Property Tax Experts
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For taxpayers who
may be
experiencing
difficulty in paying
their property taxes,
there may be help.
Most cities in the
United States have
Property Tax
Poverty Exemption
Policy and
Guidelines. You may
be eligible to waive
your annual property
tax for one year
read more
may be
experiencing
difficulty in paying
their property taxes,
there may be help.
Most cities in the
United States have
Property Tax
Poverty Exemption
Policy and
Guidelines. You may
be eligible to waive
your annual property
tax for one year
read more
ASSESSMENT VS. TAXATION - SEPARATION OF DUTIES
Assessment function is distinct from taxation function
Assessor of Property appraises and classifies the property and then applies the
statutory percentages to appraisals to determine assessments
County Commission and city governing bodies determine local property tax rates
Taxes are collected by county Trustee and city collecting officials
THE ASSESSMENT FUNCTION
The Assessor
State Board of Equalization establishes policies and procedures for local Assessors
of Property and hears property appeals beyond the county level
Division of Property Assessments (a division of the Comptroller of the Treasury)
monitors the work of Assessors to ensure proper procedures are followed, provides
technical assistance during reappraisal programs, and provides manuals and
educational programs for use by Assessors
The Assessment Cycle
Property appraisals are established during periodic reappraisal programs using
current real estate values on either a 6 year, 5 year or 4 year cycle
Between reappraisals, the Assessor's appraisals generally remain constant, with the
exception of instances where the property has changed (new buildings , additions,
demolitions, etc.)
In addition to assessing new construction annually, the Assessor's office performs a
systematic field review of a portion of the county each year so that during a reappraisal
cycle all parcels of property are reviewed
Changes to the property discovered during review may be added to, or subtracted
from the property value between reappraisals, but with the appraised value based on
the previous reappraisal program
The Appraisal Process
An appraisal is an estimate of the most probable selling price of a property
Mass appraisal techniques are employed
Physical characteristics listed (dimensions, construction type, age and condition of
buildings; size and features of land)
Computer resources used as a tool to assist in the intensive analyses and
calculations required
Assessor's experience and appraisal judgment are important
The Assessment Process
Property is classified based on its use and statutory assessment percentages are
applied to appraised values
Residential property 25%
Farm property 25%
Commercial and industrial property 40%
Public utility property 55%
Business personal property 30%
Example: A residence appraised at $ 100,000 would have an assessed value of $25,000
Assessment Change Notice required to be sent when the value or classification
changes
Appeals
Basis for an appeal: owner’s property value too high, another owner’s value too low,
incorrect classification (real vs. tangible personal property, commercial vs. farm or
residential property). Tax amounts are not a valid basis for appeal.
Steps in an appeal: informal discussion with Assessor, County Board of Equalization
(meets beginning June 1), State Board of Equalization (must first appeal to county
board), Chancery Court
THE TAXATION FUNCTION
Property tax rate is established by the County Commission and city governing bodies
Assessor provides assessed value totals to county and city governing bodies
Total assessment and estimates of other revenue are combined with budget
projections to determine the property tax rate
In a reappraisal year, if the local governing body intends to adopt a tax rate that would
generate more revenue than the previous year, a public hearing must be advertised
and held
CONCLUSION
Separation of the assessment function from the taxation function protects property
owners from possible unfair treatment
The Assessor's job is increasingly demanding in terms of the skills and
professionalism required
The level of knowledge and detail required to appraise property for assessment
purposes has dramatically increased
Greater detail in appraisals results in a more equitable situation for property owners
Assessment function is distinct from taxation function
Assessor of Property appraises and classifies the property and then applies the
statutory percentages to appraisals to determine assessments
County Commission and city governing bodies determine local property tax rates
Taxes are collected by county Trustee and city collecting officials
THE ASSESSMENT FUNCTION
The Assessor
- Appraises real estate for assessment purposes
- Tracks changes in ownership, addresses and property boundaries
- Is required by state law to verify certain information on real estate sales with
buyer or seller - Appraises and assesses business personal property (furniture, fixtures,
machinery and equipment) - Responds to requests for public information
- Must possess both appraisal and administrative skills to do the job
State Board of Equalization establishes policies and procedures for local Assessors
of Property and hears property appeals beyond the county level
Division of Property Assessments (a division of the Comptroller of the Treasury)
monitors the work of Assessors to ensure proper procedures are followed, provides
technical assistance during reappraisal programs, and provides manuals and
educational programs for use by Assessors
The Assessment Cycle
Property appraisals are established during periodic reappraisal programs using
current real estate values on either a 6 year, 5 year or 4 year cycle
Between reappraisals, the Assessor's appraisals generally remain constant, with the
exception of instances where the property has changed (new buildings , additions,
demolitions, etc.)
In addition to assessing new construction annually, the Assessor's office performs a
systematic field review of a portion of the county each year so that during a reappraisal
cycle all parcels of property are reviewed
Changes to the property discovered during review may be added to, or subtracted
from the property value between reappraisals, but with the appraised value based on
the previous reappraisal program
The Appraisal Process
An appraisal is an estimate of the most probable selling price of a property
Mass appraisal techniques are employed
Physical characteristics listed (dimensions, construction type, age and condition of
buildings; size and features of land)
Computer resources used as a tool to assist in the intensive analyses and
calculations required
Assessor's experience and appraisal judgment are important
The Assessment Process
Property is classified based on its use and statutory assessment percentages are
applied to appraised values
Residential property 25%
Farm property 25%
Commercial and industrial property 40%
Public utility property 55%
Business personal property 30%
Example: A residence appraised at $ 100,000 would have an assessed value of $25,000
Assessment Change Notice required to be sent when the value or classification
changes
Appeals
Basis for an appeal: owner’s property value too high, another owner’s value too low,
incorrect classification (real vs. tangible personal property, commercial vs. farm or
residential property). Tax amounts are not a valid basis for appeal.
Steps in an appeal: informal discussion with Assessor, County Board of Equalization
(meets beginning June 1), State Board of Equalization (must first appeal to county
board), Chancery Court
THE TAXATION FUNCTION
Property tax rate is established by the County Commission and city governing bodies
Assessor provides assessed value totals to county and city governing bodies
Total assessment and estimates of other revenue are combined with budget
projections to determine the property tax rate
In a reappraisal year, if the local governing body intends to adopt a tax rate that would
generate more revenue than the previous year, a public hearing must be advertised
and held
CONCLUSION
Separation of the assessment function from the taxation function protects property
owners from possible unfair treatment
The Assessor's job is increasingly demanding in terms of the skills and
professionalism required
The level of knowledge and detail required to appraise property for assessment
purposes has dramatically increased
Greater detail in appraisals results in a more equitable situation for property owners
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