Why is the City of Milwaukee Assessor’s Office Already Requesting Income and Expense Information for 2025 Property Tax Assessments?

Many commercial property owners in the City of Milwaukee (the “City”) received a letter from the Assessor’s Office requesting they provide their property’s income and expense information to help set property tax assessments for the 2025 tax year. Moreover, the letter suggests that taxpayers must provide this information by the deadline indicated to preserve the taxpayers’ right to object to the 2025 property assessment. While most commercial property owners will not have any year-end financial statements to provide the City until weeks or months after December 31, 2024, the City nonetheless requested that taxpayers provide such information by a deadline they identify—at least in some instances—in November 2024. Finally, the letter warns that “failure to respond will affect your ability to object to your 2025 assessment, pursuant to Wis. Stat. s. 70.47(7)(af).” 

Before responding to such requests, taxpayers should understand the actual statutory requirements governing requests for income and expense information. Wis. Stat. § 70.47(7)(af) provides:

No person may appear before the board of review, testify to the board by telephone or object to a valuation; if that valuation was made by the assessor or the objector using the income method; unless no later than 7 days before the first meeting of the board of review the person supplies to the assessor all of the information about income and expenses, as specified in the manual under s. 73.03 (2a), that the assessor requests. The municipality or county shall provide by ordinance for the confidentiality of information about income and expenses that is provided to the assessor under this paragraph and shall provide exceptions for persons using the information in the discharge of duties imposed by law or of the duties of their office or by order of a court. The information that is provided under this paragraph is not subject to the right of inspection and copying under s. 19.35 (1) unless a court determines before the first meeting of the board of review that the information is inaccurate.

While the City is correct that failing to provide requested income and expense information may affect a taxpayer’s ability to object to an assessed value, given the language in the statute, it is questionable whether the City has the authority to demand such information sooner than the statute requires.

The statute cited by the City clearly allows the Assessor’s Office to request and require income and expense information, but only in limited circumstances, including when the “valuation was made by the assessor or the objector using the income method.” However, the statute only requires that the information be provided “no less than 7 days before the first meeting of the board of review.”

The first meeting of the board of review shall occur annually “during the 45-day period beginning on the 4th Monday of April . . . .” Wis. Stat. § 70.47(1). While some aspects of the City’s property tax objection process are treated differently under state law, nothing in the statutes suggests that the City may have the first meeting of its 2025 Board of Review prior to the 4th Monday in April. Requiring income and expense information for the 2025 tax year, with the threat of forfeiting the right to object for failure to respond, so far in advance of the first meeting of the board of review is a novel approach.

In addition to letters from the City Assessor’s Office related to income and expense information, taxpayers will shortly be receiving their property tax bills for the 2024 tax year. Taxpayers may not realize the impact of an increased assessment in the 2024 tax year until receiving their property tax bills in December. Unfortunately, unless taxpayers previously objected to their assessed values for their property and complied with the requirements found in Wis. Stat. § 70.47, attempting to appeal your assessment after receiving your tax bill is too late.

Commercial property owners should pay careful attention to any requests and correspondence from the Assessor’s Office. If you have received such a letter and have questions about your obligations and requirements, or are reviewing your property tax bill for the 2024 tax year and question whether you should consider objecting to your property tax assessment going forward, please contact Shawn Lovell, Sara Rapkin, Kristina Somers or Don Millis from Reinhart’s State and Local Tax Planning, Controversy and Litigation Practice to explore your specific situation.