State lowers assessment for Maurices after appeal hearing

The Wisconsin Department of Revenue has reversed a decision by the city of Medford over assessment of a commercial property along Hwy 13, lowering the taxable value by $240,800.

At the August 12 board of review meeting, board members voted against an objection raised by Paul Fiorello of Property Tax Services of McFarland on behalf of De Pere-based Park Place Holdings, which owns the Maurice’s building on Hwy 13 in Medford.

The city’s assessor, Megan Bickford of Accurate Appraisal, had assessed the building and property at $710,000. The owners of the building had argued that it should be valued lower based on an appraisal from June 19, 2024 by Fiorello showing a value of $573,900.

State law puts the burden on property owners to prove that the assessor’s amount is incorrect. When property owners disagree with the decision made, they have the opportunity to appeal the results of the local board of review either through the court system, or through an appeal process with the Wisconsin Department of Revenue.

Fiorello filed an appeal with the DOR and a conference was held in Wausau on October 1 with DOR staff, the owners of the property, their representatives and the city’s assessor. No city officials were present at the conference.

The result of that hearing was announced on October 28 and included an order from the DOR that the property be revalued to $469,200. This breaks down to $110,400 for the land and $358,800 for improvements. The city has the ability to appeal this order to circuit court.

In the appeal decision, the DOR determined that the property used as a comparable for determining value was not valid because the Maurices building is a single-tenant property as opposed to the multi-tenant property that was offered as a comparable. In addition, the city’s assessment was not within 10% of the general level of assessment of the taxation district.

In the DOR’s worksheet citing credible evidence the department relied on to make its determination of fair market value, the agency cited statutes and case law as well as the Wisconsin Property Assessment Manual which requires assessors and appraisers to use a three-tiered process to determine property value. The first is a recent sale of the subject property, the second is recent comparable sales and the third tier is all other information including the cost and income approach to valuation.

The state found that without applicable tier 1 or 2 data, the state relied on tier 3. The DOR found “the appellant’s estimated market value utilized reasonable market data and was completed using methods that conform to the requirements that are outlined in the Wisconsin Property Assessment Manual.” This is based on the lease with potential gross income of $52,552, estimated vacancy and loss of $3,000, estimated expenses of $5,370 and capitalization rate of 7.6%.

The DOR report further stated: “The assessor did not provide any information to defend or support the 2024 assessment value but is provided the presumption of correctness by law.”

“Per the Wisconsin Property Assessment Manual, Chapter One, each assessor will estimate the value of property as of January 1 of each year and record the information in the assessment roll.”

“Assessor is tasked with defending the value that was affixed to the assessment roll and signed via affidavit when turned into the Clerk prior to the Board of Review.”

The DOR report stated, “Considering the minimal documentation and support from the assessor for the 2024 assessment value, the DOR concludes the appellant’s income approach reasonable and overcomes the presumption of correctness provided to the assessor by law. Therefore, the 2024 assessed value is revalued.”

The result of the change in valuation is the city must refund the overpayment in property taxes paid in 2024 and it impacts the overall assessed value of the city going forward.

When reached for comment, Mayor Mike Wellner issued the following statement, “We are disappointed in the ruling, as this property was recently for sale for about the same price as it was valued at a year ago. This now just shifts the tax burden to the residents of the City.”

Beyond taking the win in the appeal process, Fiorello told The Star News he would be filing a formal complaint against the city and its assessor over the handling of the matter.

He gave four reasons he is filing a complaint. The first is he said the assessor states that they cannot change a value in a maintenance year unless it falls under certain circumstances, which is completely false. He said this is not stated anywhere in the manual, or state statutes.

According to Fiorello, “The assessor misled the Board by stating that an appraisal can't be performed or relied on if it's created after the date of value. This is also false information.” He cited his report from January 2024 and said it is standard practice to have a past or future value on an appraisal. “In fact, all assessed values are placed on property after the date of value, so I don't understand why she would say that,” he stated.

The third issue he is raising in his complaint is, “The assessor offered no evidence as to how the property was assessed, and just based on the rules of the BOR, they should've ruled in my favor, since I was the only one that presented evidence. During the DOR hearing, it was discovered that the assessor didn't know how it was assessed because they'd just taken over Medford.”

In addition, Fiorello said, “The assessor participated in the deliberations, which is also against the BOR rules.”

He indicated he was in the process of filing the formal complaint with the state.

De Pere-based Park Place Holdings, which owns the Maurice’s building on Hwy 13 in Medford, will have their tax assessment lowered after making an appeal to the Department of Revenue.

BRIAN WILSON/THE STAR NEWS