Friday, April 18, 2014 - 4:02pm
Notices of changes in property assessments for 2014 are being mailed to property owners today. These assessments represent the value of property on January 1, 2014 and are a reflection of changes occurring during 2013. On average, property owners will see a 3.5% increase in their property values – 3.2% for the average residential property and 4% for commercial property.
This is a sign of economic recovery, both in terms of market appreciation and new construction. Properties appreciated in value $345M during 2013 compared to a $31M drop during 2012. This is a significant turnaround from recent years. During the Great Recession years of 2008-2009 alone, City property values depreciated over $1.1B. Not until 2013 has there been positive movement in market appreciation overall.
New construction totaled $391M in 2013, 75% higher than in 2012. This is good news for homeowners and business owners alike. The added growth to the tax base spreads the tax burden across more properties, reducing the pressure to increase tax rates.
A shifting of the tax burden from residential to commercial property continues this year. Since 2007, the share of taxes paid by commercial property owners has increased from 31% to just over 35%. This year, if the mill rate remained unchanged, the average single family homeowner would see a 3% increase in taxes, while the average commercial property owner would see a 4% increase.
Effective and responsible budgeting by the City of Madison, and all taxing authorities, will help property owners enjoy higher values in their homes and businesses without undue increases in property taxes.
- Mark Hanson City Assessor, 608-266-4545
- Katie Crawley Mayor's Office, 608-266-4611