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Milwaukee property assessments sticker shock
Milwaukee's home values are up on average of 19%, and all properties combined are up about 17% following a recent property assessment. FOX6 sat down with the woman who oversees City of Milwaukee assessments to explain why this doesn't necessarily mean your property taxes will increase.
MILWAUKEE - Home assessment sticker shock has led people to worry about higher taxes. But, higher assessments don't necessarily mean a higher tax bill.
FOX6's Jason Calvi brings your questions to the woman who oversees City of Milwaukee assessments.
Milwaukee's home values are up on average of 19%. All properties combined are up about 17%.
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Milwaukee property assessments; homeowners surprised by increases
There is sticker shock as Milwaukee homeowners get their new property assessments. On average, Milwaukee properties are up about 17%. But average home assessments are up even more.
FOX6's Jason Calvi asked if this was a cash grab the city is trying to do to take money from residents.
Milwaukee Commissioner of Assessments Nicole Larsen replied, "It is absolutely not a cash grab."
For the first time since 2022, her team of appraisers re-evaluated all 150,000 properties.
They use sales data and a computer tool. State law requires their assessments to be based on the ‘fair market value.’
Data from the St. Louis Federal Reserve Bank shows how home values in the Milwaukee area have spiked in recent years.
Milwaukee City Assessor's Office
"I think there is a misconception that if your value is increasing, that your taxes are automatically also going to go up and that’s not necessarily the case. First of all, we as a municipality are limited with the amount of taxes that we can collect," said Larsen.
"It’s not that your assessment goes up, and tax collection goes up, and the city is taking in more money. That’s just not how it works. The pie doesn’t get bigger. It’s just one-size pie and what are the different slices of that pie," added Larsen.
The state caps the levy, the total tax a local government brings in. That pot of money cannot grow because of increased assessments, it grows if there's new construction.
"What you need to know is what is the percentage increase over last year’s value that you are experiencing. And you have to compare that percentage increase to the citywide percentage increase. If your percentage increase is higher than the citywide average, you may see an increase in your taxes. If it’s below that citywide increase, then you’ll see a decrease in your taxes," added Larsen.
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Milwaukee homes
If you're still not happy with your assessment, you could challenge it.
There are levels of appeal, including the Board of Assessors. It's made up of the assessor and her management team.
"Can they show you pictures of their old bathroom and their old kitchen. Does that lower then the assessed value if they wanted to bring those photos in, stuff like that?" asked Jason Calvi.
"It could, potentially. Yes. Give us a call. The best way for us to get information is through an interior inspection. And I understand, I realize a lot of people aren’t comfortable with that, but the second best is for us to see photographs," answered Larsen.
Then, owners can appeal the assessor's decision to the Board of Review. It's made up of appointed citizens. The commissioner says about 10% of appeals make it that far.
FOX6's Jason Calvi talks with Nicole Larsen from the Milwaukee Assessor's Office.
"[Does] anything else work best if people have had an assessment lowered for whatever reason?" asked Calvi.
"If you are leaning towards appealing, reach out to your broker. Find a broker. Often, brokers will give complimentary brokers’ price opinions or comparative market analyses. Get an idea from an independent third party of what you think your property might be worth," answered Larsen.
May 20th, 2024 is the deadline if you want to challenge your Milwaukee property assessment. You can head to the city's website for more information.