Most homeowners would probably assume that if the value of their home goes down in the current recession, it stands to reason that their property tax bill should go down by about the same percentage.
This is certainly not the case if you live in Milwaukee County.
Milwaukee County is doing what many other counties across the country are doing – it is raising property tax rates to make up for the declining assessment base of homes during the down real estate market.
Most property owners pay little attention to this practice of raising rates. But it is a growing problem nationwide.
It’s also a problem in Milwaukee County as well as the six other surrounding counties.
For the first time in 18 years, property tax levies in these seven counties are rising even as property values continue to decline.
Property tax levies in this region went up 3.9% during 2010, even though property tax values dropped for the first time since 1992.
There are two disturbing trends here. Not only are Milwaukee County property tax rates increasing, but property tax values in the County are not falling the way they should. It makes no sense that 2010 was the first year in which values fell since 1992. There has been a major decline in home values since mid-2006. So not only are property rates going up in the area, but property values are not falling anywhere near as fast as they should.
Milwaukee County is experiencing a demand for social services during the current recession that it just can’t meet if declining home values cause overall revenues to decline. That’s why they have found it necessary to move forward with property tax rate increases that ensure that you won’t see a lower tax bill even though the value of your home is falling.
The only thing that you can do in a county like this that refuses to lower your tax bill during a recession is to appeal your Milwaukee County assessment. If you are successful, you may end up paying a lower property tax bill while other overassessed residents continue to experience unjustified increases!
