the information that you believe affects the value of your property because if you appeal the decision to Circuit Court, you will not be allowed to introduce new evidence to the court. The court will make its decision based on evidence from the Board of Review.
What happens after the Board of Review makes its decision? The Board will mail you a notice of its decision. If you do not agree with the decision, the notice will contain information on how you may appeal. You may appeal directly to Circuit Court or you may appeal to the Department of Revenue.
Will taxes change as a result of the new assessment? Although the value of your property affects your share of taxes, the actual amount you pay is determined by the budget needs of the Town of Neenah, the Neenah School District, Winnebago County, special districts such as Sanitary or Stormwater, the Fox Valley Technical College, and the State of Wisconsin. All of the taxing units decide what services they will provide in the coming year and how much money they will need. Once these decisions are made, a tax rate is determined that will generate the needed dollars for all the taxing bodies. Your property taxes are then calculated by multiplying the tax rate by your assessment.
All of this information, plus more, regarding property assessments and appeals is available from the Wisconsin Department of Revenue web site.
Due to economic conditions within the real estate market, and the many new residents who have never been through this process, we expect there will be more questions than shown above. Please call the Town Hall 725-0916 and if we cannot help, we will find the answer(s) for you.
Archive:
January 1, 2010 2010 Town Wide Revaluation
December 21, 2009 Public Hearing - Proposed Ammendment to Comprehensive Plan
April 20, 2009 Notice of Public Hearing