Darling Bill Would Lift Shorewood's Levy Limit to Address Assessment Error

Sen. Alberta Darling introduced legislation Thursday which, if approved, would thaw Shorewood’s frozen tax levy limit and help officials alleviate the burden of on village property owners.

An valuation error made by Shorewood's contracted assessor requires the village to levy an additional $2 million next year. The village could compensate taxpayers by reducing the 2011 levy by that $2 million, but new state law that freezes property taxes then prevents that increase in 2012.

Senate Bill 224, authored by Darling (R-River Hills) and Rep. Samantha Kerkman (R-Powers Lake), would allow the village to add back to its 2012 levy the amount by which it hopes to reduce its 2011 levy. Village officials hope legislation will pass soon as the village will set its tax levy by Nov. 15.

“We’re depending on our senator to help us along,” Village Manager Chris Swartz said at a previous board meeting.

As a back-up plan, , an arm of the state Department of Revenue, arguing that Shorewood shouldn’t be forced to harm property owners with additional taxation.

The error occurred when Shorewood’s assessor, Mark Brown of Associated Appraisal Consultants, Inc., recorded the value of Shorewood’s Tax Incremental Financing District No. 1, which blankets much of the business district, as $77 million instead of $77,000 and passed it along the state Department of Revenue, which then published the value.

Department of Revenue officials say state law prohibits them from changing property values after they have been published.

As a result, the total equalized value of property in Shorewood is artificially inflated for next year and village property owners could have to fork over $2 million more on next year’s bill, a $442 increase from last year on a home assessed at $300,000. Officials have said raising property taxes next year due to the error is a worst-case scenario.