The Wisconsin Supreme Court has agreed to hear a case involving the City of Wauwatosa and Children’s Hospital of Wisconsin (CHW). At the center of the dispute is a fundamental question: At what point does a new building qualify for a property tax exemption?

The Core of the Case

The case stems from the assessment of a partially constructed building on the Milwaukee Regional Medical Center (MRMC) campus. Under state law, all property is presumed taxable unless it is owned by a specific exempt entity (such as a church or school) or the owner demonstrates an exempt use.

In this instance, the building was still under construction on the statutory assessment date. In this case, the City won summary judgment at the circuit court and that decision was affirmed in the Court of Appeals. A petition for review filed by CHW has now been granted by the Wisconsin Supreme Court.

Why It Matters to Wauwatosa Residents

This case is about the equitable distribution of the local tax burden.

A common misconception is that higher assessments mean the city "makes more money." In reality, the total amount of money the city can collect (the levy) is strictly limited by state law. When one property is exempted from taxes, that portion of the levy simply shifts to all other taxable property owners in the city.

Wauwatosa operates under tight state-mandated levy limits. Ensuring that every property that should be taxed is accurately assessed allows the city to maintain the high level of fire, police, and public works services residents expect without placing an undue burden on homeowners.

This issue is not unique to Wauwatosa. The Supreme Court’s decision will provide clarity for municipalities across the state, ensuring that the rules for exemptions are applied fairly and consistently.

Next Steps

As the Wisconsin Supreme Court reviews the matter, the City of Wauwatosa remains committed to defending an assessment process that is transparent, fair, and protective of the community’s shared resources.