Revaluation angles discussed by town assessor at Newbold meeting

Revaluation, looming next year for the town of Newbold, dominated the discussion in Jef Muelver’s monthly town assessor report at the Feb. 12 Newbold town board meeting.

Newbold has fallen out of compliance with the state’s value. To be in compliance, valuation has to be within 10 percent above or below. “Tentatively, we’re ratioed at 66 percent (of market value) for 2025,” Muelver told the board.

“That would likely move us to the lower 60 percent range for 2026, and then we’ll receive this fall our second notice of non-compliance … that we need to revalue for 2027, which is already in the docket, so we know we’re doing that anyway.”

Muelver said he wants to revalue “as close to 100 (percent) as I possibly can … By the time we work through the open book process there can oftentimes be changes in a town of our size up to $1 million in open book adjustments, so that will put us probably between 98 and 100 percent for 2027.” 

Town supervisor Mike McKenzie asked if it might be advantageous to go to 105 or 108 percent, given the current market.

“The one advantage is, that decreases the tax rate,” said Muelver. “However, when the public understands that they’re being assessed at more than market value, there is more uproar than there is when they’re assessed at market value … I think for the interest of public relations, my personal experience is the closer to 100, under 100, the numbers end up being, the better off we are.”

“Psychological reasons, not necessarily financial reasons. I guarantee you the phone’s going to be ringing regardless,” said McKenzie. “ ... However, reality is, the assessments are increasing faster than they have that I’ve ever known ... Towns that have done it have to do it again four years later, because the prices keep going through the roof, and you’re out of the 90 to 110 range again.”

“ ... Up until the pandemic we were relatively static,” agreed Muelver. “We were at single-digit appreciation in most areas in this part of the state, except for waterfront property. When there are low numbers annual of waterfront sales and there are higher numbers of off-water static real estate parcels, the assessment level doesn’t change as much each cycle, so that revaluation lasts years longer.

“But when we have movement that was spurred by the pandemic, we had almost three years of over 20 percent annual appreciation, according to the Department of Revenue, and that just pushed the entire state out of compliance,” he added. “So in a 36-month maximum cycle, 85 percent of the state of Wisconsin is being revalued.”

Muelver also mentioned something odd that he and other assessors are seeing — or rather, not seeing.

“Department of Revenue has changed our access to real estate sales information,” he said. “They’ve also changed their real estate transfer return form. This is an interesting timing for it because this is when all assessments staff throughout the state is actually looking at sales information. Now we can’t see it.

“I checked for January and February, and they are posting no sales whatsoever. Kind of questionable timing, considering most of the state is looking at revaluation either this year or next year.”

He said a seminar is coming up March 2 and 3 that the Department of Revenue will also attend, so he expects to find out more about the situation then.

Further coverage of the Newbold town meeting will continue in the Feb. 24 Northwoods River News.

Ardith Carlton may be reached at [email protected].