ASSESSED VALUE: An estimate of value assigned to taxable property by the assessor for purposes of property taxation. State law requires all assessments to be within 10% of market value. Assessed values most closely reflect market value following a revaluation. In non-revaluation years, assessments typically reflect a fraction of market value due to the changing real estate market.
ASSESSED VALUE TAX RATE: See tax rate.
ASSESSMENT RATIO: The relationship between the assessed value and equalized value of all taxable property within a municipality. For example, if the assessed value of all the taxable property in the City is $19,720,000,000 and the equalized value is $20,000,000,000 the assessment level would be 98.6%.
|
Assessment Ratio =
|
Assessed Value
|
|
Equalized Value
|
COMMERCIAL CLASS: The commercial class consists of properties where the predominant use is the selling of merchandise or a service. Apartment buildings of four or more units and office buildings are included in this class. This class also includes vacant land where the most likely use would be for commercial purposes. Commercial property represents about 31.5% of the total assessed value of the city. Within the commercial class of property there are three sub-classes:
LOCAL COMMERCIAL - this property consists of smaller commercial property throughout the city where values are strongly determined by the property location. Examples include store front properties and taverns. Local commercial property represents about 6% of the total assessed value of the city.
SPECIAL COMMERCIAL - this property consists of special property types whose function dictates the use of similar appraisal techniques. Examples include hotels, motels, funeral homes, fast food franchises, downtown office buildings, shopping centers, service stations, and so on. Special commercial property represents about 15% of the total assessed value of the city.
APARTMENTS - this includes all apartment buildings with four or more units. Apartments comprise about 10% of the total assessed value of the city.
CONDOMINIUMS: See residential class of property.
EQUALIZED VALUE: The full market value of all taxable property in a municipality, both real and personal. The equalized value is determined by the Department of Revenue each year.
EQUALIZED VALUE TAX RATE: See tax rate.
EXEMPTIONS: Exemptions are properties that are exempt from local taxation by state law.
FULL VALUE: For all practical purposes, the same as equalized value. It represents the current market value of all taxable property within the boundaries of municipality or a district, such as a school district or tax incremental district.
LOCAL COMMERCIAL PROPERTY: See commercial class.
MARKET VALUE: The amount a typical, well-informed purchaser would be willing to pay for a property. For a sale to represent market value, the seller must be willing (but not under pressure) to sell and the buyer 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.
MANUFACTURING CLASS: Manufacturing property consists of all property used for manufacturing, assembling, processing, fabricating, making or milling tangible personal property for profit. It also includes establishments engaged in assembling component parts of manufactured products. All manufacturing property is assessed by the Wisconsin Department of Revenue. Manufacturing real property represents 2.5% of the total assessed value of the city.
MEAN VALUE: The average value. It is determined by dividing the total value by the number of properties.
MEDIAN VALUE: The value of the property located at the midpoint of all property values when arranged in order according to size. It is a positional average and is not affected by extreme values.
PERSONAL PROPERTY CLASS: Personal property as described in S. 70.04, Stats., includes all goods, wares, merchandise, chattels, and effects of any nature or description, having any real or marketable value, and not included in the term "real property." The subclasses of personal property include: boats and watercraft; machinery, tools, and patterns; furniture, fixtures, and equipment; all other personal property.
LOCALLY ASSESSED PERSONAL PROPERTY
MANUFACTURING PERSONAL PROPERTY is assessed by the Wisconsin Department of Revenue. It represents about 0.6% of the total assessed value of the city.
basically includes all personal property used by business. It does not include inventories. Locally assessed (non-manufacturing) personal property represents about 2.6% of the total assessed value of the city.
RESIDENTIAL CLASS: The residential class of property includes all property where the predominant use is for living purposes. It also includes vacant land where the most likely use would be residential development. Apartment buildings of four or more units, hotels, motels, and resorts are classified as commercial property. The residential class represents roughly 65.5% of the total assessed value of the city. Within the residential class of property, there are two sub-classes:
- single family, two-family, and three family dwellings. This property represents about 59% of the total city value. - these residential units comprise about 6.5% of the total city value.
REVALUATION: Estimating the current market value of all taxable property for purposes of a new assessment. A revaluation is performed to assure each property is assessed at market value and pays only its fair share of taxes.
SPECIAL COMMERCIAL PROPERTY: See commercial class.
UNIFORMITY: The State Constitution demands that all property within the municipality is taxed at the same tax rate. State law demands that the valuation be based on market value.
TAX BASE: The total assessed value of all assessments in the municipality that are subject to local property taxes.
TAXING BODIES: The following taxing bodies determine the total tax levy for property located in the City of Milwaukee. Milwaukee Public Schools, City of Milwaukee, Milwaukee County, Waukesha County, Washington County, MMSD, MATC, State of Wisconsin (for reforestation).
TAX LEVY: The total amount of property tax money that a taxing unit (such as the schools, city, county, etc.) needs to raise to provide services.
TAX RATE: 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. Because Milwaukee extends into Washington and Waukesha Counties, those parcels that are not in Milwaukee County often have tax rates that are slightly different than properties in the City of Milwaukee, Milwaukee County. This is because properties in Waukesha County pay the County tax levied by Waukesha County, properties in Washington County pay the tax levied by Washington County, and so on.
|
Tax Rate =
|
Total Tax Levy
|
|
Tax Base
|
ASSESSED VALUE TAX RATE: is the tax levy divided by the assessed value (base) and is utilized for comparing tax bills within a community and for comparing particular property's tax bills over time.
EQUALIZED VALUE TAX RATE: is the tax levy divided by the equalized value (base) and is used for comparing tax rates between different communities and for determining the tax rates applied to overlapping jurisdictions such as Milwaukee County.
Assessed value rates and equalized value rates may differ slightly depending on whether the tax incremental values are included in the tax base or excluded.
TAX INCREMENTAL DISTRICT (TID): A contiguous geographic area within a city defined and created by resolution of the local legislative body. Procedures described in s. 66.46, Stats., must be followed in creating a tax incremental district. The procedures include holding public hearings, adopting a project plan, getting approval, and fathering any information necessary to establish the TID.
TAX INCREMENTAL FINANCING: A method of splitting the cost of public works in certain areas (tax increment districts) with the other taxing bodies that will benefit from an increase in the tax base. Basically, it works as follows: Any increase in value in the TID above the base value (the value at the time the TID is formed) is not included in determining the tax rate; however, the tax rate is applied to all taxable property in the TID. The additional revenue generated (the tax increment) is used by the municipality to help pay for the public works that stimulated the increase in the value in the TID. This process continues until either the public works are paid for, the legislative body terminates the TID, or 23 years has elapsed.
CLASSIFICATION: Property is both classified and assessed in different manners. Property is classified as either real property or personal property. Real property is comprised of residential, commercial, and manufacturing property. Residential and Commercial property is assessed by the local assessor. The State assesses manufacturing property.