TEST TW WEATHER

November 20, 2009 State re-evaluates who assesses property

By Liam Marlaire Leader-Telegram staff 

One of the greatest single sources of revenue for municipalities may
soon be getting a significant makeover.

Locally assessed property values combined with an equalization process
not only yield direct tax revenues, but the state uses the information
to determine aid distribution. The Wisconsin Department of Revenue,
however, has launched an effort to transfer assessment
responsibilities to the county level.

"First, we must reduce ambiguity and increase the public trust by
working toward a legal and administrative framework that is modern,
efficient and adaptable to change," said Roger Ervin, state DOR
secretary, during a presentation Oct. 13 to the Wisconsin Towns
Association in Stevens Point. The text of the speech is on the DOR's
Web site.

"Second, we must guarantee the reliable collection of data, which is
possible only through a healthy and professional assessment industry.
And finally, we must ensure the highest level of quality and efficient
data management through the integration of technology and market
dynamics."

Wisconsin currently is one of the few states that doesn't employ a
county-based system. Assessments are gathered by 1,851 municipalities,
by far the most assessment districts within one state in the country.
A county-centered approach would cut that number to 72.

"Today, with the technology we have, we can really gain efficiency of
scale by consolidating our assessments," said Linda Barth of the DOR,
"and add fairness and accuracy."

Committees have explored the issue over the past few decades, Barth
said, and all have supported a county-based system. The current
proposal eventually would require legislation. The measure will be
discussed during a Wednesday, Dec. 2, town hall meeting in Eau Claire.
Concerns raised at earlier town hall meetings included a lack of
control at the local level.

"This is a starting point," Barth said. "We want to get feedback and
input from assessors, local and county government officials and the
taxpayers."

The DOR is developing a database that will list details of every
parcel in the state, allowing users to compare assessments statewide.
It's anticipated that geographic information systems and digital
images eventually will play a role. The latter will be used to augment
on-site inspections, which will take place on 20 percent of the
parcels in the state every year.

The system would basically equalize values at the individual property
level instead of the municipality level. It also would standardize the
assessment process.

"Assuming the proposal results in a best practices county assessment
system, there would be little effect on city assessments," said Allen
Andreo, city assessor for Eau Claire, who added that details are
lacking in the proposal. "The city already operates with a best
practices system, constrained only by funding limits and staffing
levels."

The proposal could, however, have a greater impact in less populated
areas. There are six- to 10-year gaps between re-evaluations in some
municipalities.

"County assessment administration could increase assessment equity in
rural areas," Andreo said. "County administration will also likely
increase costs for the rural areas, since the rural areas typically
place a low priority on funding the property assessment process."

Richard Stadelman, executive director of the Wisconsin Towns
Association, said Kenosha County had a county assessment until about
10 years ago.

"Our association has expressed concerns at this time about the DOR
proposal," he said. "The shifting of the assessment to the county
takes local control over hiring the assessing to the county. We
believe that from all prior experience and previous DOR studies, the
cost of assessing will increase.

"For property owners it means they will likely not have a local
assessor who they know or at least contact in their town, but will now
have to go to the county to seek answers and ask their questions, and
will have to attend a board of review at the county level rather than
in their own town, village or city."

Marlaire can be reached at 833-9215, 800-236-7077 or
[email protected].

If You Go

What: Town hall meeting led by the Wisconsin Department of Revenue
regarding a proposal to move property tax valuation and administration
to the county level.

When: 9 to 10:30 a.m. Wednesday, Dec. 2.

Where: Big Rivers Conference Center, lower level of Chippewa Valley
Technical College's Business Education Center, 620 W. Clairemont Ave.

Information: Visit www.revenue.wi.gov or contact Jean Adler at
608-266-9759 or [email protected].

Five-Year Plan

First three years
County assessment offices created.
Municipalities required to upgrade parcel details and assess at market
value within three years.

Fourth year
Municipalities no longer assess.
County offices first publish assessment rolls.
County Board of Assessors and Board of Review functioning.
Department of Revenue begins to adopt county values as full/equalized
values.

Fifth year
Assessment functions completed by counties except manufacturing.
DOR audits county processes to verify standards and uniformity.
Statewide county assessment: All counties at full/equalized value.