In a recent video presentation, Michelle Laube, the City Assessor for the city of Janesville, provided an update on the revaluation process for the city. The goal of the revaluation is to bring properties to 100% of their fair market value. This article will discuss the key points from the video and provide a detailed explanation of the revaluation process.
The Purpose of Revaluation
The main purpose of the revaluation is to proportionately distribute the tax burden based on the fair market values of the properties. The revaluation is based on the sales that occurred during 2022, and it is important to note that the market continues to change even after the revaluation has been completed.
Factors Affecting Property Prices
There are several factors driving the increase in sale prices in Janesville. Despite having a low unemployment rate, the city is experiencing a housing shortage, which has led to a seller’s market. The demand for housing outweighs the supply, resulting in higher prices. Additionally, the lack of available housing makes it difficult for Janesville to attract new businesses, as there is a limited number of properties for new employees to live in.
Housing Additions and Assessment Values
Although efforts have been made to increase housing in the city since 2019, there is still a long way to go. From 2019 to the end of 2022, a total of 1,028 housing units were added, primarily single-family homes and multi-family units. However, as of April 30th, 2023, only four new single-family properties have had permits taken out, highlighting the ongoing housing shortage in Janesville.
Assessed Property Values
The average assessed value of properties in the community for 2023 is $239.2, a significant increase from the value in 2011 of $122.6. The anticipated average increase in property taxes for the upcoming year is 44%. This figure determines whether property owners will pay more or less in property taxes compared to the previous year. As the revaluation process is revenue-neutral, it redistributes the tax burden based on property values.
Commercial Property Values
Commercial properties make up 6% of the parcels in Janesville but account for 26% of the total value. The downtown property segments, multi-family properties, and automotive service segments are experiencing increases in their property values. The average increase in the commercial class is 41%.
Impact on Property Owners
Change notices will be mailed out to property owners starting on May 30th. However, the total tax impacts will not be known until the budget and levy processes for all taxing jurisdictions are complete in November or December of 2023. To help property owners assess the impact of the revaluation, an estimated tax calculator will be available on the city’s website. Property owners are encouraged to review their assessment data and research recent sales in their neighborhood to determine if their assessment seems reasonable.
Revaluation Process Steps
The revaluation process consists of several steps, including open book and board review. Open book appointments will be available from June 1st to June 15th, allowing property owners to discuss their assessments with the assessor’s office. The board review, which is the next step in the appeals process, is tentatively scheduled for August 1st.
Tools and Resources
The assessor’s office provides tools and resources on their website to assist property owners in understanding the revaluation process. These include a list of arm’s-length sales used to determine property values, the estimated tax calculator, and links to the Department of Revenue and other relevant websites.
The reevaluation of property in Janesville is an important process that aims to bring properties to fair market value. Property owners are advised to review their assessments and educate themselves about the revaluation to avoid knee-jerk reactions. The City Assessor’s office is available to address any questions or concerns and will continue to provide resources to help property owners understand the impact of the revaluation on their taxes.