Assessed Value (Yes, another tax appraisal thread)

[c w d]

Ok, so I'm trying to figure out how to determine the RE tax on residential properties.

Here's what I have so far:

RE Taxes = Millage x Taxable Value

Taxable Value = Assessed Value - Total Exemptions

Assessed value = Market Value - ????

And that's where I hit the wall. How do I determine Assessed Value? I spent the better part of the morning trying to figure this out on the property appraiser's website for my county. The only information I could determine is the assessed value is capped at an increase of 3% or the CPI whichever is lower except when the property is sold, of course. My question is: A 3% increase on what? So I called the property appraiser's office. Apparently, this value is determined when the home is originally homesteaded by the current owner. Great. How do I determine when the home was homesteaded? The appraiser that I spoke with didn't know. Wonderful.

Anyone else know how to determine the assessed value?

What I'm trying to do is demonstrate between the change in RE taxes from the county property appraiser's estimation of value and my own opinion of value. It would be helpful to determine if the client should appeal or not.

 

[Lawrence R.]

Assessed value is the value the appraiser assigned to it. The assessed value generally isn't a function of some other value, it is the value all others are based off of.

Assessed value-exemptions= taxable value

Taxes= Millage x taxable value

Market value = market value

Assessed values must fall within a tolerance level (ratio study) set by the State dept of Revenue, or whatever your state calls it.

Generally you want to be (overall) around 92-96 % of market value.

Market values are determined by sales data. That sales data is filtered by a sales analyst, and fed in against our assessed values. The computer then checks the ratio of sales to assessments and if it is in the tolerance(which may vary state to state) then you are OK.

But we do not say, hey, lets put everything at 90% of what it sold for.

The basis, of course is usually some hybrid M&S tables that can be tweaked.

Effective age and condition(don't get me started) as well as economic and functional obs. are used to adjust as well.

Usually, on the bill or on an assessment notice, the assessed value will be clearly stated.(at least it is here)

Hope this helps, but I am not completely sure what you are asking for.

good luck.

 

[Lawrence R.]

A better example.

Assessed value times tax rate= assessment...

(Assessment- exemptions) X millage= taxes

 

[DWiley]

How do I determine Assessed Value?

The answer to that question depends on the jurisdiction. In my city the assessed value is 25% of the appraised value.

 

[Dennis J. Black ASA IFAS]

EVERYONE PLEASE STOP. Assessment methodolgy varies from state to state. Florida has its own special rules. How do I know? I wrote the book "Understandinig and Appealing your Florida Tax Assessement".

For starters Market Value as defined by the Florida Statutes for tax assessment is not even close to Market Value as defined by FNMA.

Second we have Assessed Value and Just Value which also have different definitions.

 

[Lawrence R.]

EVERYONE PLEASE STOP. Assessment methodolgy varies from state to state. Florida has its own special rules. How do I know? I wrote the book "Understandinig and Appealing your Florida Tax Assessement".

For starters Market Value as defined by the Florida Statutes for tax assessment is not even close to Market Value as defined by FNMA.

Second we have Assessed Value and Just Value which also have different definitions.

How about everyone please stop being so pompous...

I clearly stated about 3 or 4 times in my post that it was specific to my state.

I think CWD, and the rest of the world knows each state is different.

IN EVERYTHING.

Stop patronizing us.

I'll be checking the local Barnes and Noble for that precious reference, too.

 

[Michigan CG]

Ok, so I'm trying to figure out how to determine the RE tax on residential properties........

EVERYONE PLEASE STOP. Assessment methodolgy varies from state to state.

Yup, here are some examples:

Illinois, taxes are based on 1/3 of "market value".

Iowa, Assessed value is supposed to be market value, but then residential is given a 49.234567% roll back (not the exact number)

Minnesota: Tax capacity = $150,000 X 1.5%, then 2% for everything over $150,000; then add that together to get tax capacity; then tax capacity X local rate; then taxable MV X market tax rate; then tax capacity X state tax rate; then add it all together......:wacko:

 

[Tom Eichholz]

FYI-A quickie ballbark rule of thumb for instant tax guestamites (like for estimating taxes on new construction) for most areas ("your mileage may vary") is generally around 1.5% +/- of total value. Or .015 x $500,000 (for a new house or existing house w/previous taxes unknown) = a $7,500 estimated annual tax bill.

 

[Michigan CG]

FYI-A quickie ballbark rule of thumb for instant tax guestamites (like for estimating taxes on new construction) for most areas ("your mileage may vary") is generally around 1.5% +/- of total value. Or .015 x $500,000 (for a new house or existing house w/previous taxes unknown) = a $7,500 estimated annual tax bill.

Sorry, but this is not true (maybe for your area it is). I have seen taxes from 1-7% of assessed value.

 

[Tom Eichholz]

Sorry, but this is not true (maybe for your area it is). I have seen taxes from 1-7% of assessed value.

Of Course, so have I...that's why I said "ballpark" and "your mileage may vary".

Everyone should contact their local Assessor's office for the local tax rates and do their own math. But I do appraisals in two States; Kansas & Missouri, and 1.5% usually gets me pretty close.