Double Whammy: How the New Tax Bill Hits Some Taxpayers Hard

SUPERIOR — This holiday season, the spirit of celebration has taken a hit for many residents of Superior, thanks to a citywide property revaluation combined with a school levy hike.

Brace yourselves: property values soared by an average of 60%, with residential properties skyrocketing by 70%.

For some homeowners, the tax bills are hitting harder than expected. While properties that were already assessed close to market value saw tax decreases, others faced steep increases. The reality is, the higher your property’s assessed value, the heftier your tax bill becomes. “Every property feels this in its own unique way,” said Superior Mayor Jim Paine.

The aim of this reassessment? To accurately mirror the prices properties could fetch in the current real estate market and to ensure that the tax responsibilities are shared fairly among residents.

According to state regulations, revaluations are mandated when property assessments fall outside of 10% of their true market value—happening every five years. From 2005 to 2020, Superior maintained an impressive assessment ratio between 90% and 100%. However, things changed drastically, plummeting to 82% in 2021, and nosediving to 63% before this year’s revaluation.

But it doesn’t stop there. Not only are residents grappling with new assessments reflecting fair market values, they’re also confronting a painful tax reality. While the city tax levy saw a slight decrease of about $22,000 and Douglas County’s levy inched up by $72,000, the Superior School District’s tax levy jumped a staggering $3.6 million.

Mayor Paine acknowledged, “It’s common to see property tax increases in the tens of thousands, but million-dollar hikes? That’s unusual.” Thanks to voters, the school district was allowed to ramp up its tax levy for operational needs by $2.5 million. Additional taxes, determined by state formulas, also rose. To make matters worse, the state slashed approximately $2.7 million in equalization aid, shifting that financial burden onto local homeowners.

“The Superior School District has experienced funding cuts due to a nearly 6% drop in enrollment for the 2024-25 school year, continuing a trend that has persisted, except for the 2022-2023 school year,” noted state Senator Romaine Quinn. He pointed out that Superior benefits from a higher percentage of aid compared to neighboring districts.

Equalization aid is intricately connected to enrollment numbers and property values, as indicated by the Wisconsin Department of Public Instruction.

The ramifications of the operational referendum—approved by voters in November—can be noticed right on the tax bill, just above the payment stubs. There, you’ll see details about voter-approved temporary tax increases, including one for operational purposes that ends in 2029 and another for school building projects that wraps up in 2037.

If the operational referendum amount exceeds the advertised $4 per $100,000 of property value, it’s likely due to the city’s reassessment pushing property values up faster than others in the district. Conversely, some properties are paying significantly less than that rate.

The surging housing market in Superior prompted this citywide revaluation.

“State law mandates our assessments to align closely with fair market value. When that alignment strays too far, a citywide revaluation is necessary,” Paine explained. He added that as long as there are no sudden market shifts, the city should be stable for some time. “If housing values were to plummet, we’d have to undergo a similar reassessment—but in reverse,” he cautioned.

The city assessor’s office, in collaboration with Associated Appraisal Consultants, conducted the 2024 revaluation, determining the share of the city, county, and school budgets that each property owner contributes to taxes in 2025, according to City Assessor Terry Johnson. The assessment conducted this year reflects property sales from 2023 and prior.

“We must maintain assessments within 90% to 110% for compliance with the Department of Revenue. Since it’s not an exact science, anything within that range is considered acceptable,” Johnson stated.

The Douglas County treasurer divides the budgets calculated by the city, county, and school districts among all taxpaying units within their jurisdiction. Each school district’s taxes are further split among the villages, towns, and cities contained within its boundaries, and technical colleges follow suit but with a broader geographic spread.

Open Book notices were mailed out in August for the Board of Review, which was held in October. Johnson reported that only about 300 property owners—less than 3%—reached out to the city assessor’s office or Associated Appraisal Consultants for a review.

“With the 2024 tax base finalized at the Board of Review on October 2, no changes can be made to anyone’s assessment this year,” Johnson clarified. “However, residents should look out for public notices next year when we hold the Board of Review sometime in May or June of 2025.”

The city typically does not send notice letters in a standard year unless there are changes made to a property’s assessment or classification.

“For anyone wanting to discuss their property value, feel free to reach out in April or May of 2025,” Johnson encouraged.

Residents can view property records online at www.superiorwi.gov/65/Assessor. The property record data can be found further down that page with a link to assessordata.org. Simply enter the address or parcel number to access a property record.

Superior City Councilor Jenny Van Sickle, representing the 2nd District, has been meeting with constituents to dissect their tax bills line by line. She urges everyone to scrutinize their bills and ask questions.

“I encourage residents to connect with their elected officials,” Van Sickle emphasized.

City residents can direct inquiries or documents to [email protected], which goes straight to the mayor and city assessor.

As tax season approaches, Johnson reminds residents to confirm that they have a lottery credit on their tax bill if they are owner-occupied. Additionally, they can apply for the lottery credit through their Wisconsin income taxes, which is based on income and property tax payments.

Tax bills—specifically the first installment—are due January 31, with second installments due by July 31. When contacted for comment, Douglas County Treasurer Amy Tyson refrained from discussing tax payment options, stating they adhere strictly to state laws.

According to the county’s website, taxpayers who fail to pay the full first installment by January 31 will incur a 1% interest charge monthly on the delinquent balance. Mayor Paine encourages residents to call the treasurer’s office at 715-395-1348 to explore available options.