State v. City of Waukesha Bd. of Review

• Decision Date: 21 December 2021
• Docket Number: No. 2019AP1479,2019AP1479
• Citation: 2021 WI 89,399 Wis.2d 696,967 N.W.2d 460
• Parties: STATE of Wisconsin EX REL. CITY OF WAUKESHA, Petitioner-Respondent-Petitioner, v. CITY OF WAUKESHA BOARD OF REVIEW, Respondent-Appellant, Salem United Methodist Church, Interested Party-Respondent.
• Court: Wisconsin Supreme Court

399 Wis.2d 696

967 N.W.2d 460

2021 WI 89

STATE of Wisconsin EX REL. CITY OF WAUKESHA, Petitioner-Respondent-Petitioner,

v. CITY OF WAUKESHA BOARD OF REVIEW, Respondent-Appellant,Salem United Methodist Church, Interested Party-Respondent.

No. 2019AP1479

Supreme Court of Wisconsin.

Oral Argument: October 27, 2021

Opinion Filed: December 21, 2021

For the petitioner-respondent-petitioner, there were briefs filed by Brian E. Running, city attorney. There was an oral argument by Brian E. Running.

For the respondent-appellant, there was a brief filed by Eric J. Larson and Municipal Law & Litigation Group, S.C., Waukesha. There was an oral argument by Eric J. Larson.

An amicus curiae brief was filed on behalf of League of Wisconsin Municipalities by Claire Silverman, Madison.

ANN WALSH BRADLEY, J., delivered the majority opinion for a unanimous Court.

ANN WALSH BRADLEY, J.

¶1 The petitioner, City of Waukesha (the City), seeks review of a published opinion of the court of appeals that reversed the circuit court's order that allowed the City to seek certiorari review of a tax assessment determination of the City of Waukesha Board of Review (the Board).¹ The court of appeals concluded instead that the City could not seek such review, reversed the circuit court's determination, and remanded to the circuit court with directions to quash the writ of certiorari and dismiss the action.

¶2 This case raises the novel question of whether the municipality itself can seek certiorari review of a determination of the municipality's board of review. The City contends that the statutory language of Wis. Stat. § 70.47 (2017-18)² allows it to appeal a Board determination by bringing a certiorari action pursuant to § 70.47(13). The Board, in contrast, argues that the City has no such right and that the City's participation in a tax assessment proceeding ends after the Board has made its decision.

¶3 We conclude that Wis. Stat. § 70.47 does not allow the City to seek certiorari review of a decision of the Board. Accordingly, we affirm the decision of the court of appeals.

I

¶4 The Salem United Methodist Church (the Church) owns a piece of property located within the City. In 2017, the property was assessed at a value of $51,900, but the following year the assessment was raised to $642,200. The reassessment was triggered by the Church putting the property up for sale. Ultimately, the Church received an offer of $1,000,000 for a portion of the property.³

¶5 Taking exception to the increase in the assessed value of its property, the Church filed an objection. It submitted that the value of the property should be properly assessed at $108,655. The Church argued that the City's valuation was based on speculative future use and that it did not properly account for the undeveloped nature of the land.

¶6 At a hearing held before the Board, both the taxpayer and the City appeared as parties. The City argued in favor of the City assessor's valuation. After taking testimony from the assessor and a representative of the Church, the Board accepted the Church's valuation, but rounded up slightly to arrive at a value of $108,700.

¶7 The City appealed the Board's determination by seeking certiorari review in the circuit court pursuant to Wis. Stat. § 70.47(13).⁴ It argued that the Board acted contrary to law because it failed to uphold the presumption of correctness that attaches to an assessor's valuation,⁵ that the Board's determination was not supported by sufficient credible evidence, and that the Board's decision was arbitrary and unreasonable.⁶

¶8 Contending that the City's petition failed to state a claim upon which relief may be granted, the Board moved to quash the writ. As relevant here, it asserted that the City lacks the authority under Wis. Stat. § 70.47 to appeal a decision of its own Board of Review by certiorari. In other words, it argued that § 70.47 affords only taxpayers, and not municipalities, the ability to seek certiorari review of a board decision.

¶9 The circuit court denied the motion to quash, concluding that Wis. Stat. § 70.47 "does give the City the ability to intervene and have a role in the writ of certiorari proceedings." Turning to the merits of the City's claims, the circuit court agreed with the City that the Church did not present sufficient evidence to overcome the presumption of correctness. It thus granted the writ of certiorari and remanded to the Board for further proceedings.

¶10 The Board appealed, and the court of appeals reversed the circuit court's order, concluding "that § 70.47(13) does not authorize the City to commence a certiorari action." State ex rel. City of Waukesha v. City of Waukesha Bd. of Rev., 2020 WI App 77, ¶2, 395 Wis. 2d 239, 952 N.W.2d 806. Accordingly, it determined that the circuit court erred in denying the Board's motion to quash and as a result did not address the merits of the City's arguments that the Board acted unlawfully, unreasonably, and contrary to the credible evidence. Id., ¶2 n.2. The City petitioned for this court's review.

II

¶11 We are called upon to review the court of appeals' determination that the circuit court erroneously denied the Board's motion to quash. "A motion to quash a writ of certiorari is in the nature of a motion to dismiss." Fee v. Bd. of Rev. for Town of Florence, 2003 WI App 17, ¶7, 259 Wis. 2d 868, 657 N.W.2d 112. Whether a motion to dismiss was properly granted or denied is a question of law this court reviews independently of the determinations rendered by the circuit court and court of appeals. Town of Lincoln v. City of Whitehall, 2019 WI 37, ¶21, 386 Wis. 2d 354, 925 N.W.2d 520.

¶12 In our review, we are required to interpret Wis. Stat. § 70.47. Statutory interpretation likewise presents a question of law we review independently of the determinations of the circuit court and court of appeals. Yacht Club at Sister Bay Condo. Ass'n, Inc. v. Village of Sister Bay, 2019 WI 4, ¶17, 385 Wis. 2d 158, 922 N.W.2d 95.

III

¶13 For context, we begin by providing background on board of review proceedings. Subsequently, we address the question of whether the City may seek certiorari review of a Board decision under the terms of Wis. Stat. § 70.47.

A

¶14 Assessment of real property in every municipality in Wisconsin is accomplished according to the terms of ch. 70 of the Wisconsin Statutes. Wis. Stat. § 70.05(1). All property is valued by the municipality's assessor and reported in an assessment roll for the taxation district. Nankin v. Village of Shorewood, 2001 WI 92, ¶17, 245 Wis. 2d 86, 630 N.W.2d 141.

¶15 Chapter 70 also "establishes a comprehensive procedure by which property owners may challenge the valuation or the amount of property assessed for taxation." Hermann v. Town of Delavan, 215 Wis. 2d 370, 379, 572 N.W.2d 855 (1998). "If a property owner disagrees with an assessment, the owner may file a formal objection with the municipality's board of review." Nankin, 245 Wis. 2d 86, ¶17, 630 N.W.2d 141 (citing Wis. Stat. § 70.47(7)(a) (1997-98)).

¶16 The board of review is a quasi-judicial body that hears evidence and decides whether the assessor's valuation is correct. Id., ¶18 (citation omitted). It is not an assessing body. Id. The board presumes that the assessor's valuation is correct, but this presumption may be rebutted "by a sufficient showing by the objector that the valuation is incorrect." Wis. Stat. § 70.47(8)(i) ; Sausen v. Town of Black Creek Bd. of Rev., 2014 WI 9, ¶26, 352 Wis. 2d 576, 843 N.W.2d 39. If the assessment is determined to be incorrect, "the board shall raise or lower the assessment accordingly and shall state on the record the correct assessment and that that assessment is reasonable in light of all of the relevant evidence that the board received." § 70.47(9)(a).

¶17 A detailed method for appealing a decision of the board of review is provided within the statutory scheme of chs. 70 and 74. Hermann, 215 Wis. 2d at 379, 572 N.W.2d 855. Three options exist for property owners who wish to appeal a board decision: (1) certiorari review pursuant to Wis. Stat. § 70.47(13) ; (2) a written complaint with the Department of Revenue to revalue the property under Wis. Stat. § 70.85 ;⁷ and (3) an excessive assessment action pursuant to Wis. Stat. § 74.37.⁸ U.S. Oil Co., Inc. v. City of Milwaukee, 2011 WI App 4, ¶15, 331 Wis. 2d 407, 794 N.W.2d 904 ; Thomas J. McAdams, Over Assessed? Appealing Home Tax Assessments, Wis. Law., July 2011, at 18-19. "Compliance with the board of review procedures is a prerequisite to all three forms of appeal and the three sections are the exclusive method for challenging an excessive assessment." Reese v. City of Pewaukee, 2002 WI App 67, ¶6, 252 Wis. 2d 361, 642 N.W.2d 596.

¶18 This case involves the first of these three options, a certiorari action. Certiorari is a mechanism by which a court may test the validity of a decision rendered by a municipality, administrative agency, or other quasi-judicial tribunal. State ex rel. Anderson v. Town of Newbold, 2021 WI 6, ¶11, 395 Wis. 2d 351, 954 N.W.2d 323 (citing Ottman v. Town of Primrose, 2011 WI 18, ¶34, 332 Wis. 2d 3, 796 N.W.2d 411 ).

¶19 On certiorari review, the reviewing court's inquiry is narrow. It is limited to the record before the board and addresses only whether the board's actions were: (1) within its jurisdiction; (2) according to law; (3) arbitrary, oppressive, or unreasonable and represented its will and not its judgment; and (4) supported by evidence such that the board might reasonably make the order or determination in question. Thoma v. Village of Slinger, 2018 WI 45, ¶10, 381 Wis. 2d 311, 912 N.W.2d 56.

B

¶20 With this background in hand, we turn next to address the specific issue in this case. The parties raise a novel question regarding whether a municipality may appeal its board of review's determination by certiorari review.

¶21 Answering this question requires us to examine the language of Wis. Stat. § 70.47, which governs board of review...