Wisconsin Tax Appeals: Must Owners Disclose Financial Data?
In a recent decision, the Wisconsin Court of Appeals addressed the obligations of property owners when contesting property tax assessments, specifically regarding the requirement to provide income and expense information to assessors. The case, Middleton Westbrook Property Owner LLC, et al. v. Village of Menomonee Falls Board of Review, clarifies the statutory duties of property owners related to their obligation to turnover financial information and the consequences of failing to comply.
Case Background
Middleton Westbrook Property Owner LLC and Enerpac Tool Group, Corp. (collectively, “Middleton”) own commercial property in the Village of Menomonee Falls. In March 2023, the Village notified Middleton that all properties were being revalued for the January 1, 2023, assessment year. The letter specifically requested that Middleton, as an owner of income-producing property, complete and return forms detailing the property’s income and expenses. The letter warned that failure to provide this information could result in the loss of the right to appeal the assessment.
Despite this notice, Middleton did not submit the requested financial data.
Later, Middleton objected to its assessment based on an appraisal report that used the income approach to valuation. However, this objection was submitted only three days before the Board of Review’s scheduled meeting, which was past the statutory deadline for submitting financial information. Although Middleton provided an appraisal report that relied on the income approach, Middleton did not turn over the required income and expense financial information to the assessor.
Legal Issue
The central legal issue was whether Middleton could object to the property assessment without having timely provided the requested income and expense information, as required by Wisconsin Statutes § 70.47(7)(af). This statute states that no person may appear before the Board of Review and object to a valuation by using the income method unless, at least seven days before the Board of Review’s meeting, the person supplies the assessor with all requested income and expense information.
Court’s Analysis
The Court of Appeals reviewed the record and found that the Village’s March 10 letter clearly put Middleton on notice that the income method would be used for valuation and that financial information was required. The court rejected Middleton’s argument that it was unaware of the need to provide this information. Furthermore, the court noted that Middleton’s own appraisal used the income method, triggering the statutory requirement for turning over the financial records, even if the assessor’s notice had not done so.
The court emphasized that the statutory language is plain and unambiguous: property owners must provide the requested financial information at least seven days before the Board of Review’s meeting if the income method is used to value the property by either the assessor or the property owner. Failure to do so bars the owner from objecting to the assessment.
Conclusion
The Wisconsin Court of Appeals reversed the circuit court’s order and affirmed the Board of Review’s decision to deny Middleton’s objection. The ruling makes clear that property owners who wish to challenge an assessment based on the income method must timely provide all requested income and expense information to the assessor. Failure to comply with this statutory requirement results in forfeiture of the right to appeal the assessment.
