Frequently Asked Questions (property taxes)

Your entire real estate tax bill, or AT LEAST your first installment, is due by January 31. If you choose to pay installments, make note that the amount due for your installments may vary. Not paying AT LEAST the installment amount by the due date and to the correct place will cause you to incur additional charges.

If you do not receive your tax bill by December 21, please contact the treasurer of your local municipality and verify that your mailing address on file is correct. Per state statute 74.09(6), failure to receive a property tax bill does not relieve taxpayers of their obligation to pay their taxes in a timely manner, nor does it negate interest and penalty charges that may accrue.

Payments made on or before January 31 must be paid to your Municipal Treasurer unless noted otherwise on your tax bill.

Payments made after January 31 must be paid to your County Treasurer unless noted otherwise on your tax bill.

Under Wisconsin state law, failure to pay AT LEAST the installment amount by the due date results in two consequences:

1. The entire balance comes due immediately, eliminating the option to pay in installments.
2. The unpaid principal will accrue 1% monthly interest and up to 0.5% penalty per month until the delinquent amount is paid in full. This interest and penalty is retroactive to February 1 after the first installment date.*

*Please note, the penalty rate may vary depending upon location.

The assessed tax rate (a.k.a. mill rate) is per $1,000 of assessed value…

 

(total assessed value / 1000) x Assessed Tax Rate = Total Taxes

Total Taxes – Lottery Credit – First Dollar Credit = Net Property Taxes

Net Property Taxes + All Special Assessments and Special Charges = Tax Bill

((Total Taxes – First Dollar Credit) / 2) – Lottery Credit = 2^nd Installment (drop pennies)

Total Tax Bill – 2^nd Installment = 1^st Installment

 

NOTE: The 1^st installment includes the following:

• Entire lottery credit
• ½ first dollar credit
• All special assessment and special charges

 

~ OR ~

 

½ Total Tax + All Charges – Lottery Credit – ½ First Dollar Credit = 1^st Installment

 

NOTE: Winnebago County creates the 2^nd installment as an even dollar amount. You need to subtract that amount from whole tax bill and add the cent amount or change to 1^st installment.

 

By Wisconsin Statute 74.12(11)(a), property tax payments are applied as follows:

1. Personal Property Taxes
2. Delinquent Utility Charges
3. Special Charges
4. Special Assessments
5. Special Taxes
6. Real Property Taxes

There could be several reasons for this.  Below are a few possibilities:

• Do you have special assessments or special charges on your bill?  They would be listed under the net property tax amount. 
• Did the assessed value of your property increase?  If you do work to your home, your property value may increase.  For example, if you build a sunroom, the value of your home increases with the addition to the property.
• Did voters in your community or school district pass a referendum to increase taxes for public services?

All municipalities are under levy limit restrictions. The amount of the levy from the previous year can only be increased by the Net New Construction (NNC) percentage, as calculated by the State of Wisconsin Department of Revenue (DOR). There are a few exceptions to this rule, please talk to the Finance Director at the county about these.

Per State Statute 74.69(1), property tax payments are considered timely:

• If postmarked on or before the respective due date…
  • They are in a properly addressed envelope.
  • They are postmarked on or before the respective due dates with postage is prepaid.
  • They are received by the proper official not more than five business days after the prescribed date for making the payment.
• If postmarked after the respective due date…
  • They are received by the proper official not more than five business days after the prescribed date for making the payment.

We urge taxpayers to mail payments several days early to avoid postal delay. You may consider going to the Post Office and having them hand-cancel your envelope to assure a timely postmark.

No. Wisconsin state statutes 74.11 & 74.12 set interest and penalties on delinquent tax amounts and they must be applied equally to all taxpayers. Treasurers do not have the discretion to waive interest or penalty for hardship or because you have never been late before.

 

There are only two limited exceptions laid out in state law:

• Severe Postal Error (very specific situations)
• Active Military Deployment of 90+ days over the period

 

Contact your County Treasurer if you think either of these exceptions could apply in your situation.

We encourage everyone to try and pay AT LEAST the amount of their installment to avoid interest and penalty.  It is in your best interest to pay as much as you can by the due date.  Making monthly payments until your entire balance is paid in full will help reduce the amount of interest and penalty that accrues and will reduce the risk of losing your property.

 

Example:

• A tax bill was mailed December of 2017. The tax bill before any credits or specials assessments was $3,200.
• The taxpayer received a $100 Lottery Credit, a $50 First Dollar credit and had a $200 special added for garbage and recycling.
• The 1st installment of $1,675 was due January 31, and a final installment of $1,575 was due July 31.
• The taxpayer was only able to pay $500 by the deadline. The $500 would be applied first to the $200 special and then the remaining $300 to the tax portion.
• In February, the homeowners entire remaining balance of $2,750 is now delinquent and is accruing interest and potentially penalty every month that it remains unpaid.
• To save yourself money, DO NOT wait until July to make your next payment. Pay as soon as possible or make frequent smaller payments.

To receive the Lottery Credit, you must…

• OWN your home in Wisconsin, and
• Your home in Wisconsin must have been occupied as a PRIMARY residence on January 1

 

NOTE: A primary residence is the home in which a property owner lives for more than six months of the year. If temporarily away, a primary residence is the home to which the owner returns.  Some states term their version of this program a “homestead credit,” of which you can only receive one.

You can apply through the Wisconsin Department of Revenue website: https://ww2.revenue.wi.gov/VaultPublic/lc/interview.html

Note:

• Lottery Credits stay with the property until removed by the owner or the State Department of Revenue.
• Wisconsin provides each county with completed applications on a monthly basis.
• For a late Lottery Credit (after the 1st installment due date), you will need to upload a copy or photo of your most recent tax bill BEFORE October 1.
• A late lottery credit claim will automatically add the credit to future tax bills.
• After applying, verify by checking your next December tax bill.

With several factors that go into the calculation of property taxes, below are some pro-active initiatives you can take to be involved in that process:

• Talk with your local assessor during the municipal Open Book/Board of Review period – often scheduled in late spring or early summer
• Get involved in the budget process with the your municipality (city/village/town), school, county, tech college, etc. – often scheduled in mid to late fall
• Consider downsizing to a lower assessed property
• Review the DOR “Guide for Property Owners“
• If a large wooded area, consider enrolling in Managed Forest Law (MFL) program with the Department of Natural Resources.
• If large, open, fertile ground, consider farming – but know there could be a Conversion Charge upon ceasing agricultural operations.

The State of Wisconsin requires Property taxes to be charged equally to adhere to the uniformity clause of our constitution. However, low income owners can apply for assistance by filing for the Homestead Credit with their State of Wisconsin income taxes.

More information can be found at: https://www.revenue.wi.gov/Pages/FAQS/ise-home.aspx

Disabled Veterans may be able to receive money to offset their property taxes through the Wisconsin Veterans & Surviving Spouses Property Tax Credit. More information on that program can be found by contacting their County Veterans Service Office (CVSO) or online at https://dva.wi.gov/Pages/benefitsClaims/Financial-Tax-Benefits.aspx.

This is the value used to calculate your annual real estate property tax bill in December.

The assessment ratio is calculated by the DOR. The purpose for this ratio is to have the ability to compare all communities throughout the state. For example, municipalities can have revaluations at different times. In theory, the more recent the revaluated communities should be very close to 100% of market value.  This ratio equates each municipality for comparisons.

No. The FMV is not what your property will sell for.  An appraisal should be done to determine that value.  The FMV on your tax bill is the equated value for comparing to other communities.  This is a computer-generated value based on various Department of Revenue factors.  This is not based on individual appraisals for each property.

Unless the assessor’s office made an error, the amount cannot be changed after Board of Review closes for the year. Any disputes in value required the property owner to attend Open Book to discuss the value with the assessor. To further reconcile unresolved assessment differences after Open Book, the property owner would need to have filed an appeal and gone before the Board of Review.

Over time a disparity occurs between properties within areas of a community.  The revaluation equalizes the property values throughout the municipality.  The assessor accomplishes this by reviewing the area properties.

Your tax bill may contain a special assessment for some type of public work (e.g., sewer, water, street, alley, sidewalk). These special purpose costs are based on the cost of the improvement or the repair and billed only to the properties benefiting from the work. If you have a question about a special assessment, please contact your local clerk or treasurer.

When the treasurer receives a tax payment, it is applied in the order specified by state statute (please see related question under Property Tax Basics).  If your tax bill is not paid timely, then you would become delinquent on your property tax bill.

Ultimately, it is your property.  So, it is your responsibility to make sure your taxes are paid. Plus, because mortgage companies make mistakes, it is important for you to get your tax bill and any other tax or assessment notices so that you can verify they are paying the taxes and charging you the correct amount in your escrow account.

You send the mortgage company check to your local treasurer to apply the money toward your property tax bill.

The tax escrow check is specifically to pay your property taxes.  The local treasurer will not refund a portion of this check unless the full tax bill is paid.

When you pay your property taxes with this escrow check, the local treasurer will issue a refund for the difference.  Depending on the community’s process, the refund may take several weeks for the check to clear all banks and a refund to be issued.

Your local treasurer will apply this check to your property tax account, which will result in a refund to be issued. The local treasurer will wait to issue a refund until your personal check has cleared the bank. Therefore, it may take several weeks before you receive your refund.