Tax bill carries a double whammy for some

Dec. 26—SUPERIOR — A citywide revaluation of property in Superior, coupled with a school levy increase, left some taxpayers feeling less festive this holiday season.

On average, city property values increased 60%; residential properties increased by 70%.

Taxes on some properties increased sharply while others that had been assessed closer to their market value before the citywide revaluation decreased. The larger the percentage increase in assessed value, the more taxes increased.

“The impact to the tax bill was unique to each property,” Superior Mayor Jim Paine said.

The purpose of reassessing property values is to reflect the price a property would likely sell for in the real estate market and distribute the tax burden fairly and equitably among the taxable properties in the municipality.

According to the Wisconsin Department of Revenue, revaluations are required when assessments are no longer within 10% of the full value once every five years. Between 2005 and 2020, the average assessment ratio in Superior hovered between 90% and 100%, but dropped to 82% in 2021 and continued to fall to 63% before the revaluation this year.

Not only were city residents facing new assessments based on fair market value, but they also were facing a new reality when it comes to taxation.

While the city tax levy decreased by about $22,000 and Douglas County’s levy increased by only about $72,000, taxes to support the Superior School District jumped by $3.6 million.

Paine said it’s fairly normal to see property tax increases in the tens of thousands, but not in the millions.

Voters allowed the school district to increase its tax levy for operational purposes by $2.5 million. Other district taxes, which are determined by state formulas, increased as well. At the same time, the state cut about $2.7 million in equalization aid and pushed that funding burden over onto the local property taxpayers.

“Superior School District saw a decrease in funding … because the district membership (enrollment) dropped by almost 6% in the 2024-25 school year, and has been on a downward trend with the exception of the 2022-2023 school year,” state Sen. Romaine Quinn, R-Cameron, wrote in a letter to district officials about the equalization aid. He noted that Superior receives a higher percentage of aid than school districts in Maple, Webster, Northwood, Solon Springs, South Shore, Drummond and Hayward.

Equalization aid is tied to both enrollment numbers and property values,

according to the Wisconsin Department of Public Instruction

.

The effect of the

operational referendum

approved by voters in November can be seen on the bottom of the tax bill, above the payment stubs. That area contains information on voter-approved temporary tax increases. The one that ends in 2029 is the operational referendum that passed in November. The one that ends in 2037 is for Superior High School and Cooper Elementary building projects approved by voters in 2016.

If the operational referendum amount is higher than the $4 per $100,000 of property value the school district had advertised, David See, the district’s director of business services, said it’s because the city reassessment increased that property’s value more compared to the rest of the property in the district. Conversely, he said, there are properties that are paying significantly less than $4 per $100,000.

The rising cost of housing in Superior l

ed to the citywide revaluation

.

“State law requires our assessments to remain close to fair market value. If they stray too far for too long, we must do a citywide revaluation,” Paine said. He said as long as there are no more massive market fluctuations, the city should be fine for some time.

“I would also point out that if housing values suddenly fell … we would do this again but with the opposite effect,” Paine said.

The city assessor’s office and Associated Appraisal Consultants conducted the 2024 revalue assessment, which determines what portion of the city, county and school budgets people pay to the county treasurer for their collection of taxes in 2025, according to City Assessor Terry Johnson.

Assessments completed in 2024 were based on sales that occurred in 2023 and prior.

“We are required to be assessed at 90 to 110% for compliance by the Department of Revenue. As it is not an exact calculation, anything within that range is acceptable,” Johnson said.

The Douglas County treasurer takes the budgets as calculated from the city, county and school districts and divides the taxes up based on each taxpaying unit in that jurisdiction, Johnson said. The county gets divided up by all the towns and villages. Each school district is divided up between the villages, towns and cities that are within its boundaries. The technical college is handled the same way, but spread over a larger area.

Open Book notices were mailed in August for the city’s Board of Review, which was held in October. Johnson said roughly 300 — less than 3% of all taxable property owners — contacted the city assessor’s office or Associated Appraisal Consultants for a review.

“With the 2024 tax base set at the Board of Review Oct. 2 for the city, there can be no changes to anyone’s assessment this year,” Johnson said. “The public can certainly watch for the public notice next year when we have the Board of Review sometime in May or June 2025.”

The city does not mail out notices in a typical year unless additional changes have been made to a property’s assessment or classification.

“If anyone would like to discuss their value, they can call us later in April or May 2025,” Johnson said.

Property records can be reviewed online at

www.superiorwi.gov/65/Assessor

. Property record information is found lower on that page with the link to

assessordata.org

. Enter the address or parcel number to see a property record.

Superior City Councilor Jenny Van Sickle, who represents the 2nd District, said she has been sitting down with concerned constituents to go over their tax bills line by line. She encouraged everyone to look at the details and ask questions.

“I do encourage everyone to reach out to their elected officials,” Van Sickle said.

City residents can email questions and documents to

Taxbill@superiorwi.gov

, which goes directly to the mayor and city assessor.

“At this time, people should make sure they have a lottery credit on your tax bill if they are owner-occupied,” Johnson said. “The other thing you can do is apply with your Wisconsin income taxes for the lottery credit. This is income based and they do look at what you are paying for property taxes.”

Tax bills — or at least the first installment — are due Jan. 31; second installments are due by July 31. When reached by phone for comment, Douglas County Treasurer Amy Tyson declined to outline tax payment options. She said they follow state statute.

According to the county’s website, taxpayers who don’t pay the full first installment by Jan. 31 will accrue 1% interest monthly on the unpaid balance. Paine encouraged residents to call the treasurer’s office at 715-395-1348 to find out what options are available.

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