Full Value Maintenance
CITY OF MILTON - FULL VALUE MAINTENANCE ASSESSMENT
This month the City of Milton’s contracted assessor, Accurate Appraisal, is starting the City’s second year of a four-year full value assessment cycle. Full value assessment is a process in which all assessed property values are maintained at 100% of market value every year.
In previous years the City has only re-valued properties when the values City-wide fall well below market value. When this happened, every City property was physically inspected in that revaluation year. Typically, this occurred every five or six years, and most property owners would experience a significant one-year change in value.
The “full value maintenance” approach involves physically looking at 25% of the properties each year. Included in determining values is an analysis of sale properties, inspection of new construction, and check on all properties that took out building permits since the last revaluation. After a thorough analysis of all sale properties the assessors then adjust values for all properties in the City according to style and neighborhood of the property based on 100% full market value in 2009.
Some advantages of full value maintenance are:
- Assessment equitability by keeping all properties at 100% market value every year.
- This is typically easier for residents to understand. Instead of a significant increase every few years, the values are adjusted incrementally each year.
- Annual assessment processes are easier on municipality budgeting, because the City will pay for this service consistently every year rather than having a large one-year expense for full revaluation.
Residents can expect to see staff from Accurate Appraisal out in the community beginning in May 2009. Anyone with questions is welcome to contact City Hall at (608)868-6900 x5 or visit the City website at www.ci.milton.wi.us for more information. The City wishes to thank all residents in advance for their cooperation throughout this process.
Full Value Maintenance FAQ
What is market value?
Market value is defined as the amount a typical, well-informed purchaser would be willing to pay for a property, the seller and buyer must be unrelated, the seller must be willing, but not under any obligation 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 of these conditions are present, this would be a market value, arm's-length sale.
How can my assessment change when I haven't done anything to my property?
General economic conditions such as interest rates, inflation rates, supply and demand, and changes in tax laws, will influence the value of real estate. As property values change in the market place, those changes must be reflected on the assessment role.
Do all assessments change at the same rate?
No. There are differences between individual properties and neighborhoods. In one area, property sales may indicate a substantial increase in value in a given year. In another neighborhood there may be no change in value, or even a decrease in property values. Different types of properties within the same neighborhood may also show different value changes. For example, one-story houses may be more in demand than two-story houses, or vice-versa. Older homes in the same area may be rising in value more slowly than newer homes. There are numerous factors to be considered in each property, which will cause the values to differ. Some of the factors, which can affect value are: location, condition, size, quality, number of baths, basement finish, garages, and many others.
How do I know if my assessment is correct?
You should first attempt to decide for yourself what your property is worth. Looking at area sales, contacting appraisers, and comparing assessments of similar homes can do this. Sales and assessment information is available from the City Assessor. The City contracts with Accurate Appraisal for its assessing services. Please contact Accurate Appraisal at 1-800-770-3927, Monday through Friday from 8 am to 4:30 pm, with any questions.
What is "Assessed Value"?
Assessed value is an estimate of value assigned to taxable property by the assessor on January 1 of each year and will apply to the taxes levied at the end of the year. While the assessed value of a property should represent the market value, the City does not update its records each year. The City only updates annually the properties that have had significant changes. In non-revaluation years, assessments typically reflect a fraction of market value due to the changing real estate market.
What is "Equalized Value"?
Equalized value is the full market value of taxable property in a municipality, both real and personal. The Department of Revenue each year determines the equalized value.
What is the "Assessment Ratio"?
The assessment ratio is the relationship between the assessed value and equalized value of all property within a municipality. If the assessment ratio is below 90%, the State of Wisconsin will order a revaluation. Assessment Ratio = Assessed Value / Equalized Value.
How will my taxes change as a result of the new assessment?
Though the value of your property affects your share of taxes, the actual amount you pay is determined by the budget needs of the schools, city, county, technical college, and state. All of these taxing units decide what services they will provide in the coming year and how much money they will need to provide those services. Once this decision is made, a tax levy is adopted. The tax levy is then divided by the total assessed value to create a tax rate. Your property taxes are then determined by dividing the tax rate by 1000 and multiplying by your assessment value. Taxes = (Tax Rate / 1000) x Assessed Value.
What are "Taxing Units"?
The following taxing bodies determine the total tax levy for property located in the City of Milton: Milton School District, Rock County, Blackhawk Technical College, the State of Wisconsin, and the City of Milton.
What is the "Tax Levy"?
The tax levy (as determined by the taxing bodies) divided by the tax base. It is often expressed in terms of dollars per thousand. The tax rate is multiplied by the assessed value to determine the amount of tax that each property must pay.
What is the "Open Book Conferences"?
The open book conference provides an opportunity to ask questions and receive information about the value of your property. The assessor will make available for your inspection sample assessment rolls, property records cards, and sales data used in the valuation process. In addition, appraisers will be available to review property records cards, explain assessment policies and procedures, and accept any new evidence or documents that the property owner feels should have been considered in the valuation process. While open book conferences may be scheduled by appointment on a first come, first serve basis. Please call Accurate Appraisal at 1-800-770-3927 Monday thru Friday from 8 am to 4:30 pm to schedule an appointment.
What if I do not agree with my assessment?
The first step is to contact the assessor to understand how your property was valued. If you have discussed the matter with an assessor and you are still not satisfied, there is an appeal process called the Board of Review. In order to appear before the Board of Review, you must file a notice of your intent to file an objection.
What is the Board of Review?
The Board of Review hears cases relating to the assessment of properties. Once the assessor has valued the property, the values must be accepted as correct unless the testimony of sworn witness and the evidence they present indicate otherwise. Remember the best evidence of value is comparable property. If there are no sales of your or a comparable property, you should present evidence that indicates the value of your property. This may include cost, income, recent appraisals, amount of increase, and sales of adjacent properties. The Board of Review is by appointment only. You must file a written or oral notice of your intent to file an objection at least 48 hours prior to the Board of Review meeting. In addition a written and signed form of objection to a property assessment must be filled out completely and filed with the City Clerk within the first two hours of the Board of Review meeting.
How do I file an objection?
It is recommended that you complete and sign an objection form at least 48 hours before the Board of Review meeting to schedule a hearing. If you complete and submit your objection form during the first two hours of the Board of Review meeting, your hearing might not occur on the same day since there is a 48 hours notice requirement. The Board has the option of waving the 48 hour notice requirement. The form must be completely filled in and signed. It is important that you remember that the Board of Review is hearing sworn oral testimonly regarding the objection to the assessed value of the property. State Statutes also require anyone planning to protect an assessment must provide to the Board of Review, in writing, their estimate of the value of land of all improvements that are the subject of the objection and specify the information used to arrive at that estimate. You must object to the total value of the property. You cannot object to only the land value or the improvement value. An objection form can be picked up at City Hall, by calling 868-6900 #5 or at the Department of Revenue website www.dor.state.wi.us.
When will the Board of Review meet?
The Board of Review has not yet been scheduled for 2009. The meeting must last at least two hours and the final time of adjournment will depend on the number and length of hearings conducted. It is important to remember that the Board of Review will meet to hear sworn oral testimony regarding the objection to the assessed value of property. The meeting is by appointment only and a formal objection to property assessment form must be completed prior to the hearing.
Do I have to let the assessor enter my residence? What happens if I don't? What can I expect?
When an interior inspection is not allowed, the assessor will attempt to update records by looking at the property from the outside and using any other available information. To ensure an accurate assessment, it is to your advantage to allow the assessor inside your property when an inspection is requested. By denying an inspection, you may lose the right to appeal your assessment to the Board of Review. Appraisers will begin fieldwork in the City in May 2009. If they are not able to assess your residence on the first attempt, they will contact you to schedule an appointment for an assessment. If you have any concerns about allowing an Assessor to enter your residence, you may contact Accurate Appraisal at 1-800-770-3927 or City Hall in person, or by phone at 868-6900 #5.
How can I identify the Assessor?
All assessors will be equipped with an Accurate Appraisal ID badge, wear logo shirts, and drive marked vehicles. Anyone wishing to question an ID or generally concerned about letting the assessor into their property can contact the Accurate Appraisal office at 1-800-770-3927, the Milton Police Department at 868-6910, or City Hall at 868-6900 #5.