Property Tax 101

January 1: Municipal Assessor determines property values

• The property tax process begins with assessments, which are conducted by the local municipal assessor for the City, Town, or Village.
  • Dane County Directory (municipal contact information)
  • Access Dane (parcel-specific information)
• In rural areas, the classification can be important because of the different rate of assessment value placed on agricultural land, undeveloped land, and forest land.

Spring/Summer: Municipal Open Book & Board of Review

• When assessments are determined for the year (typically March or later), property owners are sent a Notice of Assessment from the local assessor to identify property Values and Classifications.
  • Open Book: property owners can discuss assessments with the assessor
  • Board of Review: property owners can appeal assessments in a quasi-judicial setting
• After Board of Review, it would normally be too late for the property owner to appeal the assessed property value for the given year.

Basic calculation:

• Assessment x Mill Rate = Total Taxes
• Total Taxes – Lottery Credit – First Dollar Credit = Net Property Taxes
• Net Property Taxes + All Special Assessments and Special Charges = Tax Bill

Collection statistics:

• Approximately 30% of taxpayers pay the full amount in December.
• Approximately 40% of taxpayers pay the full amount in January.
• Approximately 30% of taxpayers pay in installments.

Timely payment is determined by the postmark affixed by the US Postal Service. According to the USPS, a postmark is NOT added the same day payment is placed in the mail. Paying in-person at the Treasurer's office or via e-Check on the Treasurer's website is a better option when paying near a due date.

IF Paying Online Through Your Bank:

1. Financial institutions recommend scheduling at least 7-10 business days in advance of the due date.
2. USPS may not postmark bulk mail, thus requiring timeliness determination on received date instead of mailed date.

If at least the installment amount is not paid by the due date listed on the tax bill and the taxes become delinquent, the following occurs:

1. The full amount comes due immediately.
2. A combined monthly interest and penalty of 1.5% of the unpaid principal is added back to February 1.
   • This charge accrues at the beginning of each month until the bill (principal, interest, and penalty) is paid in-full.
   • If a property owner is late with the final installment, the monthly interest and penalty still goes back February 1, which means an August interest and penalty of 7 months (7 x 1.5% = 10.5%).
   • Each month afterward, the outstanding principal balance is charged another 1.5%

Please note: No payment is considered valid until it clears all banks. Should a payment be returned by the bank for any reason, all bills covered by the payment will be cancelled and all receipts voided. Additional interest and penalty may accrue.

*The City of Madison has intermediate installments, and payments for properties within the City of Madison are collected by the City Treasurer through the July 31 due date. Information regarding City of Madison due dates and amounts for the current tax year can be obtained by contacting the City of Madison Treasurer: