U.S. Oil Co. v. City of Milwaukee
794 N.W.2d 904
Wis. Ct. App.2010Background
- City of Milwaukee reassessed U.S. Oil's Granville Terminal Complex 2004-2005 from ~$6 million to >$14 million using an income approach.
- All other Granville terminals remained on the sales approach, producing per-barrel assessments for U.S. Oil that were much higher than peers.
- U.S. Oil challenged the assessments under Wis. Stat. § 70.47 and Wis. Stat. § 74.37(3)(d); trial court vacated the $14M reassessments and reinstated the $6M initial assessments.
- City obtained detailed U.S. Oil financials for the income-based reassessment but did not impute that data to other Granville properties.
- BP Amoco also under review; City discussed reimputation but did not pursue increases for BP Amoco after it withdrew its appeal.
- Court analyzes exhaustion, statutory presumption of correctness, and Uniformity Clause violation, affirming trial court and remanding to the $6M assessments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Exhaustion of administrative remedies | U.S. Oil exhausted remedies via § 74.37(3)(d). | City contends uniformity issues not properly raised before Board. | Proper exhaustion under statute; amendment allowed; no dismissal error. |
| Presumption of correctness overcome | Income-based reassessment for U.S. Oil showed non-uniformity; presumption rebutted. | Presumption preserved; uniformity not shown. | Presumption overcome; evidence showed non-uniformity. |
| Uniformity Clause violation | Using income approach only for U.S. Oil while peers used sales violated uniformity. | Methodology differences within bounds of value assessment; no violation. | Violation established; singled-out treatment of U.S. Oil violated uniformity. |
| Remedy for uniformity violation | Vacate excess assessments and restore prior value harmoniously. | Remedy within trial court discretion; potential remand possible. | Remedy reinstating $6M assessments appropriate. |
Key Cases Cited
- Allright Properties, Inc. v. City of Milwaukee, 317 Wis. 2d 228 (2009) (uniformity; other properties' assessments undercut equal valuation)
- State ex rel. Levine v. Bd. of Rev. of the Village of Fox Point, 191 Wis. 2d 363 (1995) (best information rule; uniform valuation guidance)
- Noah's Ark Family Park v. Bd. of Rev. of the Town of Lake Delton, 210 Wis. 2d 301 (Ct. App. 1997) (Noah's Ark I; uniformity through comparable property treatment)
- Noah's Ark Family Park v. Bd. of Rev. of the Town of Lake Delton, 216 Wis. 2d 387 (1998) (Noah's Ark II; affirmation of uniformity critique on comparables)
- Nankin v. Village of Shorewood, 245 Wis. 2d 86 (2001) (74.37(3)(d) distinct from certiorari; amendment allowed)
- Hermann v. Town of Delavan, 215 Wis. 2d 370 (1998) (Board-of-Review procedures; exhaustion context)
- Waste Management of Wisconsin, Inc. v. Kenosha Cnty. Bd. of Rev., 184 Wis. 2d 541 (1994) (certiorari vs. §74.37 distinction; review framework)