Assessed Value (Yes, another tax appraisal thread)

[J L H]

Your mileage may vary (continued)

In the fair state of Utah, our constitution calls for the county assessors to determine fair market value annually. The state audits each county comparing assessed value to actual market sales data to determine accuracy and compliance. For residential assessment, the counties are held to be +/- 5%, and +/- 10% on commercial properties.

Residents get a 45% exemption on their primary residence, or in other word the taxable value is 55% of market value. Commercial propewrties, vacant land, vacation homes, etc. are taxed at full market value.

As has been said, tax policy varies greatly from state to state. Visiting the web sites of several counties here in Utah, and even in neighboring Wyoming, found that all I saw gave an explanation of how value is determined and calculated.

 

[Terrel L. Shields]

Arkansas

Assessor's appraisers set Appraised Value (Market Value)
Bare agri land is appraised at soil type x per acre rents x 10
(if the land rents for $50/ac, the "market value" is $500, regardless sales price)
That vaue is multiplied by 20% to equal Assessed value.

Each school district/town has a different millage rate. Ours is 49.9 mills (4.99 ¢)

Mulitple the Assessed Value x millage = tax before exemptions. Figures out a hair under 1% of market value.

There is a $350 homestead exemption from the tax on the house you live in. If you are over 65, the tax is locked on your homestead so the effective assessed value is that of the time you turned 65. Then improvement districts and fire dept fees (if applicable) are added.

If you live in Benton County your taxes will be higher than any other county because the Assessor is nuts.

 

[lizhorvath]

This thread is giving me a headache. I'm with Dennis - sounds like you need to address a Florida specific crowd with this question.
If your county appraiser doesn't know when the property was homesteaded, by the way, they need to re-check their record keeping...

 

[David M. Andrews]

CWD asked a Florida specific question. Everyone is brilliant but it does not matter how you do it in your state. Who cares how you do it in your state if your state is not Florida? I hope that Mr. Black will be acknowledged as the expert in this question.

 

[Terrel L. Shields]

you need to address a Florida specific crowd

then ask the question in the Florida forum

 

[Dennis J. Black ASA IFAS]

While I agree the question may have been better placed in the Florida forum, where it was asked does not change the answer to the question.

 

[jay trotta]

No need for anyone to get their panties all twisted with anyone else's delicates;

NAtionwide- each municipality needs X amount of dollars to cover the Budget; the State applies what is known as a "Fudge Factor" and ifn ya haven't bent over far enough throught the years, the State allows the local municipal system to allow "Fuzzy Math" and walla, you have local yokal Tax incentive programs.

This allows for the Decrease in the mill rate so that everyone thinks it's fair to only be raised $200+/- per year; the public being somewhat satisfied, allows the municipality to increase the Mill Rate the following year for an increase in municipal services. And so forth and so on.

The mistake made this past year, is that most municipality's have sent out a flyer which explains what "Market Value Is" and I have won every case to date, based on that factor and the Town(s) have not the ability to display "Market Value" from the fuzzy math they created.

PS: having the need to read the State regulations & requirements for assessor's, will assist you in learning how Your particular State system is functioning. I will tel you the package is very deep - you will need to focus on a couple of area's, and then you should have most of the answer's you seek. Because it is a "Living Document" and subject to change, you will need to be on top of it, as much as USPAP. There is NO one simple answer and I will NOT write a book on anything that is under a continual state of change. It lacks coverage of the passage of time and allows the Political System a knowledge base in which to attack the writer and dwindle their credibility.
*Dennis I applaud the work that you have done and in no way are my comments directed towards your efforts and I respect your knowledge of the many subjects spoken on, here.

It is a basic system that was introduced and systematically applied to individual States, with allowable changes.
This year on most of our municipal cards; Waterfront has been changed to "Oceanfront" - a systematic change for future abuse. I have lived hear all my life, and we are NOT fronting on any of the "Oceans" noted on this planet; we are located on the waters of "Long Island Sound" - the Atlantic Ocean is located beyond that point (Long Island) and approximately 40 miles from our Coast. The next generation won't even know what hit em !

 

[Jim Onderisin]

CWD: I think I understand your question and have no answer. Really helpful. As far as I can tell, you have it clearly up until the final question... and that's the point we all get stuck.

Our county assessors say assessed value is a percentage of market value. In Du Page County, IL it is 33.33% for residential properties. In Cook County it is 16%. I'm sure it varies by county and by state. That doesn't matter. The point is that, if the assessed value is divided by the ratio (33.33% or 16% as mentioned), the resulting figure is USUALLY short of actual market value.

Our assessors compare sales in the IMMEDIATE area during the past 3 years. They search within blocks of the subject (in our city and suburban world) so their comparables are very proximate. But, they throw sales into the mix which are as much as 36 months old. In today's environment, that could really throw a monkey wrench into the valuation process. That is the problem in OUR counties. The assessor's assessed (and market) values aree based on OLD data and cannot be compared to current market value. But...it's the best they can do with what they have. (Everyone hang their heads and sigh)

 

[Dennis J. Black ASA IFAS]

Jay,

Those changes allow me the opportunty to sell annual editions and get out before audiences and speak about the changes.

 

[wickedness1]

Ok, so here I am.....getting ready to take my Certified exam next week & really confused on some pre-test tax mill questions. I was REALLY excited to see that this topic was just on the forum...but ooops everyone's fighting again

I really don't get the concept of what a mill is...is it a percent or what? I'm still lost, so if anyone wants to explain to me how to figure out this question, I'd be very happy

The annual property tax on a subject is $1,274. The taxing authority assesses this type of property at 65% of market value. What is the assessor's estimate of market value of the subject if the tax rate is 20 mills?