Department of Revenue Assessment Reform Update La Crosse County January 19, 2011 Carol Roessler

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Department of RevenueAssessment Reform Update

La Crosse CountyJanuary 19, 2011

Carol RoesslerState & Local Finance Division Administrator

Jean AdlerState & Local Finance Deputy Division Administrator

Dan DavisBureau of Property Tax Director

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Agenda Property Assessment Reform Update 2012 Requirements for Assessors Integrated Property Assessment

System (IPAS) Update La Crosse County Questions

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Property Assessment Reform - Update Basis: Town Hall Meetings

Forums provided constructive feedback Concern over lack of local involvementAgree problems exist

Encourage full value assessments & consortiums

Work with partners: standards, transparency & enforcement

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2010 Wisconsin Property Assessment Manual (WPAM)

USPAP required for January 1, 2012 assessment Electronic parcel files by January 1, 2013 assessment

standardize records statewide

Consistent Quality Complete & accurate parcel attributes Transparent

State & Local Finance / Assessment Work Group DOR vehicle to work with partners First project: USPAP implementation

Property Assessment Reform - Update

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Assessor 2012Requirements

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What are the New Standards Prescribed by DOR?

As described in the 2010 WPAM the new standards are:

1. International Association of Assessor Officer’s (IAAO) Technical Standards—developed and updated over several decades.

2. The Appraisal Foundation’s Uniform Standards of Professional Appraisal Practice, known as USPAP—became effective in 1987.

NOTE: The Statutory language relating to professionally accepted appraisal practices became effective in 1991.

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What are the IAAO Standards?Considered technical standards - address methods & practices

1. They have been created by assessors for assessors.

2. Many have been incorporated into the WPAM.

3. The IAAO Standards tell you how to do things whereas USPAP tells you how things should be done.

4. The IAAO Standards are available on the IAAO website at http://www.iaao.org.

5. The IAAO Standards consist of 15 documents:

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The IAAO Standards consist of 15 documents:1. Guide to Assessment Administration Standards

2. Standard on Contracting for Assessment Services

3. Standard on Administration of Monitoring and Compliance Responsibilities

4. Standard on Assessment Appeal

5. Standard on Automated Valuation Models (AVMs)

6. Standard on Digital Cadastral Maps and Parcel Identifiers

7. Standard on Facilities, Computers, Equipment, and Supplies

8. Standard on Manual Cadastral Maps and Parcel Identifiers

9. Standard on Mass Appraisal of Real Property

10. Standard on Professional Development

11. Standard on Property Tax Policy

12. Standard on Public Relations

13. Standard on Ratio Studies

14. Standard on Valuation of Personal Property

15. Standard on Valuation of Properties Affected by Environmental Contamination

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What are the USPAP Standards? USPAP: Uniform Standards of Professional Appraisal Practice USPAP applies to the entire appraisal profession. The property assessment profession consists of 3 components:

1. property appraisal (individual, mass, and review appraisal)

2. assessment administration, and

3. property tax policy. USPAP: way to organize and explain your work. A major expectation of USPAP is disclosure. USPAP has 2 main pillars:

1. to promote and maintain a high level of public trust and,

2. to develop and communicate the analyses, opinions, and conclusions in a manner that is meaningful and not misleading.

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USPAP has the following Parts:

Definitions Preamble Ethics Rule Competency Rule Scope of Work Rule Jurisdictional Exception Rule Standards and Standards Rules Statements on Appraisal Standards Advisory Opinions Frequently Asked Questions

USPAP is available on the Appraisal Foundation website.

Not an official part of USPAP

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USPAP: 10 standards addressing activities of development & reporting.

STANDARDS 1 & 2: real property appraisal. STANDARD 3: appraisal review. STANDARDS 4 & 5: real property appraisal consulting STANDARD 6: mass appraisal. STANDARDS 7 & 8: personal property appraisal. STANDARDS 9 & 10: business or intangible asset

appraisal

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Integrated Property Assessment System (IPAS)

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Integrated Property Assessment SystemWhat is Being Completed Manufacturing

Modeling common property types Assessment Rolls on Internet

Equalization Currently completing commercial field review 2010: TID valuation 2011: e-filing of Municipal Assessment Report (MAR) 2011: Equalized Values Calculation

Local Government Services 2010: Treasurer’s Statement of Taxes (SOT) 2010: County, Municipal, Special & School District Apportionments 2011: Loading Statement of Assessments (SOA)

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Integrated Property Assessment System

Where it is going: Provide Assessment Data attributes Assessor’s only site initially Refinement of reporting accuracy & timeliness Upload relevant information to I-Care public site

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Integrated Property Assessment System

Where it is going: Assessment/Tax Rolls DOR collecting electronic rolls from Counties &

Municipalities Work with partners including Real Property Listers to standardize

Future uses: Replace Clerk’s reporting SOA data Easier application of 74.41 chargeback, TID valuation Track parcel changes Eliminates missed/duplicate mfg/local issues Detail for projecting equalized value

e.g., stratification by value, class, water frontage, TID RETR: improve accuracy of parcel #’s upon filing

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Integrated Property Assessment System

Where it is going: Electronic Parcel Files DOR requesting parcel data from select municipalities Work with assessment partners to set minimum standards Assessment parcel files required electronic by 2013

Standardize parcel records statewide Allow for ease in changing assessors and software

Long term goal: parcel based data statewide Consistent quality Complete & accurate parcel attributes Transparent to municipal officials and property owners

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Integrated Property Assessment SystemWhere it is going: USPAP & IAAO Implementation SLF/ASSESSMENT Work Group partners

League of WI Municipalities WAAO WI Towns Association Contract Assessors Real Property Listers Counties Association Municipal Clerks Municipal Treasurers Subgroup of assessors developing USPAP compliant

reports Long term: IPAS data to tie with reports

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La Crosse County Questions

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Assessor Certification & Education Certification

Must pass exam to become certified

Education - Required to maintain certification DOR approves training Required hours vary based upon level of certification

USPAP & IAAO Training DOR conducted sessions in 2010 Additional sessions planned in 2011

http://www.revenue.wi.gov/training/assess/index.html

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Assessment Contracts & Records Contracts

Municipal responsibility Counties cannot pass resolution requiring municipalities have

contract DOR recommended contracts:

Maintenance & Revaluation DOR uses for state ordered revaluations http://www.revenue.wi.gov/pubs/slf/pb062.pdf

Assessment Records Ch 17: http://www.revenue.wi.gov/slf/wpam/wpam.pdf Owned by municipality & Assessor is custodian

When assessor leaves: paper copy of assessor’s records must be provided to municipality & subsequent assessor

All electronic data must be made available to municipality & subsequent assessor

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Supervision of Assessment Process DOR – Assessment Practices & Equalization

Monitor assessment compliance Annual review of every municipality

Field Review Includes review of property record cards

WPAM Publication of standards & practices Updated annually

Certification Establishes minimum set of knowledge Requirements to maintain: annual DOR training & continuing education Assessor complaints: review of conduct (negligence, incompetence,

misconduct) Future

Enhanced assessment audits: collection of assessment rolls & parcel data Municipality

Written contract complete with associated statutes and WPAM Annually review work of assessor - ensure equitable assessments at the

parcel level & BOR