Saint John's Communities, Inc. v. City of Milwaukee

2022 WI 69, 982 N.W.2d 78, 404 Wis. 2d 605
CourtWisconsin Supreme Court
DecidedNovember 22, 2022
Docket2020AP001696
StatusPublished
Cited by5 cases

This text of 2022 WI 69 (Saint John's Communities, Inc. v. City of Milwaukee) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saint John's Communities, Inc. v. City of Milwaukee, 2022 WI 69, 982 N.W.2d 78, 404 Wis. 2d 605 (Wis. 2022).

Opinion

2022 WI 69

SUPREME COURT OF WISCONSIN CASE NO.: 2020AP1696

COMPLETE TITLE: Saint John's Communities, Inc., Plaintiff-Respondent-Petitioner, v. City of Milwaukee, Defendant-Appellant.

REVIEW OF DECISION OF THE COURT OF APPEALS Reported at 399 Wis. 2d 729, 967 N.W.2d 151 PDC No: 2021 WI App 77 - Published

OPINION FILED: November 22, 2022 SUBMITTED ON BRIEFS: ORAL ARGUMENT: October 6, 2022

SOURCE OF APPEAL: COURT: Circuit COUNTY: Milwaukee JUDGE: Jeffrey A. Conen

JUSTICES: ZIEGLER, C.J., delivered the majority opinion for a unanimous Court. NOT PARTICIPATING:

ATTORNEYS:

For the plaintiff-respondent-petitioner, there were briefs filed by Alan H. Marcuvitz, Andrea H. Roschke, and von Briesen & Roper, S.C., Milwaukee. There was an oral argument by Alan H. Marcuvitz.

For the defendant-appellant, there was a brief filed by Allison N. Flanagan, assistant city attorney, with whom on the brief was Tearman Spencer, city attorney. There was an oral argument by Allison N. Flanagan, assistant city attorney. 2022 WI 69 NOTICE This opinion is subject to further editing and modification. The final version will appear in the bound volume of the official reports. No. 2020AP1696 (L.C. No. 2020CV578)

STATE OF WISCONSIN : IN SUPREME COURT

Saint John's Communities, Inc.,

Plaintiff-Respondent-Petitioner, FILED v. NOV 22, 2022

City of Milwaukee, Sheila T. Reiff Clerk of Supreme Court

Defendant-Appellant.

ZIEGLER, C.J., delivered the majority opinion for a unanimous Court.

REVIEW of a decision of the Court of Appeals. Affirmed.

¶1 ANNETTE KINGSLAND ZIEGLER, C.J. This is a review of

a published decision of the court of appeals, Saint John's

Communities, Inc. v. City of Milwaukee, 2021 WI App 77, 399

Wis. 2d 729, 967 N.W.2d 151, reversing the Milwaukee County

circuit court's1 order denying the City of Milwaukee's ("City")

motion to dismiss Saint John's Communities' ("Saint John's")

action for recovery of unlawful taxes under Wis. Stat. § 74.35

1 The Honorable Jeffrey A. Conen presided. No. 2020AP1696

(2019-20).2 The court of appeals reversed, concluding that Saint

John's § 74.35 claim was procedurally deficient because Saint

John's did not first pay the tax before filing its claim. We

affirm.

¶2 Saint John's argues that it properly filed a claim for

recovery of unlawful taxes according to all procedures required

under Wis. Stat. § 74.35. According to Saint John's, § 74.35

contains no requirement that taxpayers first pay the challenged

tax prior to filing a claim for recovery of unlawful taxes

against the City. It argues that the only temporal requirements

are that taxpayers both pay the challenged tax and file the

claim by January 31 of the year in which the tax is payable. As

a result, Saint John's argues that the circuit court properly

denied the City's motion to dismiss, and that the court of

appeals erred in reversing that decision.

¶3 We conclude that Saint John's claim for recovery of

unlawful taxes was procedurally deficient. According to Wis.

Stat. § 74.35(2)(a), "[a] person aggrieved by the levy and collection of an unlawful tax assessed against his or her

property may file a claim to recover the unlawful tax against

the taxation district which collected the tax." The plain

language of this statute requires Saint John's to first pay the

challenged tax or any authorized installment payment3 prior to

2All subsequent references to the Wisconsin Statutes are to the 2019-20 version unless otherwise indicated. 3For ease of reading, we refer to payments of a tax both in full and in installments as payments of "the tax."

2 No. 2020AP1696

filing a claim. If Saint John's has not yet paid the tax, then

Saint John's is not "aggrieved by the levy and collection of an

unlawful tax," and there is no paid tax to "recover." Saint

John's did not make any payment of the challenged tax before it

filed its § 74.35 claim. Therefore, Saint John's § 74.35 claim

was procedurally deficient, and the circuit court erred in

denying the City's motion to dismiss. We affirm the court of

appeals' decision.

I. FACTUAL BACKGROUND AND PROCEDURAL POSTURE

¶4 The relevant facts are not in dispute. Saint John's

owns an age-restricted continuing care retirement community

located on a single parcel in the City of Milwaukee (the

"Property"). For tax years 2010 through 2018, the City

recognized the Property as fully exempt from property taxation

under Wis. Stat. § 70.11.

¶5 In 2018, Saint John's began a project to renovate and

expand the Property. Saint John's built new facilities in an

area of the Property previously used for parking, and it demolished its existing facilities. In 2019, the City Assessor

determined this was a new use of the Property and notified Saint

John's that the City no longer considered the Property to be

tax-exempt.4

Although Saint John's timely filed an appeal with the City 4

Board of Review challenging the assessment as excessive, it failed to file an exemption request by the March 1, 2019 deadline. The City and Saint John's disagree as to whether Saint John's was required to file an exemption request. However, this issue is not a part of our review.

3 No. 2020AP1696

¶6 On November 8, 2019, Saint John's filed a claim to

recover unlawful taxes pursuant to Wis. Stat. § 74.35. The City

informed Saint John's that its claim was premature because the

City had not yet levied the tax, and because Saint John's had

not yet paid the challenged tax and was therefore not "aggrieved

by the levy and collection of an unlawful tax" under § 74.35(2).

The City levied the tax on November 27, 2019. Saint John's

filed a second § 74.35 claim on December 5, 2019, the same day

the City issued the 2019 property tax bill to Saint John's. At

this point, Saint John's still had not paid the challenged tax.

¶7 At the recommendation of the City Attorney, the City

disallowed Saint John's claim on January 21, 2020, because

Saint John's did not pay the challenged tax prior to filing its

Wis. Stat. § 74.35 claim. The next day, Saint John's paid the

first installment of its 2019 property tax bill.

¶8 On January 22, 2020, Saint John's commenced this

lawsuit against the City, alleging claims under Wis. Stat.

§§ 74.35, 74.33, 74.41, the Uniformity Clause of the Wisconsin Constitution, and 42 U.S.C. § 1983. The claim involving Wis.

Stat. § 74.35 is the only claim before us.

¶9 On February 7, 2020, the City filed a motion to

dismiss Saint John's lawsuit for failure to state a claim upon

which relief can be granted. See Wis. Stat.

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2022 WI 69, 982 N.W.2d 78, 404 Wis. 2d 605, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saint-johns-communities-inc-v-city-of-milwaukee-wis-2022.