| Tax reassessment has been the main topic of | | | | owner's exemption or a senior's exemption. If this |
| discussion more times in the last six months than | | | | home is your primary residence then you'll qualify |
| it has been in the last ten years. There seems to | | | | for the home owner's exemption of $5,500. This |
| be a misguided assumption that if property values | | | | means your Adjusted Equalized Value is $22,939. |
| decrease then property taxes will also decrease. | | | | Finally, the tax assessor will multiply the Adjusted |
| Of course, this is based on the fact that when | | | | Equalized Value with the Tax Rate which is |
| property values increase so will the taxes. | | | | adjusted every tax reassessment year. This |
| Unfortunately, the former is mostly false while | | | | year, the tax rate is 10%. When the Adjusted |
| the latter is mostly true. | | | | Equalized Value is multiplied by the tax rate ($22, |
| Like everything else, all you have to do is follow | | | | 939 x 10%), the resulting number is your |
| the dollar to see why it works this way. I'll explain. | | | | estimated property tax bill or $2,293. |
| Every county, city and municipality across the | | | | Ok, now we'll put it all together. |
| country needs money to pay for basic services | | | | We know the county needs ten million dollars to |
| such as the police, firemen, schools, payroll...and | | | | meet its budget. However, the tax assessor has |
| the list goes on. This money, in large part, is | | | | valued your home at $90,000 instead of |
| provided for by property taxes. | | | | $100,000. |
| Let's assume this year is a tax reassessment | | | | Logically speaking you should only have to pay |
| year and your county needs ten million dollars to | | | | $2,009.51. |
| meet its budget demands, up from eight million | | | | Breaking it down would look like this: $90,000 x |
| three years ago. This amount includes the basic | | | | .10 x 2.8439 - $5,500 x .10 = $2,009.51. |
| services described above along with all current | | | | However, just because your property value went |
| and future projects that have been approved by | | | | down doesn't mean the county budget obligations |
| the board of trustees. | | | | have gone down. The county still needs its ten |
| Once the budget amount has been calculated (ten | | | | million dollars regardless of what happens to your |
| million) the tax assessor will reassess the | | | | property value. |
| property values in order to meet the budget | | | | So how does the county get away with collecting |
| amount. | | | | the same amount in property taxes (or even |
| The tax assessor will take into consideration the | | | | more!) when your assessed property value |
| estimated property value, proposed assessed | | | | decreases? |
| valuation, state equalizer, exemptions and the | | | | Simple! They adjust one of the other variables, |
| current tax rate when establishing property taxes. | | | | most likely the tax rate. |
| The following is an example: | | | | Let's say the tax assessor did indeed lower your |
| Let's say your home is worth $100,000 and the | | | | assessed property value to $90,000 but the |
| county has your assessment level at 10%. Your | | | | county still needs the original of $2,293. In fact, |
| tax will show a home value of $10,000. This is | | | | they need a little more. By raising the tax rate |
| called a Proposed Assessed Valuation. | | | | from 10% to 15% you'll pay $3,014.26 in property |
| The tax assessor takes the Proposed Assessed | | | | taxes. Again, here is the breakdown: |
| Valuation and multiplies this by something called a | | | | $90,000 x .10 x 2.8439 - $5,500 x .15 = |
| State Equalizer. In this example, the State | | | | $3,014.26. |
| Equalizer is 2.8439. When you multiply the | | | | Do you see what just happened? Your home |
| Proposed Assessed Valuation with the State | | | | value went down ten percent but your taxes still |
| Equalizer you'll get the Equalized Assessed Value, | | | | went up. |
| or $28,439. | | | | The bottom line no matter what your property |
| Once the tax assessor knows the Equalized | | | | value is the county will always get the money it |
| Assessed Value he'll subtract any type of | | | | needs to meet its budget. |
| exemptions you might have such as a home | | | | |
