Feb. 18, 2009 – The current economic problems have caused a decline in most real property values. Property taxpayers and their counsel will need to take affirmative steps early in 2009 to ensure that 2009 property tax assessments reflect 2009 fair market values, and not the market values of a prior year, such as 2008.

Diligence is required

In recent years, real property values were trending upward, and assessors regularly increased assessments to capture the increases. Under Wis. Stat. section 70.365, an assessor is only required to provide the detailed formal notice specified in Wis. Admin. Code § Tax 12.075, which includes specifics of the procedures and deadlines for challenging the assessment, if the assessment has changed from the prior year’s assessment. If the assessor elects not to change the assessment in a year when real property values have declined, some taxpayers may fail to appreciate the significance of the absence of a notice, and this may cause them to miss the deadline for filing the objection required by Wis. Stat. section 70.47, which is a prerequisite to any property tax challenge.

Property taxpayers and their counsel must diligently pursue an inquiry to the relevant municipality as to the deadline, which is not governed by statute (except in Milwaukee) and can be set at the municipality’s option. They must then complete and timely submit the required formal objection form, including the information specified in Wis. Stat. section 70.47. Assessments generally are issued beginning in April.

Establishing the correct assessment

Of course, filing a timely objection does not conclude the issue. The property taxpayer must be prepared to establish not only that the assessment is erroneous, but also what the correct assessment should be. This may be difficult in a declining market where there is less available market information. Taxpayers and their counsel will need to be especially prepared with current information that can be used to establish a value reflecting true 2009 fair market value.

Robert L. Gordon is a partner in the Milwaukee office of Michael Best & Friedrich LLP, where he focuses on federal, state and local tax litigation, including litigation of property tax issues. Michael Best & Friedrich is the Wisconsin member of American Property Tax Counsel, the national affiliation of property tax attorneys. 

Robert L. Gordon is with Michael Best & Friedrich LLP.