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Tax — property tax – valuation — income approach

By: WISCONSIN LAW JOURNAL STAFF//February 19, 2013//

Tax — property tax – valuation — income approach

By: WISCONSIN LAW JOURNAL STAFF//February 19, 2013//

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Wisconsin Court of Appeals

Civil

Tax — property tax – valuation — income approach

Zaug Enterprises, Limited Partnership, appeals a judgment dismissing its excessive assessment claim against the Village of Sister Bay. Zaug argues that the Village’s assessor failed to apply the principles set forth in the Wisconsin Property Assessment Manual, and, as a result, the assessment was not entitled to a presumption of correctness. Zaug also contends that, because its appraiser complied with the property assessment manual, the circuit court should have accepted Zaug’s valuation and entered judgment refunding a portion of Zaug’s 2010 real estate taxes.

We agree with Zaug that the Village’s assessor failed to comply with the property assessment manual because he valued Zaug’s property without considering the income approach to valuation. Consequently, the assessment was not entitled to a presumption of correctness. However, we reject Zaug’s argument that the circuit court should have accepted the valuation suggested by Zaug’s appraiser. The court determined Zaug’s valuation was not credible, and we defer to the court’s credibility determinations.

We therefore affirm that portion of the judgment declining to accept the valuation set forth by Zaug’s appraiser, but we reverse the judgment to the extent it accepted the Village’s valuation and dismissed Zaug’s claim. Because the record does not permit the amount of unlawful taxes, if any, to be determined with “reasonable certainty[,]” see Wis. Stat. § 74.39(3), we remand with directions that the circuit court “continue the action to permit reassessment of the property[,]” see Wis. Stat. § 74.39(1). Not recommended for publication in the official reports.

2012AP1656 Zaug Enterprises v. Village of Sister Bay, WI

Dist III, Door County, Ehlers, J., Cane, J.

Attorneys: For Appellant: Bruce, John M., New Berlin; For Respondent: Carlson, Richard J., Appleton; Madison, Bree A., Appleton

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