Revaluation & Property Taxes: Do Higher Property Values Mean Higher Taxes?

A new report from Forward Analytics, Revaluation and Property Taxes: Do Higher Property Values Mean Higher Taxes? explores the possible impacts that a municipal revaluation will have on individual property taxes.

With an exceptionally strong housing market, municipal revaluations are becoming more frequent to keep assessed property values in line with market values. The number of revaluations has more than doubled between 2020 and 2023. With revaluation often comes taxpayer angst over what the higher assessed values will mean for their December tax bill.

Revaluations are necessary to ensure that property taxes are apportioned fairly and that they comply with the Wisconsin Constitution’s “uniformity clause.” That means that assessed values should be reasonably consistent with market values. But not all revaluations or increases in assessed values will lead to a property tax increase.

“What matters is the increase relative to other properties in the community. An above-average increase in assessed value, in percentage terms, will likely mean a higher property tax, though the tax increase will be much less than the value increase. Homeowners with relatively small increases in assessed value may see their property tax decline,” said Dale Knapp, Director of Forward Analytics.

Knapp continued, “This new report is meant to serve as a reference piece, or a primer, that will explain all the moving pieces of Wisconsin property taxes.” The report is intended for property owners, members of the media, and elected officials. It is designed to help ”demystify” Wisconsin’s complex property tax system. 

Find the entire report here: Revaluation and Property Taxes: Do Higher Property Values Mean Higher Taxes?

Report Highlights

• Periodic revaluations are necessary to ensure that property taxes are apportioned “fairly.”      
• A revaluation, even one that raises assessed values significantly, does not necessarily mean increased property taxes.                     
• While property owners with above average increases in value will likely see increased property taxes, the increase will be much less than the percent change in value. 
• When property tax levies rise following a revaluation, it is more difficult to discern the effects of revaluation from the impact of rising levies.           
• Property taxes are also impacted by property value changes in surrounding communities. Rapidly rising equalized values in a community means its taxpayers are apportioned a greater share of the school, county, and technical college tax levies.
• A property’s share of total property taxes in a municipality is the same as that property’s share of total assessed property values.