Each year the Department of Revenue’s Equalization Bureau produces a report comparing the previous year’s equalized values to the current year’s. The report is used to assign the amount of taxes municipalities pay to the school district, technical college, special district and county for providing services. This year’s report suggests that Wisconsin’s real estate market is heading into a more stable trajectory.
“Overall, the state saw a 1% decrease in equalized values from 2012, as compared with last year’s 3% decrease. The report indicates Wisconsin’s real estate market is stabilizing, with notable increases in manufacturing and commercial property values. The report shows that manufacturing property saw an overall 3% increase because of new manufacturing construction. Commercial property also increased, by 1%, due to new construction.”
“Each year, local municipal assessors file total property values for the following classifications: residential, commercial, agricultural, undeveloped, ag forest, forest and other property. (An example of other property is homes or buildings on a farm.) The department then calculates equalized values, which take into account what is happening in the real estate market and economy to “equal” out these total values, which is important if a municipality has not revalued property recently. The 2013 equalized values are based on property values as of January 1, 2013, and those property values are based on what was happening in the real estate market in 2012.”
The total equalized value of the state is at $467,502,564,000. Last year, properties were valued at $471,092,529,200, but the decrease in value is not concerning to DOR since it is less of a decrease than in recent years.