Transcript Tennessee Property Tax System
2009 Reappraisal
PADCTN.COM
George L Rooker Jr.
Property Assessor © Property Assessor, Davidson County, TN. All rights reserved.
Your house as seen by yourself…
Your house as seen by your buyer…
Your house as seen by your lender…
Your house as seen by your appraiser …
Your house as seen by your assessor…
THE TRUTH ABOUT ASSESSORS!
WE JUST SPLIT THE CHECK!
Larry
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We don’t set the menu .. We don’t set the prices.
We just want to be fair!
Steve Chuck
GUEST CHECK Lobster $30 Steak $20 Chicken $10 Total $60
Larry
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We don’t set the menu .. We don’t set the prices.
We just want to be fair!
Steve Chuck
GUEST CHECK Lobster $30 Steak $20 Chicken $10 Total $60
Why reappraise?
Since our last reappraisal in 2005, market values have changed, but not uniformly across the county. Reappraisal restores equity in values. Without it, property owners in a “cold” or depressed market area pay more than their fair share of the tax burden.
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How do we appraise?
We use accepted appraisal methodology.
• We analyze sales data in our market; • We use the cost, market and income approaches to value; • We comply with USPAP standards and State BOE guidelines; • We establish market value as of 1/1/2009.
Why reappraise now in an unstable market?
While we would prefer to complete the program in a stable market, we are obligated under a four-year plan approved by the State Board of Equalization to reappraise this year. We invested the first three years inspecting all 230,000 properties in the county, and we now are completing the final year of value analysis.
Tennessee Property Tax System
State Constitution establishes an
ad valorem
tax system.
Assessment function separate from Taxation function.
Assessment function assigned to Property Assessors.
Taxation function assigned to county/city legislative bodies.
State Comptroller’s Division of Property Assessments monitors assessment and State Board of Equalization hears appeals, sets rules, approves Certified Tax Rate.
Assessor identifies, lists, appraises, classifies all taxable property to achieve equity in values and prepares annual assessment roll.
In 1993, the State Board approved a four-year cycle for reappraisal for the major metropolitan counties.
County/City Mayor presents annual budget to county legislative body, which sets tax rate to apply to the assessment roll.
County Trustee takes the assessment roll and applies the tax rate to calculate taxes due; mails tax bills and collects the taxes.
How we consider market trends.
Since the reappraisal is being completed with the market in decline, we carefully considered the effect of these trends on our appraisals.
We analyzed sales ratio studies, median sales price reports, capital availability, sales volumes, market inventories, occupancy rates, unemployment rates, and other general economic data.
With approval of the State, we then modified our approach to give added weight to the most recent sales, allowing us to accurately reflect the value of property as of 1/1/09.
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2005 through 2008: almost ‘A Tale of Two Cities’ “It was the best of times; it was the worst of times.”
After the 2005 reappraisal, Davidson County enjoyed two and a half years of a brisk real estate boom with values peaking in mid-2007. 04/11/2006 4/21/2005 Appraisals were not updated during the boom period unless a change occurred by addition, damage or in type of use.
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2005 through 2008: almost ‘A Tale of Two Cities’ “It was the best of times; it was the worst of times.”
Then, the next year and a half, fewer sales occurred with only modest gains in values.
And during the last six months of 2008, prices began to fall.
Greater Nashville Association of Realtors $172,900 – 04/06 $154,000 – 01/05 $196,000 – 06/07 $165,000 – 01/09 $160,000 – 02/09
$181,650 – 6/07 $177,400 – 1/09 $168,750 – 12/05 $154,000 – median sales price at 1/1/05 Green Base Line for appraisals, which did not change from 1/1/2005 through 12/31/2008.
$181,650 – 6/07 $168,750 – 12/05 $177,400 – 1/09
Average Increase in Value
$154,000 – median sales price at 1/1/05 Green Base Line for appraisals, which did not change from 1/1/2005 through 12/31/2008.
CAVEAT: The percentages shown in each district represent an average value gain, less new construction, for all classifications, based on the most current analysis. Not all districts are finalized, but we do not foresee major changes from these figures.
A property may be above or below the average for the district, based on neighborhood market conditions. DARKEST RED: HIGHEST GAIN DARKEST BLUE: LOWEST GAIN
Reappraisal not designed to raise revenue.
Tennessee’s Certified Tax Rate law is intended to prevent a revenue windfall for the county after a mass reappraisal. It requires the tax rate be adjusted down to produce the same amount of revenue as the previous year.
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Certified Tax Rate Effect
At the CTR, taxpayers in hot market areas pay more, and those in distressed areas pay less due to the effects of equalization. Taxpayers in between, pay about the same as the prior year. The CTR lowers the tax burden for property owners whose values fall below the countywide average increase in values.
Effects of 2005 Reappraisal - Tax Rate Changes
Three Houses –Each appraised at $155,000 2004 Tax Rate: from 2001 thru 2004.
$4.58 2005 CTR: $4.02
2005 Final Rate: $4.69
$161,000 = +4% TAX BILL $1,775 TAX BILL $1,618 ’04 - $157 TAX BILL $1,888 2004 + $113 CTR + $270 $176,700 = +14% TAX BILL $1,775 TAX BILL $1,775 ’04 - 0 TAX BILL $2,072 2004 + $297 CTR + $297 $192,200 = +24% TAX BILL $1,775 TAX BILL $1,932 ’04 + $157 TAX BILL $2,254 2004 + $479 CTR + $322 Total Revenue: $5325 $5325 $6,214
All figures rounded.
Certified Tax Rate History After reappraisals in 1993, 1997, 2001 and 2005, the final rate was raised above the CTR, and all but the most distressed properties paid higher taxes.
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3 2 1 MAILING OF 2009 NOTICES WILL OCCUR IN APRIL IN THE ORDER SHOWN.
PADCTN.COM
Opening Screen for WebPro
Record Card – Check our records on your property and let us know of any corrections needed.
Methods for Review or Appeal INFORMAL REVIEWS Best Method: File a request online.
Talk to our phone center staffed by appraisers.
Call to set an office appointment with an appraiser.
Requests for informal review accepted until May 15 th .
FORMAL APPEALS Deadline to file appeal: June 19 th .
Hearing officers review, recommend action to MBOE.
Further step: an appeal to the State Board of Equalization.
Programs for seniors and disabled homeowners.
Tax Freeze Program Homeowners age 65 or older can “freeze” the property tax on a principal residence at a base year rate if their total income is less than $36,200 for the 2009 tax year.
Tax Relief Program Homeowners age 65 or older or totally disabled homeowners may qualify for tax rebate on $25,000 of the value of a principal residence if their combined income is under $24,790.
Disabled veteran homeowners, or their widows, may qualify for rebate on up to $175,000 value of their principal residence.
Tax Deferral Program Homeowners age 65 or older or totally disabled homeowners or a family group with more than one such person residing permanently in the principal residence may qualify for tax deferral. Income limit is $25,000 a year.
SUMMARY
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Reappraisal provides fairness in the property tax system by updating values to restore equity after 4 years of market changes.
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The Certified Tax Rate Law is intended to keep governments from getting a revenue windfall as a result of a mass reappraisal.
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We use universally accepted appraisal methodology and we consider current market trends and conditions.
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Appraisals must reflect values as of January 1, 2009.
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Please visit our website to verify the data on your property; if you disagree with your appraisal, please file online for a review.
VISIT PADCTN.COM FOR MORE INFORMATION
Our goal is to be:
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Because we value Davidson County!
“Fair & Equitable” is a copyrighted publication of the International Association of Assessing Officers.
2009 Reappraisal
PADCTN.COM
George L Rooker Jr.
Property Assessor © Property Assessor, Davidson County, TN. All rights reserved.